Crisis Communications 101

Developing an effective, strategic crisis communications plan is essential

People facing a crisis are often left speechless or unable to think straight. Companies are no different.

Effective communication and clear thinking are necessary in a corporate or brand crisis, which could result from an economic downturn, competitive pressures, declining sales or poor market performance. 

In today’s fast-paced business world, companies that are unprepared for crises will be left behind. Crisis communication management planning is no longer a luxury, it is essential.   

Exploring "what if?" scenarios can allow companies to better manage expectations and more effectively cope during stressful times. Preparation can reduce panic, and provide tools and strategies for taking control of a situation. Having a plan in place facilitates quick, effective action. 

It is essential for customer-centric organizations, specifically marketing agencies, to be proactive when it comes to crisis preparation. Preparing for bad times is as critical as preparing for a  product launch or new business initiative. Al and Laura Ries, in their book “The Fall of Advertising and the Rise of PR,” say that focusing on corporate reputation and crisis management goes hand in hand with brand-building.

When designing a crisis communication plan, priorities should be customer retention, loyalty maintenance and brand protection.

There are some key steps to follow throughout this process.

Set up a task force— The team to formulate a crisis communication strategy should include a customer front-liner, marketing leader and production or operational team leader. 

Develop a strategy — Design a crisis communication strategy that is aligned with  brand representation, customer strategy and reputation management.

Keep brand focus — Manage public perception by establishing and maintaining a clear and emphatic brand voice, and work to create positive publicity.  The media is a powerful tool that should be neigther taken lightly nor ignored.  An important lesson can be learned from Coca-Cola’s introduction of New Coke in 1985. The result was a publicity success, but a product disaster because the company failed to adequately position the brand. “Less than three months later, Coca-Cola recognized its mistake and backtracked faster than Michael Jackson doing his moonwalk,” the Rieses write in their book. 

CEO, front and center — Top executives represent the brand, set the tone and build confidence in the company for employees, customers and media. CEOs should be involved at every step of the planning process and act as a crisis spokesperson. A good example of the value of an out-front executive was Microsoft’s Bill Gates during his company’s anti-trust crisis. 

Identify roles — Designate individuals to take charge of the planning, prevention and crisis communication implementation phases. Anticipate and address potential conflicts between corporate communication and legal teams. Ensure that teams present a unified message and resolve differences quickly. If needed, bring in an outside specialist to facilitate the process.

The weakest link — Identify potential company weaknesses and develop strategies to mitigate possible damage to  brand image and identity during a crisis. 

Involve employees —Employees, especially those in frequent contact with customers and other businesses, are on the front line of crisis management. They need to be given the tools and empowerment to confront problems before they escalate. At the same time, they can act as a crisis early warning system.

Keep employees informed — In times of crisis, ensure that the company's external position is shared with employees to build confidence, reassurance and trust. As Terry Lundgren, chairman, president, and CEO of Macy’sputs it:  "Theonly way to address uncertainty is to communicate and communicate. And when you think you’ve just about got to everybody, then communicate some more." 3M’s George Buckley emphasizes the need to assure employees that the CEO has faith in them and they will not be blamed for circumstances beyond their control, such as the state of the economy. “When they’re battling the marketplace, they need to know you will support them,” he says

Communicate strategically — A clear communication strategy across all channels is the key to successful execution and resolution. When, how, and what is communicated, and with whom, is essential to maintaining a positive brand perception.
In the June issue of McKinsey Quarterly, Sheila Bonini, David Court and Alberto Marchi write:  "In this more complex world of influence strategy, no single kind of approach is likely to be sufficient to deal with fast-moving situations. Companies must instead initiate a multidisciplinary, cross-functional effort that can quickly identify reputational issues and plant responses in broader strategy, operations, and communications." 
 
Stakeholder engagement — Crafting a bulletproof communication program can go a long way toward earning the trust of shareholders in times of crisis.  Such a program should have three components: T
 

1. Fact finding and information gathering  — A rich understanding of key stakeholders is key to differentiating between what you know and what you think; for example it is not only important to find out product preferences but also the political attitudes of consumer groups.
2. Setting priorities — It is important to understand what actions matter most to stakeholders. Achieving that understanding might require a great degree of transparency about corporate operations or strategies.
3. Expand approaches ­— Influence stakeholders through techniques that go beyond traditional communication approaches, with an emphasis on two-way dialogue. With the skyrocketing growth of social media, communication professionals need to get up to speed with developments sooner rather than later.  Sometimes a credible third party can be an effective voice for a company. For example, a pharmaceutical manufacturer should embrace and know how best to utilize a supportive statement about one of its products from a government agency at a time when potentially damaging rumors are circulating. 

Consistently, credibility —Employees should get the same information as the company spokesperson.  Consistency and credibility in communications can greatly minimize potentially damaging rumors.
 
Keep the end in sight –­ Remember, the crisis will eventually end. Think ahead to assess where the company wants to be when it returns to business as usual. Anticipate reactions by the media and others and be prepared to respond.
 
Focus on the customer — Crisis survival ultimately hinges on customer affiliation with the brand. Enhancing the customer-brand relationship will enable the company to not only survive, but thrive. American companies faced a lot of tough times in Egypt, at a time of US products boycott, P&G made sure to communicate to all its stakeholders and customers, how it is made out of Egypt and by Egyptians. This message came out extremely powerful and helped the company sail through the rough times and come out stronger. 
 

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This article appeared in the Business Monthly Magazine which is published by the American Chamber of Commerce in Egypt.