In today’s digital context, it is very easy for crises to get out of hand. For instance, an unofficial quote from a CEO could easily go viral and do more damage than the original issue — just ask Lloyd Blankfein or Tony Hayward. This is why it is necessary for CEOs, in particular, to prepare for crises. Here’s how they can do that:
1. Invest in crisis management and communications.
We no longer live in a 24-hour news cycle. In the digital age, any news (even false), can reach millions in a matter of minutes and a minor issue can easily turn into a major disaster. However, through early preparation and planning, issues can be caught as they emerge and companies can provide a speedy response, maintain the confidence of stakeholders, retain their good name, and speedily bring issues to their full resolution. Investing in media training, strategic communications consultants, media relations experts, and digital technology to monitor and respond to crises are therefore vital.
2. Assemble a crisis management team and become an active member.
CEOs will need to participate in crisis management exercises with their directors, executive team, and crisis communications team so that when crisis strikes, each party can know its role and be ready to execute as needed. In particular, during a crisis, the CEO will need to speedily work with the crisis management team to create & deliver an effective initial statement. If the team is not well prepared, it will be difficult to coordinate a response. For more on how to select an effective crisis management team view my blog post here.
3. Learn and understand what not to do by looking to case studies of other leaders’ responses.
There have been tons of missteps and victories on the parts of CEOs which have been vital in shaping the nature (duration, public opinion, stakeholder confidence, etc) of each crisis. As cases involving BP, Tesla, Southwest airlines, Goldman Sachs and many more have shown, a CEO’s response can be ‘make or break’ when it comes to successful crisis resolution.
The takeaway:
To deal with crises, CEOs need to be prepared ahead of time by developing a plan of action, building an understanding of what works and what doesn’t, and investing in the necessary infrastructure to deal with crises.
CONTROL, by Fiayo. 