The worst crisis an organization can confront is one it faces without preparation.  

It’s easy for a successful organization to be caught flat-footed by events—some truly unforeseen, others not yet fully anticipated. Such an unexpected event or issue can pull a company into crisis within hours. In these moments, how an organization reacts can substantially impact brand and reputation. 

While there is no one-size-fits-all approach to crisis management, advance efforts toward building readiness and resiliency while also establishing roles and responsibilities will serve to minimize reputational harm and protect market value.  

Having guided organizations of all sizes through highly complex challenges, we have several guiding principles for effectively navigating a crisis.  

 

Pre-appoint the right team.  

Identify the most important members of your crisis management team now before a crisis unfolds—not during one. While you can and should develop a crisis playbook, more critical is establishing a high-functioning team that can collaborate under pressure and exercise sound judgment. The make-up of this team may vary, but often includes those in charge of legal, operations, finance, investor relations and communications. A small, nimble team that can make decisions quickly with a direct reporting line to the top of the organization will be most effective in managing a crisis. 

 

Designate a crisis leader.  

This should be an insider who can manage the crisis team and is trusted to make key decisions. This person should have both the institutional knowledge and the credibility to lead in high-stakes situations. Oftentimes, this leader is the general counsel or key member of the legal team.  

 

Build a culture of readiness and resiliency.  

A crisis should not be the first time your crisis response team works together or considers how to prioritize response efforts. Conduct crisis simulations to hone these skills. Choose realistic scenarios—such as one drawn from the news or that has recently occurred at a peer company—to assess how your team would respond. 

 

Emphasize the importance of getting the facts.  

When a crisis occurs, organizations are often faced with internal and external pressure to issue a public statement. Rarely is the information that trickles in on day one of a crisis the full picture. Resist the urge to act prematurely so you can avoid making mistakes publicly. It is imperative to act with speed and precision but don’t separate the two. Prioritize gathering the facts before you align on any messaging or strategy. And then only communicate what you know and your organization’s steadfast commitment to transparency and resolution in the matter.  

 

Ensure that your communications team can work in lockstep with legal counsel. 

Working with legal counsel ensures legal considerations are embedded into every facet of crisis response. You don’t want a crisis to be made worse by triggering regulatory scrutiny or introducing litigation risk. A communications team experienced in working with legal stakeholders will understand the nuances of privileged communications, regulatory risk and reputational sensitivity. 

 

Consider stakeholder needs.  

Customers, investors, partners and employees will want to hear from you. If you don’t speak, someone else will, and your stakeholders will wonder why you aren’t engaging. Effectively communicating with them is critical to any crisis management strategy.   

 

Engage experienced crisis counsel.  

An outside perspective is crucial in avoiding blind spots internally. Traditional public relations teams are skilled in promoting positive narratives but may not be equipped to manage complex, multifaceted crises that involve immense scrutiny from regulators, media, investors and the board. Skilled crisis communications professionals can bring a cross-functional, disciplined approach to protect enterprise value and reduce long-term risk. 

 

Organizations that take steps now to build readiness and resilience will be far better positioned when the stakes are highest. Learn how Reservoir helps organizations navigate high-profile crisis situations and complex legal matters.