Posts Tagged ‘Company crisis management’
Crisis management is the new buzz word now, everybody from Celebrities, Politicians, Automobile companies to Theme parks are in dire need to salvage their reputation from getting tarnished online. No organization wants to be in a situation that would stimulate bad press against them and cause disruption to their business.
Some companies that are hard hit recently were not able to handle crisis efficiently. Toyota is one company that is finding it difficult to stop the embroiling situation, the quality crisis refuses to die down for them. This clearly shows that the company is not good at handling crisis. The initial slow response, the half-minded recall, poor communication had adverse effect on the reputation of the company.
Managing crisis is the second best thing you can do for a successful business. To deal with crisis needs accurate and decisive action. Take for example ‘A Gun manufacturing company loses a gun while on transit and before the public or the media ever comes to know about this the company is able to find it and put it back into the inventory‘. So rapid and precise action saved the company from getting a bad name.
Some of the ways to handle crisis is as follows:
- Identify the problems: The first step towards crisis management is to identify the problems in clear terms, so that you can sort it out easily.
- Collective decision: Fighting crisis can never be a one-man-show, a collective decision and team work is always better. Consider the relevant team and their decisions pertaining to the risk factor and go with the best option.
- Leadership: Lead from the front and talk with everybody in the team. Monitor the function required to minimize the crisis.
- Communicate: The most sought after action is to have continuous communication with the public and media. It is always good idea for the company to have their own portal or hub to update their view.
- Segregate issues: Take the best team out and let them work on every piece of the issue, break the issue until you identify the grey areas. Hire a reputation management company, which has standard practices to deal with crisis related issues.
- Encourage feedback: Read customer/client online reaction, this will help you know the correct pulse of the general public and help you overcome crisis.
- Analyze the problems: So you know from where it took shape and who is responsible and what corrective measures can be taken to get rid of it.
- Learn: Take a cue from your last experience, this will help you mold a better strategy in future. Always keep your last crisis experience in perspective and put in place tools so that your company is safe from similar crisis.
Johnson & Johnson is doing what a company should be doing during a crisis. The top brass have decided to voluntarily recall the Tylenol Arthritis Pain Caplets due to complaints of mouldy smell that can cause nausea and sickness.
The Food and Drug Administration is a strict watchdog when it comes to complaints. The website has “Report a problem” tabs where anyone can make a complaint. If anyone’s on the watch it’s the FDA and so a company like J&J wouldn’t want these complaints to snowball into a reputation management nightmare.
The prudent thing to be done is to make a recall of the suspected lots, claim that “these are minor problems”, assure people “there is no cause for worry” and finally fix the problem. J&J has done just that.
We recommend this follow-up action: Keep up the positive content on the brand and ensure company reputation does not take a beating. Put out news everywhere that recalls are being made and that the problem is being fixed. Even follow up with news of freshly tested new batches of meds in the days to follow.
This is damage limitation at its best and crisis management that actually works!