A crisis of competence or character? How to understand (and prepare for) crisis basics

crisisahead

Are you prepared for the worst? (image source: http://www.adweek.com)

The past 18 months has been a remarkable time for crisis watchers. We’ve watched as global brands and leaders have become embroiled in crises. Some of these have been of their own making (think Sepp Blatter and FIFA, or Volkswagen and emissions). Others have been due to unfortunate circumstances, such as with Emirates flight 521.

As communications professionals out there know, there’s nothing like working on a crisis. In an excellent piece for the Financial Times by David Bond, Rupert Younger, director at the Oxford University Centre for Corporate Reputation, sorts crises into two basic definitions – a crisis of competence or a crisis of character. To quote from the piece:

Examples of competence scandals include Toyota’s 2009-11 recall of 4m of its cars because of defective accelerator pedals, or the battery defaults on some of Boeing’s Dreamliner aircraft. These, according to Mr Younger, can deliver a direct, and in some cases short-term, hit to a company’s sales figures.

A character crisis calls into question the culture and behaviour of a company and its senior executives and often arises out of media scrutiny or criminal or regulatory investigations. Fifa and News International were both crises of character.

The worst type of crisis involves both. The BP Deepwater Horizon oil spill in 2010 is a case in point. It was triggered by a disastrous oil rig explosion that called BP’s offshore drilling competence into question. But the company’s response turned the crisis into a far wider issue of trust.

As communicators, our roles have traditionally covered managing the fallout from a crisis. However, whether we like it or not (I hope the former), we’re also becoming the conscience of our organizations. It’s incumbent on us to speak up when we hear about or see an issue that could harm an organization’s reputation. This is easier said than done. Volkswagen is a great example of a crisis of character – dozens of VW employees must have known about the manipulation of data, and yet no one spoke up (or, if they did, the information didn’t get to the right people).

To tackle such a crisis, communicators need to work with executive management to create an ‘incident aware culture’. Employees should feel that they can report issues without reproach or fear of retaliation. Employees also need to feel that they’re working for and in an ethical organization that cares about doing the right thing. This requires continuous communication from and engagement by the board and management, as well as support from legal and HR teams. If things do go wrong, communicators and management need to proactively engage with stakeholders to explain what has happened and why, a strategy known as stealing thunder. This is best defined as an organization “breaking the news about its own crisis before the crisis is discovered by the media or other interested parties” (Arpan & Roskos-Ewoldsen, 2005).

Unfortunately, as has been noted by academics such as An-Sofie Claeys, this type of self-disclosure is rare in practice. As with the case of VW, organizations are tempted to conceal the crisis rather than make it public.

Crises of competence are easier to deal with. However, many of us still aren’t prepared for what happens when this type of crisis occurs. Here’s a simple crisis communications assessment grid developed by the communications team at US firm Timken, which establishes crisis severity based on the type of incident and the involvement of various stakeholders, as well as who needs to be involved.

timken-crisis-comms-framework

For a more detailed look at how to handle a crisis (pre, during and post), then have a look at this post I wrote after meeting with crisis communications expert Caroline Sapriel. And, if you have any feedback on how do deal with a crisis, please do share. I’d love to hear your views.

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