Finansist #2/2001

What crisis is and how to manage it.

If you see a handful of headlines negative of your company in morning newspapers, consider it a crisis.

Basic types of crises

All crisis situations breaking to the media can be divided into sudden and smoldering. Among the most obvious sudden crises are major technical malfunctioning, natural disaster, wildcat strike, etc. These types have rapid up and down turns and the most dangerous thing every manager should be aware of is a possibility of a sudden crisis to turn into a smoldering one. The latter entails much more troubles and may stay up in the headlines for long. Smoldering crises are usually tied to state property re-division, political conflicts, etc.

Specifics of the two major types of crises

Most sudden crises can be resolved instantly with the use of the so-called "Tylenol Rules": To acknowledge responsibility, appoint a "front person", recall the products, etc.

In order to prevent a sudden crisis from turning into a smoldering one, it is necessary to provide for fast reaction and, more importantly, to get ready to troubles before the worst may happen.

Still, if a smoldering crisis occurs, one should remember these basic action principles:

1) Know where you are. Get to know fast what is written and broadcast about you. Do not narrow down your search and analysis area before localizing the sources of the smoldering crisis.

2) Work with your communicators. The media, opinion leaders, and other influential people can not often be impartial because of the strong political stereotypes. Your task is to educate your key communicators on what is really going on. And don't tempt to use filthy PR methods or simply to place articles on offer in order to counter the negative: Such move can and will only get some of the knowledgeable figures biased against your company - as they will soon understand who is the customer.

3) Know your target audience.

How to manage a crisis

Some of the following tasks will have to be resolved during crisis:

• tell your side of the story first
• neutralize negative messages
• monitor your weaknesses
• create a special crisis Task Force
• train your spokespersons
• create a special crisis media kit (include situation background, press materials, list of contact persons and decision makers, related media list, etc.)
• develop and follow a single crisis relations strategy
• organize series of exclusive interviews with third-party experts
• repeat the key messages and fix the positive attitudes

Also make sure to keep transparent and try to play down stable negative stereotypes.

Who shall handle corporate crises?

Public relations department of each company should have a thoroughly developed crisis preparedness plan. There also must be a team of professionals capable of executing this plan in case if a sudden crisis occurs.

Smoldering crises shall better be assigned to professional PR agencies with extended experience in crisis relations.

Veronica V. Moiseeva