The Magazine of the HEC Lausanne Alumni Association

20.12.2023
Headlines

How to manage corporate crisis communication effectively

Crisis communication is a crucial aspect of managing emergency situations and major problems that a company may face. Each crisis is unique, with its own challenges and dynamics. In this article, we explore the different facets of crisis communication.

Understanding crisis communication

Crisis communication plays a vital role in managing emergencies and major problems. 

It is an active, planned communication process designed to manage information, maintain stakeholder confidence and protect the company's reputation. It is essential to react quickly and effectively to minimize negative consequences.

There are many different types of crisis a company can face, the main ones being financial, product or service, or management-related.

Steps to effective crisis management

Crisis management requires a structured, methodical approach. Here are a few key steps to effective crisis management.

  • Identify the crisis: The first step is to identify the crisis. This means understanding what is happening and why it is happening.
  • Assess the situation: Once you've identified the crisis, you need to assess the situation, i.e. understand the extent of the crisis, the potential risks and what's at stake for your company.
  • Develop a communications plan: The next step is to develop a communications plan, which we present in the next chapter.
  • Implement the communications strategy: Once you have a communications strategy in place, you need to put it into action. This means communicating transparently, honestly and consistently.
  • Evaluate and adjust: Finally, you need to evaluate the effectiveness of your communications strategy and make any necessary adjustments to anticipate a future crisis.

By understanding these different facets of crisis communication, you will be better prepared to manage these situations effectively.

The Volkswagen affair in 2015 was one of the most resounding crises of recent years.  The affair broke when revelations showed that Volkswagen was using software to manipulate the pollutant emissions of its diesel vehicles. Volkswagen's crisis communication during this critical period was widely criticized.

The company initially downplayed the affair and was slow to take responsible action to remedy the situation. The company faced a drastic drop in sales, fines and lawsuits, as well as a significant loss of consumer confidence. Volkswagen "Dieselgate" affair

Anticipation: Drawing up a crisis communications plan

To effectively manage a crisis situation, it is essential to draw up a communications plan. This plan must include several key elements.

THE PARTIES INVOLVED

First of all, it's essential to identify the stakeholders involved, whether employees, customers, the media or the general public. By understanding the expectations and concerns of each stakeholder it is possible to formulate key messages tailored to each group. 

COMMUNICATION CHANNELS

The next step is to select the appropriate communication channels to disseminate these messages. Traditional media, social networks, corporate websites and press releases are just some of the channels commonly used during a crisis.

Establishing a competent crisis communications team is also essential to coordinate and execute the plan effectively.

Take action: Crisis communication management in real time 

Managing crisis communication in real time is crucial to limiting potential damage.

During a crisis, it's crucial to carefully monitor social media and respond quickly to customer concerns. Social media play a central role in disseminating information and exchanging views with stakeholders, so it's essential to be present and responsive. 

It is also necessary to adapt messages to changing situations and public reactions. Companies must be ready to adjust their communication in real time to respond to new information or to rectify any errors made by journalists.

Proactive, empathetic communication can help to allay concerns and restore stakeholder confidence.

GOOD TO KNOW 

Setting up a crisis unit during a critical situation ensures effective coordination between different departments and facilitates rapid decision-making. It is generally made up of key company personnel, such as the head of communications, public relations, human resources and general management.

Debriefing: Post-crisis analysis and learning

Once the crisis has been brought under control, a post-crisis analysis is recommended to assess the effectiveness of communication and draw lessons for the future. This analysis measures the company's responsiveness, the effectiveness of its messages and the impact on the brand's reputation.

Crisis communication is a major challenge for companies, but by remaining proactive and learning from past experiences, it can also be an opportunity to build trust and consolidate brand reputation.

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