How to effectively manage a crisis

No matter how robust your processes are, how much training you provide for your employees, or how much you invest in ensuring your products and services are the best they can possibly be, most organisations will face a crisis at some point. In fact, an Experian survey found that 78% of business leaders said their organisations had faced a crisis that impacted customers in the past 18 months.

This could come as a result of something as simple as sending out faulty or damaged products to disgruntled customers, or as serious as legal complications and incidents that cause significant harm to those involved. 

It can happen to small startups as well as large multinational businesses, but the key to overcoming a crisis lies in how you respond and manage the situation. A prime example is KFC. A few years ago, the global fried chicken franchise actually ran out of chicken in the majority of their UK stores – yes, really. As you can imagine, this caused a bit of a ruckus, and according to data from social media monitoring service Brandwatch, there were 53,000 mentions of KFC running out of chicken in one day alone, littered with hashtags such as "#ChickenCrisis" and “#KFCCrisis". But their response was both thoughtful and creative. 

They turned the situation into an opportunity to remind customers of what makes them who they are by rolling out brilliant ads with the KFC letters rearranged on the bucket to own their ‘FCK’ up. They maintained a page on their website where customers could check the chicken status of their local restaurants, and they kept on top of the news by answering questions via social media almost daily. That’s how you do it!

Not every business has the same resources or budget as KFC to handle a crisis, but with some planning and preparation, it’s easy to establish a clear process for effective crisis management. 

When a crisis unfolds, it’s easy to panic and react impulsively in an attempt to resolve the situation fast. However, a rushed and scattered response often does little more than temporarily mask the issue – and can sometimes make it worse! Instead, customers appreciate businesses that take responsibility and show they genuinely care about resolving the problem, and that often starts with having a clear crisis response plan outlining roles, responsibilities, and communication protocols. 

So, how exactly do you do that? This blog article covers what that crisis plan should look like, as well as a few frameworks and guiding principles that should be helpful too. 

What’s in this article:

• How to prepare for a crisis
• How to recover and rebuild trust post-crisis
• The five C’s of crisis management
• Key takeaways

How to prepare for a crisis

No brand or business is immune to a crisis – it can happen to anyone at any time. However, research suggests that only 62% of businesses have a formal crisis communication plan. But even with the best products, services, and customer support, complacency is risky. No organisation is beyond the possibility of something going drastically wrong. That’s why every business, big or small, should have a crisis management plan in place and ensure all key personnel understand their roles and responsibilities within it. This plan should be a structured document that outlines how your business will respond to and recover from a crisis in the short term and long term. Here are some tips on how to prepare a crisis management plan, and what it should include. 

1. Identify potential risks

Before you can plan a recovery strategy for a PR crisis, you first need to understand what a crisis might look like and how its severity can vary. Crises come in many forms, but some key areas to consider include:

• Product recalls
• Cyberattacks and tech failures
• Legal issues
• Workplace accidents and injuries
• Supply chain disruptions
• Employee misconduct

Remember that this list isn’t exhaustive, and it won’t be applicable to each and every business, so it’s important to assess the specific risks your organisation may face.

Once you’ve got a list of potential issues, it’s important to assess their likelihood and potential impact on the business. Not all crises are equally likely or equally as damaging, so by evaluating both probability and impact, businesses can prioritise their focus on the most pressing risks. A traffic light system works well to categorise the potential crises and label them according to their potential severity.

Green - minor issue (low impact, no immediate business disruption)

Examples: 

• A negative customer review goes viral on social media.
• A minor website outage or brief technical glitch.
• A product arrives damaged to a small number of customers, but it’s easily resolved.
• A supplier’s price increase is passed on to customers, prompting a few complaints.
• A minor supply chain delay that slightly impacts delivery times.

Amber - serious incident (localised issue, potential reputation damage)

Examples:

• A stock shortage affecting a popular product, leading to customer complaints.
• A technical issue incorrectly displays special offers, leading to customer frustration when deals are unavailable.
• A data breach affecting a small segment of customers.
• A workplace accident at a single store, warehouse, or site.
• Allegations of poor customer service from a well-known influencer or media outlet.

Red - major crisis (severe reputation and operational threat)

Examples:

• A large-scale product recall due to safety concerns.
• A major data breach exposing customer financial information.
• A serious legal issue, such as regulatory fines or lawsuits.
• A high profile PR disaster, such as offensive marketing material or a company leader making damaging public remarks.
• A major supplier collapse, halting operations across the business.

2. Assemble a crisis management team

Now that you understand the potential issues that could arise and their possible impact on your business, the next step is to assemble a crisis management team. In a crisis, a rapid, well organised response is essential to minimise damage, so allocating a crisis team will ensure that key decisions are made quickly, and communication is clear and consistent across the business.

Your crisis team should be made up of individuals who know your business inside and out – ideally, senior-level employees, such as the CEO or Managing Director, along with experts in communication (like a PR professional) and, where necessary, legal matters. Remember to agree to a clear chain of command as well – for example, who will need to sign off any drafted media responses before they’re issued?

3. Create a communication and response plan

Having a communication plan in place is crucial to ensure that information is conveyed strategically during a crisis. It will help to prevent the spread of misinformation and control the narrative, because if you don’t control the story, someone else will – whether it’s the media, social media users, or competitors. Fundamentally, it all boils down to reducing panic and reassuring stakeholders that you’ve got it all under control. 

