If you run your own business, a crisis could occur at any moment, and all those years of hard work building up your good reputation could be wasted if you mishandle a crisis. You may have heard the term “corporate crisis management”, but are unsure what that entails, and with that in mind, we will take a closer look at crisis management and what it can do for your company.
What Causes A Crisis?
In a business environment, a crisis consists of 3 factors:
- A threat to the organization
- The element of surprise
- Short decision time
Some examples of a corporate crisis would include:
- Product recall
- Making inappropriate comments
- Data breach
- Dissatisfied customers
Working Under Pressure
This is usually when mistakes are made, and should occur, you will have to make some very quick decisions, which might not be the best choices. Creating a corporate crisis management plan involves preparing action to take in the event of a crisis, and with all the stakeholders involved, everyone is on the same page so to speak.
The Domino Effect
If a corporation were to experience a crisis, this could have a negative impact on communities, as people could lose their income, and very often, the domino effect can be seen when a corporation suffers. Local supplier companies are often very much affected by a corporate crisis, and in some cases, closures occur.
When The Crisis Hits
This is usually when panic sets in, and we all know that making decisions at high-pressure times is never a good idea, hence the need for a good management plan. So, how does one go about creating such a plan?
Define The Stakeholders
The first thing to do is decide who is to be included in the team – all department managers, head of PR, plus a legal expert – as all of these positions should play a role in formulating the crisis management plan. If you need any help, there are online specialists who can point you in the right direction, indeed they can handle the project from start to finish, ensuring that all involved know their respective roles.
Compile An Implementation Plan
First, you need to decide on an action plan that covers every eventuality, especially statements and press releases, which need to be made in a timely manner. How you respond to a crisis will define the amount of damage the incident causes the organization, so a statement has to be prepared in advance. Aside from creating the action plan, you need to decide who is responsible for each action item, and all involved parties need to be on the same page.
Creating A Hierarchy
There needs to be a hierarchy, with those at the top approving steps to be taken, which allows the implementation to filter down the ranks. Rather than trying to tackle this yourself, search online for a crisis management specialist, who can guide you through the process, while ensuring that nothing is overlooked.
The best time to start planning for crisis management is now, so talk to a specialist and get the ball rolling.