The Benefits of a Crisis Communication Plan

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Concept and Rationale:

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This Capstone project sets out to research and develop a crisis communication plan that is tailored for large corporations. By learning how crisis communication plans are created and how they have historically impacted companies, we can gain a further understanding of their importance in a corporate environment when disaster inevitably strikes. As a Strategic Communication Major, this project expands on one of the most crucial aspects of the discipline, effective crisis communication. This skill is vital to understand as it protects the reputations of companies and mitigates potential damage.

The target audience for this project would include communication professionals, executives, and people who are responsible for managing crises. This group of people can benefit from a comprehensive overview of how crisis communication plans are created and how they safeguard a company. On another level, employees, stakeholders, and customers of corporations would also benefit from the knowledge gathered here as it provides them with an understanding of how a crisis communication plan affects them personally.

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Research and Rationale:

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When forming a crisis communication plan, an essential part of that plan is proactive communication. In the article written by Claudine McCarthy, she quotes James F. Haggerty, a

communications consultant who stresses the importance of maintaining a positive image and reputation. A crisis communication plan should be able to mitigate any negative impacts that crises would have. By forming dedicated crisis communications teams and regularly updating the plans, it is possible to stay ahead of any potentially damaging reactions. Doing so will help reassure stakeholders and counteract any false narratives that spread on social and traditional media platforms. Another important step in the plan is to address mistakes openly with heartfelt apologies and plans for improvement. This will increase credibility and help rebuild any damage done to a company’s reputation.

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John Vita writes about the Enron crisis, a global accounting firm accused of unethical accounting practices. The firm went out of business after only a few months of the scandal getting out. Enron did not collapse from legal proceedings or a trial, but from the mass exodus of clients due to reputational damage done by the scandal. A crisis communication plan is created to help mitigate these types of damages and reduce the impact it has on the company. These plans include steps such as building press relationships, preparing responses, and creating crisis teams. By forming relationships with the press, you can get ahead of a negative news story and start forming a new public opinion. Once the reputational damage is done, it is incredibly hard to rebuild. This only emphasizes the importance of being prepared and having a crisis communication plan in place to handle these events as soon as they happen.

Agnes Lando brings up the three-stage approach to crisis management, which consists of pre- crisis, crisis, and post-crisis. The pre-crisis stage focuses on signal detection, prevention, and crisis preparation. These steps help companies detect crises early and act on them before they develop into larger problems. Sometimes crises can’t be avoided, which takes us to the second stage. During a crisis, it is important to recognize and contain the crisis to stop the impact it is having. Communication with stakeholders is key, as this will ensure they continue to trust that the event will be handled properly.

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Once the crisis is over, the post-crisis stage begins. During this stage, organizations will reflect on what happened and prepare themselves to prevent another crisis from occurring. Another part of the final stage is to make sure that the stakeholders are satisfied with the handling of the crisis and to ensure that the crisis is truly over.

In the Forbes article, written by Felipe Reisch, he states the importance of a proactive approach and understanding the perceptions of stakeholders throughout the crisis. Timing and frequency of communication play a huge role in the effectiveness of crisis communication. By keeping the public informed of any ongoing crisis, they can only react to the information provided to them. When left in the dark, speculations can form, which often lead to the wrong message getting out. Another important element is informing employees of an ongoing crisis, as this allows them to prepare for the situation and not feel blindsided by the company. Reisch goes on to state that the most important outcome of a crisis communication plan is to minimize the long-term impact on the company’s reputation. Timing, transparency, and managing the narrative are the key pieces in having a successful outcome.

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Ben Waugh writes about how significant crisis communication plans are during uncertain and apprehensive times. He highlights the increasing number of potential crises, such as cyberattacks, natural disasters, product recalls, service downtimes, and more. One blanket plan is often not enough to cover all the potential crises that can occur. Having multiple plans in place for different scenarios is essential if you want to be prepared. According to PR News and CS&A International research, 62% of companies have crisis plans, but not all of them are regularly updated. One of the main reasons that a crisis communication plan fails is due to a lack of preparation and the ability to efficiently communicate. Being unprepared for a crisis increases the likelihood of mistakes which can only worsen the situation. Forming crisis committees and creating multiple scenario-based plans can help companies prepare themselves for an unexpected crisis.

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Summary:

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In summary, a common trend among all of these articles is the focus on preparedness. All effective crisis communication plans should be prepared to handle any crisis thrown their way and act on it in a timely manner. By forming crisis committees and appointing communication roles, information needs to be communicated through the proper channels with transparency. Doing so helps maintain relationships with key stakeholders to continue to have their trust throughout the crisis. The goal of the crisis communication plan is to minimize long-term reputational damage, as this is the hardest part to rebuild. More research can be done on when crisis communication plans fail, as learning about how they failed can provide good insight into how to correct them for the future. This research has furthered my knowledge of what constitutes a good crisis communication plan and what the requirements are to have it succeed. Preparedness, transparency, and maintaining your reputation are essential if you want to have a successful crisis communication plan.

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Personal Statement:

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I chose to explore crisis communication plans as I had a personal experience being on the receiving end of one. My experience was as an employee of a major corporation where the building I worked at was the target of an attack. For a long time during the crisis, I was kept in the dark, unsure as to what was going on. There was increased security, but no direct communication as to why. Once the crisis was handled, we received an email explaining the situation and that it was taken care of. Immediately I was surprised that I wasn’t informed about it earlier, but looking back, if I had been informed earlier it could have caused unwarranted panic amongst the employees. I believe that the crisis communication plan in place worked at effectively managing the situation and keeping the

business running without any interruptions. This experience made me curious as to how crisis communication plans are created and what decisions get made along the way. I plan on further exploring crisis communication plans and want to create a presentation on some potential outcomes for different scenarios. Hopefully, this will provide insight to anyone else who is curious about how these plans are created to keep us safe and our companies operating without disruptions.

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References

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Lando, A. L. (2014). The Critical Role of Crisis Communication Plan in Corporations' Crises Preparedness

and Management. Global Media Journal, 7(1), 5-19.

http://proxy.lib.odu.edu/login?url=https://www.proquest.com/scholarly-journals/critical-role- crisis-communication-plan/docview/1543483211/se-2

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McCarthy, C. (2019). Improve crisis communications plans to better serve institution, students. Student Affairs Today, 22(7), 1–5. https://doi.org/10.1002/say.30661

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Reisch, F. (2023). Council Post: The Positive Impact Of Crisis Communication Preparedness. Forbes.

https://www.forbes.com/sites/forbescommunicationscouncil/2023/03/15/the-positive-impact-

of-crisis-communication-preparedness/?sh=7d6434ea2bd5

Vita, J. (2018, September 1). Building a crisis communication plan. Accounting Today.

https://global-factiva-com.proxy.lib.odu.edu/ga/default.aspx?page_driver=

 

Waugh, B. (2022). What is crisis communication and why companies fail? www.vevox.com.

https://www.vevox.com/blog/what-is-crisis-communication-and-why-companies-fail-at-it