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© 2013
Gary E. Cooke II

 

 

   
. Crisis Management  

 

 

   

How to handle a crisis or how not to handle a crisis again came to the attention of business with the recent Firestone¨ tire debacle.

What do you do if the news reports rumors about your business or your offices are destroyed by fire?

Do you have a plan in place like Solomon, Inc. had in 1991 when federal investigations led to allegations of improper attempts to control U.S. Treasury auctions? Could your business respond successfully to a crisis like the Johnson & Johnson Tylenol crisis or like that faced in 1995 by Intuit when bugs were discovered in its tax sofware?

If a crisis hits that could damage your business, you need to develop a game plan for response, determine who will lead your team and speak for the company, and be honest.

Here are some points to remember:

- Information is key. Gather as much information as you can regarding the problem, the facts and who is involved and how they are involved. (For instance, is it the government with an OSHA violation or the media reporting about product problems). If necessary hire independent experts.

- Determine what are rumors, accusations, and speculation and deal with them head-on.

- Examine how much risk the business faces and whether different courses of action are likely to lead to better or worse results.

- Anticipate your customer's needs and questions and proactively work to alleviate their concerns and answer their questions.

- Do not respond to questions or inquiries with off-the-cuff answers or speculation. When questions or inquiries are made, put your information together, stick to the facts and respond as soon as possible. Avoid No Comment responses or Off-the-Record discussions.

- Tell customers, employees, the media, the government, etc. how you will handle the situation and show, through your actions, that you are working toward a solution or resolution.

- Focus on solving the problem; not on finding someone to blame.

If you find yourself in a crisis situation, planning will dramatically increase your chances of responding successfully.

The Apology

Closely related to handling the crisis is the potential apology. Here is a recent apology from the headlines that was well done:

"There is no doubt about it, I made a mistake and used bad judgment. I take full responsibility and I apologize and I deeply regret it. I extend my heartfelt thanks to my family, friends, colleagues and customers who have supported me during this very difficult time. I look foward to returning to work and I will work hard to regain the trust of those who I may have let down."

With appropriate editing, this particular format can be used by businesses as well as individuals.

(Citation omited so as not to continue the individual's travails).

 

You can contact Mr. Cooke at (312) 497-9002 or by email at "gc@Cookeslaw.com".

Mr. Cooke's fee is $300.00 per hour.

 

 
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