Marketing

By Elizabeth Boineau

In this broadband, nanosecond world where communication moves at an out-of-control speed, organizations and companies cannot afford to not plan ahead on how to survive a crisis.

There are three labels to describe the various levels of an escalating crisis. The most desirable type of crisis is controlled. The next level is critical, and the worst crisis level is catastrophic.

For example, a company that has controlled a crisis well has likely been anticipating one for some time and has planned and practiced for the inevitable.

Organizations not prepared for a crisis are the ones who teeter at the critical stage and have the potential to catapult to catastrophic by the way they manage the crisis.

If an entity is accustomed to making smart real-time decisions, born of good strategy and effective top/down and bottom/up internal communications already, then they fare better when called upon to react quickly to a crisis.

Some crises, by nature, start catastrophic (the events of Sept. 11, 2001 serve as a graphic example), but these crises can move forward along the meter to critical and even controlled, based on how well things are managed after the initial hit.

In the case of 9/11, this country’s leadership, in admirable bi-partisan fashion (initially at least), took control and calmed our country, then reeling in shock. The president’s speech has been cited as his finest oratory moment, and that, coupled with the wisdom, compassion and selflessness of many, offered security and comfort to help unite us and managed to move the nation from intensive care to critical condition. The country is still working on getting the crisis controlled because a war is still being waged and security threats linger in its aftermath.

One expert, (with whom I heartily agree) Lou Williams of L.C. Williams & Associates of Chicago, a firm known for its crisis management expertise, proclaims that a company in crisis should “tell it all, tell it fast and tell the truth.” Williams should know; Chicago was the site of seven deaths from cyanide-laced Extra-Strength Tylenol capsules in 1982, an incident that serves as a primo crisis how-to example to this day.

Johnson & Johnson was quick, open and responsive to the situation, alerting the consumer through media channels to not consume the product. The company then recalled all Tylenol capsules from the market (amounting to 31 million bottles then worth $100 million) and ended all production to ensure that customers were safe from potential harm and to demonstrate that they genuinely cared.

Johnson & Johnson later worked to introduce tamper-proof packaging for over-the-counter pain medication, helping to restore controlled calm to what could have easily been critical, if not catastrophic, consequences for the giant parent brand. Return of market share, not surprisingly, followed soon behind.

When asked how these critical decisions were made, company officials said crisis planning was always part of ongoing management discussions, but nothing could have prepared them for a crisis of this scale. Still, they were more prepared than even they knew. What guided them was their company “credo,” their corporate business philosophy or core values, as we might label it now.

Tylenol’s core values, articulated in the 1940s by Robert Wood Johnson, who led the company for 50 years, turned into a stellar crisis PR plan. Johnson felt that the company’s responsibility—to employees, consumers and shareholders—was to society above and beyond profitability. With that guiding principle, an open-air approach to news and information from company spokespersons and a receptive media carrying the word in a positive fashion were reinforced by company action that led to safer bottling. And the company came back from what could have been the abyss of a crisis to controlled, managed calm. They kept their corporate reputation intact like never before.

So how to shore up your crisis management plan and learn from the fall and rise of others?

Communicate with your key audiences (customers, vendors, employees and shareholders) long before a crisis happens, then engage them when a crisis occurs to help guide company response. Those relationships and early feedback will help sustain you.

Accept responsibility for the situation, even if it is not your fault.

Reveal all that you know, and assure audiences (and the media) that you will continue to update and advise them as things develop.

Put public safety and public interest at a level at least equal to the organization.

Listening before, during and after a crisis is essential, and that includes monitoring chat rooms, blogs and media sources, surveying key audiences and more to see how the news is traveling and what the company is doing right and wrong to control the crisis.

Correct your crisis control plan as needed and work diligently to get an A in the three C’s by keeping things well under control.

Elizabeth L. Boineau runs E. Boineau & Company, a Charleston-based strategic marketing communications and public relations firm. E-mail her at eboineau@eboineauandco.com.

SUBSCRIBE | REPRINTS | CONTACT US

Phone: 843-849-3100    Fax: 843-849-3122