Tuesday, August 17, 2010

Why do crisis always happen when you don't want them too?

Well back from vacation one whole day officially and WHAM, hit with a crisis! Of course no crisis ever comes at a good time and let's be honest, how much of a crisis would it be if it happened when we wanted it to happen and when it was most convenient. But like any crisis, there is also an opportunity. There was an old legend that in Chinese or Japanese the characters which represent crisis can also spell opportunity. I don't know if linguistically that is true but from the standpoint of sentiment it is very true.

The first rule of thumb in a crisis is to maintain a level head. A crisis is obviously a serious matter and can lead to serious if not fatal damage to the brand if not handled properly. Some short term damage may be unavoidable, but the short term damage may result in longer term prosperity like the floods which provide for rich farm land. After calm has been restored, the next step is to get as realistic measurement of the scope of the matter. What happened, who was responsible, how far down the path have we gone? These are some of the questions that should be asked immediately.

At the crisis table should sit the CEO. Sorry folks, the CEO needs to be in front of this. A good CEO will see this as part of his or her job. If you're there for the good, you must be there for the bad. Second to the CEO should be the senior corp comm person. This person should be responsible for handling the day-to-day issues regarding the crisis. The formulation of the strategy, developing the message, ensuring that key stakeholders are all informed should fall to the head of corporate communications. Also at the table for informative purposes should be people like a corporate counsel, perhaps the CFO or maybe a brand manager, or the person who has day-to-day management regarding the issue.

Generally while I am loath to give the lawyers any say in standard corporate communications operations, this is the exception to the rule since there will most likely be identifiable legal ramifications, not only to the event which triggered the original crisis but also to subsequent events. Crisis management is the time when corporate communications assumes control of the ship and drives the organization clear of any harm.

One of the first and most important issues for the Corporate Communications team to do is to ensure that all communications to stakeholders are clear and in line with overall corporate objectives. The potential for distraction and confusion is high. There will be a great number of parties who will need to be communicated too and the more end points there are, the greater the potential for mixed messages and mixed messages can lead to the appearance of a cover up or cloud the facts.

A crisis will never happen when you are ready for it, when it is a good time for you or for what ever reason, when you want it too. The beauty of the crisis is that it is the one, singular opportunity for Corporate Communications to demonstrate its role in the organization and why it should be at the leadership table. Lets also not forget that a crisis often serves to bolster the role of communications by demonstrating that it should be a strategic program, planned in advance and consulted by senior management on an ongoing basis, and not just an afterthought. In this regard, a crisis can be a mixed blessing.

Any organization who values Corporate Communications, values its stakeholders and customers and brand should not only survive, but also emerge stronger than before. A company which sees communications as a task and chore, something to drive stock prices or as an ego platform for senior management will most likely receive a sharp rebuke from the market and learn a painful lesson a la BP.

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