When It All Goes Horribly Wrong
You probably know how you would handle a manufacturing delay, a shipping mishap or a hard drive crash, but what would you do if something really big went really wrong? We are not talking about getting a customer’s order wrong or spilling coffee on the presentation you are preparing for potential private investors; we are talking big – like BP oil leak big. While you are probably not in the business of pumping oil or transporting it underwater through pipelines, this is a relevant and recent example of just how quickly things can go very, very wrong.
How would you maintain the confidence of your customers, private investors and other stakeholders after a major – or not so major as this – catastrophe? If you have no idea, it’s time to get a plan down on paper, and it better be a good one. BP did have a plan in place regarding possible spills, but the media has been quick to point out that this plan was fraught with errors and omissions. Their alleged lack of a comprehensive, accurate plan that entailed a cohesive response to a potential disaster, including how to handle the press and manage public relations issues, has created a massive backlash. This has only further damaged an already blemished reputation that has sent the shares of this enormous international organisation on a decidedly downward spiral.
This should be a lesson to every entrepreneur, business owner or CEO. While your company will likely never be part of a disaster with far-reaching environmental impact and worldwide economic implications that are on the scale of BP’s recent blunder, this is a wake-up call for anyone whose success relies on private investors or keeping consumers confident in their company. Do not dismiss the possibility of a crisis that might seriously impact your company. Every business owner should always keep in mind that some unforeseen incident can unexpectedly send you reeling. This is why it is imperative to be as prepared as possible and to have all of your ducks in a row when disaster strikes.
Naturally, you cannot fully prepare for every possible, specific situation, since there will always be the potential for factors beyond your control or that you simply had not thought of. But you certainly can establish a go-to plan for quickly disseminating information to your private investors, communicating with your customers, handling media and managing public relations when called upon to do so. Are you prepared to do this if it all goes wrong tomorrow?
Things go wrong. It happens. But how your company handles an unexpected crisis makes all the difference in how you will be perceived going forward. How well-prepared you are to respond and your ability to crank out some masterful image management will have a direct impact on keeping your private investors and other stakeholders calm during a crisis. How well you handle an unexpected catastrophe will also play a major role in whether or not your current and potential private investors will still consider your company an investable prospect once the crisis is over.
We are clearly seeing the possible ramifications of not being prepared as BP’s stock drops and they struggle to preserve the vestiges of their pre-spill reputation. BP was not as prepared as they could have been for this crisis, and it shows. But this is a learning experience for all of us. In fact it is a downright kick in the pants that should send every business owner and entrepreneur who relies on private investors heading off to spruce up their company’s crisis management plan.
When it comes to crises it is almost always a matter of when, rather than if, one will occur. If your company is prepared to handle whatever might come its way, you will be poised to come through the crisis with your company’s image, customer base and relationship with private investors still intact.
