Crisis communication is an essential pillar of any organization, especially when it comes to public relations. When a PR crisis strikes, your ability to effectively respond and manage the situation can make or break your company's reputation.
You might remember the "chaos" that ensued at OpenAI when the artificial intelligence tool's board sought to remove CEO Sam Altman over artificial intelligence safety fears. The negative companywide response to the decision resulted in Altman being reinstated. However, poor crisis communication meant OpenAI's reputation was crushed.
As the OpenAI example shows, every company should have a crisis management plan in place.
The problem for most companies is that it can be overwhelming to know where to start.
To help you kick things off, we've pulled together a few real-life examples of crisis management plans in action.
By examining these, you'll gain insights into the best ways to handle a business crisis.
A Company's Response to an Unexpected Crisis
We've packed this article with a variety of major crisis examples from all sorts of industries.
Our examples range from stories of well-played and effective crisis management focusing on careful communication, through to instances where organizations made some mistakes in responding to a negative event, but then changed course.
As we work through these case studies, keep in mind that transparency, swiftness, and empathy are all important when tackling an unexpected event.
We encourage you to take note of these crisis communication examples and the strategies employed by these organizations. Think about how they could be applied in your own company.
This homework will leave you better prepared to manage any unforeseen challenges that may come your way in the future.
First Steps in Creating a Crisis Management Plan
In this guide, we'll look at the specifics of crisis communication and how to develop a crisis management plan. We'll also look at some effective crisis management strategies and successful crisis communication examples.
We'll examine how an organization can respond effectively when a crisis occurs, as well as identify potential stumbling blocks in the crisis management process.
Finally, we'll touch on how successful crisis management and sturdy leadership can patch a company's reputation back together again in the wake of a PR crisis.
In this article
What is Crisis Communication?
How to Develop a Crisis Communication Plan
Effective Crisis Management in Action
Further Case Studies in Crisis Response
Communication Tactics During a Crisis
The Role of Social Media in Crisis Management
Legal and Ethical Considerations
Reputation Management Post-Crisis
Crisis Leadership and Visibility
Measuring Crisis Communication Effectiveness
Final Thoughts on Crisis Communication
What is Crisis Communication?
Crisis communication should always be a specific and important part of your crisis management strategy.
We can break it down by simply calling it a plan for your internal and external communications during a PR crisis.
Your communications should keep your entire team of staff, external stakeholders, and customers informed, while taking into account the potential impact on your organization's reputation and operations.
It's important to have a plan for communications within your overall crisis plan because, should the worst happen, you'll want to be confident that you can respond quickly and effectively.
In order to do that, you'll need to identify the key messages, then coordinate your communication of those messages across a variety of channels. Those channels will probably involve everything from internal emails to press releases and social media - and the information will need to be tailored for different audiences.
Strong communication skills in the midst of a crisis are essential for a variety of reasons. As well as keeping everyone informed, it will protect your brand, reduce employee panic, and maintain customer trust.
Don't forget that effective crisis communication is an ongoing process and your response should allow for some flexibility. You may need to update your messages, communication channels, or strategies as the crisis unfolds.
How to Develop a Crisis Communication Plan
Now that we understand why crisis communications is an important part of your crisis management plan, let's look at what the plan should include.
Key Components of a Crisis Communication Plan
Crisis communication plans aren't that complicated. They just need a little work on structuring, so you can use it confidently whenever you need it.
In fact, it's possible to break the creation of most good crisis communication plans down into a simple step-by-step process.
Let's take a closer look:
Identify your audiences: Determine who needs to be informed and updated in the event of a crisis. This will most likely include internal stakeholders (e.g., employees, executives) and external ones (e.g., customers, media, regulators).
Identification of potential crises: Identify potential risks that you could realistically imagine disrupting your organization or damaging its reputation.
Stakeholder mapping: List the stakeholders you need to communicate with during a crisis, such as employees, customers, and the general public.
