Statistics indicate that companies have an 80% chance during any five-year period of facing at least one crisis that could cause a 20% drop in brand equity. Not being prepared is a recipe for disaster, so it is surprising that surveys indicate that just six out of 10 companies have developed a crisis communications plan.
While the 40% of companies without a crisis plan appear unprepared for potential threats, companies that have crisis plans gathering dust on bookshelves and have not run a preparedness drill face hidden exposures. Failing to stress test an environmental health and safety plan or emergency response plan is a critical missing step for most organizations.
When was the last time something unexpected happened at your company that caused normal business operations to be altered? Was it a workplace accident? Did it involve an environmental or other regulatory action? How about a labor issue? Were you receiving customer complaints? How long was it before negative news coverage and social media chatter started to appear? Did you find yourself asking whether the situation was a true crisis? How much of a head start did the crisis have before senior managers took it seriously?
Planning for a potential crisis is important, but having a plan is not being prepared. Most of the damage from a crisis does not come from the initial event. It is the duration of the crisis and the mistakes made in responding during the initial minutes and hours of a crisis that exact the greatest toll. To overcome this threat, you must prepare your team for a crisis like successful sports teams prepare – with practice.
Squeezing time out of your crisis response through smooth teamwork, an understanding of responsibilities and protocols, and a commitment to speed, flexibility and thoroughness can only happen when all involved have gone through preparedness training.
Your organization needs to run regular crisis simulation drills to be ready for the what ifs that can damage your reputation and upend normal operations.
If you are among the 60% of companies have gone through the effort to create a crisis management plan, congratulations. You have recognized that threats exist. However, chances are the plan is at least five years old and many of the people who will be responsible for your crisis response effort have never read it. They may not even have a copy. The nature of threats to your business and the speed at which rumors and news spread have changed significantly in recent years.
An emergency response plan will not work unless you have tested it and the people who will run it know their responsibilities. While some highly regulated businesses are required to have detailed plans that run 50+ pages, smart organizations know that a basic checklists, with regularly updated key contact information and step-by-step instructions for frontline managers, can speed the response. Shortening the time between when an issue is discovered and it is reported to senior managers improves the crisis outcome. Time compression in a crisis is relentless and no one has the time to start reading an extensive crisis management plan for the first time as an issue unfolds.
Key stakeholders expect answers. Now. Your company will be judged on whether it is the cause of a problem, or the problem-solver based on how quickly you respond and what you communicate during the early hours of an event. When something goes wrong, it is better for employees, customers, regulators and other important audiences to hear about it from you. If they get the news from the rumor mill or a news report that contains the words, “A spokesperson for the company did not respond to requests for comment,” you are already falling behind.Running a crisis simulation based on a realistic scenario with challenging twists will improve teamwork and response times. Involving all of the players is a must, including your C-Suite, key communication, legal, human resources, logistics and operations staff, plus managers at remote locations where an evolving issue could develop. A great deal is riding on how effectively your CEO communicates six things during the early stages of a crisis:
You’ve noticed the problem.
You care.
You’re in control.
You’ve taken action.
You’re working to minimize the damage.
You’ll take steps to reduce the likelihood it will happen again.
Practice reduces costly mistakes. It might even identify and remedy a potential crisis before it happens. A crisis simulation needs to bring key people together to build teamwork and create an environment where they feel safe in speaking up, offering suggestions and contributing their expertise to solving an issue. Drills can help identify blind spots. In some cases, working across disciplines uncovers legal or regulatory requirements that create unanticipated, but necessary steps. Streamlining existing processes during a crisis can save valuable time.
A well-constructed crisis simulation should feel realistic. Making the practice feel tougher than the actual game is what championship teams do to prepare. Improving your response to an actual issue will pay a massive return on investment.
Rick Lyke, APR, is Executive Vice President with the Mower PR & PA Group, which provides issues management, media training and crisis simulation workshops for clients.