Crises often emerge unexpectedly, catching companies off guard. This unpredictability underscores the critical importance of having a comprehensive crisis communication plan in place.
While it would be convenient if emergencies provided advance notice, the reality is that they often strike without warning. However, rather than succumbing to chaos in such situations, companies can mitigate the impact of crises by proactively preparing for them.
Having a well-thought-out crisis communication plan enables organizations to respond swiftly and effectively when faced with unforeseen challenges.
It provides a structured framework for managing communication during times of crisis, helping to minimize confusion, maintain transparency, and protect the company’s reputation.
What is a crisis communication plan?
A crisis communications plan is a strategic framework and set of processes developed by an organization to effectively and efficiently manage and address communication difficulties and issues during a crisis.
The strategy defines the actions and protocols that the crisis communication team will follow to guarantee timely and accurate communication with stakeholders, the media, and the general public.
The plan’s purpose is to limit potential reputational damage while retaining trust and transparency with employees and the general public. In essence, although it’s impossible to predict when a crisis will occur, having a crisis communication plan in place ensures that companies are better equipped to navigate turbulent times and emerge stronger from adversity.
Crisis communication is the process through which an organization disseminates information to address a crisis that affects its customers and/or its reputation. The underlying concept is that a company’s reputation is shaped by the perception of everyone aware of the organization, regardless of whether the company actively manages its reputation.
Therefore, it is in the best interest of a company to have some control over the narrative. Moreover, maintaining transparency in communication enhances customer satisfaction.
Crisis Scenario Examples
You may be wondering, “What exactly constitutes a crisis?” Let’s explore some of the most common types of crisis that businesses can face at least once in their lifecycle:
- Financial Crisis: This includes situations such as announcing bankruptcy or closing stores, which can significantly impact the company’s financial stability and public image.
- Personnel Crisis: Changes in staff, such as employee furloughs, layoffs, or instances of controversial behavior, can adversely affect operations and the organization’s reputation.
- Organizational Crisis: Misconduct or unethical practices within the organization can lead to public scrutiny and damage its reputation.
- Technological Crisis: Technological failures resulting in system outages or reduced functionality can disrupt operations and erode customer trust.
- Natural Crisis: Events such as natural disasters necessitate announcements or changes in procedures to ensure the safety and well-being of stakeholders.
- Confrontation Crisis: Instances where discontent individuals confront the organization due to unmet needs or demands can escalate into a crisis situation.
- Workplace Violence: Violence perpetrated by current or former employees against their colleagues poses serious risks to employee safety and organizational reputation.
- Crisis of Malevolence: Occasions where a business resorts to criminal or illegal activities to harm competitors can lead to severe reputational damage and legal repercussions.
Effective Crisis Communication Plan Examples
- Johnson & Johnson’s approach to the Tylenol crisis
In 1982, Johnson & Johnson faced a huge crisis communication issue when seven people died after taking Extra Strength TYLENOL capsules laced with cyanide.
Although the issue appeared to be isolated to Chicago pharmacies, the business quickly removed 31 million bottles from the shelves and initiated a countrywide push to notify the public about the tampering, collaborating closely with law authorities throughout the investigation.
The incident prompted the company to develop new, industry-leading tamper-evident packaging. Johnson & Johnson was able to rebuild consumer trust and market share by being upfront and acting quickly.
- Cracker Barrel
In 2017, Cracker Barrel found itself embroiled in a social media firestorm after a man named Bradley Reid questioned his wife’s dismissal from her managerial position at one of the company’s Indiana locations.
Despite the public outcry, Cracker Barrel chose not to address the issue publicly, opting for silence instead. By refraining from commenting on the specifics of the case, the company avoided further scrutiny and allowed the controversy to dissipate over time.
While silence may not always be the best strategy in crisis management, in this instance, it proved effective in minimizing reputational damage and avoiding potential privacy concerns.
Each of these examples highlights the importance of a tailored crisis communication strategy and the need for businesses to respond with transparency, empathy, and appropriate action in times of adversity.
- Hollywood Foreign Press Association
In 2021, the Hollywood Foreign Press Association (HFPA) faced intense scrutiny over its lack of diversity and inclusion. More than 100 PR firms, along with their celebrity clients, threatened to boycott the Golden Globes unless the HFPA committed to substantial reforms within the organization.
In response to mounting pressure, the HFPA pledged to increase its membership and diversify its ranks. However, critics argued that these changes were insufficient to address the systemic issues within the organization.
