“It is vital to have a crisis communication plan.” That is according to Brent Feigenbaum, managing director of marketing communication at Hunt Mortgage Group. In the exclusive commentary below, he says that while crisis communications are situational, it is key to have a plan before an event occurs to establish certain protocols including a crisis committee represented by various departments within the organization.

The views expressed in the column below are Feigenbaum's own.

A work “crisis” in business takes many forms –a large and highly visible deal you've been working on for months falls to pieces; a senior executive leaves or is fired; there's a serious accident – or death—at one of your facilities and the local news crew is on their way. As the point person for communications, you need to figure out what to do next. What needs to be managed? Who needs to know and how much do they need to know? Your actions could cause legal repercussions and implicate the firm if not handled correctly.

It is vital to have a crisis communication plan in place. Before an event occurs, establish certain protocols including a crisis committee represented by various departments within the organization i.e., senior management, human resources, IT, marketing and any other areas that could be useful. Think about the various constituents with whom you need to communicate — the message, focus, and level of detail will vary depending upon the audience. Most likely you will need to communicate to: employees, clients, prospective clients, shareholders, investors and possibly the media. In reality, the specific crisis itself will dictate the particulars.

Your first step should be to inform senior management of the event. Obtain as many facts as possible and be prepared to recommend how to handle the situation. Depending upon the nature of the crisis, you may need to work more closely with one department over the other. There may be times when a written media statement must be prepared – especially when it would be inappropriate or potentially damaging to speak with reporters. In those cases, a prepared statement carefully reviewed by legal counsel can be sent, or read to a reporter, as an official response. Don't wing it.

Think about minimizing any negative exposure as your firm's reputation is on the line. “No comment” is not always the appropriate or most effective response. In many cases, it could imply you are trying to hide something or protect someone. Often it's better to make a brief statement addressing the situation without delivering any grand or complicated remarks. For example, when working for a large financial services company I was informed that an employee was in a bad car accident coming into the company's parking lot. Before a reporter called I went to the president and in-house counsel and told them what happened. Our lawyer said, “Respond to any inquiries with 'no comment.'” I suggested a better response might be, “We are awaiting details on the accident. We are not sure who was in the car, their condition, or the severity of the accident. Our thoughts are with the injured parties and their families and we are working with authorities investigating the accident. As soon as we learn something concrete, we will let you know.” I knew that would satisfy the reporter and projected the firm as caring, focused on the human tolls over keeping a distance and denying any culpability. Especially when a crisis is about injured people, show a human side. Putting people, employees, and customers first is the right message no matter what.

Second, do not confirm or deny a question or statement. Can you imagine picking up the paper and reading the headline, “Company executive denies firm's involvement in fraudulent activity.” If a statement is made that is not true, do not repeat it, but refute it immediately and politely. Make sure to correct it in an informative and helpful manner.

Speak with in-house counsel to uncover if there are any legal implications for the firm; frequently a crisis may involve firm liability. As the spokesperson, your comments could negatively impact the situation and have severe legal consequences. When any legal matters surface, or if there is an ongoing legal investigation or an actual court case, simply state that the company has a policy never to discuss matters that are currently 'being investigated, or are in litigation.' It can be perceived as a cop out – but it can also be the smartest response to an ongoing legal matter.

Several years ago the east coast was hit by Hurricane Sandy. It left lower Manhattan (where my office was located) flooded and without power. All the offices in the area were closed. Computer systems were down throughout the city. Many of our employees were living under extreme conditions without power or heat. The situation was serious and there were little answers about when things would be back to normal. Thankfully, out IT systems were being operated from a remote site which kept our computer needs and data live. The firm's crisis committee held daily calls and discussed action items largely around how, and what, to communicate with various constituents – employees, customers, investors, and vendors. Daily updates were sent to employees on the situation, expectations for the office reopening, and crucial business updates. Included in this important information were personal expressions from the president regarding the care and concerns for our colleague's welfare. This was not only appreciated by those employees impacted by the storm, but on a larger level by all employees who saw the firm's priorities were appropriately focused on its employee's welfare.

The Company web site was used to notify clients of our office situation and individual telephone numbers were provided to those needing to speak with key individuals while the headquarters was closed. It was important to show clients that business continued and it was business as usual; their investments were safe. Reassurance and demonstrating you are in control of the situation and have an operating plan during a crisis is imperative.

Another example of a real life crisis is when a senior executive leaves a firm abruptly. Either they join a competitor, are fired, or even worse are arrested – in any case a “crisis” ensues. What do you tell employees, investors, clients and the media? Reporters are always looking for news and this situation could be scandalous. Depending upon the nature of the firm, and the particulars of the situation, this action can have serious implications to a firm. How the message is communicated and managed during this type of crisis is critical.

Earlier in my career I worked for a large multinational firm. One day the long-term president was terminated abruptly. I was told to prepare a brief statement saying that she left the firm and was told to be ready should any reporters call. The fear was her departure could have a negative impact on the corporation's stock price. Furthermore, there could be legal ramification should something be said inadvertently to discredit her. The media wanted details but I just reread the script. With every question, I kept to the script, or honestly said I did not know. Though your job is to help a reporter do their job, in this case your role is to protect the firm and the individual's reputation. As for the employees and the shareholders, a short notice was issued that basically stated the same message to the media but was a bit warmer and appreciative for the years of service and many significant contributions.

In summary, crisis communications are situational. No two crises are the same. Therefore, anticipate the various scenarios and think about how this could impact the different constituents and who will be impacted by the event. In your communications, be brief, be clear and use your head as well as your heart. Often in these cases you are dealing with issues, or situations, that are emotionally charged. Think about what your audience needs to hear but also about how they may be feeling. Help them when delivering difficult news. That too helps manage a crisis more effectively.

Instant Insights /

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