Crisis Averted: 5 Steps to Developing an Effective Crisis Management Plan

 

Did you know one in every four companies does not have a crisis management plan?  With 20 years of crisis management experience under our belts, it’s safe to say that at The Power Group we are Power Players on the field of crisis. Crises can happen to even the best of companies and it’s crucial to have a plan of action ready to launch. No, this doesn’t include that stale crisis plan that is buried in your desk drawer. Here are five simple steps to get you crisis ready: 

 

 

1. Your mind has to go there … think through all the scenarios 

It’s important to think through all of the scenarios and potential risks your company could face. This could range from social media blunders and product recalls, to data breaches and sexual misconduct. Hold a brainstorming session to discuss any potential pitfalls or worst-case scenarios. 

 

2. Determine the crisis’ impact

Now think, what would this crisis do to the company? Create a BIA (business impact analysis) that addresses the potential crisis effects. Here are a few examples to get you started:

 

  • Customer dissatisfaction
  • Costs associated with operational changes
  • Negative social media memes
  • Legal costs and class-action lawsuits
  • A decrease in stock price  

 

3. Communicate 

It’s important to inform employees, partners and any other parties involved on how to respond during a crisis. You can begin by asking the right question, what do reasonable people expect our company to do to remedy this situation? When you can answer that question, you will then be able to determine what to say, how to say it and when to say it as your crisis unfolds. Also, take advantage of technology. Ensure that everyone is on the same page by using a crisis management app that has the capability to share documents, send messaging, share contact lists and more. 

 

4. Find the opportunity 

In every crisis, there is an opportunity. Whether you’re improving your operations, customer service or product, there is a silver lining at the end of the crisis tunnel that will make your company better at the end of the day, even if it doesn’t seem like it at the moment!

 

5. Stay up to date 

It’s critical to keep your crisis management plan up to date as employees come and go from the company. We recommend reviewing your plan at least twice a year to ensure you’re keeping up with changing technologies and potential crisis scenarios. 

 

With these simple steps any company, big or small, can develop armor for crisis prevention. If you are looking for outside resources, you can reach out to us here to chat about what The Power Group can do for you.

Amy Power, our CEO and crisis guru, has seen it all during her 20 years in business. 🤓 What’s her biggest crisis tip? Always have an action plan in place! 📝

Posted by The Power Group on Monday, October 7, 2019