Develop key messages: Using templates that can be adapted, craft clear and concise messages that address the concerns of each audience and provide relevant information about the situation.
Designate spokespersons: Assign specific individuals to act as the official representatives of your organization during a crisis. Make sure they have media training, as well as training in crisis communication skills, and are kept up-to-date during any escalating situations.
Be smart with your communication channels: Choose appropriate platforms for communicating with your target audiences. There's no point issuing a statement on X, for example, if your audience mainly resides on Facebook.
Monitor responses: By using methods like social listening, you can keep an eye on how your organization's messages are being received. You can then adapt your crisis communication and ensure it's better next time.
Tackling this step-by-step process will help lay the foundation for a rock solid crisis management strategy, where negative criticism is addressed without panic.
In a larger organization, you might choose to put together a crisis management team to tackle this to-do list, and assemble in the face of any escalating crisis.
Role of Crisis Management Teams
Crisis management teams are the people in your company who will put your crisis communication plan into action. It's possible you might be the one who leads this, or you might be the one who delegates responsibility.
When a crisis strikes, a crisis management team should be ready to jump into action.
First, they need to assess the situation and understand what's gone wrong. Has your company made a small faux pas on Instagram, or is your product a health and safety risk?
Next, your team will activate the coordinated response that you've planned for. This starts with communicating your action plan with stakeholders – whether investors or other communications team members – to ensure everyone knows what's happening. From there, they will launch a public response to the crisis.
The team will then monitor the situation, field questions from customers and media outlets, and evaluate the next steps.
Once the crisis is over, your team will then need time to reflect on worked well and what didn't, and create reports that inform your plan for the next crisis.
By developing a comprehensive crisis communication plan and establishing a skilled crisis management team, your organization will be well-equipped to navigate any crisis more effectively.
Remember to regularly review your plan to address new potential risks and make sure it's up-to-date.
Effective Crisis Management in Action
When dealing with a crisis, clear communication, quick decision-making, and a strong plan can make all the difference.
In this section, we will discuss some successful crisis management examples that highlight these virtues.
Successful Crisis Management Examples
1. Johnson & Johnson's Tylenol Crisis (1982): Four decades ago, the world was horrified when seven people from the Chicago area died due to taking a Tylenol painkiller that was found to be laced with cyanide.
The case was never solved.
Manufacturers Johnson & Johnson (J&J) were quick in their PR response. At a company cost of millions of dollars, J&J pulled all its products from the shelves and collaborated with law enforcement to quickly track down any other tampered bottles.
Following the crisis, J&J launched a public safety campaign, introduced tamper-resistant packaging that is still in use today, and successfully regained its market share.
This was crisis management at its best, before modern-day crisis management technology was available.
Their transparent communication and quick action undoubtedly saved lives, and now serves as a benchmark for effective crisis management.
2. Starbucks' Racial Bias Training (2018): Mega corporations like Starbucks encounter plenty of crises. In 2018, the company faced arguably its biggest for a decade.
Two black men were filmed being arrested for supposedly trespassing at a Philadelphia Starbucks. What actually happened was that they sat at a table, waiting for a colleague ahead of a business meeting, before ordering.
The police were called and the two men were arrested. Video footage of the incident went viral.
Starbucks took responsibility for the incident and closed 8,000 stores in the U.S. for an afternoon to conduct racial bias training for their employees. A $200,000 fund was set up to help young entrepreneurs, which the two men supported.
Starbucks also updated their policies and encouraged dialogue about inclusivity.
This incident illustrates the importance of demonstrating accountability and learning from mistakes in managing a company's reputation during a crisis.
How We Can Learn From Previous Case Studies
As we can see from both of these crisis management examples, clear communication combined with decisive action and transparent handling of the situation can help protect and even strengthen a brand's reputation during a crisis.
Whether it's a product recall, a scandal, or supply chain issues, learning from these examples can help guide your response in the midst of a challenging situation.
