Crisis management: how to manage a crisis effectively?

You know that sooner or later, your business is likely to face a crisis situation. This can be caused both by internal problems such as a succession of resignations, the loss of an important customer or the absence of a manager, as well as by external events such as an economic crisis, a shortage of raw materials, a shortage of raw materials, a transport strike or a natural disaster.

Whatever the origin of the crisis, the consequences can be catastrophic for the company and endanger its future. To avoid this type of scenario and effectively manage any type of crisis, it is essential to react quickly and take measures to get your business out of the turmoil. If there is no miracle solution to effectively manage a crisis because each situation is specific, you can follow these 7 steps to implement effective crisis management.

1. Identify risks

Managing a crisis well starts with anticipating the risks that the company may face. For that, Organize a brainstorming session and bring together a person representing each department in the company in order to draw up the most complete list possible of all potential risks. This can range from a natural disaster to a computer outage to a serious work accident or death, a cyber attack, or a faulty product.

Then, analyze each risk to determine the likelihood of it happening and its impact on the organization, and establish a ranking. Thanks to this in-depth threat study, you will realize that some risks can be avoided by changing work processes and changing the practices currently in place in the company.

For example, reduce the risk of cyberattacks by investing in powerful antiviruses and by regularly training your staff in cybersecurity.

2. Define a response plan

Once you know all the potential risks, you must define the human and material resources to be put in place to respond effectively to each crisis situation.

The crisis management plan takes into account all possible scenarios and provides for operational responses to be provided. It may be the business continuity plan (PCA), of the business resumption plan (PRA), the evacuation plan for employees or the public, etc.

It is important to be well prepared and to have a response plan ready before a crisis occurs because you will probably not react in the same way when faced with the stress and pressure of dealing with a real crisis.

Note that the crisis management plan should be reviewed and updated regularly as risks change. It should also be tested to ensure its effectiveness.

3. Establishing a crisis unit

The crisis unit is the key place for crisis management. This is where the crisis management organization is centralized, the response plan is managed, and the crisis communication strategy is implemented.

The crisis unit generally consists of members of the company's staff as well as external persons with particular expertise in the event of a sensitive or critical situation. In particular, it includes:

• the company's main decision makers (managers, department managers, senior managers);
• internal or external experts with knowledge related to the nature of the crisis;
• specialists in (crisis) communication and public relations;
• legal advisers, lawyers or insurers.

It is within the crisis unit that decisions are taken to deal with the crisis and to protect the company, its activity and its reputation.

4. Designate and train the spokesperson

In times of crisis, it is essential to coordinate company communication in order to preserve its image and reputation, but also to show that it is in control of the situation. There are two nuances to the role of crisis communication:

• communication that makes it possible to manage the crisis and reduce its impacts on the functioning of the company (by alerting customers and/or the public, by sending instructions to employees, by coordinating operations);
• communication aimed at avoiding scandals and protecting the company's reputation.

The company must designate who will be its official spokesperson in the event of a crisis. This person (there may be several) will be the only one authorized to speak on their behalf. It is the company's official source of information.

The spokesperson (s) are carefully selected and trained to speak via the various communication channels.

5. Define the messages to be broadcast

During a crisis, the company must address all its audiences: employees, customers, partners, partners, suppliers, general public, etc. The messages broadcast will therefore vary according to the target target, but also according to the media chosen for distribution (website, social media, press, etc.). However, keep in mind that the messages should be simple, clear, and easily understood by everyone. Be as transparent as possible, avoid denying the existence of the problem at the risk of losing credibility, but don't overdo it either.

The first messages are usually alert messages. Then, you need to communicate about the evolution of the situation. To avoid having your messages influenced by stress and the pressure to manage a critical situation, do not hesitate to develop them in advance based on the disaster scenarios that you identified during the first stage.

6. Managing crisis management

A crisis is coming, it is time to react by implementing everything you have prepared before. Have you detected a problem or an abnormal situation? Evaluate the level of the threat, and based on this, trigger the crisis unit, launch the alert and put the response plan into practice. Thanks to simulation exercises, everyone knows what to do.

7. Stay positive

A crisis is often a real test for a company. But if managed well, it can create new opportunities, and force the company to be creative and innovative to get by and bounce back. Internally, it is an opportunity to strengthen team cohesion and the sense of belonging of employees. Externally, a crisis is an opportunity to show the strength, responsiveness and resilience of the company. An effectively managed crisis will improve or strengthen the image and reputation of your business.