How to Manage a Crisis and Protect Your Brand Reputation #MMBA5

The management communication course at LBS has been an enlightening session for me everytime. Our first session with Dr Silk Ogbu was on Crisis Management and today’s blog post will be about what I learnt.

 A crisis is a situation that poses a serious threat to an organization and its stakeholders, and requires an urgent and effective response. A crisis can be triggered by an accusation of wrongdoing, an accident, an emergency, or any other negative event that damages the reputation and/or future of the organization. A crisis can have a lasting impact on the public perception of the brand, and affect its customer loyalty, market share, and profitability.

When a crisis hits, consumers tend to ask themselves some common questions, such as:

• Is this true?
• Who is responsible?
• Was it intentional?
• Will the brand do this again?
• What does this event say about the brand?

The way the organization communicates before, during, and after the crisis can influence how consumers answer these questions, and how they feel about the brand. Therefore, it is essential to have a crisis management strategy that can help the organization deal with the crisis effectively and minimize the damage to its brand reputation.

To develop a crisis management strategy, the organization needs to consider three key factors:

• The truth/falsity of the accusation of wrongdoing: The organization needs to assess whether the information that provoked the crisis is based on solid facts or not, and whether it can provide evidence to support its position. The organization also needs to monitor the sources and frequency of the information, and counter any false or misleading claims with accurate and timely information.
• The severity of the crisis: The organization needs to evaluate how serious the crisis is, and how it affects its stakeholders, operations, and goals. The organization also needs to anticipate the potential consequences and risks of the crisis, and prepare contingency plans to mitigate them.
• The identification of the customers with the brand: The organization needs to understand how strongly its customers identify with the brand, and how the crisis affects their relationship with the brand. The organization also needs to tailor its communication strategy to address the needs and concerns of its customers, and to reinforce their trust and loyalty to the brand.

Based on these factors, the organization can adopt different communication strategies to manage the crisis, such as:

• Denying the accusation: If the accusation is false and the organization can prove it, it can deny the accusation and provide factual information to clear its name. This strategy can work well if the customers identify with the brand and are willing to give it the benefit of the doubt.
• Apologizing for the wrongdoing: If the accusation is true and the organization is responsible for the wrongdoing, it can apologize for the mistake and express its regret and remorse. This strategy can work well if the crisis is not severe and the customers are forgiving and empathetic.
• Explaining the situation: If the accusation is true but the organization is not fully responsible for the wrongdoing, or if the wrongdoing was unintentional or unavoidable, it can explain the situation and provide context and justification for its actions. This strategy can work well if the crisis is moderate and the customers are rational and understanding.

Taking corrective actions: If the accusation is true and the organization is responsible for the wrongdoing, it can take corrective actions to fix the problem and prevent it from happening again. This strategy can work well if the crisis is severe and the customers are dissatisfied and angry.