Dealing with the Elephant in the Room: The Smoldering Crisis
By Erin Dullaghan Jones, ICM Senior Consultant
In today’s world, organizations must proactively identify and address potential, or “smoldering” crises before they escalate. A well-prepared organization can navigate these challenges with resilience, minimizing damage to reputation, finances, and operations. Here’s how to prepare for and prevent an impending crisis in your organization.
1. Identify potential risks
Most crises start out as a problem or issue that is not being addressed by management. You have to know what to look for. Recognizing your organization’s potential risks is the initial step in crisis prevention. These risks can encompass various factors, so examine all aspects of your organization to ensure you’re not the one who says, “I didn’t see that one coming.” Because someone in your organization did.
- Operational failures
- Cybersecurity threats
- Public relations missteps
- Financial instability
- Regulatory compliance issues
- Employee or management misconduct
Perform regular risk assessments to identify vulnerabilities and take proactive steps to address them before they escalate into full-blown crises.
2. Ensure you have a robust crisis plan in place
Once you’ve identified potential risks, create a comprehensive crisis management plan that includes:
- A detailed response strategy for different types of crises. (Every type of crisis should have a strategy.)
- Define clear roles and responsibilities for key team members.
- A communication strategy for each type to keep stakeholders informed
- Backup systems and contingency plans for essential operations
3. Establish a Crisis Response Team
Designate a team leader to guide the crisis team in managing all kinds of crises. The team should include members from key departments such as leadership, communications, legal, HR, finance and operations. Ensure they are well-trained and prepared to handle various scenarios.
4. Monitor and Assess Early Warning Signs
A crisis rarely happens without warning. Smoldering crises start small, but can erupt absent management’s acknowledgement and mitigation. Keep an eye on red flags such as:
- Increased customer complaints
- Negative media stories
- Internal conflicts
- Declining financial performance
- Regulatory scrutiny
Observing these signs and understanding their reach enables you to take corrective action before the situation escalates.
5. Train Employees on Crisis Management
Your employees play a crucial role in crisis prevention. Skilled employees can help prevent a crisis or respond effectively when it happens. Provide regular training on:
- Company policies and procedures
- Ethical decision-making
- Effective communication during crises
- Handling customer and media inquiries
- Traditional media relations and social media
6. Establish Effective Communication Channels
Effective, strategic communication can make or break your crisis response. Prompt, honest and open communication builds trust and supports mitigation efforts. Ensure that your organization has:
- Clear internal communication protocols
- Pre-drafted templates for crisis messaging
- A designated spokesperson for public and media relations
7. Maintain a Positive Organizational Culture
A strong company culture based on integrity, transparency, and accountability can prevent many crises before they arise. Employees who feel valued and heard are more likely to act in the organization’s best interest. Companies should encourage open communication, ethical decision-making, employee engagement, and feedback and proactive problem-solving.
8. Regularly Test, Train and Update Your Plan
A crisis management plan is effective only if it is current and regularly exercised. Consistent testing helps ensure that your organization remains ready for the unforeseen. Conduct regular tabletop exercises and drills to:
- Test your crisis response strategies
- Identify gaps in your plan
- Upskill the crisis team
- Update procedures based on industry trends and past experiences
Ultimately, crisis prevention includes responding to emergencies, proactively identifying risks, and building a resilient organization. By implementing a strategic crisis management plan, training employees, and ensuring clear communication, your organization can effectively navigate challenges and protect its reputation. Being prepared can shield you from significant damage in the future.
Or as we say at ICM, “Prepare and prevent, or repair and repent.”
