Analyzing possible scenarios and preparing for unexpected situations will go a long way toward reducing the impact of a blow to a company's reputation.
A few years ago, a former coworker told me he was really excited about his new position at a major company. It had been the opportunity he'd been looking for for a long time, and in a few days it would become real.
It was his first day of work, and he hadn't even gotten into his taxi to go to work when he tripped and fell hard, and when he tried to get up, his right foot wouldn't respond. His diagnosis: a sprained ankle, recovery time: twenty-five days of rest. On the bright side: he had health insurance.
This crisis situation obviously couldn't have been foreseen, just like many others that happen out of nowhere. If we bring this into the corporate world, a communication crisis can have a negative effect on a brand, plus significant financial losses.
According to the Crisis Management Institute, only 14% of corporate crises are sudden — meaning they stem from random events like natural disasters or unforeseen situations outside the company staff's control.
A clear example of a crisis is what we just saw in the ad Coca-Cola ran a few weeks ago, featuring Spanish actor Gotzon Sánchez, known for publicly supporting ETA prisoners.
In that ad, he played the father of a teenager who told him he'd grown up and was capable of making his own decisions, like becoming an Atlético de Madrid fan. The soda brand, always known for its family-friendly, feel-good tone, wasn't aware of Sánchez's political leanings, since, as they stated, they don't usually look into that when hiring an actor.
Because of this, the anti-terrorism association Dignidad y Justicia asked Coca-Cola's president to pull the ad campaign. The company acted immediately and apologized in case it had made its followers and the general public uncomfortable.
This case highlights the importance of a Crisis Management Plan, even for one of the most prestigious companies in the world. Their quick action shows there's a cohesive team that knows its functions and roles.
Every company can be susceptible to a communication “corporate earthquake”; however, a Crisis Management Plan with well-established stages can reduce serious consequences.
When drafting this document, remember to include seven aspects:
- Identifying the organization's vulnerabilities.
- Possible crisis scenarios and their impact on its “Stakeholders”.
- Building a Contingency Plan, including strategies, alerts, talking points and communication materials.
- Naming the members of the Crisis Committee, defining responsibilities and response times.
- Monitoring actions, statements, notes or media coverage.
- Restoring credibility and good reputation.
- Evaluating impact and actions. Best practices.
Keep in mind that those in charge of the communications or marketing departments aren't the only ones responsible for maintaining a good corporate reputation — it involves every member of the organization, who, from their own role, plays a key part in driving its optimal performance.
Analyzing possible risk scenarios and constantly preparing and updating the Crisis Management Plan can't prevent these kinds of random events, but they can go a long way toward anticipating and reducing the impact of a blow to the organization's reputation and finances.