Ultimately, the HFPA’s delayed response and inadequate reforms failed to assuage concerns, leading to continued criticism and boycotts from industry professionals.
- Southwest Airlines
Southwest Airlines has consistently maintained a reputation as one of the safest airlines globally. However, like any airline, it is not immune to accidents.
During Flight 1380, an engine malfunction resulted in the tragic death of a passenger, marking the company’s first in-flight fatality. In response to the incident, CEO Gary Kelly promptly addressed the situation by extending a sincere and heartfelt apology to the victim’s family.
Furthermore, he took decisive action by suspending all advertising across their social media platforms and personally reaching out to passengers, offering support and access to counseling resources.
Why This Approach Worked: While confronting distressing crises is undeniably challenging, they are inevitable occurrences that can profoundly impact businesses.
Despite Southwest Airlines never having encountered such an accident before, the CEO’s preparedness and genuine display of remorse, both in his words and the company’s actions, proved effective in navigating the crisis with empathy and integrity.
- KFC
In 2018, renowned restaurant chain KFC encountered an unexpected dilemma when it ran out of chicken to serve its customers. Renowned for its 11-spice fried chicken recipe, this shortage posed a crisis that the company likely hadn’t anticipated.
However, KFC’s marketing team promptly sprang into action, putting a positive spin on the situation. They released videos and tweets, such as the one below, offering light-hearted apologies for the shortage and showcasing the brand’s humility.
This incident underscores the importance of a crisis communication plan for restaurants. Scenarios such as foodborne illness outbreaks, unsanitary working conditions, and delivery issues impacting food supply are just some of the crises to anticipate.
Noteworthy Aspect: Despite the brand’s typically lighthearted tone in its social media campaigns, it responded to customers with transparency and outlined steps to improve their service.
- Amazon
Amazon faced intense scrutiny in December 2021 following a devastating tornado that struck one of its warehouses in Edwardsville, Illinois. The collapse of the warehouse resulted in the loss of six lives, amidst a series of tornadoes wreaking havoc across Tennessee, Kentucky, and Arkansas.
Reports emerged of Amazon warehouse workers allegedly being compelled to continue working despite tornado warnings, prompting scrutiny of the company’s health and safety protocols.
Amazon’s initial misstep was a delayed public response, with CEO Jeff Bezos taking nearly 24 hours to issue a statement. Bezos’ tweet expressing condolences and commitment to support the affected community drew criticism across social media platforms, with many questioning its sincerity.
Room for Improvement: In the wake of such a tragic loss, a prompt and empathetic statement is crucial. Bezos’ delayed response appeared insincere, exacerbated by his prior focus on unrelated matters. A more immediate and heartfelt acknowledgment of the tragedy would have been more appropriate.
- Virginia Department of Education
Much like universities, schools must efficiently manage crises, particularly those that disrupt the normal class schedule. Given that schools cater to children, it’s crucial to keep parents and guardians informed of any situations that could impact their children’s education, safety, or health.
The Virginia Department of Education has developed a comprehensive management plan, which includes crisis communications protocols. This plan outlines various crises necessitating communication with parents — such as a school bus accident — and provides readily available letter templates for swift dissemination.
Noteworthy Feature: The inclusion of a diverse range of symptoms for parents or guardians to monitor in this crisis communication plan is commendable. This is vital as it’s not always evident how students are affected, and providing guidance on what to watch for is crucial for their well-being.
- Burger King
During the fall of 2019, a vegan individual filed a lawsuit against Burger King, alleging that the company misled customers regarding its newly introduced Impossible Burger. The plaintiff claimed that the meatless patties were prepared on the same grill as the beef burgers, leading to confusion among vegan consumers.
Similar crises have affected other fast-food chains like Subway and Wendy’s in the past, albeit without merit. Despite facing similar unfounded allegations, Burger King faced the crisis head-on.
While the company provided a robust defense against the lawsuit, it also allowed the legal process to unfold without excessive intervention. A year later, the case was dismissed by the judge due to a lack of evidence from the plaintiffs. Burger King’s response to the dismissal succinctly stated, “This claim has no basis.”
- United Airlines
No discussion of crisis communication examples would be complete without mentioning United Airlines. In 2017, the airline faced immense backlash after a video surfaced showing Dr. David Dao being forcibly removed from his seat due to an overbooking issue.
