In the world of communication, crisis management is a skill that is not only crucial but vital to the long-term survival and success of any organization.
Crises can strike suddenly and come in many forms: from corporate scandals and serious product failures to unforeseen external events that threaten a company’s reputation. When a crisis arises, immediate reaction and strategic communication management can determine whether an organization will recover its image or be swept up in the media and public storm.
In this article, we will delve into the world of communication crisis management, analyzing what exactly it is and how to deal with it most effectively. We will explore key strategies and present you with concrete examples of how great brands have emerged victorious from critical situations. You will discover how these companies, by dealing with their crises with skill and wisdom, have preserved and even strengthened their reputations.
What is communication crisis management?
Communication crisis management is a strategic discipline that addresses how an organization copes and communicates during emergency situations that threaten to seriously damage its reputation and operations.
This discipline is not just a reaction to critical events, but a proactive process involving planning, preparation, and strategic response.
The speed and effectiveness with which an organization manages a communication crisis can significantly influence the perception of the target audience and the media. Poor management can not only amplify the initial damage, but can also undermine the trust of customers, investors, and partners, leading to long-term consequences that can be far more serious than the original problem.
In theoretical terms, communication crisis management can be divided into several basic stages and aspects.
Crisis Definition and Analysis
A communication crisis can be defined as an unexpected event that creates a significant threat to an organization’s reputation and functioning. According to the Situational Crisis Communication Theory (SCCT) model developed by W. Timothy Coombs, crises can vary in severity and type, and the most effective response depends on the nature of the crisis and the perception of the audience. Crisis analysis involves understanding its causes, scope, and potential impact on various stakeholders.
Planning and Preparation
Planning for crisis management is a crucial component that includes creating a detailed crisis plan. This plan should include different crisis scenarios, assign specific roles and responsibilities, and establish clear communication procedures.
Preparation also includes training the crisis management team and conducting regular exercises to test the organization’s response to simulated scenarios. According to Crisis Management Theory, proper preparation can significantly reduce damage and facilitate a more rapid and coordinated response during the actual crisis.
Response and Communication
During a crisis, response and communication must be handled accurately and promptly. Coombs’ Response Strategies model suggests that communication strategies can include apologies, acceptance of responsibility, and correct responses, depending on the severity and cause of the crisis. It is critical to take a transparent and honest approach, providing regular updates and managing information consistently. Communication should be aimed at reducing uncertainty and maintaining public trust, avoiding silence that can exacerbate the situation.
Examples of success and failure in crisis management in communication
Even the most established and respected brands are not immune to unexpected crises that can undermine their reputation and value.
Mistakes, which can result from poor choices, operational issues, or misunderstandings with the public, have the power to profoundly affect brand perception. In this chapter, we will explore three examples of brands that have faced communication crises with great success, and three cases of less successful crisis management. We will analyze how these brands responded to their difficulties and what impact their communication and crisis management strategies had.
Top examples of crisis management
Johnson and Johnson (1982)
This case is often cited as an example of excellence in crisis management for several reasons. When Tylenol capsules were contaminated with cyanide, Johnson & Johnson responded with exemplary promptness and transparency.
They immediately withdrew all products from the market and implemented new security measures, including tamper-proof packaging. Their quick and comprehensive response helped restore consumer confidence and strengthen the brand’s reputation as a leader in product safety.
Their crisis management demonstrated that a company can recover from a severe crisis through a commitment to safety and transparency.
Starbucks (2018)
Starbucks addressed a racial discrimination crisis in a proactive and meaningful way. After the arrest of two African American men at one of their branches, the company temporarily closed all stores for mandatory diversity and inclusion training.
This action demonstrated a serious commitment to solving the problem and improving corporate culture. Starbucks was able to show that it was willing to take concrete steps to address and prevent discriminatory behavior, an approach that helped maintain and, in some cases, improve the brand’s trust and reputation.
BP (2010)
The Deepwater Horizon oil rig disaster in 2010 was one of the most serious events in the history of corporate crisis management. The oil spill in the Gulf of Mexico caused devastating environmental damage and enormous loss of marine life.
BP’s initial handling of the crisis was criticized for being slow and lacking transparency. However, in an attempt to repair the situation and improve its image, BP took significant measures over time.
In response to criticism and public pressure, BP invested substantial resources in cleanup and compensation. The company created a fund to compensate victims and undertook a major effort in environmental cleanup. In addition, BP launched a communications campaign aimed at demonstrating its commitment to resolving the disaster and preventing future accidents.
Flop examples of crisis management
Pepsi (2017)
Pepsi’s ad campaign featuring Kendall Jenner was widely criticized for its shallowness in dealing with serious issues such as the Black Lives Matter movement. The company’s initial response was seen as insensitive and the campaign was quickly withdrawn, but the reputational damage was already done. Pepsi’s handling of the crisis is an example of how crucial it is for companies to understand and respect social and cultural contexts and how poor handling of a crisis can amplify reputational damage.
United Airlines (2017)
The incident in which a passenger was dragged off a flight to make room for a company employee highlighted ineffective initial management of the crisis. United Airlines’ initial public responses were perceived as insensitive and did not adequately address public outrage.
Only later, through public apologies and policy changes, was the company able to improve the situation. This case underscores the importance of responding quickly and empathetically to a crisis.
Volkswagen (2015)
The Dieselgate scandal had a devastating impact on Volkswagen, which was accused of manipulating emissions tests to deceive authorities and consumers.
The initial management of the crisis was characterized by a lack of transparency and a slow response, which contributed to the intensification of reputational damage and legal and financial consequences. This case demonstrates how poor management and delayed response to a crisis can have long-term repercussions on a company’s reputation and sustainability.
Dealing with a communication crisis requires expert management: relying on a specialized communication agency can make the difference between success and failure in resolving a crisis.
If you would like more information on how professional counseling can help you successfully overcome communication crises, please do not hesitate to contact us.