Further Case Studies in Crisis Response
Let's think a little more about how a company should respond to a crisis in the heat of the moment.
While a response should come quickly to avoid further damages and a spiraling media crisis, that response should also be carefully considered.
This is why both having a crisis management plan in place and using it to stay cool under pressure are both important.
Brand Crises and Recovery
When brand crises occur, you must act quickly and efficiently to protect your company's reputation.
Let's look at another real-life example: Consider the United Airlines incident in 2017, when a passenger was forcibly removed from an overbooked flight to make space for airline staff transfers.
Videos on social media showed the man being dragged through the aisle of the plane by security personnel, blood visible on his face, fellow passengers aghast. It was reported at the time that the airline had tried to 'bump' the passenger to the next flight, but the passenger had refused saying he was a doctor who had patients to see the next day.
The company initially defended their actions, causing immediate and intense backlash from the public.
United Airlines later backtracked by issuing a sincere apology and made policy changes to prevent similar incidents from happening again.
We can learn from such incidents by taking the following steps in a brand crisis:
Acknowledge the issue: Admit that a mistake was made and take responsibility.
Apologize: Offer a sincere and genuine apology to those affected.
Take action: Implement changes to address the issue and prevent it from happening in the future.
Public Health Emergencies
In public health emergencies, clear communication is critical to keep people safe and informed.
For example, during the COVID-19 pandemic, healthcare facilities faced numerous challenges related to communication.
In this case, the situation was rapidly-evolving, and it was crucial to establish a transparent and consistent communication plan to share public safety information.
A few examples of essential communication strategies in public health emergencies include:
Regular updates: Provide accurate, up-to-date information on the situation and the actions being taken.
Collaboration: Coordinate with local and international health organizations to share information and resources.
Audience-targeted information: Tailor messaging to different stakeholders, such as the general public, healthcare professionals, and policymakers.
Environmental and Natural Crises
In times of environmental and natural disaster crises, efficient crisis communication can save lives and minimize damage.
Take the Californian wildfires. Public safety is first priority and so it's crucial to provide clear instructions and timely updates to the public. Authorities in the state cannot reply on mass media or reverse-911 calls to evacuate areas under threat of wildfires. They therefore need to use mass notification systems, like ReGroup, to deliver messages fast.
Effective communication tactics during natural disasters include:
Evacuation information: Clearly indicate evacuation routes, shelter locations, and any potential hazards. This can be done before disasters strike.
Social media updates: Use platforms like X and Facebook to share real-time information and respond to concerns, alongside mass notification systems.
Collaboration with local authorities: Work closely with emergency response teams to ensure coordinated efforts and accurate information sharing.
Communication Tactics During a Crisis
As we've seen above, there are some key communication tactics that can make or break a company's response to a crisis.
Let's take a closer look at those areas.
Internal Communications
When handling a crisis, it's crucial to prioritize internal communications.
This way, you can be confident that everyone in your team is kept in the loop.
Establishing clear lines of communication with your team not only keeps everyone informed, it also fosters a unified front in dealing with the crisis at hand.
Consider the following methods to ensure effective internal communication:
Designated point person: Assign a specific individual or team to handle crisis communication, who can efficiently relay messages and updates to all relevant parties.
Transparent updates: Keep your team informed with accurate and up-to-date information about the status of the situation. This includes any changes in company strategy, stakeholder input, or public sentiment.
Feedback channel: Encourage open and honest communication by creating a safe space for employees to provide their insights and voice their concerns regarding the crisis.
External Communications
External communications play an equally significant role in handling a crisis.
Bringing that transparency and trustworthiness to the wider public, including your key stakeholders, can do wonders to salvage your organization's reputation and help mitigate any damage.
Focus on concise and effective communication through the following methods:
Social media channels: With their widespread use and rapid dissemination capabilities, platforms like X, Facebook, and LinkedIn have become essential tools for crisis communication.
