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Crisis: too risky to contemplate? Jamais, nie, nunca, nooit, mai, aldrig… NEVER!

In Chinese, the word crisis is composed of two characters - one represents danger and the other opportunity.* In this issue of Update we encourage companies to handle crises to seize the opportunities presented so they emerge positively from the experience.

Crisis is usually associated with negativity - a situation that threatens a company's business or the integrity of its reputation through mechanical breakdowns, human error or management decisions - or indecisions. In business most tend to occur in the last category and result from management not taking appropriate and timely action over problems that could escalate into a crisis. Ironic, then, that the word itself - crisis - is derived from the Greek krisis meaning decision.

There are acknowledged actions for coping with crises - planning and management -but research indicates most companies still don't actually do any pre-emptive planning for crises but wait until they are caught up in one before they are forced to react.

More bizarrely perhaps, even when plans are in place, documented strategies are often ignored because they are out-of-date or irrelevant to the specific crises at hand. Other companies rely on general corporate communications procedures and don't fine-tune plans for specific products and publics.

So why do companies do nothing about crisis management or disregard costly and time-consuming plans when case studies confirm the success of preparedness? The answer is simple; the majority of conventional most plans are not user-friendly. Most consist of overly complicated processes that are not basic enough to be workable and too convoluted to impress senior management.

The rarefied processes don't mirror daily organisational operations nor do they accurately represent the real world. Often they are based on standard, template-style blueprints - a one size fits all approach which translates into a recipe for disaster as no two companies are alike.

The question remains; how to simplify crisis planning and management to ensure it is workable and effective? The following steps can start companies on the right track.

1. Conduct a risk issues audit:

• Identify all potential risks and vulnerabilities and quantify their possibly impact on the business
• Assess any existing control systems and the costs to the company if they fail; replace and repair if necessary
• Don't "navel gaze"; be vigilant and alert to competitor activity, what the media is saying, industry trends and legislative changes.

2. Develop a risk issues management process:

• Appoint a task force to maintain and to update the audit findings on a regular basis
• Set up an early warning network to anticipate the need for preventative action
• Check that product or service recall procedures are optimised
• Nominate a hands-on communications chief - either an internal one or through your PR agency - with full-time support to lead the crisis planning, its follow through and evaluation
• Charge the communications chief with management of focused media relations - in times of crisis or not
• Don't expect everyone involved in senior management or crisis plan implementation to be a communications expert. Media train a handful of key players who will be involved.

3. Create a crisis management package:

• Prepare a brief modular crisis plan which can go live from the start of the crisis through to its conclusion
• Don't try to anticipate every possible eventuality in detail. Remember that every crisis is unique. You need structure but flexibility in the plan
• Give simple, step-by-step instructions to tell users of the crisis plan what and when they must do; how the team will be brought together; how they will communicate, gather, approve and release information; and what the schedule of actions is
• Quickly address and resolve issues before they escalate
• Tell it all, tell it fast and tell the truth to employees and the media
• Agree the need for metrics to determine the impact of the crisis and to respond to it, keeping in mind: reputation, credibility and financial performance; consider opinion research and evaluation, complaint tracking and sales.

Ultimately, however, the key to crisis management is prevention - avoiding identifiable crises in the first place. But when faced with adversity, if armed with a simplified, up-to-date, workable plan, it is easier to spot the opportunities in the crisis. The best defence is, after all, a good offence.