Sometimes, if done correctly.

First things first: if you run any kind of business, you should be prepared for a crisis. Whether you are a retailer, hospitality provider, or tech giant, things happen. So how do you prepare for an event that may lead to undesirable press?

How to prepare for a crisis

1. Conduct an internal audit. Interview your staffers and ask them what could go wrong. Make a list and keep adding to it.
2. Review the news. We all know the adage, “If it bleeds, it leads”; what crises are making headlines, and is there any chance your name could one day be attached to them? Add any that would possibly impact you to your list. That list should be very long by now and should include variations of most if not all of the following:
   • A former employee suing for racial harassment. Example: Tesla.
   • An emergency situation that involves the authorities, such as a fire, act of violence, or break-in. An example is Johnny Doughnuts, explained below.
   • Layoffs and high-profile firings. Example: Zoom firings at Carvana and Better.
   • Inappropriate or illegal behavior by senior personnel. Example: Lululemon)
   • An error in judgment with internal or external communications. Example: Ulta.
   • A faulty product or implementation of the product. Example: Citibins, context below. 
   • Cybercrime. Example: Target.
3. Prepare “holding statements” ahead of time for all of the scenarios that apply to your business. A holding statement is a communication that is a better alternative to “no comment” and serves as a placeholder while your team strategizes the best next steps.
   
   For example: “Because this is a legal matter, we are unable to comment, but we are aware of the situation and are actively addressing it.”
   
   That’s a crude example, but fine-tuned versions that make sense for your brand can be very helpful to have in your back pocket.
4. Respond to all reporters who reach out about the issue at hand as quickly as possible. Ask about their deadlines and let them know you will respond as soon as possible. This will help you avoid the dreaded phrase “[Brand] did not immediately return a request for comment,” which reflects poorly on your organization. 

With that being said, if the situation is beyond that of a misstep (example: Bernie Madoff), then all bets are off. However, if you — like our client Johnny Doughnuts — fall victim to a slightly absurd break-in then you have every right to change the narrative. Johnny Doughnuts did just this by bringing some levity to the situation (thankfully, no one had been hurt) with a simple response to the Associated Press crime reporter: 

Craig Blum, the founder of Johnny Doughnuts, said his company plans to deliver a few dozen doughnuts to the San Rafael police officers “who came to our aid to ensure that we can continue serving our community hand-crafted doughnuts without interruption.”

“It was an unfortunate incident, but we’re glad no doughnuts or team members were harmed,” Blum said. “Sometimes, even the thought of a doughnut makes you do crazy things.”

Craig received calls from all over the country after this, and the story was picked up and run internationally. In terms of media coverage, it’s been a net positive.

Then there’s Citibin, a garbage receptacle company, whose product was incorrectly used by a high-profile customer, leading to coverage about their bins leaking garbage juice. It was a touchy space because the owners did not want to call out the customer for misusing their product so instead, they doubled down on the fact that it was a pilot program:

Recently, The New York Post reported that one of the bins in Times Square was leaking garbage juice into the street. “Tweaks are continuing through the pilot. That’s what a pilot is about,” said Liz Picarazzi, the founder and chief executive of Citibin.

The bottom line is that every company has the ability to prepare for crises and should make it a priority. In addition to the brief advice above, here are a few more questions to ask yourself: 

• Who is your spokesperson?
• What is the chain of command for approvals?
• Do you have your lawyer on speed dial and a backup for when they’re on vacation?

If you have a potential crisis brewing or see something that could eventually cause problems, then get your ducks in a row so you are not scrambling for answers. If you need support on standard issues, then Segal Communications is here to help.