High Risk Business - No Risk Plan?

Deanna Causey

We’ve certainly been living under the stress of crisis reporting – every day it seems a new cataclysmic event is going to overtake us all.

Which makes me wonder: in times of high public stress, should companies be concerned that heightened emotions and fear could lead to more complaints?  It’s obvious that a fearful public is going to be hyper vigilant in looking for the slightest misstep; especially when their money is involved. Debt collection companies in particular get more than their fair share of complaints.

The number of ways things can go terribly wrong for an organization are staggering.  Without swift action, even the smallest infraction (or perceived infraction) could lead to a major public relations disaster.

Do you have a crisis management strategy?  Surprisingly, or ironically, most companies in our high risk industry don’t. Whether you’re  just trying to keep up with the day to day, or feel confident about your culture and service and don’t anticipate any problems, or you just haven’t thought about it – you may want to re-examine this are of vulnerability.  No matter the size of your business; everyone should have a prevention, response and crisis management plan in place.

Key Components of a Sound Strategy

Anticipate potential problems before they occur.  The possibilities may seem endless but generally most fall into:

• Areas of incompetence
• Procedures or policies openly practiced with or without knowledge of problematic or gray areas that could be misinterpreted if not properly handled
• Areas of omission – for whatever reason, your company or employees just don’t execute

Remember, the singular reason for devoting time and resources to a crisis management plan is to protect your company’s reputation in the marketplace.

Create a team – key leaders and advisers in your organization who will give honest feedback in a situation.  In a crisis, the last thing you need are yes men (or women!).  A good team can quickly identify, assess and implement your crisis management plan with cool heads.

Appoint one, possibly two spokespersons – someone has to be the “face” and “voice” for your organization and be able to speak with clarity, conviction and compassion.  If your problem goes public, ALWAYS have your spokesperson make an official statement.  Never ignore the problem; that only makes it worse.   Lawyers can give critical legal advice, but usually don’t make the best spokespersons.  Having legal counsel as your mouthpiece can leave the impression that there must be some wrongdoing.

Create a communication/notification system within the team that centralizes contact info, chain of command, who does what and where you will meet if necessary.

Develop a detainment or holding statement – buys time so you can adequately get all the facts and take the proper actions.  Allows you to deliver a clear, comprehensive answer when you are ready.  These statements should always express concern and a commitment to resolve. For example: “We share the public’s concern for this issue and will promptly address all concerns once we’ve had an opportunity to fully investigate and verify the facts.”

View the situation from the public or media perspective.  Important to be objective here, “What will people think of this?’  From that position, consider how to best respond taking into account all contingencies: customers, employees, legal responsibilities, financial impact, etc.

Rehearsing – Really??

Yes!  Your crisis management team should do run throughs of mock crisis situations.  Dry runs ensure that the proper contacts are made, the lines of communication work and will find any holes that need to be filled.

Because you’ve anticipated possible scenarios; come up with prepared statements for them.  And have your spokespersons practice giving those statements.  It may feel weird and unnatural but will be a lifesaver should the crisis ever come.  There is nothing wrong with being prepared; you will have to be strong and speak with authority.  Remember if your issue goes viral or the media gets hold to it, they will be relentless with questions.  Never, ever think you can speak “off the top of your head”, no matter how great you are at public speaking.  Think of some of the blunders CEO’s and politicians have made!

The Truth  – A Novel Idea

Awhile back I saw a post on an on line management discussion that said, “Tell it all, tell it fast, and tell the truth.”  That’s it in a nutshell.  Don’t lie, don’t bluff, never ignore and don’t be defensive.  Give the whole story, give it in one statement and be truthful.  Move on to resolution and damage control.  I’ve heard people remember the first and last things they hear.

In an age when your business can be on the global street in a few minutes; you owe it to yourself, your company and your employees to make crisis management one of your top priorities.

For other ways to protect your public image in the ARM industry, download the free report, “5 Steps to Protect Your Image As a Debt Collector.”

As an Operations VP and business consultant, Deanna brings a unique perspective to commercial agency management due to her hands on experience in just about every area.  She’s done sales and business development, client services and complaint resolution, marketing and website development. Learn more at www.genesismgmtgroup.com.