Crisis management is more necessary for businesses now than it's ever been, thanks to the internet's ability to accelerate and amplify problems because you even know there's an issue.
Social media and the 24-hour news cycle means a brand is never more than a few hours away from a public relations disaster.
It happened to Balenciaga in 2022, when the teddy bear company lost about 100,000 Instagram followers and suffered major reputational damage when a new ad campaign appeared to show kids holding bears in bondage gear.
Most companies won't endure through this sort of crisis, but there's much that can be learned from these incidents.
From product malfunctions to embarrassing branding, employee scandals and customer communication errors – there are a lot of potential crises to be aware of.
The way to deal with this is to establish a crisis management plan that responds quickly and effectively to issues. Being proactive is key to resolving issues, but you can still achieve a good crisis response when your team is in 'reactive move'.
Balenciaga didn't do this. It took a week for the company to accept responsibility for the disastrous campaign and start to make amends.
This guide outlines how you can create crisis management plans and implement them properly, so you don't become the next Balenciaga.
What Are Crisis Management Strategies?
Crisis management strategies are the roadmaps you create to pull your brand successfully out of a public relations predicament. There are plenty of tough situations that could hurt your business, from faulty products to employee scandals.
Strategic planning for a crisis means you can get ahead of the game and deal with small issues before they become overwhelming. You can also:
React quickly when trouble hits
Protect your reputation
Keep your business running smoothly
Maintain employee and customer satisfaction
Good crisis management strategies mix being ready ahead of time with thinking on your feet. We'll get into proactive and reactive strategies later in this guide.
Crisis Management Preparation: Basic Steps
Set up a crisis team
Create clear communication plans
Practice how you’ll respond
Learn from past problems
Remember, your strategies should be flexible enough to handle different types of issues. They might include:
Social media response plans
Employee safety procedures
Customer communication guidelines
By having solid strategies in place, you’re better prepared to face challenges head-on. You’ll be able to make smart choices under pressure and keep your business on track.
In this guide:
Why Having a Crisis Management Strategy Is Essential for Every Business
Key Components of a Successful Crisis Management Strategy
Proactive Crisis Management Strategies: How to Prevent Potential Crises
Reactive Crisis Management Strategies: Steps to Take During a Crisis
How to Control the Narrative
Real-world Examples of Effective Crisis Management Strategies
Why Having a Crisis Management Strategy Is Essential for Every Business
Let's start this guide by looking a little closer at why effective crisis management is crucial for a business.
You can't predict when a crisis will hit your business, but you can be prepared. A crisis management strategy is your lifeline when things go wrong. After all, it's easier to follow template response procedures that you've practiced, rather than scrambling to address spiraling issues.
If you're unsure whether to invest time and effort into a crisis management plan then just think about the risks. How long has your company been growing its brand, and how quickly could it all disappear?
A brand's reputation could diminish overnight. Angry customers might flood social media with complaints. News outlets could run damaging stories. Your product might cause injury or illness. All of this can lead to serious financial losses.
When problems hit, you're going to have to trigger a crisis response. So why not be prepared and get yourself ready for unforeseen disasters?
But What About the Cost?
Some will argue money is a barrier to preparing an organization's response. Well, you might endure a far bigger financial loss if you don't invest in a plan.
It's also not just about money. A crisis can carry other costs, such as:
Disruption to your operations
Confused and anxious employees
Damaged relationships with suppliers and partners
Legal troubles
How much would all that cost you, all because you didn't invest in a crisis management plan?
What Are the Benefits of a Crisis Management Plan?
We've just looked at the negatives to not having a crisis management plan. Now let's explore the benefits.
Strong crisis management strategies help you bounce back faster. They give you a clear plan of action when every second counts, which is incredibly useful in an era of 24/7 news and social media. Brands can often look uncaring if they don't respond to a crisis immediately.
Having a strategy and delivering it seamlessly shows you care. It sends a message to your stakeholders that you're responsible and forward-thinking, which can actually boost trust in your brand, even during tough times.
Airlines do this all the time. When an airport is closed due to security or weather issues, it's the airlines that often have to deal with the crisis situation.
Remember, crises don't discriminate. They can affect businesses of all sizes and industries. That's why you need to be ready. A solid strategy is your best defense against the unexpected.
Key Components of a Successful Crisis Management Strategy
Your crisis management strategy is there to help you navigate challenging situations. Some will be expected. For example, a sports team needs to be ready to respond when new investors buy into the team. A government needs to prepare its communication channels before a big event, or a natural disaster.
Let’s explore the essential building blocks you’ll need to create a robust plan –– whatever it's for.
1. Risk Assessment
A robust risk assessment forms the foundation of any plan. Start out by identifying potential threats and vulnerabilities your organization might face. You can then start to simulate various scenarios and understand where your company's risk exposure is greatest.
2. Crisis Team
Assembling a crisis response team is next. Choose key personnel and clearly define their roles. This ensures everyone knows their responsibilities when a crisis hits. The best crisis management team needs to have diverse skills - from team leadership and communication to data analysis and human resource management. Your response strategies are only as good as the expertise in your team.
3. Planning Everything Out
Your top team needs to create a crisis communication plan that relates to your risk assessment and allocates roles. It needs to factor in various crisis scenarios, outline procedures for each one, and set realistic targets. This way you can oversee crisis responses in real time and reflect on your emergency response afterwards.
4. Using Tools to Get Ready
Finally, your crisis management plan needs to incorporate software that can help you spot problems and deal with them. Media monitoring and crisis management tools are ideal for tracking conversations and responding effectively during a public relations crisis. Use them to develop pre-planned steps for different types of crises, such as cyberattacks or operational failures. This allows for quick, coordinated responses when time is critical.
