[Editor’s note: The following post comes to us from friend and colleague Janine Hills, founder and CEO of Vuma Reputation Management. While it’s normal to feel a crisis is nothing but negative, Janine presents a strong argument for the advantages to be gained by facing difficulty head-on.]
Adversity has its advantages
A company that weathers a crisis well understands that adversity is a concealed opportunity for growth or change. If we look at the broader definition of crisis, it means any situation that is threatening or could threaten to seriously interrupt business, significantly damage reputation or negatively affect the bottom line.
Every organisation is vulnerable to crisis, and if we consider how lasting it can be — as in the cases of Fukushima Dai-ichi and BP Deepwater — we should certainly use any means possible to first prepare for, and second try to prevent, a crisis. But should it occur, the aim should be to handle it well in all aspects.
However, in some cases a crisis doesn’t necessarily end because of how well it was handled. After Fukushima, no one can mention nuclear energy without the incident being put forward as a warning against nuclear power, though it was caused by an earthquake tsunami, not nuclear reactors.
The tsunami crippled the site, stopped the Fukushima I backup diesel generators, and caused a station blackout. The subsequent lack of cooling led to explosions and meltdowns, with problems at three reactors that would not have happened if not for the tsunami.
The 2010 BP Deepwater Horizon oil spill disaster in the Gulf of Mexico caused dangerous aftereffects to more than a dozen animal species from dolphins to oysters, and even now, four years later, 14 species show symptoms of oil exposure, according to the US’s National Wildlife Federation.
So where are the opportunities for growth in these two cases? Today, all old, new and planned nuclear facilities and plants across the world update or draft their safety policies describing specific preventive actions learned from Fukushima, to be implemented by staff, licensees and affected stakeholders. The crisis resulted in enhanced emergency preparedness and improved regulatory oversight and crisis communication capabilities in the entire industry.
BP Deepwater showed scientists they needed to get better at raising funds for on-the-ground research sooner after environmental disasters. It also showed a need for better ways for academic scientists, government agencies and oil and gas industry officials to work together.
Being in the crisis management sphere for the past 15 years, I’ve learned to view any crisis as an opportunity for growth. Catastrophes come into our businesses, no matter how we may try to avoid them. They are troubling and unwanted experiences that shock us out of our comfort zones.
Typically, a crisis results in some type of loss or change. Its very nature is antithetical to our core values of certainty and predictability. We find ourselves wanting desperately to get back inside the comfort of the known, but the crisis prohibits this option. There is no going back, and that’s where the opportunity lies, as fundamental levels of growth and change only tend to occur during adversity.
Webster’s Dictionary defines crisis as a crucial or decisive point or situation — a turning point. The opportunity is in the turning point, but where do we turn? Depending on the crisis, it could be the opportunity for the entire organisation to undertake new thoughts and implement additional measures the crisis situation has revealed. It could be a quest to change market direction, implement new production, manufacturing or distribution approaches, attract new talent or reinvest in the company.
Real opportunities for transformative change lie in preparing for any crisis. A well-managed crisis response, paired with an effective recovery programme, will leave stakeholders with a favourable impression and renew confidence.
During vulnerability audits, I find most organisations fail to address the many communications issues related to disaster response. Without adequate internal and external communications, the operational response will break down. Stakeholders won’t know what’s happening and become confused, angry, and react negatively.
I found it critical to lead the situation with the heart instead of head, and to act with empathy, understanding and trust. This makes the difference between defusing a crisis completely and merely dealing with it.
Some of the major themes in the communications section of any crisis plan are: a responsive crisis communications team; legal counsel; and a prescreened spokesperson with the right skills, including internal and external media communications of all forms, from television interviews to public meetings. You really don’t want to make this decision while under fire, so should prepare such a person in advance.
Intelligence gathering is an essential component of crisis prevention and crisis response. Knowing what’s being said about you in all media, by your employees, customers, and other stakeholders, allows you to catch a negative trend that, if unchecked, could turn a problem into a crisis. Moreover, monitoring feedback during a crisis allows you to adapt your strategy and tactics.
While full message development must await the outbreak of an actual crisis, statement messages designed for use immediately after a crisis breaks can be developed in advance, to be used for a wide variety of scenarios.
Janine Hills is founder and CEO of Vuma Reputation Management
This article was originally published on BusinessDay live.