Managing a crisis: Insider’s guide to taking control - by Brent Feigenbaum

Brent Feigenbaum, Hunt Mortgage Group

A work “crisis” in business can take many forms – a senior executive leaves or is removed; a large and highly visible deal you’ve been working on for months falls to pieces; there’s a serious accident – or death—at one of your properties and the news crews are on their way. As the point person for communications, you need to figure out what to do next. What needs to be managed? Who needs to know and how much do they need to know? Your actions could cause more legal repercussions and implicate the firm if not handled correctly. This is the first of a two-part article on managing a crisis. In the first part, I will cover the essentials for managing the situation. In the second I will share real life crises I faced and how they were properly handled.

It is vital to have a crisis plan in place. Establish certain protocols including establishing a crisis committee representing various departments of the organization i.e., senior management, human resources, IT, marketing and any other areas or disciplines that could be useful. Think about the various constituents with whom you need to communicate – the message, focus, and level of detail will vary depending upon the group. In reality, the crisis itself will dictate the particulars. You will need to communicate to employees, clients, prospects, shareholders, investors and possibly the media.

Your first step is to inform senior management of the crisis. Obtain as many facts as possible and be prepared to recommend how to handle the situation. Depending upon the nature of the crisis, you may need to work more closely with one department over the other. There may be times when a written media statement needs to be prepared – especially when it would be inappropriate or potentially damaging to speak with reporters. In those cases, a prepared statement that was carefully reviewed and edited by legal counsel can be sent, or read to a reporter, as an official response.

Think about minimizing any negative exposure. Your firm’s reputation is on the line. “No comment” is not always the appropriate or most effective response. In many cases, it could imply that you are trying to hide something or protect someone. Often it’s better to provide a brief statement addressing the situation without making any grand or potentially complex remarks.

Second, do not confirm or deny a question or statement. Can you imagine picking up the paper and reading the headline, “Company executive denies firm’s involvement in fraudulent activity.” If a statement is made that is not true, do not repeat it, but refute it immediately and politely. Make sure to correct it in an informative and helpful manner.

Speak with in-house counsel to see what, if any, are the legal implications. Frequently a crisis may involve some firm liability. As the spokesperson, your comments could negatively impact the situation and have severe legal consequences. When any legal matters surface, or if there is an ongoing legal investigation or an actual court case, simply state that the company has a policy never to discuss matters that are “being investigated, or are in litigation.” It can be perceived as a cop out – but it can also be the smartest response to an ongoing legal matter.

Crisis communications will depend upon the situation. No two crises are the same. Therefore, anticipate the various scenarios and think about how this will impact the different constituents and who will be impacted by the event. In your communications, be brief, be clear and use your head as well as your heart. Often in these cases you are dealing with issues, or situations, that are emotionally charged. Think about what your audience needs to hear but also about how they may be feeling. Help them when delivering difficult news. That too will help manage the crisis more effectively.

Brent Feigenbaum is a managing director, marketing communications at Hunt Mortgage Group, New York, N.Y.