Crisis communication is the official reaction to a business or industry situation that runs the risk of escalating intensity, falling under close media or government scrutiny, interfering with the normal operations of a business, jeopardizing the positive public image presently enjoyed by the company or its officers, and damaging a company's bottom line in any way. Usually falling under the domain of public relations, a crisis communication plan is essential for any business, large or small, since one can never predict when a crisis may hit an organization.
Crisis communication will become more important as technology continues to advance in the future. During a crisis, a company needs to be able to:
Respond quickly to the mainstream media, social media, and the Internet
Calm upset employees, clients and officials
Minimize damage to their reputation and their ability to continue to do business once the crisis is over.
Crisis communication is something that needs to be practiced and well planned out. Advance planning, communication training and regular crisis drills are the most important elements of good crisis communication preparation. A noted crisis communication expert notes, "Preparation involves creating the crisis management plan, selecting and training the crisis management team, and conducting exercises to test the crisis management plan and crisis management team" (Coombs, 2007). Coombs also recommended assessing the plan annually to make any necessary updates or revisions. Companies that have practiced and planned for proper communication during a crisis have always come through the crisis much better than if they had not planned at all. A good example is the legendary Tylenol crisis of 1982. Someone laced Tylenol bottles with cyanide in stores throughout Chicago, and seven people died. Johnson & Johnson, the product's manufacturers took bold steps to correct the problem, and they had an existing plan. They quickly issued a warning, removed all Tylenol from store shelves across the country, and redesigned the product's seals, leading to new sealing procedures for all medicines in the country. A PR expert notes, "Amid predictions that the Tylenol brand was doomed, the company saw a quick recovery of its 35% market share and in the process fostered an ongoing customer loyalty" (Smith, 2005, p. 23). As this situation indicated, crisis communication is subjective but is always worth planning because a crisis can always be just around the corner.
A company's reputation is extremely important, which is why crisis communication is so important to that reputation. In another article, author Coombs continues, "This process helps to explain why a crisis and media coverage of a crisis are important to an organizational reputation and why they receive so much attention in writings about crisis management" (Coombs, 2004). A company's reputation can greatly suffer during a crisis, so managing it effectively is an important part of the PR picture.
In the old days when most communication departments' structure was created, there was some time before a response was necessary -- time to craft a well thought out assessment of the problem and its' solution. As a reporter researched the story, they checked, reviewed, edited, and printed the facts, then loaded and delivered the newspaper to subscriber's door. The company had 12 to 48 hours, at least, to respond. Today, it is just a matter of seconds for an employee or participant to post an email or a blog on the Internet, and the word spreads from there. Two writers note, "Technology has diminished an organization's control of crisis communication by opening numerous communication channels for others to use to explain their positions and build support" (Vielhaber & Waltman, 2008). Anyone familiar with My Space, Twitter, or Facebook knows just how quickly the word can spread online. Can a PR person craft an adequate response to a crisis situation that timeframe? Can they contact stakeholders and put something together that is meaningful, accurate and address the issue? The PR department still needs time to construct a response. To avoid this, PR departments must learn to create responses before a crisis occurs, so they are prepared for any crisis or emergency.
Initially, spokespeople may not have all the answers, they need to create channels to inform people the matter is being investigated and the progress of the investigation will become public as the matter is monitored and understood. Depending on the issue, this in itself can start calming things down. Not everyone needs an immediate response, because not all outlets have equal influence and therefore do not all need a response. A point of influence...
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