Press releases: Provide clear and accurate information to the media regarding the unfolding situation. Regularly update your company website, and make sure that key stakeholders are provided with timely and appropriate information.
Tracking public sentiment: Use social listening tools to track public perception and respond accordingly. Listen and adapt your message to calm concerns and address any confusion that may arise.
The Role of Social Media in Crisis Management
As we hinted above, social media is likely to come high in your priorities of external communications.
Here's how that might look in action, along with a real-life example of social media taking center stage in crisis management.
Monitoring and Response Strategies
Should you need to put your crisis management plan into action, your social media team will play a crucial role.
Before a full-blown crisis can even take hold, your social media team should be monitoring the relevant platforms for potential issues. This will help you stay ahead of any crises that might be brewing.
They need set alerts that trigger when reputational crises happen. This can be done through social listening, or might require coordination with your customer service team to understand what types of complaints are coming in via social media.
Your team should also have a response protocol to correctly and consistently address situation. It's no good having multiple people shooting off messages on social media at once. Communication consistency is vital.
Finally, any response strategy requires regular training so employees know how social media tools work in a crisis, and the script they need to stick to.
Case Example: The Tide Pod Challenge
In 2018, the Tide Pod Challenge cropped up on various social media platforms. This dangerous trend saw teens ingesting laundry detergent pods, resulting in serious health risks.
The manufacturer, Procter & Gamble, faced a crisis as their product was misused in a highly-publicized manner. The brand was under threat.
The company acted by deploying a rapid response statement that highlighted the problem and urged people to stop. Procter & Gamble then enlisted celebrities like Rob Gronkowski to launch a social media video campaign that discouraged participation in the challenge.
The product was then redesigned to make it more child-resistant and less appealing to young people.
These three actions effectively saved Procter & Gamble's reputation.
Legal and Ethical Considerations
As you might have guessed from the case studies above, your legal team will also be an important part of your crisis management team.
To prevent any further escalating PR disaster, they should be kept fully up-to-date in any crisis situation.
Before we proceed, let's look at those legal and ethical parts of the crisis puzzle in a little further detail.
Immediate Legal Action and Compliance
When handling a crisis, it's crucial for you to act quickly to address any legal and regulatory aspects of the situation.
This can involve working with your legal team to identify the appropriate course of action, such as contacting relevant regulatory bodies or filing necessary reports.
In some cases, this may also involve taking immediate legal action, like obtaining a court order, to protect your organization's interests.
It's therefore important to always have a lawyer available when dealing with crises. They can help you assess the potential legal ramifications and liability issues, communicate better, and take the necessary corrective measures that comply with regulations and laws.
Upholding Company Values
Crises are a PR disaster for company values. If you've based your brand on one thing, but the crisis exposes the opposite, then your company might not survive the negativity that follows.
It's vital, then, to adhere to your public company values when you set them out. This is the first layer of protection for avoiding a crisis.
For example, if a baseball team claims it is "going green" and ending its use of single-use plastic cups, they better actually do it! Otherwise fans will post on social media how the team isn't meeting its own values and pledges.
Companies therefore need to be transparent with their values and, when a crisis hits, show accountability and compassion.
Reputation Management Post-Crisis
It will probably feel like a huge relief when the crisis is finally over. However, your work is not done yet.
In the aftermath of a crisis, you'll need to work on restoring the trust of your customers and other concerned citizens. You'll also want to focus on building your brand reputation back up to its previous levels.
Restoring Public Trust
After a crisis, your organization's reputation is likely to have suffered. It's crucial to focus on rebuilding public trust.
Start by acknowledging the situation and expressing genuine concern for those affected. This will demonstrate your organization's responsibility and commitment to resolving the issue.
Transparency is critical in restoring public trust.
As you did during the crisis, keep your stakeholders informed by providing regular updates throughout the recovery process.
This can be done through press releases, social media updates, and emails.
Continue to remain honest and transparent in your communication. Providing clear information will help you regain public confidence.
