Like a good Boy or Girl Scout, it pays to be prepared. Being prepared to deal with a crisis can make or break a business. That's why it is important to formulate a disaster plan.
A disaster plan identifies the most likely crisis scenarios for a company or business, and outlines appropriate responses.
For example, a typical crisis may be weather-related. The degree of response will depend on how your business is affected. The impact can range from the loss of electricity to the destruction of a key operational facility or the death of employees. All potential levels of damage must be identified, and methods of ensuring continued business operations explored.
Another potential crisis is workplace violence. Suppose the estranged husband of an employee shows up in your lobby, waving a gun, demanding to speak to his wife. A disaster plan would identify the appropriate responses, including methods of retaking control in the reception area, preventing the gunman from entering offices and injuring employees, addressing potential hostage situations, evacuating or relocating staff, continuing or suspending operations, and dealing with the media.
Disaster plans should be created by brainstorming with members of key operating divisions, including human resources, information technology, communications and marketing, customer service and employee relations.
During this process, a crisis response team is formed. The team will be responsible for implementing the disaster plan should a crisis occur.
The plan should address the following issues:
. The role of the response team during a crisis. What will be the responsibility of each crisis team member during the crisis and subsequently, damage assessment? What will be the role of officers and executives? Do certain crises warrant a reduced level of team or executive involvement?
. Communication. How will team members be notified of the crisis and called into action? Who will serve as the company spokesperson? What communications vehicles will be used with staff, customers, the media, vendors and other key business contacts? In what order of priority will each group be contacted? (Note that the selection of spokesperson is extremely important. The spokesperson must remain calm and focused throughout the crisis. Not every CEO has the ability to respond appropriately and effectively, so choose wisely.)
. Facilities. If offices or facilities are damaged during a crisis, can workers be relocated? Can workers access office equipment, such as computers and copiers? If computers or computer data are damaged or inaccessible, what alternatives are available? Are backup records stored off site to ensure the protection and availability of key customer and financial records? Will staff, customers and others continue to have access to communications technology, such as phones and faxes?
. Business operations. What level of operations can or will be maintained during a crisis and its aftermath? Can normal operations continue, or will only essential activities be maintained?
Once potential crises have been identified and responses developed, it is important to categorize each crisis by level of impact. Some crises may require a more intensive and extensive response than others.
These protocols should be put in writing, and distributed to every employee. In addition to the procedures set forth in the disaster plan, the following rules apply:
. Make the crisis a priority. Usually, the crisis will not go away. The sooner it is resolved, the better--for the company, employees, customers, investors and others.
. Respond quickly. Speed is of the essence in a crisis. Twenty-four hours can dramatically change the outcome. Put systems in place that will ensure prompt notification and response. Some companies establish a “must call” phone number for notification of a crisis. (Some companies distribute key chains or bookmarks with the tagline, “In a crisis, call Ext. XXX.) The person picking up those calls should be trained in evaluating and initiating a corporate response. Most often they are a member of the crisis response team.
. Focus on the facts. Do not engage in speculation. Focus only what you know.
. Communicate! A crisis is not the time to bury your head in the sand. You must speak to all of your publics: employees, customers, vendors, investors and the media. Even when you don’t have all of the facts, it is important to communicate. (Don’t be afraid to admit to a lack of information.) You must respond to concerns, provide reassurance and report on new developments.
. Place the interests of your employees, customers, and investors above your own. When a business is threatened, these groups will want to know how they will be affected.
. Talk to the media. If you refuse, they will speculate and probably, make the situation appear worse than it is. The media controls public perception, and many times, perception is more important than reality.
. Take a long-term view. Resolving the crisis in important. But the actions you take while seeking a resolution could have an impact beyond the crisis. For example, it may be necessary to pay employees while a new facility is being located. Otherwise, those employees may not be available when you are ready to resume operations. To ensure the continued viability of your business, react strategically, with an eye on the future.
Saturday, June 11, 2011
Saturday, June 4, 2011
In times of crisis, silence is not golden!
You’ve just settled in for a well-deserved rest when the phone rings. It’s your plant foreman, who screams into the phone, “The valves on the pollution control equipment are stuck and we’re dumping hazardous waste into the Milwaukee River!”
