Crisis communication: Now more than ever, a timely topic

When it comes to examples of crises in business, we have "an embarrassment of riches," according to the author of "Crisis Communication: Practical PR Strategies for Management and Company Survival." The debacle of Enron's collapse and the Tylenol package-tampering scare are examples of crises that brought untold suffering to millions. We can learn from these examples how to handle crises — and how not to. In his new book, Peter Frans Anthonissen brings a lot more to the table: Chapters written by 20 authors who are senior crisis communication consultants from IPREX, the worldwide corporation of independent PR firms.

When it comes to examples of crises in business, we have "an embarrassment of riches," according to the author of "Crisis Communication: Practical PR Strategies for Management and Company Survival." The debacle of Enron's collapse and the Tylenol package-tampering scare are examples of crises that brought untold suffering to millions.

More recently we have the near-collapse of major banks, the subprime mortgage meltdown and the U.S. auto industry crisis, all of which have shaken financial markets around the world. The outcome of the management of these recent disasters remains to be seen … but the prospects appear doubtful. In these instances, investors, customers and taxpayers have waited in vain for decisive leadership to calm widespread fears for the future.

We can learn from these examples how to handle crises — and how not to. In his new book, Peter Frans Anthonissen brings a lot more to the table: Chapters written by 20 authors who are senior crisis communication consultants from IPREX, the worldwide corporation of independent PR firms.

"No one is assured that he or she will be spared" from a crisis, Anthonissen writes. Just being aware of the problem is not enough, he states. "In the event of a crisis, effective and efficient communication can be a matter of life or death" to a business. And it's not just business; crises occur everywhere — politics, entertainment, sports. No one is immune.

Crisis is inevitable

It may be a difficult fact to face, but the chance that corporate leaders will face one crisis after another has never been greater. How does it happen? Human error, lapses in judgment, failure to react in time, failure to anticipate, mechanical faults. And these crises strike more frequently these days than in the past. The reason for this is all around us.

We're surrounded by a highly developed global society with access to a vast arsenal of high-tech resources. "The omnipresent technology means that the chance of a crisis situation arising is greater than it has ever been," Anthonissen states. "Are more accidents taking place than, say, 20 or 30 years ago? Most definitely not.

But the environment has fundamentally changed." "Crisis Communication" is illustrated by copious examples, from the public and private sectors, analyzing real-life crises and their outcomes. It is also designed to offer practical guidance, with "how-to" advice throughout and a section devoted to templates covering everything from strategic planning tools to flow charts, checklists, sample copy and documents.

Real-world examples

The textbook case for a well-managed crisis is Johnson & Johnson's action in the face of the Tylenol tampering case in the 1980s. Indeed, this may be the first incidence of a nationwide consumer panic. The company handled the situation by immediately stepping up to its responsibility and taking control, recalling millions of bottles of Tylenol from store shelves — indeed, over-reacting in its effort to demonstrate its concern — despite the fact that only a relatively few cases of tampering were uncovered.

For the most part, consumers reacted favorably to the quick action and leadership demonstrated by Johnson & Johnson executives, and as a result, Tylenol initiated tamper-proof containers that have since been universally adopted in the food and drug industries.

Today, Tylenol is widely regarded as one of the safest products on drugstore shelves. Other companies have not been so fortunate. Those that have not equipped to deal with a crisis risk being confronted with a series of threats. According to Anthonissen, these include:

• Boycotts of the company's products or services
• Collapse of the share price
• Serious legal claims
• Loss of credit
• Bankruptcy
• Serious damage to the company's image and reputation
• Loss of corporate senior and middle management
• Possible closure of the company or parts of it
• Abandonment of the company's brand

"Flat-world" crisis management

In this age of corporate and media globalism, Anthonissen is regarded as an expert in the field of reputation management and crisis communication. He studied law at the universities at Antwerp, Leuven and Cambridge and, after several years in journalism, founded a communication consultancy in 1987. His clients have included Renault, Coca-Cola, Procter and Gamble and the Belgian and Flemish governments.

Among the wide array of topics covered here are: Fraud, Calamities, Negative Press and How to Deal with It, How Senior Management Can Make the Crisis Worse, Environmental Crisis Communications, Risk Managers, and Crisis Communication and the Internet. "Crisis Communication" is not breezy reading; it is, however, an invaluable textbook for business management, communications and related disciplines. With its global perspective and numerous viewpoints, it covers the gamut of Murphy's Law.

Bottom Line:

Peter Frans Anthonissen lays out the following essential crisis communication principles:

• Always assume the worst-case scenario — The chance that you generate respect and sympathy among the public if you take extensive measures is greater.
• Ensure that you have a plan — Drawing up a plan requires the company management to think about potential disaster scenarios, regardless of how painful they may be.
• Don't lose any time — If you respond too late or poorly to a crisis, it will cost you blood, sweat and tears to rebuild your good reputation.
• People always come first — In times of crisis, always ensure that a senior executive is available to show the company's concern and to explain what the company plans to do to reduce the suffering and deal with the crisis.
• Learn lessons from what has happened — Every corporate leader with common sense monitors disasters in his or her sector closely and learns from them: "That problem could also strike my company. How would we respond?"