Is your company afloat without a lifeboat?

Manufacturers are at risk of crises now more than ever

In my last blog about Crisis Communication, I cautioned manufacturers to think beyond a plant fire or employee accident – to crises that can happen online, on social media and on the perimeter.  The history books are filled with cautionary tales. For instance:

• The founder of Papa John’s was forced to step down after using a racial slur during an investor call (the story spread, and boycotts were called).
• Tesla’s stock plunging after CEO Elon Musk tweeted that he had secured funding to take the company public. It wasn’t true and led to regulatory investigations and SEC action.
• Loss of consumer trust in Equifax after it mishandled communication around of a data breach affecting 143 million Americans. The company never fully recovered.

An errant remark. A recorded call. A mishandled communication.  It doesn’t take much these days to sink your brand and erode customer loyalty.

Manufacturers think they are immune because they operate in the B2B space – but that’s a false security. Today’s crises largely stem from bad behavior, social media and nefarious players in the online space.

Just this month, both the City of Cleveland and automotive dealerships across the country were disabled for weeks due to data breaches. It’s likely they didn’t believe it would happen to them since neither had adequate data security.

So how do you prepare?

Without a Crisis Communications Plan, your company is afloat without a lifeboat.

Readiness begins with identifying a team to monitor and respond quickly to any and all negative situations that arise – and it always includes a “guidebook” for reacting quickly and effectively.  A proper response will always include:

• An acknowledgment of the incident.
• Express empathy for the situation that occurred.
• Demonstration of leadership (the steps you are taking to mitigate the situation and prevent it from happening again).

It will also include:

• Talking points for crises most likely to arise and for those with the potential for the most reputational damage.
• A communications flow chart indicating who needs to be told and when.
• An escalation decision grid outlining critical steps at each level of the crisis.
• Pre-written media statements.
• And a matrix of all audiences with whom the team will need to communicate.

Finally, a solid Crisis Communications Plan will include proactive and reactive strategies for managing your crisis on social media channels – including constant monitoring and staff training. Your social media strategy should include:

• Real-time monitoring of brand mentions.
• Running crisis simulations.
• Escalation policy (how to respond when).
• Easy access to your web developer.
• Diversity training to promote more representative communication.

For information on developing a Crisis Communications Plan, contact a crisis expert at Akhia.