Crisis Management Tips



Crisis management can be a complex endeavor. But there are a few common lessons I have learned that have helped me handle various crisis situations. Whether you’re a business executive or a professional communicator, I hope these tips help you. 

Luck. When it comes to the public’s awareness of a crisis, the elephant in the room is luck. Depending on other events occupying the attention of the media or public, a crisis may not get much awareness. That’s great – lucky you! But when you have a crisis creep up on a slow news day, you could be in big trouble. 

The lesson learned — Rarely can you control timing, so be ready for the worst possible scenario. 

Self-inflicted crisis. A year or so ago, Netflix created a self-inflicted crisis for their company – and then made it worse. Netflix separated their video streaming and DVD delivery plans and increased pricing not only once, buy two times. In making these changes, Netflix didn’t take into account their buyers, and all of their customer communications were couched on behalf of or in the perspective of the company. So, customers were furious and thousands cancelled their subscriptions. The value of the company fell 70 percent. 

The lesson learned – Think like your customer and communicate customer concerns first. Without them, you have no revenue – and thus, no company.

Successful crisis management. The most successful crisis management is when the problem never surfaces to the public or media. But prepared companies and organizations don’t rely on this. Instead, they move quickly and appropriately to fix the problem, communicate to required audiences, make adjustments going forward and minimize future issues of the same type. 

The lesson learned – Know your vulnerabilities, have a plan in place and make sure you have an intelligence gathering capability and well-trained crisis team on alert. Don’t rely on luck. 

Pierpont’s executive counsel Terry Hemeyer has handled hundreds of crisis situations and has been teaching crisis management to Rice University MBA students and at The University of Texas at Austin for the past 16 years.