The importance of open and effective communications during times of crisis.

“It will never happen to us”. Many company executives have probably uttered these words to one another when discussing crisis situations. Of course, crisis situations only happen to ‘other’ companies. Wrong.

Over the past 12 months the business world has changed significantly. Companies that we perceived as being profitable and strong have fallen heavily and questions have been asked. Questions from investors, customers, business partners and also from employees. During these times of crisis, organisations can and must communicate effectively.

Communicating effectively is a skill – while it is often done well, it can just as frequently be done badly. Strong and timely communications help maintain trust and credibility. Effective communications help people to understand what are sometimes very complex situations, by breaking them down in a step-by-step way.

Many times, company employees are the last to hear about crisis situations or major changes within their organisation – they read about them in the media along with everyone else and often feel left out and unimportant. Open company communications – whether originating from the human resources team or from the public relations department – or more often these days from both – are an integral part of marketing effectiveness that should never be underestimated.

To illustrate this point, I met with an individual several months ago who had been downsized from a major US multinational right here in Singapore. During the retrenchment process it was explained to him at every step why this change was happening, what it meant to him, how he would be looked after and what the very next steps were. The company downsizing had nothing to do with his performance – unfortunately he was a casualty of the global slowdown. As he left the company he had no hard feelings about them at all. He left with dignity, respect and his head held high. I asked him if he would consider re-joining this company should the opportunity arise and he answered, ‘Of course. Why not?’ A clear strategy of open and effective communications meant that this unfortunate situation was handled in the best possible way.

If and when a crisis hits an organisation, what can it do to ensure that the situation is understood and that all parties concerned are updated and informed? While some companies excel in this area – many others fall at the first hurdle. Here are four pointers for communicating effectively with internal stakeholders:

• Prepare and strategise – Know whose role it is to communicate when crisis situations happen. Know and understand the approach to dealing with these situations. When a crisis hits it can often throw the company and its employees into turmoil and rapidly develop into a highly charged and emotional experience for all involved. If there is no plan in place then it could just be to late to act as quickly as is required.
• Communicate with employees first – They’re a company’s most valuable resource – but often left to last from a communications perspective. It’s essential that senior management keep an open and honest dialogue with employees at all times. How ever bad a crisis situation may appear, it’s always possible to keep the trust of employees by clearly interpreting a situation. Employees should be allowed to ask questions and given open forum opportunities to interact and engage.
• Be consistent – The message received by employees and external audiences should be the same message. The same spokesperson should be involved in communicating with both audiences – even if the method of communication is different. The spokesperson needs to be someone that is connected internally at the right levels.
• Involve company leaders and management – Communications from the top are better received and more appreciated. There’s also less chance of information becoming diluted as it passes from person to person with different styles of communications. During times of crisis, companies rely on strong leaders to see them through… and strong leaders don’t hide.

‘Good’ communications are not necessarily ‘expensive’ communications – and can go a long way to helping a company get back on track after a negative event or situation. Does your company have a plan?

Ian Grundy

Founder

Citrus PR

www.citrus-pr.com