A robust crisis communication plan should include plans for internal communication (for employees, management, and key stakeholders with the organisation), external communication (for customers, partners, investors, and the general public), and media strategy (for journalists, news outlets, and media platforms.

• Internal communication: Clear and timely communication with employees, stakeholders, and partners is essential to maintain trust and prevent misinformation. A crisis plan should outline how updates will be shared internally, ensuring that all relevant parties receive accurate information. This includes briefings for leadership, internal emails, and guidance for frontline staff on handling inquiries that may come in from the public, for example. Keeping everyone aligned reduces confusion and ensures a unified response.
• External communication: During a crisis, businesses must communicate effectively with customers, the public, and relevant authorities. Having pre-prepared templates for press releases, social media updates, and customer notifications ensures that messaging is swift, consistent, and professional. The plan should also specify which channels to use for different audiences and establish approval processes to avoid miscommunication.
• Media strategy: Dealing with the media requires a controlled and strategic approach. A crisis management plan should designate a media trained spokesperson responsible for handling press inquiries and delivering key messages. It should also include media response protocols, such as monitoring coverage, preparing for interviews, and responding to misinformation, to help protect the company’s reputation.

For each section, make sure you include step-by-step actions for handling the different types of crises that you identified at the start, including guidelines on assessing the situation before responding, and key messages to maintain consistency and avoid misinformation. 

How to recover and rebuild trust post-crisis

If you’ve put the effort into creating a strong communication plan and, when the worst happens, follow it to the letter, you’ll be in the best possible position to recover from the crisis, rebuild trust, and learn from the experience. 

However, the work doesn’t stop there. Recovery and rebuilding trust require a strategic and proactive approach. Here are some key steps to consider:

• Acknowledge the issue and take responsibility

You should always avoid deflecting blame or downplaying the situation. A sincere acknowledgment of what happened, along with a commitment to making things right, helps rebuild credibility.

• Communicate transparently and consistently

Continue issuing updates even after the immediate crisis has passed. Address customer concerns, share progress on corrective actions, and ensure all messaging remains honest and consistent.

• Take meaningful action to address the root cause of the issue

Your communications must go beyond performative gestures – real change is essential. Taking steps such as improving processes, strengthening security measures, or introducing new policies, demonstrates a genuine commitment to improvement and rebuilding trust.

• Re-engage customers and stakeholders

Proactively reaching out to customers, partners, and employees is crucial for repairing fractured or strained relationships after a crisis. This may include customer compensation (where appropriate) or initiatives that reinforce your company’s values.

• Create a positive PR and brand building campaign

Once corrective actions are in place, businesses can shift their focus to positive PR efforts to restore their brand’s reputation. Highlight improvements, share success stories, and showcase corporate responsibility initiatives to rebuild public confidence.

The five C’s of crisis management

If you don’t have the time or resources to prepare a failsafe crisis management plan, then you can always try to remember and act on the ‘five C’s’ of crisis management should the worst occur. These are:

1. Concern

Demonstrating genuine concern for those affected by the crisis – whether customers, employees, or the wider community – helps show empathy and builds goodwill. Acknowledging the impact and committing to addressing the situation sets a positive tone and portrays your business in the best light.

2. Commitment

A clear commitment to resolving the issue and taking corrective action is crucial. Businesses cannot simply promise to make things right – they must follow through with tangible steps and communicate proof through an effective PR plan. This demonstrates a long-term dedication to improving processes and preventing future crises.

3. Competency

Managing a crisis effectively requires competence in handling both the immediate response and long-term recovery. Businesses must rely on the expertise of their crisis management team, ensuring that decisions are based on knowledge and experience, which helps reassure stakeholders that the situation is under control.

4. Clarity

Clear, concise communication is essential to prevent confusion and misinformation. It’s important to communicate directly and transparently with all parties involved, providing timely updates and ensuring that everyone understands the steps being taken to address the crisis.

5. Confidence

Showing confidence in managing the crisis helps to reassure customers, employees, and stakeholders that the company is in control and capable of overcoming the situation. Confidence, however, should be paired with humility and sincerity to avoid appearing dismissive or arrogant.

Key takeaways

1. Crisis planning is essential for every business. No business is immune to crises, and having a clear, structured crisis management plan is crucial. Research suggests only 62% of businesses have a formal crisis communication plan, so planning ahead can make all the difference in how a crisis is handled.
2. Prioritise risks and prepare for different scenarios. A successful crisis plan should involve identifying potential risks, categorising them based on severity, and assembling a dedicated crisis management team. Tailoring the response to the nature of the crisis ensures effective handling.
3. Effective crisis response requires clear communication. Businesses must have a communication strategy for both internal and external stakeholders, as well as the media. Ensuring transparency, consistency, and clear messaging helps reduce confusion and prevent misinformation during a crisis.
4. Recovering and rebuilding trust after a crisis. Post-crisis recovery is vital. This includes acknowledging the issue, taking responsibility, and making meaningful changes. Transparent, ongoing communication, coupled with positive PR efforts, is essential to restore reputation and rebuild customer trust.

Need help with a crisis? Contact us today to discuss how we can assist in managing the impact on your business.

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