Remember, a crisis management plan is a living document. Regular updates and practice drills will keep your team sharp and ready to face whatever comes your way.
Proactive Crisis Management Strategies: How to Prevent Potential Crises
There are two halves of any crisis management plan. The first is the proactive steps you can take to stop a small problem getting bigger. The second is what to reactively do if a crisis situation emerges.
Let's start by looking at proactive planning. This is about setting up early detection systems to monitor for issues. Using a media monitoring tool like CisionOne is a natural first step.
This is where you can conduct regular risk audits, and stay on top of industry trends and changes that could impact you.
You should also build and maintain strong relationships with stakeholders, with open communication channels.
Create detailed contingency plans for likely scenarios and build on this by practicing your response to natural disasters, public relations issues, and other potential crises.
Proactivity also means investing in staff so they are ready to go when a problem strikes. By spending a little time and effort here, you can create a robust crisis management team that is ready to tackle any issue.
Reactive Crisis Management Strategies: Steps to Take During a Crisis
Planning is great, but unexpected crises emerge in all industries. If you need to be reactive, then your first move is to assemble the facts of what's happening and bring your crisis management team together.
Allocate jobs to team members and be sure you're clear and honest in all your communications. Don’t hide info or make excuses.
You need to be doing this as you're pulling in more information about the crisis at hand.
You can template your initial crisis communication steps, even for unforeseen issues.
Once the initial problem is acknowledged, it's time to work through your response. You might still be working reactively, but that doesn't stop you assessing data points, documenting things as they unfold, communicating with others, and staying calm.
Eventually you will find a route out, perhaps with the aid of your crisis management plan, perhaps not. The plan is there to provide you with a template but can't predict every situation.
Remember, each crisis is different. Be ready to adapt your plans as new problems come up. With quick action and clear communication, you can weather the storm.
How to Control the Narrative
Brands often struggle with controlling the flow of information during a crisis, especially online. Social media activity is so fast that rumors spread often quicker than the truth.
You therefore need a bullet-proof communication strategy that goes out on all your social media channels, to your media contacts, and to any other stakeholders.
Start by informing these stakeholders, such as employees and shareholders. They’re your frontline ambassadors. Give them clear, consistent messages to share. This helps prevent rumors and keeps everyone aligned.
Then look at external communication. You might need to hold a press conference, but it's likely you'll need to release a statement more quickly than that.
Your first statement should always focus on you acknowledging the issue and assuring everyone you have it under control. You can template this message and have it ready.
Of course, you also need to monitor social media platforms closely. Be willing to correct misinformation and track what’s being said about your crisis online and in traditional media. Correct false information swiftly with facts.
You may also need to choose a spokesperson to deliver messages to the media. They should be well-trained, credible, and able to handle tough questions under pressure. A stressed-looking executive who isn't fully briefed and looks like they want to leave the room is not a good option.
Remember, your goal is to maintain trust with your audience. Be honest, empathetic, and solution-focused in all your communications.
Real-world Examples of Effective Crisis Management Strategies
There are plenty of brands who have endured public relations crises over the years but very few come close to Johnson & Johnson's response to the Tylenol murders. In 1982, people started mysteriously dying after consuming Tylenol. Johnson & Johnson withdrew all its products, was transparent in its communication, and helped authorities get to the bottom of it.
The result was a new safety procedure for pharmaceuticals, which now must have a tamper-proof cap before being sold.
A different challenge but nevertheless just as serious, in 2015 Chipotle was hit with E. coli outbreaks in multiple locations.
They temporarily closed affected restaurants and overhauled food safety procedures. The burrito chain launched a PR campaign to rebuild customer confidence, offering free food and running ads explaining new safety measures, and retraining staff.
It worked, and sales recovered within two years. Of course, it also helped that Chipotle was a big company with millions of dollars to throw at the crisis.
The above examples both deal with products. In 2017, Equifax experienced a modern-day data breach that affected 147 million people. Unlike Chipotle or Johnson & Johnson, Equifax didn't move fast.
The credit bureau's initial response was so slow and confusing that it caused outrage across the country. But, in a smart move to remove their crisis management efforts, the company eventually:
Created a dedicated website for affected consumers
Offered free credit monitoring
Waived fees for credit freezes
Hired a new Chief Security Officer
Equifax managed to eventually regain trust and stabilize the business, despite its initial missteps. Uber also dealt with a cyber attack, but in a far more robust way.
The key takeaway? Act fast, follow your crisis management plan, be transparent, and put customers first.
Frequently Asked Questions
Crisis management strategies involve key steps and considerations for businesses of all sizes. Effective preparation, communication, and adaptability are crucial for successfully navigating unexpected challenges.
How can a business effectively prepare for potential crises?
First, identify possible risks and create detailed response plans. Train your team on crisis procedures, including your communications response. Use software to detect crises before they arise, and ensure there's a good level of diverse expertise on your team.
What role does public relations play in managing a crisis?
Public relations shapes your message and protects your reputation. It helps you communicate clearly with internal and external stakeholders. Your public relations lead can advise others on the best ways to respond and can be your company spokesperson.
What are some key principles behind successful crisis management case studies?
Quick response times are critical. Be transparent and take responsibility, while showing empathy for those affected. Have a clear action plan to address the issue and be ready to learn from mistakes and make improvements. Keep stakeholders informed throughout the process. This is all part of good crisis management.
How can small businesses tailor their crisis management strategies to their unique needs?
Focus on your most likely risks. You might not be able to cover everything, so start with the biggest ones. Create simple, practical response plans to each one. Designate key decision-makers and double up on tasks if you need. Build strong relationships with local media and community leaders, so that your crisis management plan is easier to execute. Use social media for quick updates and be ready to adapt your approach as needed.
