Limiting the damage for a crisis--or better yet preventing one,
is the thrust of a new book by training executive and former police
officer Steve Albrecht.
In "Corporate Self-Defense: How to Protect your Organization in a
Crisis," (amacom, New York), he recounts the stories of several of the
headline-grabbing crises of recent years, such as the Exxon Corp.
Valdez oil spill, the Pepsi syringe hoax, and the racial
discrimination lawsuit at Denny's restaurants. Albrecht also points
to the changes in society and the media that have allowed crises to
develop and explode.
Risks for Companies Today
There are many risks that can bring a crisis upon a company,
Albrecht writes in the 217-page book, which sells for $24.95. Among
them are product or service problems, customer dissatisfaction or
demands, and issues with employees or vendors. Among the most
challenging developments involving these sources of crises are those
which involve lawsuits, strikes, security problems, boycotts and
protests (see box).
Disaffected Employee Problems
One of the most difficult categories of problems to deal with are
those which stem from employee dissatisfaction. When employees feel
nurtured, empowered and protected, they are more likely to perform
their jobs diligently, and also more likely to work with management to
resolve problems, rather than become a whistle-blower. By contrast,
Albrecht writes that "toxic" company cultures that discourage
teamwork, punish infractions, allow no incentives for positive
performance, and limit or discourage feedback are likely to cause, or
exacerbate, crises of one sort or another.
Roles for Management, PR
The first step in crisis planning, of course, is to have a plan
with clearly defined roles for key executives in the event of a
crisis. Albrecht lays out responsibilities for key executives on the
crisis response team--including the CEO, human resources director,
security officials, facilities managers, and others including PR
staff.
In two chapters dealing with the crisis role of PR execs,
Albrecht addresses the imperatives for media relations during crises,
and broader, and proactive media relations. On media relations, he--
like many other crisis experts--advises prompt response and
accessibility to the media. (Albrecht, 619/445-4735; amacom, 800/262-
9699)
Crisis Scenarios and Responses
Lawsuits--reaching pre-trial settlements may be justified from a
strictly financial point of view. However, companies also must
consider the matter of publicly standing up for their rights, from a
moral point of view, as well as from the point of view of the message
this communicates about a company.
Strikes--management should focus communications on larger issues
relating to the mission of the company, its commitment to customers
and employees, rather than focusing alone on discussions covering only
the status of labor talks or disagreements separating management and
labor.
Security problems--Companies should consider speaking publicly about
steps they are taking to address security problems, while keeping
confidential details of actual security breaches, to protect the
company, employees and the handling of investigations.
Boycotts--Well-organized, national boycotts can be very damaging and
difficult to defend against. Albrecht cites the examples of Coors
Brewing Co. and Denny's Restaurants as cases that show it may be best
to "admit your faults, settle the dispute, and move on."
Protests--Contrary to his recommendations for lawsuits and boycotts,
Albrecht recommends that companies may wish to ignore protestors.
"Fight fire with apathy," he writes. It would seem, however, that
companies would have to look at these situations on a case-by-case
basis, and decide when dialogue with groups is the proper course of
action.
Source: "Corporate Self-Defense," amacom (New York)