11 p.m. You arrive at the plant. All is quiet. At the back of the plant, you find three night shift employees trying to close the valve. You ask, “Has anyone called the city yet?”
11:05 p.m. Frustrated, you try to manually close the valve with a hammer.
11:10 p.m. Still hammering away, you are startled to see the guard from the front gate approaching. He says excitedly, “There’s a reporter at the gate. She wants to know about a spill! Do we have a spill?” You groan and say, “How did they find out so quickly?” The guard’s response is cut short by the sound of an approaching siren. The city’s hazardous waste containment unit has arrived.
11:20 p.m. The arrival of emergency vehicles has brought more reporters and some area residents to the plant gate, all demanding to know what is going on. Looking out at the media circus, you mutter, “Leeches!” and close the door to your office, hoping they will just go away.
In times of a crisis, silence is not golden. Whether the crisis is weather or finance-related, involves criminal activity, or potential harm to the public, the key to effectively handling a crisis is open and honest communication.
Organizations that fail to communicate create a negative impression, making victims, employees, the media, and the public angry. As history has shown, that can result in a loss of business or worse, business failure.
Ideally, an organization will have a crisis communications plan in place. Among the steps that should be included:
. Appoint a spokesperson. Only one person should be authorized to speak to the media and the public. This ensures that the company is speaking with one voice and providing consistent information to the public and the media. It is important that everyone within a company be told who is handling media inquiries and to refer all media inquiries to that person. In addition, it might be wise for inexperienced spokespeople to receive training in public speaking and conducting interviews with the media. The more polished the spokesperson, the better the impression made with the public.
. Make an immediate disclosure of the facts. If a matter is still under investigation, say so. Update and correct information as the investigation proceeds. If dates, statistics, and other information are pertinent, make them available. While an organization is not required to reveal confidential information, it is in a company’s best interest to put their “spin” on facts likely to come to light before someone else does. Taking the offensive makes it easier to get a company’s position before the media. When a company operates on the defensive, they often lose the media war. Above all, avoid “no comment.” In a crisis, that implies guilt.
. Bring in outside experts if necessary. Organizational spokespeople will not have the time to become medical or environmental experts in times of crisis, and should avoid technical questions they cannot answer. Sometimes, experts are available from within the organization. Other times, it might be wise to bring in a health or safety expert to discuss possible short and long-term outcomes, procedures that should be followed, treatment options if symptoms or illness occur, etc.
. Tell the truth, no matter how much it hurts. Once an organization is caught in a lie, it loses all credibility. It colors every statement made thereafter.
. Develop a communications network. Make sure key groups—executives, the media, victims, the public and employees—have access to accurate information. Do not overlook the importance of keeping employees informed--friends and neighbors will be asking them for “the real story.” Depending on the nature of a crisis, press conferences, press releases, blogs, a Facebook page, a Twitter account, websites, hotlines, town meetings, direct mail brochures, or special employee alerts may be appropriate. It may be necessary to bring in a public relations consultant to coordinate communications.
. Be accessible to the media. The spokesperson, or spokespeople, should be accessible to the media 24 hours-a-day until the crisis is over. In addition, receptionists and other key staff should be told how to handle media calls, so that all inquires are responded to promptly. “The company did not return telephone calls” or “The company spokesperson was unavailable” leaves a negative impression, even if the reporter did call at 2 a.m.
. Humanize the company’s response to a crisis. Where there are victims, the company should always make it clear that they are the first priority. Offer immediate assistance, whether that involves temporary housing, medical assistance, or replacement of a defective product. If assistance is offered immediately, the company is likely to minimize the public relations and legal fallout from the crisis. Downplay financial repercussions, unless they are central to the crisis.
. Keep cool. Crises create emotional situations. Lack of sleep and stress only serve to intensify those emotions. Getting argumentative or angry in public generates the wrong type of media coverage. When the heat starts to rise, terminate the situation as quickly as possible.
. Follow up. When the crisis is over, report on the steps taken to resolve the crisis and what steps will be taken to avoid similar situations in the future. Internally, document procedures followed during the crisis, and note which were successful. Put those strategies in writing, so the next time, the organization is prepared.
Next week: Developing a disaster plan!