Creating a revamped corporate social responsibility (CSR) program could be another great way to regain public trust.
By prioritizing community engagement, ethical business practices, and social impact, your organization will showcase its dedication to making a positive difference beyond just profits.
Rebuilding Brand Sentiment
Rebuilding your brand's reputation requires a strategic approach. This involves addressing the crisis and taking necessary steps to ensure it doesn't happen again.
Here are some steps you can take to positively impact your brand sentiment:
Issue an apology: Accept responsibility for the crisis. A sincere, well-crafted apology can help minimize negative public opinion and foster customer loyalty.
Communicate corrective actions: Clearly outline the measures your organization is taking to address the crisis and prevent future issues. Share this information through press releases, newsletters, company websites and social media.
Demonstrate accountability: Implement changes to the organization's policies and practices to show that you've learned from the crisis and are committed to preventing similar situations in the future.
Monitor and evaluate: Continuously assess public opinion and customer feedback to track the effectiveness of your reputation management efforts and to identify areas for improvement.
Crisis Leadership and Visibility
In this section, we'll return to that United Airlines case study to think about the role of leadership in the midst of a crisis.
Case Example: United Airlines Incident
When a crisis unfolds, a company's leadership should be visible and proactive.
Let's take the United Airlines incident as a case study to better understand the significance of effective crisis communication and leadership visibility.
As we mentioned above, United Airlines faced a public relations crisis in 2017 when a video showing a passenger being forcibly removed from his seat on an overbooked flight went viral.
The company's initial response failed to quell the outrage, highlighting the need for strong leadership and swift action.
Key Messages and CEO's Role
During a crisis, a company's CEO will need to step up and take responsibility.
In the case of United Airlines, as soon as CEO Oscar Munoz made a public appearance and outlined the company's plan to address the issue, the public perception began to shift.
By providing clear key messages, Mr. Munoz let the public know that concrete actions were being taken to resolve the situation and prevent it from happening again.
His response followed a simple three-step structure:
Apologize: Munoz apologized not just for the incident, but also for not responding adequately and promptly in the first instance.
Take Responsibility: The CEO acknowledged the company's shortcomings and admitted the need for a thorough investigation and improvement.
Outline a Plan: Munoz laid out a plan with specific steps, such as revising the overbooking policies and improving internal training.
Measuring Crisis Communication Effectiveness
When the storm of the crisis has finally passed, it's time to think about how your company responded when the going got tough.
This will help you gauge the effectiveness of your crisis communication. You want to conduct some analysis to be sure that you are responding effectively and implementing the right crisis management strategies, otherwise your brand reputation will suffer.
Let's explore some key indicators that can help you measure success.
Reaction Time
How quickly did you acknowledge and respond to the crisis? Swift action is crucial in minimizing damage.
You can measure this aspect by considering the time taken from the onset of the crisis to when you issued your first official communication.
Message Clarity
Was your communication clear, concise, and informative? In a crisis, your messaging should remain consistent across various channels, whether it's social media, the company website, or emails to stakeholders.
Track metrics such as impressions, shares, and feedback from your target audience to analyze your message's clarity.
Stakeholder Engagement
Engaging your stakeholders helps maintain trust and confidence in your brand.
Monitor their reaction to your communication, both supportive and critical, through comments, social media mentions, and email correspondence.
Positive stakeholder feedback will suggest that your message was well-received.
Media Coverage
Assess the sentiment of media coverage surrounding your crisis response.
Determine if the coverage is positive, neutral, or negative, and if your message was portrayed accurately. You could use social listening tools to automate this process.
Remember: Miscommunications or a stumbled narrative can harm your brand reputation.
Final Thoughts on Crisis Communication
So, there you have it. All the steps you need to follow to create a robust plan for company communications in the midst of a crisis, and some fascinating examples of crisis communications in action.
While we hope you won't find yourself at the center of a brand crisis anytime soon, we hope you also feel more confident that your company could weather such a storm should it happen.
