The U.S. is still experiencing the aftershocks of 2008 financial crisis; the Security Exchange Commission has had 735 legal actions and collected $2.8 billion in fine.
Organizations need to act strategically to steer clear of these turbulent times, and find a silver lining amongst the cloudy skies. During a crisis situation, your company’s reputation, cliental, operational efficiency, revenue generation, and ethical practices are at stake.
If handled correctly, any company can make it out the other end with their reputation and financial well-being intact. Here are some crisis management tips for companies having a rough year.
Needless to say, every company needs to follow compliance and regulations set by the government. To make sure they are adhering to the law, organizations need to formulate a reporting process.
Moreover, the directors need to see if the process design being utilized in the company resonates with the company’s strategic goal. All the strategies developed should account for risk and should have risk-mitigating protocol in place if the need arises.
Being prepared means that the management sets the right communication tone for the entire organization. All stakeholders should understand and have the knowledge of company’s policies and ethical practices.
The employees need to know that the upper management is truly committed to compliance, procedure & policies and ethical practices. They should be provided with correct reporting mechanism to communicate any unethical behavior. Having a system or protocol in place mitigates the risk of getting caught off guard.
Crisis can happen at any time; each situation will be unique which means a different plan of action would be required for each unique situation. You can develop a crisis management team whose objective is to mitigate any kind of risk faced by the company.
Your team should have a representation from core functions of the company, such as, upper-level management, Operations, Finance, HR, PR, Investor Relation, IT, and Legal department. By designating crisis management to one core team, organization can have a focused strategy. You can also counsel from a HR Advisory Services to harness better results.
Communication plays crucial roles during adversities. Employees and other stakeholder need to be taken into confidence and made aware regarding the crisis company is facing. Your crisis committee needs to have a strong PR and internal and external communication strategy to have consistency and authenticity in your speech.
If your crisis committee has found occurrence of unethical practices during their investigation process, address and put an end to these immediately. These habits are what led to the crisis in the first place; continuing with these activities can get you in legal trouble with the authorities.
Don’t be too eager to reprimand employees or management involved in the cause of the crisis. Have your team investigate the matter thoroughly and then devise a just and reasonable disciplining action.
Every crisis should be treated as a learning experience. Once you’ve steered clear from the turbulent water, evaluate your shortcomings.
We at DFRI can help you develop and implement industry specific strategies. We also provide HR outsourcing services to build strong employer-employee relationship and resolve workplace conflicts. Call 1-877-803-3486 to learn more about our services.