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 By Chris Woodcock, managing director of UK-based European risk management and communications consultancy, Razor.
Certain themes arise repeatedly in dealing with organisations who are deciding how far to go in anticipating and managing risks. Too often, assumptions are made about the processes and resources required to manage and communicate the risks. Here are the most common myths we have had to deal with over the last decade:
1. A Crisis always poses a threat – and only a threat
Not true. Managed well, a crisis can be any opportunity to endorse a positive product message or corporate reputation. Companies have seen their fortunes improve when the public and media have reacted favourably to their crisis response.
2. A crisis manual is all that’s required to get the basic procedures clear and in place
This is a dangerous assumption. Crisis management is an ongoing process. The manual is just the starting point. Written plans tend to fail and you need your team to react without assistance of a manual. Training and testing are the only way to get people to understand their role and how it links with other teams in the business.
3. In a crisis, customers are the only audience that matters
On the contrary, there may be several other key audiences who demand simultaneous communication, including media, staff, suppliers, shareholders, regulators and other influential organisations. The communication to these audiences needs to be timely, consistent and frequently updated. This can be complex but there are no short-cuts.
4. Crisis preparation training is expensive, with no guarantee of return on investment
Whatever the up-front cost, it cannot compare with the potential damage and financial implications of a major crisis situation. Look on preparatory expenditure as a form of insurance premium. Naturally companies are wary of bringing in outside help but their reputation will be stronger in the long run.
5. A competitor affected by a crisis is good news for my business
Loss of consumer confidence in a product or brand can have an overall market impact, driving consumers to other choices. Highlighting a problem area will also alert the media to investigate other players in the market. That could mean you!
6. Saying nothing to the media means there’s no story
Wrong. “No Comment” often translates into “I’ve got something to hide”, and stimulates greater efforts to uncover the facts. If you have a crisis in the public eye – or likely to hit the media arena – then the sooner you take control and give the facts the better. The old adage of “tell it all and tell it fast” is nearly always right.
7. Any publicity is good publicity
Don’t believe it. An unchecked crisis can cause irreparable damage to corporate reputation, sales and earnings. Any information conveyed to the media must be checked for its potential reaction.
8. Everyone’s a potential enemy when a crisis strikes
Issues monitoring should identify friends and foes, prior to the event. Adversity can prompt unexpected support from suppliers, trade associations and even competitors. This is particularly the case with companies who have been through similar problems.
9. “This crisis is a local issue, with no wider significance”
Your view, not necessarily the media’s. New technology can mean instant transmission throughout the world if the story is strong enough. Also, comparisons will be made with previous incidents or industry issues, to create a broader picture of a local event.
10. Crises occur during working hours
Wrong! Crises have no respect for the working week, and almost always break at the most inconvenient times, i.e. late Friday afternoon, Sunday morning, Christmas Eve, the day before your summer vacation… (Take a very obvious recent example: the Asian Tsunami occurred on Boxing Day and as a result, there were problems in recruiting a crisis team to deal with the huge response). You need 24-7 contingency and contact measures and the ability to turn on emergency procedures and customer actions over a weekend.
Supplied for Continuity Central by Razor Public Relations Limited.
Razor specialises in risk, issues and crisis management.
For more information, contact them on 00 44 1869 353800 or visit their website www.razor-pr.com
Copyright © Razor Public Relations Ltd 2006
•Date: 27th Jan 2006 • Region: UK/World • Type: Article •Topic: Crisis communications
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