312 / COMMUNICATING EXTERNALLY
Communicating in a crisis
There is a huge difference between business problems and crises.
Problems are commonplace in business. A crisis, on the other hand,
is a major, unpredictable event. Without careful communication,
crises have the potential to damage an organization’s reputation
and financial standing, together with those of its employees,
shareholders, products, and services.
Identifying the crisis
Some business crises can be prepared
for (to a certain extent), while others
require an immediate and creative
response. There are two main types:
•
Internal crises These arise within
the company, such as accounting
scandals, or labor strikes.
•
External crises These are caused
by an external factor, such as a
natural disaster, a technological
disaster, or external threats by
special-interest groups.
CASE STUDY
MERCK & COMPANY
In September 2004,
pharmaceutical firm Merck &
Company made the decision to
remove its painkilling drug Vioxx
from the market because of
cardiovascular risks. More
than 100 million prescriptions
had been written for the drug.
Within 60 hours of the initial
announcement, Merck’s
communications team launched
a website and established a
toll-free telephone number to
address concerns. Traffic on the
company’s Vioxx website grew
from 4,000 hits daily to 234,000 in
just 24 hours. The toll-free number
received more than 120,000 calls
in the first six days following
the announcement. Without its
sophisticated web presence and
competently staffed call center,
Merck would not have been able
to address the enormous wave of
public concern that arose overnight
about Vioxx, and its reputation
would have been badly damaged.
It is important to recognize the type of
crisis you are facing, because this will
help you pinpoint the groups of people
you will need to communicate with,
and give you an idea of how fast and
how far the effects of the crisis could
potentially spread.
Assemble an effective team
and isolate its members from
other day-to-day concerns
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COMMUNICATING IN A CRISIS / 313
Dealing with a crisis
Communicating in a crisis is different
from managing a business problem.
You are likely to be unprepared, have
insufficient information, and be under
time pressure. Crisis communication
often offers few precedents to work from
and intense scrutiny from outside the
organization. This can lead to a loss of
control and a sense of panic, so it is
important to keep your head, and
address the crisis systematically.
Addressing a crisis
WHAT TO DO
Get
information
Put people
in place
Draw up
a plan
Start
communicating
HOW TO DO IT
Deal from an informed position and separate fact from
rumor. Document what you know and don’t know for
sure. Become the source of reliable information, and
keep the information flowing.
Determine the real problem in the short term and the
long term. Check whether this is really your problem.
Put someone in charge. Give him or her responsibility,
authority, and the resources to get the job done. Tell
people who it is.
Assemble an effective but nimble team. Staff it with the
expertise needed, and provide resources. Isolate team
members from other day-to-day concerns.
Develop a strategy, which should include ways to
resolve the problem, deal with affected parties, and
communicate both today and in the long term.
Establish goals. Define your objectives for the short
term, mid-term, and long term. Measure relentlessly
and don’t be discouraged by critics, negative press, or
short-term failures.
Centralize communications. Incoming communication
provides intelligence, while outgoing communication
gives a measure of control over what is being said
about the situation.
Rely on a strictly limited number of spokespersons who
are knowledgeable, authoritative, responsive, patient,
and good humored.
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