Public Relations Octopus Model Part 7: "Crisis Management Capability"

■  Prevention is better than cure

For companies, preventing accidents, incidents, and scandals from occurring is paramount, making ongoing prevention essential. However, no matter how many countermeasures are in place, a single malicious act or careless mistake—a tiny hole in the dam—can suddenly trigger a crisis without warning or foreshadowing. While scandals vary in severity, whenever harm occurs, illegality is involved, or public awareness is required, the company's "accountability" arises, necessitating "information disclosure" through the media.

It is no exaggeration to say that the effectiveness of communication at this point can determine the company's fate. Poor media handling invites unnecessary criticism, severely damaging performance, stock prices, credibility, and reputation. In this sense, "crisis management capability" in public relations encompasses both the "ability to prevent scandals before they occur" and the "ability to respond effectively when they do occur." It is, in essence, the fundamental physical strength of an organization. While it's a muscle not used much in daily operations, it must be diligently trained regularly to be ready when the time comes.

■  Avoiding "Pie in the Sky"

In the "First Survey on Corporate Public Relations Activities" conducted by the Corporate Public Relations Strategy Institute targeting 479 listed Japanese companies, items cited for "preventative capability" included "monitoring and researching industry and competitor risk cases," "regularly convening crisis management committees," and "creating management risk forecast reports." Among these, implementing "awareness-raising activities for employees and others" is particularly crucial (see Figure 1). No matter how well-developed the rules and systems are, without a strong "awareness" to implement them, they become nothing more than pie in the sky.

*Percentage of 479 listed companies that responded affirmatively regarding crisis management capabilities.

At one company, the president frequently used the key phrase "100 minus 1 equals zero" to heighten internal vigilance. This conveys that even if 100 people work diligently, if just one person lets their guard down and makes a mistake, the trust and credibility built by everyone can vanish in an instant.

On the other hand, regarding the item asking about "response capability when incidents occur," it is essential to "establish communication networks," "create crisis management manuals," and "participate in BCP (Business Continuity Planning)" to ensure swift and rational responses and information disclosure preparations during crises, as well as to minimize damage as much as possible. Particularly for "crisis management manuals," given the rapidly changing media environment, it is necessary to regularly check whether they are truly useful in real situations and if there are any gaps. To achieve this, conducting simulation training, including mock press conferences, on a regular basis, similar to disaster drills, is effective. The key point is to involve the entire company. The mindset that "public relations responses can be left to the PR staff" invites "unnecessary criticism" that questions the organization's culture, such as a lack of awareness of accountability or delayed responses.

When conducting training, participation is essential not only from top management and executives responsible for each business area, but also from members of the emergency response headquarters who decide "what, how much, and how" to disclose information. Furthermore, for companies with manufacturing sites, it is desirable for plant managers and factory directors—who would be on the front lines in the event of an accident—to experience crisis response alongside personnel from the general affairs section who handle interactions with the media, business partners, and local residents.

To solidify the reputation that "their products (services) are reliable," it is essential to cultivate the "crisis management capability" that builds the reputation that "they will handle any incident properly." While there is no need to be overly sensitive to crises, the public relations section plays a significant role in building an organization that remains constantly vigilant.

About the Corporate Communication Strategic Studies Institute
The Corporate Communication Strategic Studies Institute (CSI) is a research organization within Dentsu Inc. Public Relations. It collaborates with experts in corporate management and public relations (including university professors and researchers) to conduct surveys, analysis, and research on corporate communication strategies and systems.