Forewarned is forearmed in a crisis

Forewarned is forearmed in a crisis

A crisis has the potential to cripple a business. Handled badly, experts say a business might never recover.

Plan, and it could be a different story.

Social media has changed the dynamics of crisis control. No longer can businesses rely on the gift of time traditional media channels once offered. Deadlines and the printing press could delay a message by hours, or even a day, giving businesses time to prepare, plan and choose what information they released.

Social media makes communication instant. Businesses are no longer able to control what is said, when or The Institute of Directors (IoD), with Ideas Shop, has developed a one-of-a-kind workshop for highly experienced directors that simulates a real-life crisis. This new support – Managing a media crisis –focuses on the leadership role directors need to play in being successful during a crisis. It will also look at the role and impact of social media during a crisis.

IoD Acting CEO Simon Arcus says planning for any potential crisis needs to begin at the board table, with the advent of social media permanently changing the way businesses can respond to an issue or crisis.

“Management of risk – mitigating the effect of uncertainty on objectives – is a critical facet of the board’s role in providing strategic leadership and creating value,” Mr Arcus says.

“We’re living in an era where technology is an integral part of our daily lives, and directors need to consider the strategic opportunities and risks this presents.”

A crisis can take any manner of form from economic – including strikes, a drop in stock price or a decline in profit – to loss of confidential information, a cyber-attack, a health and safety incident or a natural Experts said the way in which the Malaysian Airlines’ executive team dealt with media following the disappearance of MH370, was a failure. Compare that to how former Air New Zealand chief executive Rob Fyfe and his directors managed Air New Zealand’s fatal plane crash in Perpignan in 2008.

Crisis preparation is critical in ensuring business continuity, reputation and sound media management, when unexpected events occur, says Ideas Shop Partner Anna Kominik.

“The best form of crisis management is preparation before a crisis occurs,” Ms Kominik says.

“When you are in a crisis, every second counts so an effective plan and preparation will distinguish a business as a company that manages well in those situations that, inevitably do happen.”

Mr Arcus says a firm will be judged by its customers, peers and employees on how it reacts to media in a “Well-managed, however, a crisis can enhance business reputation and improve internal morale,” Mr Arcus says.

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