Bad Things Happen to Good Organizations: Five Reasons to Prepare for Crisis
“Bad news travels at the speed of light; good news travels like molasses.”
Morning headlines are often flooded with companies in hot water over boiling issues that were mismanaged or miscommunicated. The harsh reality is bad things happen to good organizations, and while you may think you are bulletproof, it’s not a matter of “if” but “when.” In today’s fast-paced world, information spreads rapidly, and social media posts can go viral in a heartbeat.
SO, WHAT CAN YOU DO TO SAFEGUARD YOUR COMPANY’S REPUTATION?
As we learned from crisis expert, Helio Fred Garcia, in “The Agony of Decision,” the first step in protecting your company’s reputation is understanding what constitutes a crisis. It is important to understand that a crisis doesn’t have to be a bad thing. In fact, the word “crisis” in Greek simply means “choice.” A crisis is a choice you are forced to make when your company is at a crossroads, and your decision determines the severity of the impact.
The outcome isn’t determined by what happens to your organization, but rather by how your organization responds. This is good news because the response is within your control, meaning you have the power to control the outcome.
WHY IS CRISIS PREPARATION IMPORTANT?
One of the single most important indicators of a successful crisis response is timing, and the only way to provide a strong, timely response is through preparation.
According to Capterra’s 2023 survey:
Only 49% of companies have a formal crisis plan on paper.
Of the business leaders who indicated they have been through a crisis, 84% said they would increase crisis preparation.
Over 75% of companies said they would increase the scope of their plans moving forward.
If your organization falls into the 51% without a formal crisis plan, don’t panic. Clearly, you aren’t alone, but now is the time to start preparing for the “what-ifs” that could impact your organization’s hard-earned reputation.
FIVE REASONS TO DEVELOP A CRISIS PLAN
It helps you prepare for the unexpected. With a crisis plan in place, you can minimize the impact of a potential crisis on your team, business operations and those you serve.
It enables a quicker response. Timing is of the essence during a crisis. The quicker you respond, the quicker you can regain trust with those that matter.
It trains your team to identify potential threats. When your team understands the impact of an incident, they can more readily identify potential issues that might have gone undetected.
It’s an opportunity to reinforce your mission and values. When done right, your crisis response drives your mission forward, ultimately strengthening your relationships with key stakeholders.
You will rest easier at night. Knowing you have a comprehensive plan in place and a well-trained team equipped to respond quickly and ethically will give you peace about protecting your reputation.
OUR TAKEAWAY IS THIS
Like a credit score, a strong reputation takes years to build but can be torn down with a single misstep. Follow the Peritus Trainings Guide to learn best practices in crisis management and what you can do to start preparing now.
Join us next week as we explore a case study on how we helped one of our clients successfully prepare for and execute a company-wide repositioning.