11 p.m. You arrive at the plant. All is quiet. At the back of the plant, you find three night shift employees trying to close the valve. You ask, “Has anyone called the city yet?”
11:05 p.m. Frustrated, you try to manually close the valve with a hammer.
11:10 p.m. Still hammering away, you are startled to see the guard from the front gate approaching. He says excitedly, “There’s a reporter at the gate. She wants to know about a spill! Do we have a spill?” You groan and say, “How did they find out so quickly?” The guard’s response is cut short by the sound of an approaching siren. The city’s hazardous waste containment unit has arrived.
11:20 p.m. The arrival of emergency vehicles has brought more reporters and some area residents to the plant gate, all demanding to know what is going on. Looking out at the media circus, you mutter, “Leeches!” and close the door to your office, hoping they will just go away.
In times of a crisis, silence is not golden. Whether the crisis is weather or finance-related, involves criminal activity, or potential harm to the public, the key to effectively handling a crisis is open and honest communication.
Organizations that fail to communicate create a negative impression, making victims, employees, the media, and the public angry. As history has shown, that can result in a loss of business or worse, business failure.
Ideally, an organization will have a crisis communications plan in place. Among the steps that should be included:
. Appoint a spokesperson. Only one person should be authorized to speak to the media and the public. This ensures that the company is speaking with one voice and providing consistent information to the public and the media. It is important that everyone within a company be told who is handling media inquiries and to refer all media inquiries to that person. In addition, it might be wise for inexperienced spokespeople to receive training in public speaking and conducting interviews with the media. The more polished the spokesperson, the better the impression made with the public.
. Make an immediate disclosure of the facts. If a matter is still under investigation, say so. Update and correct information as the investigation proceeds. If dates, statistics, and other information are pertinent, make them available. While an organization is not required to reveal confidential information, it is in a company’s best interest to put their “spin” on facts likely to come to light before someone else does. Taking the offensive makes it easier to get a company’s position before the media. When a company operates on the defensive, they often lose the media war. Above all, avoid “no comment.” In a crisis, that implies guilt.
. Bring in outside experts if necessary. Organizational spokespeople will not have the time to become medical or environmental experts in times of crisis, and should avoid technical questions they cannot answer. Sometimes, experts are available from within the organization. Other times, it might be wise to bring in a health or safety expert to discuss possible short and long-term outcomes, procedures that should be followed, treatment options if symptoms or illness occur, etc.
. Tell the truth, no matter how much it hurts. Once an organization is caught in a lie, it loses all credibility. It colors every statement made thereafter.
. Develop a communications network. Make sure key groups—executives, the media, victims, the public and employees—have access to accurate information. Do not overlook the importance of keeping employees informed--friends and neighbors will be asking them for “the real story.” Depending on the nature of a crisis, press conferences, press releases, blogs, a Facebook page, a Twitter account, websites, hotlines, town meetings, direct mail brochures, or special employee alerts may be appropriate. It may be necessary to bring in a public relations consultant to coordinate communications.
. Be accessible to the media. The spokesperson, or spokespeople, should be accessible to the media 24 hours-a-day until the crisis is over. In addition, receptionists and other key staff should be told how to handle media calls, so that all inquires are responded to promptly. “The company did not return telephone calls” or “The company spokesperson was unavailable” leaves a negative impression, even if the reporter did call at 2 a.m.
. Humanize the company’s response to a crisis. Where there are victims, the company should always make it clear that they are the first priority. Offer immediate assistance, whether that involves temporary housing, medical assistance, or replacement of a defective product. If assistance is offered immediately, the company is likely to minimize the public relations and legal fallout from the crisis. Downplay financial repercussions, unless they are central to the crisis.
. Keep cool. Crises create emotional situations. Lack of sleep and stress only serve to intensify those emotions. Getting argumentative or angry in public generates the wrong type of media coverage. When the heat starts to rise, terminate the situation as quickly as possible.
. Follow up. When the crisis is over, report on the steps taken to resolve the crisis and what steps will be taken to avoid similar situations in the future. Internally, document procedures followed during the crisis, and note which were successful. Put those strategies in writing, so the next time, the organization is prepared.
Next week: Developing a disaster plan!
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