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Crisis Preparation: It isn't just for Fortune 500's

Written by: Aileen Pincus

Article Overview: Crisis can hit any business at any time, dealing devastating blows to hard-earned reputations and impacting your bottom line. Preparation for surviving and even prospering in a crisis isn't just for large businesses. Every business can and should know how to respond when the worst happens.

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Crisis Preparation: It isn't just for Fortune 500's

Crisis: A crucial or decisive point or situation; a turning point. That definition from American Heritage Dictionary says nothing about crisis being confined to large businesses. In fact, a crisis doesn’t have to be defined as one by those outside your business to qualify as one for you. If you think your business and your reputation are in danger, then its time to act.
Crises by nature are messy, often unfolding at a pace that makes careful and considered response difficult. Sometimes, they stem from unforeseen events, sometimes in retrospect they may have been predicted, but always they present a test of leadership skill and preparation.
Crises represent turning points for business health and reputation, often leaving both in tatters. If handled well though, a crisis response can actually enhance reputation and spur some needed dialogue and change.
How does a business prepare for crisis, both for the knowable and the unforeseen events that can seriously impact its reputation and bottom line?

At minimum, clear and immediate communication is an antidote. If stakeholders and customers know you’re aware there’s a problem and are working to correct it, that may be enough in the short run to maintain goodwill until the problem is fixed or at least dealt with. The more common business response to crisis is to say nothing and hope the problem goes away or that the public simply isn’t paying close attention. That tactic rarely achieves anything but allowing the court of public opinion to reach a firm verdict without hearing from the business affected.
Risk communications has as its central tenant the need for some kind of communication with those impacted by the crisis. There are indeed steps to take and fundamentals to keep in mind as you consider how your business can prepare to deal with its own crisis.

1.) Tell what you know when you know it.
Investigations and study take time, but time is not on your side in a crisis. Even though there are things you can’t say or don’t know, tell what you know when you know it. If you don’t, you invite speculation and a void that will be filled by others who may not know the full picture.
2.) Decide what you’re going to say and who is going to say it
What you say and who you select to say it speaks volumes about your business’ ability to handle the crisis. While the facts of what happened are important to get out, so is the context those facts should be understood by. Seek to put facts in context, with an eye toward the bigger picture of what it means, especially for those harmed in any way by events. This is called “messaging” and it will give your key stakeholders an understanding of the crisis from your perspective. Be careful to limit the number of people speaking for the company so you can be sure of what’s being said and to whom.
3.) Tell the truth
Messaging isn’t “spin”. Your key stakeholders have got to know they can count on you to tell the truth, no matter how difficult that truth is. Even if you are not at liberty to tell all, or you simply do not know all the facts, make sure what you do say is reliable and trustworthy.
4.) Acknowledge the harm
It’s important to acknowledge people’s anger or frustration, even when not accepting blame for wrongdoing. Avoid the temptation to minimize objections and complaints. Let people have some kind of forum to be heard, and let them know you’re listening.
5.) Make sure you’re reaching your audience
The media has never been as diverse and as diffused as it is now. That means it’s harder than ever for businesses to reach their stakeholders through one central means of communication. Make sure you’ve decided on the myriad ways you’ll reach your target audience well in advance of a crisis. That means well thought out media lists, as well as websites, and if resources allow, coordinated advertising and marketing campaigns. Don’t neglect your own company’s website as a vital resource for customers and the media. As best you can, monitor what’s being said and written about you, so that you can choose how and when to respond.
6.) Don’t over or under-react
There will very likely be factors beyond your control that impact your ability to handle the crisis. Don’t promise solutions you may not be able to deliver on. At the same time, make sure to vet your proposed solutions so that you’re response isn’t viewed as too little, too late.

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About the Author: Aileen Pincus
RSS for Aileen's articles - Visit Aileen's website

Aileen's communications experience spans the fields of journalism, politics and public relations. She has trained senior executives from around the country for one of the nation's largest public relations firms, Golin/Harris International. Prior to training and consulting in private industry, Aileen worked as a senior staff advisor for a U.S.Senator. As Communications Director, she coordinated all local, regional and national media efforts, and served as the Senator's chief spokeswoman. Aileen comes to media and communications consulting after an extensive career in journalism. Aileen reported for local and national television news markets around the country for nearly two decades. She was an award-winning reporter for the NBC affiliate in Portland, Oregon, the ABC affiliate in Tampa, for the Fox affiliate in Washington DC and for CNN, where she reported on national stories for CNN affiliates around the country. As President and founding partner of The Pincus Group (http://www.thepincusgroup.com/) Aileen now directs effective media strategies and communication training for clients around the country.

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