There’s nothing quite like a crisis…
Friday’s global IT outage demonstrated our increasing dependence and reliability on digital systems and communication methods to run business and communications with our clients.
Whilst we do not believe the CrowdStrike incident was malicious, the proliferation of sophisticated denial of service attacks, phishing emails and basic human error raises the probability that these types of events are on the increase and are costing organisations a LOT of money.
In a sales context, how you handle a crisis can make or break your firm’s reputation. This week, we delve into three essential strategies for managing and communicating during a crisis. Enjoy.
#1. Prepare to fail…
Preparation is everything. In the heat of a crisis, having a well thought out plan can be your saving grace. Here’s what to consider:
- Identify potential risks: use recent events to brainstorm possible crises that could impact your firm. This could range from data breaches to negative publicity.
- Establish a crisis team: Designate a team responsible for crisis management, including members from PR, legal, IT and senior leadership. Make sure there is a hierarchy of command so that decisions can be made quickly.
- Create a communication protocol: Develop a step by step guide on how to communicate during a crisis. This should include who speaks, what is communicated, and through which channels. Goes without saying but, if the crisis relates to your IT systems and communications infrastructure, email and/or corporate phones might not be an option…
Reflect on your current preparedness. Do you have a crisis team in place? Are you aware of the potential risks to your firm? If not, it’s time to start building your crisis communication plan.
#2. Client comms – KISS
When the sh^t hits the fan, clear and transparent communication with clients (and your staff) are crucial. Here’s how to ensure your messaging is effective:
- Be transparent: Honesty is key. Acknowledge the issue, provide clear facts, and avoid speculation. Clients appreciate transparency, which builds trust – THE most effective sales tool.
- Don’t leave them hanging: Keep clients informed with regular updates. Even if there’s no new information, letting them know you’re actively managing the situation is reassuring. Consider setting an update timetable (e.g. comms every 12 hours) so that clients get used to the communication pattern.
- Tailor your message: Different clients may need different information. Tailor your communication to address specific concerns and impacts relevant to each client. Do your key/platinum clients need a different type of response to others? Do you need to segment or tier your client base?
Consider the last time your firm faced a crisis. How well did you communicate with your clients? Were they kept informed and reassured? If not, think about how you can improve transparency and timeliness in future communications.
#3. The first 24 hours
In crisis management, timing is everything. The first 24 hours are crucial in determining how the situation will unfold. Here’s how to make the most of this critical window:
- Immediate assessment: As soon as a crisis hits, mobilise your crisis team immediately and assess the situation promptly. Gather all the facts and understand the scope and potential impact. Quick assessment allows for a faster and more informed response.
- Don’t let perfect be the enemy of good: Delay in response can exacerbate the crisis. Issue an initial statement within the first few hours acknowledging the situation. Even if all details are not yet available, letting clients and stakeholders know that you are aware and actively addressing the issue is vital.
- Monitor and adapt: Use the first 24 hours to not only respond but also to monitor the situation. Social media, news outlets, and client feedback will provide real-time information that can guide your next steps. Be prepared to adapt your strategy as new information becomes available.
Consider a crisis you’ve heard about recently. How did the affected firm handle the first 24 hours? What could they have done better? Use these reflections to enhance your own crisis management strategies and ensure your firm is prepared to act swiftly and effectively when needed.
