We all have experienced a problem during work. Whether it be a personal problem or a work-related issue, these difficulties affect productivity. In the context of a business, a problem that affects the entire company is called an issue or a crisis.
An issue is viewed as a potential business problem that may escalate into a crisis. A crisis is a problem in its critical phase. It is damages a company’s efforts in achieving its goals or mission-vision.
An issue may simply be handled with fast decision making from a crisis response team. However, a crisis may take the efforts of staff and top management to find a solution. It is imperative for a company to identify when an issue escalates into a crisis.
Definition of a Crisis
A crisis is technically defined as a major occurrence with a potentially negative outcome affecting a company or industry. Moreover, it also negatively affects an organization’s public image, products, services, or good name.
Generally, a crisis interrupts normal business transactions. Sometimes, it can even threaten the existence of a company. There are different parameters of communication that can solve different kinds of crisis situations.
Examples of a Crisis
The cause of a crisis can range from human errors to natural disasters. An example of a man-made crisis is aproduct recall. This could be due to certain hazardous parts of a product that can put the public’s well-being in danger. The effect of this can make a company seem unreliable in the public’s perspective.
Another cause of a crisis is natural phenomenon. For instance, an airline has to delay or cancel its flights due to inclement weather. This could make people select different modes of transportation instead of availing an airline’s services.
Undeniably, there are more types of crises that can defeat a company’s purpose. A company should counter the effects of a crisis using the different phases of crisis management.
Phases of Crisis Management
There are three phases on how to manage a crisis. First, the pre-crises phase focuses on signal detection and prevention. When a company foresees that an issue can develop into a crisis, a company should carefully prepare for the worst case scenario. The outcome of this phase is a crisis management plan.
Second, the crisis phase occurs during the actual crisis. This phase deals with implementing the crisis management plan. Press releases, spokespersons, and top management are key factors that can contain and resolve a crisis.
Lastly, the post-crisis phase is the stage when the crisis is over. During this phase, audiences should be aware that a company has successfully solved the crisis. The top management and crisis response team should also have a meeting that aims to enhance their crisis management plans.
Post-crisis meetings can also be aimed to protect a company’s reputation. Experiencing a crisis could lower a company’s status. This can make a company lose income and trust from its customers. A company has to ensure that they can effectively communicate how they successfully handled a crisis.
A company can execute reputation management strategies like press conferences and social media blasts. These strategies can make a company save its reputation by ensuring the public that they have handled a crisisin a prompt and proper manner. They can also show success indicators that the crisis is indeed resolved.
Overall, judicious preparation and effective communication can save a company from the negative effects of a crisis situation.