When something goes wrong with your product or service, it may take on crisis proportions, leaving you feeling between a rock and a hard place in deciding what to do. For a hypothetical example, VanCliff Cosmetics had become one of the great business success stories of all time. VanCliff's new CEO pulled off this coup on the strength of a revolutionary new VanCliff product, "24K Glow": a high-priced, gold-infused liquid makeup designed to give the wearer the "look of elegant wealth."

That was until hottest game-show January February's lawyer filed a $100 million suit against VanCliff, claiming the gold in her face makeup had reacted with her body chemistry, permanently dyeing her skin, ruining her career.

This is a crisis situation, dealing with a major unpredictable event that threatens to harm the organization and its stakeholders. It calls for crisis management. But if VanCliff does not have such a plan in place, it could respond by not responding at all, discounting the claim of damage, making the claimant look ridiculous, calling her a liar, or suggesting she has ulterior motives, all of which will reflect negatively on VanCliff.

But pretending the problem does not exist or waiting until you can conjure up a spur-of-the-moment plan works to your detriment because you need to respond right away. Having a proactive statement before the problem becomes public shows your social responsibility. It is imperative that you not rely upon your previous reputation as a good citizen to carry you through. Your reputation is only as good as your current communication with the public and your positive behavior.

Johnson and Johnson knew this and had a plan. When the Tylenol scare occurred, they responded immediately and positively, taking the analgesic off the shelves, keeping the public apprised of the investigation, and their instituting new tamper-proof seals to make their product more secure.

You need to be upfront and out front with your communication about the situation and what you are doing to correct it and protect the public. You must communicate effectively, clearly, accurately, and promptly once you discover the problem exists. This means you need to see the media as your friend and treat them as such. You need to work together. Treat them as your enemy and you have created a battle you are unlikely to win.

While written statements are easier, you need to put a face on the statements. It is more personal and you will look less like you are hiding behind the statement. For this you really need one spokesperson so that there is one consistent voice and one person to whom to go.

You need to remember you are addressing human beings who are your clients or consumers. Targeting issues alone misses the mark. You need to think in terms of their anxiety, fears, frustration, and anger. Everything you do needs to support your caring about them and your relationship with them. Everything needs to keep their trust in you to have their best interests at heart alive.

Having a crisis management plan in place before a crisis occurs puts you in a solid position to handle it more effectively and responsibly for both your company and your public.

Source: Dr. Signe Dayhoff link