Crisis Communications; turning a crisis into an opportunity

Risk Advisory
19. December 2024
Mark Foxwell


Crisis Communications; blog by Mark at Lantern Comitas.jpg

Senior management and leaders within companies, organisations and governments embroiled in a crisis have learnt the hard way what happens when the unthinkable becomes a reality. For instance a failed takeover causes the share price to plummet; fraud or allegations of misconduct can bring down a company's reputation within a day, whilst the company may have spent decades building up the brand and profile. All attention focuses on the guilty parties.

 

Inevitably, these crises are projected into the media and are often grossly exaggerated, a negative story is a good story in the eyes of the press. If an organisation produces a defective product, has an accident like BP, a strike or an environmental disaster, the media can be expected to make this headline news within a matter of hours. Remember it can take decades to build up a company's profile and brand and just a day to destroy it. 

 

Every day, organisations run the risk of being affected. The fact that we live in an age of transparency means that no company or organisation is immune to the threat of a possible crisis. Companies have become glass houses in which nothing can remain hidden. Everything is expected to be visible.

 

A crisis, however, does not necessarily have to turn into a disaster for the business or organisation involved. There are ways of limiting that damage effectively by acting quickly and positively. Immediate action to solve the problem and transparency is key, communicating effectively. You can turn a crisis into an opportunity, something that Lantern Comitas specialises in.

 

How a business communicates when hit by a crisis can often make or break it. We can all think of examples of this with national and on an international level. Ironically, it is the very transparency referred to earlier, which many senior managers find so difficult to practise, that enables a company to create an image of openness. This is what stakeholders appreciate and trust the most.

The four key concepts are:

  1. Preparation
  2. Speed
  3. Transparency
  4. Efficiency

 

Being convinced of the importance of crisis management and taking appropriate measures is essential. At Lantern Comitas we create crisis strategies/plans with our clients, that is an indispensable asset in our fast- changing society. Immunity does not exist, but tackling crises and turning them into opportunities is an art. Effective, fast communications can even strengthen your reputation. Stakeholders and the public judge a company by the manner in which a crisis is tackled and action taken. When human interests are placed before those of the business, the company is often granted a second chance. Reacting efficiently and effectively is the key imperative.

 

Companies can only benefit by controlling a crisis, hence the importance of developing a proactive crisis communication plan. Protecting the reputation of the organisation by communicating the right message, at the right time, to the right people, is essential.

 

Developing a Crisis Communication Strategy

First, and most importantly, you must communicate the crisis management plan internally in an efficient and effective manner, with clear reporting lines and a dedicated internal team working alongside their chosen agency. What message is to be communicated? Who should communicate the message? To whom should the message be communicated? When should a press release and media engagement be disseminated? Creating a solid crisis communications team is the first step.

 

Determine your targets. Who are the various stakeholders? Thereafter, what sort of information is required by each stakeholder and how can this be anticipated in advance? Each stakeholder requires a different message. You must demonstrate empathy with the crisis. Subsequently, if it appears that the company has the situation under control, then a certain reassurance ensues automatically. It is implicitly understood that speed plays a prominent role in this process. 

 

A company with a good reputation has an advantage in times of crisis. Companies with a positive track record and that make a positive contribution to the community are given the benefit of the doubt under less favourable circumstances.

So, whatever the size of your business, whoever you’ve got in your business – maybe you’re big enough to have others doing it for you outside of the business, which is even better, because it’s more objective – you just have to have your early warning system on, and then you’ve got to have the internal system.

That means that when a flag goes up, you’re able to move swiftly. Trying to work out whether you’re in a crisis or a problem is not something you can do in 30 seconds. You’ve got to have the internal processes in place to be able to get to it quickly. And then that often leads to an interesting problem, which, in our work, we’re hoping to try and provide a bit of the solution for. 

Having decided whether or not you’re in a crisis or it’s a problem, you’ve then got to work out who’s going to help you solve this. Who are you going to have in the room? 

What you want is people who will take a step forward when they’re running into the gunfire. You don’t want people to just love the drama or those who just sort of disappear into the wallpaper, which would happen to a lot of advisors who just didn’t have opinions that are of use to you. 

The other thing, particularly in smaller businesses, is that the temptation when you hit a crisis is to lean towards your friends, which is a perfectly natural thing to do; or you lean towards the people that you’re closest to at work. They may be helpful people, often not right, because they’ve just got slightly distinctive views. You’ve really got to try and find the neutral ‘no skin in the game’ opinion, so that you can judge it clearly for yourself.

You’ve got to be able to step away from your problem, particularly when it’s your business. It’s very emotional. All the triggers start to kind of bubble up, and then that’s when it all starts to go wrong. This is why clarity is essential when it comes to a crisis. 


 

Mark Foxwell Lantern Comitas Website.png

Written by Mark Foxwell

Mark is a globally minded communications Director who specialises in guiding senior leaders through critical situations, such as a transaction or crisis, as well as profile raising reputation management and campaigns.
Mark has nine years’ experience as a financial journalist, from national newspapers to global newswires, having been The Mail on Sunday’s Senior M&A Reporter and setting up the Financial Times Group’s M&A bureau in the Middle East

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