Crisis Management in Public Relations
A crisis can devastate a business’s reputation, finances, and operations through lost trust, sales decreases, legal action, and disruptions. Preparedness is vital for survival, as crises can damage your reputation in minutes.
What is crisis management in public relations?
Crisis management in public relations is the process of preparing for, responding to, and recovering from events that threaten an organisation’s reputation and stakeholder trust.
Effective PR crisis management can mean the difference between a resilient brand and lasting damage.
What is a PR Crisis Management Plan?
A PR crisis management plan is a documented strategy that outlines the procedures, roles, and messaging an organisation will use to respond to an unexpected negative event and minimise damage to its reputation and operations. An effective crisis management plan includes:
- Clear team roles and responsibilities
- Pre-approved message templates
- Decision-making procedures
- Stakeholder notification protocols
- Communication channel guidelines
- Monitoring and evaluation metrics
Cases and scenarios of PR crisis
Real-life PR crises offer crucial lessons in management, with outcomes varying dramatically based on the speed, transparency, and empathy of the response.
Successful Crisis Management Cases
Johnson & Johnson Tylenol Crisis (1982): When cyanide-laced Tylenol capsules caused several deaths, J&J implemented a nationwide recall of 31 million bottles, costing over $100 million.
Response: The company prioritised public safety, immediately halted production and advertising, and communicated transparently with the media and consumers. After the crisis, they introduced tamper-resistant packaging, setting a new industry standard.
Outcome: J&J successfully rebuilt consumer trust and regained its market share within a year, becoming a textbook example of effective crisis management.
Pepsi Syringe Hoax (1993): Reports of syringes found in Diet Pepsi cans threatened the brand.
Response: Pepsi acted quickly, working with the FDA to prove the claims were a hoax. They released surveillance footage of a woman placing a syringe in a can and ran a media campaign explaining their secure canning process.
Outcome: The rumours died out within two weeks, sales quickly recovered, and consumer trust remained high due to the brand’s fast, fact-based response.
KFC Chicken Shortage (2018): A supply chain issue led to most UK KFC restaurants running out of chicken and temporarily closing.
Response: KFC took responsibility with a well-judged, lighthearted print ad that rearranged the logo to read “FCK,” accompanied by an apology and explanation. They were frank and transparent without shifting blame.
Outcome: The humorous and honest approach was praised by PR experts and widely appreciated by the public, minimising long-term brand damage.
Failed Crisis Management Cases
United Airlines Passenger Removal (2017): A passenger was forcibly removed from an overbooked flight to make room for airline staff, captured on viral video.
Response: The CEO’s initial statements were perceived as tone-deaf, describing the incident as “re-accommodating” the passenger and calling him “disruptive”. The company was criticised for prioritising legal concerns over empathy.
Outcome: The incident resulted in massive public outrage, a $1.4 billion stock value drop, legal settlements, and lasting damage to the company’s reputation, serving as a cautionary tale in crisis communications.
BP Deepwater Horizon Oil Spill (2010): An explosion on an oil rig caused the largest marine oil spill in U.S. history.
Response: BP’s initial response was slow, and the CEO made several insensitive remarks, including “I’d like my life back,” which conveyed a lack of empathy for the victims and environmental devastation. The company was seen as trying to underplay the incident.
Outcome: BP faced billions in clean-up costs, legal settlements, and fines, along with a severely damaged reputation and brand boycotts that lasted for years.
Boeing 737 MAX Crashes (2018-2019): Two fatal crashes of the new 737 MAX aircraft due to faulty software led to a global grounding of the fleet.
Response: Boeing insisted the aircraft was safe and blamed “poor pilot training” rather than the technical issues, which were seen as slow, legalistic, and lacking empathy.
Outcome: The company faced intense scrutiny, executive resignations, and a loss of a once-stellar reputation for safety, highlighting the importance of accountability and transparency.
How to create a Crisis Management Plan
Creating a crisis management plan involves a series of structured steps focused on preparation, clear communication, and continuous improvement.
Assemble Your Crisis Management Team
Form a dedicated, cross-functional team with clearly defined roles and responsibilities. This team should include representatives from:
Senior Management: For leadership and final decision-making power.
Public Relations/Communications: To manage all messaging and media relations.
Legal Counsel: To guide on legal implications and compliance.
Human Resources: To support employees and manage internal communications.
IT/Operations: To manage technical systems, business continuity, and on-the-ground logistics.
Identify and Assess Risks
Brainstorm potential crises your organisation might face, such as data breaches, product recalls, or natural disasters.
Prioritise these risks based on their likelihood and potential severity (impact on reputation, finances, and operations).
Identify warning signs for each potential crisis to enable early detection and a faster response.
Develop Response Procedures
For the most probable and severe scenarios, outline specific, step-by-step actions and assign ownership for each task. These procedures should:
Prioritise public and employee safety above all else.
Establish an activation protocol with clear triggers for when the plan should be initiated.
Detail immediate actions (e.g., shutting down production, contacting emergency services).
Outline a chain of command to ensure swift decision-making and prevent confusion.
Establish Communication Protocols
A clear communication strategy is critical for maintaining credibility and controlling the narrative.
Designate an official spokesperson who is media-trained and can provide consistent, accurate, and empathetic messaging.
Draft pre-approved holding statements and key messages for various scenarios to ensure a rapid initial response.
Identify communication channels for different audiences (e.g., text alerts for employees, social media for the public, email for stakeholders).
Embrace transparency by communicating what is known, what is not, and the steps being taken.
Train, Test, and Update the Plan Regularly
A plan is only effective if the team knows how to use it.
Conduct drills and tabletop exercises to simulate crisis scenarios and test the plan’s effectiveness.
Review and update the plan at least annually, or after any real-world incident or significant organisational change (e.g., new leadership, processes, or facilities).
Ensure all employees are aware of basic emergency procedures and know where to access the plan.
Conduct Post-Crisis Analysis
After a crisis has been resolved, the team should conduct a thorough debriefing to identify what worked well and what areas need improvement. Use these lessons to refine and update your crisis management plan, ensuring continuous improvement in your organisation’s resilience.
Conclusion
Ultimately, navigating a public relations crisis successfully boils down to preparedness and integrity. The critical differentiator between a business that thrives after a crisis and one that fails lies entirely in how it responds. Key lessons from real-world events, like the stark contrast between Johnson & Johnson’s transparent Tylenol recall and United Airlines’ tone-deaf passenger removal incident, underscore the necessity of a robust, documented crisis plan. Prioritising swift action, honest communication, genuine empathy, and clear accountability is essential for mitigating financial losses and reputational damage. By adhering to these principles, companies can protect their brand, maintain crucial stakeholder trust, and ensure long-term organisational resilience.