CLOSING ENTRY: Planning for the punch

What to do when a crisis threatens your organization’s reputation

Warren Cooper//April 3, 2023//

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CLOSING ENTRY: Planning for the punch

What to do when a crisis threatens your organization’s reputation

Warren Cooper//April 3, 2023//

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“Everybody has a plan until they get punched in the mouth,” Mike Tyson may have said.

Forward-thinking business leaders and other professionals are continually on alert for ways to prepare their organizations for – and against – all types of crises. Some adopt incident response plans that detail actions to deal with everything from natural disasters to “big rat” union protests to cyberattacks — and anything else they can think of.

Critically absent from many such plans is a strategic component — protocols for internal communications that set forth how the organization will share crucial information with employees, vendors, board members, etc.; and protocols for external communications that detail how, what, and by whom critical information will be shared with customers or clients, the public and the media.

Effective communications during a crisis inspire confidence, earn trust and engage stakeholders. Clear, consistent communications are vital to maintaining business continuity and advancing a company’s recovery. Failing to have in place a communications plan before a crisis occurs is tantamount to inviting a reputational knockout punch by sticking out your chin and lowering your gloves.

While we rarely know when a crisis will strike or what exact form it will take, leadership can help protect the company’s reputation, brand identity and bottom line by integrating a comprehensive communications plan that supports the actions detailed in its incident response plan.

Whether it’s a fire that affects operations, the arrest of a C-suite executive, allegations of discriminatory labor practices or any other potential reputational crisis, you will likely need to communicate about the situation almost immediately, particularly to employees, customers/clients, vendors, etc. You cannot effectively respond to the crisis if your team is frantically trying to decide what to say to whom or making decisions about who’s best to deliver the message, let alone while being bombarded with media inquiries.

Today’s highly charged political environment, rapidly changing social norms, widening wealth gap, unreliable supply chains, labor shortages, and many, many other factors accelerate and intensify public scrutiny of an organization’s response to a crisis. We’ve all seen how an ill-timed, inadequate, or tone-deaf communication (or apology) can inflame social media commentary, engage cancel culture, and incite a reputational attack. When that happens, the reputational impact of the company’s failure to adequately communicate can quickly overtake the impact of the original crisis.

A comprehensive, crisis communications plan:

Creates a standing crisis communications team — in advance of a crisis. These are the folks who will gather information about the situation; determine what, if anything can or should be shared, and with whom; decide who would best serve as the spokesperson for the organization (tip: it’s rarely the CEO); and address other crucial responsibilities.

Helps manage reputational risk. Information spreads quickly in the digital age, and it is essential that companies quickly try to influence the narrative with accurate and timely information to stakeholders and the public – which of course includes the professional media, but also (and perhaps more crucially) also means the social media universe. Absent a comprehensive crisis communications plan with an effective social media component, you can be sure the reputation of your company – and its leadership – will take a hit.

Minimizes fiscal impact. Public companies that are unprepared for a crisis and handle communications poorly often experience a significant drop in value. Privately held companies risk the loss of customers, referral partners and other revenue drivers. Nonprofits face the prospect of losing credibility, donors, and public funding. Having a communications plan in place enables these entities to act swiftly to maintain fiscal stability.

Optimizes legal and regulatory compliance. Banks, manufacturers, transportation companies, nursing homes, and many other businesses and organizations are subject to regulatory and sometimes law enforcement oversight that requires specific communication protocols be followed in the event of a crisis. A crisis communications plan can help ensure that they avoid the negative consequences of failing to do so — typically fines, but also sometimes lawsuits.

Among other components, the typical crisis communications plan would include:

  • Preparing an internal contact list and a communications chain of command
  • Identifying permanent members of your crisis communications team (by role in the company)
  • Escalation protocols for channeling inquiries from the media, the public, elected officials, etc.
  • Scenarios for a variety of potential crises, including holding statements, talking points, and communication portals and platforms
  • Contact information for your attorney and your strategic communications consultant (you want to interview and retain these professionals before you need them — and no, your in-house comms director and corporate counsel weren’t trained for this.)

A well-developed crisis communications plan can help ensure that you are prepared when it’s your time for a punch in the mouth. A good plan can be made even better by regular review and updating. Annual table-top drills that stress-test the communications plan reveal weaknesses that need revision.

Developing and implementing an effective crisis communications plan requires allocation of personnel, time, resources and, often, a significant financial commitment. It’s worth it.

Warren Cooper is director of client services at the Kessler PR Group, in Ocean Township.
Cooper

Warren Cooper is director of client services at the Kessler PR Group, in Ocean Township. Founded in 1993 as Evergreen Partners, Kessler PR Group is the region’s leading public relations firm specializing in crisis communications, reputation management, litigation support and media relations.