RED ALERT

CRISIS MANAGEMENT: EXPERTS SAY that most of the work in a crisis situation can be prepared in advance

CRISIS MANAGEMENT:EXPERTS SAY that most of the work in a crisis situation can be prepared in advance. This is true to some extent, but no one can be fully prepared for a crisis situation because it is almost impossible to foresee.

I work for the European headquarters of a multinational tyre company, and my real introduction to crisis management came in 2000. On a Friday afternoon we were informed that our sister company in North America had announced a voluntary recall of more than six million tyres that were fitted to SUVs and were linked to fatal accidents.

While the action was primarily in North America, a quick analysis of our European data showed that there were a potential 40,000 of those tyres in use in Europe, and therefore action needed to be taken immediately.

I quickly learned then, and I have seen repeatedly in other companies' crises since then, that a panic atmosphere sets in when a crisis starts. It is essential that someone takes control. It is not about the most senior person being the one in charge. Often it needs the most capable person with the recognised authority and resources. Appointing a person for this role is something that can best be done in advance, when there is no immediate pressure.

READ MORE

When the crisis hits, there is a window of a few hours before the media take control of the communication. If there is no clear statement from the company, then the journalists will get their information from wherever they can find it - and the company loses control of their own message. International companies have an added burden, in that they often need to get approval from a higher authority before they can issue public statements. Time zones and time delays slow everything down and the media do not wait. Where possible, the chain of approval should be shortened and the person in charge on the spot should have the authority to approve public statements.

The first statement is most important. It should establish the basics of what has happened, what was the cause and what is being done to correct the problem. The "what" and "why" need careful analysis, as during the early panic hours there are several opinions, incorrect facts and distorted stories circulating.

The recall crisis that I experienced was the first major product recall in the internet age. Within hours, there were hundreds of reports all over the web, most of them written without any checking of the facts. Clear statements of fact should be released as soon as possible.

In crisis handling, there are two clearly distinct roles. First there is the operational crisis, such as dealing with the physical problem. This could mean the accident and emergency services in the case of a fire or industrial accident or, in my case, the recall procedure. The second is the communication crisis, dealing with the media, affected consumers, authorities, etc. The two roles should be clearly identified and while the people in charge of each one should be in close communication, they should each focus on their own role.

One cannot estimate how many phone calls might be received from the various interested parties in a crisis. I strongly recommend investing in a "sleeping" free phone number, and the services of a call centre that can be activated with 24-hour staff at a moment's notice. We did not have such a facility in 2000, but we have it now and it is an important insurance which we have not yet had to activate.

Proactive communication with the relevant authorities is very good practice. Inform the police, health and safety authorities, and other relevant departments about what has happened before they learn it elsewhere. In my case, a presentation to various departments in the European Commission proved sufficient to stop them from taking action on behalf of European consumers. They were satisfied that we were already taking the necessary steps.

The appointment of a spokesperson is vital. While some experts say that the spokesperson in a crisis should be the chief executive, I prefer to use a good, presentable, well-spoken person that knows the subject.

Big companies will often have a crisis management team, as my company has now. The chief executive should always be included as a member of the crisis management team, as he or she will be the one to authorise the spokesperson and make some quick decisions.

Handling a real crisis requires a mental adjustment if you are to survive it. First, one must understand that their time is no longer their own. The crisis communication manager is on call 24/7. If your person in charge cannot work that way for the duration of the crisis, then nominate someone else today.

Another good practice is to prepare a crisis management manual. I have heard that a crisis manual is a great tool because you can use it as a door stopper to hold the door of the crisis management room open. Nevertheless, such a manual can contain all sorts of fast facts such as the key contact points and numbers for internal and external stakeholders. A valuable crisis management manual might be as short as two or three pages, but can save hours when you need the information.

When I look back at what my company had in terms of crisis management preparedness in 2000 compared to what we have today, the difference is huge. Today we are media trained. We have reference material. We have a crisis management team. We have a back up call centre and facilities. Most of all, we have the experience of handling a major crisis.

The irony is that one needs the experience of a real crisis to prepare for a crisis.

Des Collins is currently vice-president of public relations at Bridgestone Europe