1- The best insurance is to have a plan

Developing a crisis plan is usually the last thing an entrepreneur does. Why? Because they always think they are safe. However, the best way to maintain operations, protect our sales and our reputation is to have anticipated all the consequences of a potential crisis before it occurs.

To avoid being caught off guard, it is imperative to think through your action plan even for scenarios that are relatively out of the ordinary. The decision must be made as to who should be informed first and who will be the official spokesperson. In addition to preparing a summary of the information to be transmitted, it is necessary to ensure that principles of information transparency are in place so that your teams can quickly be informed of what is happening and what is expected of them. Taking the time to reflect when the weather is more favorable allows us to see the flaws and plan options to save our reputation.

In 2014, UPS and FedEx discovered that a lack of preparation could spell disaster. Burdened by an explosion of online orders, the two delivery giants drew the ire of consumers who experienced long delays in getting their purchases delivered. Instead of owning up to their mistakes and working with retailers to satisfy their irate customers, they blamed the delays on weather, last-minute shopping, and the limitations of their distribution systems. Their litigation likely suggested not admitting fault to avoid legal action. In the meantime, both companies were seen as brands that literally failed to deliver, which sent their stock prices plummeting.

When UPS and FedEx failed in 2014, Amazon jumped at the chance. To compensate for the delivery delays, they offered their customers a $20 gift card. People are more forgiving when a company is transparent and fixes things quickly. This is a great way to be proactive when your partner or competitor is in hot water. Are you ready?

2- A fault confessed is half forgiven.

If the crisis strikes, don't wait to express your dismay. The longer you let it go, the more likely it is that media coverage will increase and social media will become inflamed. Gather all the facts quickly, take your courage in both hands and make the decisions you need to correct the situation. The important thing is to respect the company's values and to communicate as soon as possible, with empathy, a response that will save its reputation.

JC Penney provided a great example of rapid response during the Hitler kettle crisis in 2013. When a blog post pointing out that a kettle resembled Adolf Hitler was widely shared, the JC Penny team quickly explained that it was unintentional and that if they had thought about it, it would have looked more like a snowman. An apology and a bit of self-deprecation often go a long way in scoring points.

3- Act according to defensible values

The role of the leader is to ensure that the company is run in the healthiest way possible. To avoid a crisis, it is recommended to establish ethical guiding principles in line with our values and our mission from the creation of the company. We must ensure that we communicate to the teams what actions are expected and have the courage to enforce the principles we defend. This is the best way to protect ourselves from possible crises.

It is also an opportune time to rally teams around the organization's mission, to put forward the values, the code of conduct and to highlight the good achievements associated with them.

TOOL

Need a crisis management plan? Here are 10 questions to ask yourself to protect your organization .