Good crisis planning won't let disaster drag you down

The recent catastrophes that have befallen a number of America's leading companies clearly point to the need for crisis planning for any business that wants to preserve its reputation and ensure continued operations.

There's a significant difference between a business crisis and a business emergency. A crisis is an emergency that gets carried to a wide audience with or without the media fanning the flames. And it should be treated with the same degree of care and trepidation as an anthrax scare or a nuclear meltdown. It's not a question of good or bad; it's the difference between bad and worse.

An expert on the subject is Andrew Gilman, president of the New York-based CommCore Consulting Group, advisers on crisis management, message development and effective representation. Gilman witnessed crisis management at its best when he coached Jim Burke, then-CEO of Johnson & Johnson, who was the company helmsman during the first Tylenol scare. The case is widely regarded by many as exemplary crisis management.

Crises can take a variety of forms. According to Gilman, the more common occurrences fall within clearly defined categories:

Product: Bad press, recalls
Personnel: Labor conflict, racial/sexual suits
Financial: Sales failure, theft
Natural disasters: Floods, earthquakes
Legal: Litigation, regulatory action
Violence: Terrorism, sabotage, kidnapping, workplace violence
Accidents: Employee, customer, executives.

It's only logical

Gilman suggests that crisis management is a clearly defined process that serves the purpose of preparing the company for the unexpected and mitigating risks once the unexpected actually happens. The implementation sequence looks like this:

• Gain buy-in from senior management on the need to complete the crisis plan;

• Undertake appropriate interviews and fact-finding for development of the plan;

• Gain agreement on additional inputs and key elements;

• Develop a crisis database of updated contacts (media, political, employees);

• Agree on appropriate reporting channels during the crisis;

• Compile a resource directory, e.g., handbook or intranet delivery;

• Conduct drills or simulations;

• Appoint and equip a communications team for the crisis;

• Prepare the corporate Web site for crisis response.

Gilman notes that there are three stages to the management of a crisis. The "before" stage, which focuses on readiness, calls for the homework being done and involves elements of anticipation, diagnosis, plan development and training. "During" is concerned with getting back to normal as quickly as possible and calls for intensive coordination, communication, reaction and monitoring. "After" addresses damage assessment and future prevention and involves anticipation, continued communication, analysis, learning from the mistakes and refocus.

Gilman emphasizes the utility and power of the corporate Web site to disseminate information quickly. In crisis situations, management cannot afford to wait for media deadlines or let media define the rules of play. He recommends keeping blank pages on an existing Web site where fresh material and updates can be quickly inserted. Alaska Airlines used this protocol effectively during its most recent crisis. The Web site can also be used for the ongoing dissemination of information to the public long after the press has lost interest and the subject has turned cold.

Media do's and don'ts

Most corporate management fears the media, and yet, professional courtesy and respect can quite often help generate favorable treatment from the fourth estate. Again Gilman prescribes a course of action:

• Show concern.

• Stay calm and courteous at all times.

• Set up a central communications center.

• Be a listener, but also ask questions of the media.

• Use your Web site.

• Monitor news coverage.

• Use layman's terminology.

• Communicate with employees directly.

• Never say, "No comment."

• Avoid using or repeating "negatives."

• Don't speculate; never say more than you know or can confirm.

• Don't discuss cause or fault.

• Don't allow interviews in emergency or crisis areas.

• Remember that media lives for a crisis. They will want to keep it going. Try to make it a one-day story.

Food for thought

The vast majority of companies choose to ignore the subject. It's a combination of wishful "it can't happen to me" thinking and playing second fiddle to more important priorities. Unquestionably, recent crises, particularly those caused by the Sept. 11 tragedy, have forced corporate management and business owners to confront the issue. Smart management will be proactive on the subject. It demands forward thinking and investment. Review current plans, documents and procedures, insurance policies and existing file and data backup systems. Ask yourself, "What could constitute a crisis for my company?" The simple process of posing the question may reveal a need that gains attention ... that generates a plan ... that saves the company.

If your company ever suffers a crisis, always show concern for those affected, including staff and customers. This was a lesson that neither Union Carbide nor Exxon were able to grasp during the infamous tragedies that occurred on their watch. Notes Gilman, "Don't let the lawyers prevent this from happening. After all, there is a difference between blame and sorrow." And finally there is the issue of communication. Do it freely and do it often to those affected, including employees, stockholders and customers. Be willing to spend the money on advertising, direct response, Web site, notice boards, etc. ... whatever it takes.

Alf Nucifora is an Atlanta-based marketing consultant. Phone: 770/952-2112 E-mail: alf@nucifora.com