Handling a Crisis Involving Your Business

It can happen to any of us and probably has happened to many business owners: somebody steals from your company, you get involved in a lawsuit, a product fails or your company is subject to takeover.

When something like that happens, timing and urgency become major factors when a company chooses how to respond.  So, how do you handle it?

Recently, my associate, Wesley Bates, and I consulted with a client on a crisis they had to deal with. Because there was a public element to it, I enlisted Wes’ expertise in support of this client.

Due to privacy and business sensitivity, we are unable to identify the client or industry. So in this case we will outline the approach we used as an example.

From the first call with the client, we started to outline and attempt to define the situation at hand. Timing was essential and understanding all the elements involved played into how we were going to respond and advise the client.  Wes came up with five steps in a basic plan which we followed:

  1. Once the problem was initially defined, we conducted research into the company, its industry and examples of similar situations.
  2. At our initial meeting, we consulted and counseled the client to review the draft statements and responses we developed .
  3. After the initial meeting, we went off to finalize our draft statements and formulate a call to action.  In the case of our client, we had to create both an external position and an internal position.
  4. Now that we had a shape to the situation, we formulated and produced our deliverables.  In this instance, we created both an external release (in case the need arose) and an internal statement for employees, shareholders, board members and partners.
  5. Once the deliverables were in place, we developed measurable “share of discussion” responses to the situation. We monitored the condition of the client by meeting regularly and offering ongoing consultation and counsel.

The heart of the solution we provided, besides giving this business a process to follow, was what we outlined in our proposed response. The major points covered were:

  • Choosing a single spokesperson to disseminate singular articulate messages.
  • Making a concise statement of the situation and a quick recount of the impact.
  • Reporting the corrective actions taken.
  • Outlining the impact to the customer.
  • Reassuring the confidence of the customers in the business.
  • Reaffirming the company’s place in the community.

Giving your client a process to follow and a clear response to their audiences is ideal.  While this may be an oversimplification of a complex process in a crisis situation, we feel it is a good example of how public relations and outward-facing marketing are crucial in helping small- to medium-sized businesses strengthen their relationship with customers in a time of crisis.

Wesley Bates is an independent public relations and marketing professional with expertise in crisis communication, media and analyst relations and market analysis. He is a contract associate of PE Maynard & Associates.

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