Initially, United’s response to the incident was inadequate. The CEO attempted to shift blame onto Dr. Dao, labeling him as “belligerent” and “disruptive.” Predictably, this response further fueled public outrage, leading to widespread calls to boycott the airline.
Realizing their misstep, United Airlines swiftly changed course, taking full responsibility for the incident and announcing forthcoming changes.
However, the initial lack of empathy in United’s response exacerbated the situation. While the airline eventually managed to stabilize its image, this incident serves as a cautionary tale of how not to handle crises.
- University of Washington
In crafting a crisis communication plan for a university setting, it is crucial to address potential crises that could disrupt normal school and administrative operations. For example, my college promptly notifies students via email in the event of a dangerous incident occurring on or near campus, providing safety tips for precaution.
Additionally, universities anticipate crises such as protests, injuries or fatalities involving community members, and negative media coverage related to the institution.
The University of Washington has developed a comprehensive crisis communication plan focused on safeguarding the safety and well-being of its community members.
Given its status as a university, the primary target audiences for communication encompass students, faculty, staff, parents, alumni, visitors, temporary residents, the general public, and the media.
What Stands Out: The meticulous attention to detail in including representatives from diverse organizations in the crisis management team demonstrates an additional layer of thoughtfulness during a crisis. By maintaining a roster of designated representatives, there is greater assurance of a prompt and effective response.
10 Steps for a Successful Crisis Communication Strategy
Being prepared is essential for developing a successful crisis management strategy. As the preceding instances demonstrate, some businesses are more equipped than others to weather any storm. The eleven factors listed below can make or ruin a corporation in a crisis.
- Prepare in advance: It’s critical to have a plan in place before a crisis strikes. Identify potential hazards, develop messaging templates, and form a crisis communication team.
- Assess the situation: When a crisis occurs, acquire all relevant facts to better grasp the situation. Determine the severity, impact, and possible outcomes.
- Act quickly: Time is critical in crisis communication. Respond quickly to the crisis, admitting the problem and offering early information to all involved.
- Establish a central spokesperson: Designate a knowledgeable and trusted individual as the organization’s official spokesperson. This person should be trained in crisis communication and capable of delivering accurate and consistent messaging.
- Communicate with the stakeholders: Keep all relevant stakeholders updated during the crisis, including employees, customers, and the media. Provide regular updates, be open and honest, and respond to concerns and questions swiftly.
- Tailor the messaging: Adapt your communication style and tone to diverse audiences and platforms. Avoid technical jargon and complicated terminology, and instead use plain and succinct language.
- Monitor and address social media: Actively monitor social media channels for crisis-related remarks and discussions. Respond appropriately and directly to any questions, comments, or concerns posted on these channels.
- Correct misinformation: Inaccurate information can travel quickly during a crisis, exacerbating the situation. Counter incorrect information with factual facts and resolve any misunderstandings quickly.
- Empathy and compassion are vital during a crisis: Be sure to communicate your concerns and offer help.
- Learn and improve from the crisis: Once the immediate situation has been resolved, undertake a thorough examination and evaluation. Identify areas for improvement in your crisis communication strategy and make any required changes to be more prepared in the future.
Summarizing Effective Crisis Communication Plans
Crisis may appear suddenly, without any prior notice and preparations. Most companies remain weak and are not ready for such a situation. But in order to control the situation successfully, preserve reputation, and maintain stakeholders’ trust, there is a need for a good crisis communication plan.
This article discusses general principles in developing a robust crisis communication strategy by considering real-life cases-from Johnson & Johnson to KFC to Amazon.
In fact, through the study of such cases, along with a structured plan, companies can clearly and empathetically address difficult times without taking their customers for granted and hold people accountable to ensure quick recovery from adversity.
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Common FAQs on Effective Crisis Management
How do companies recover from a crisis?
After a crisis has been addressed, businesses need to look back at what happened and understand their weaknesses in the crisis communication strategy. Modifications based on such critical understanding will then help a business prepare better for the future.
How does a company handle a crisis on social media?
Companies must also monitor social media, respond to questions quickly, correct myths instantly, and always leave lines open for communication during a crisis. Personalization and even the provision of some form of solution can keep public trust alive.
What are the basic stages in developing a crisis communications plan?
The key aspects are prior preparation, quick situational assessment, identification of a named spokesperson, communication with stakeholders, tailoring of one’s messages, monitoring of all social media, and learning lessons from every crisis to be better prepared for the next.
