A crisis can occur within an organization at any time and in many situations. In the case of a fire or flood, one does not see it coming. In the case of fraud, a production error, or a societal development, one might well see it coming. In such cases, a crisis situation may arise, followed by a systematic attempt to prevent or control the crisis.
The essence of a crisis is that it must constitute a substantial threat to the organization, there is significant uncertainty regarding the consequences, and it is a sudden event. Reputational damage must be prevented as quickly as possible. It is essential that action is taken appropriately in this regard. However, the crisis management process is often underestimated. Therefore, take the following into account:
Non-crisis attention
A business crisis is not always predictable, so sometimes it is. Which crises can be predicted cannot really be planned in advance. Management must be alert to deviations from regular operations or deviations in processes and procedures. This can be a reason to focus attention on a development that could prevent a crisis.
There is still too little interest in this from a management perspective. Intervention will only occur when it is too late. That is understandable in itself, because in sixty-seven percent of crisis situations, the crisis could have been foreseen with the right attention, whereas in thirty percent it comes unexpectedly.
By addressing this subject in advance, it may remain manageable during a crisis. Discuss it internally and issue guidelines.
Response
As soon as the first signs of a crisis appear, management must take action. Do not delay doing so, for example, to first obtain more information about something. The later the response, the less credible it becomes. The media does not sit still. They jump on everything immediately. And if there is no response from the company, they will publish something themselves that may not be pleasing to the company. Always try to maintain control yourself.
Media
The media is always interested in exceptional situations. And when a crisis situation arises, they will be the first on the doorstep. Then two reactions can occur.
In the case of one party, no response is given by management, and the media will make their own inquiries, form their own judgment of the crisis situation, and publish. In doing so, they relinquish control. Readers will soon think that “where there is smoke, there is fire.” A future relationship with the media is also damaged in the process.
Otherwise, management responds immediately. In doing so, one should not beat around the bush. One must communicate openly, because eventually the media will start digging and matters may surface that were intended to be concealed.
Spokesperson
There is a choice regarding who should act as the spokesperson with the media. The top manager can be called upon, as they hold the highest position and can therefore come across as trustworthy. However, the top manager must be sufficiently knowledgeable about the problem and all aspects of the company.
If one opts for a manager who is directly involved with the product and/or the situation, that might be preferable to a top manager. The expert’s presence can limit significant damage.
Do not forget to come up with a solution, if possible. If that is possible, escalation is prevented.
