The_Essential_Manager_s_Handbook

312 / COMMUNICATING EXTERNALLY

Communicating in a crisis

There is a huge difference between business problems and crises.

Problems are commonplace in business. A crisis, on the other hand,

is a major, unpredictable event. Without careful communication,

crises have the potential to damage an organization’s reputation

and financial standing, together with those of its employees,

shareholders, products, and services.

Identifying the crisis

Some business crises can be prepared

for (to a certain extent), while others

require an immediate and creative

response. There are two main types:

• Internal crises These arise within
  the company, such as accounting
  scandals, or labor strikes.


• External crises These are caused
  by an external factor, such as a
  natural disaster, a technological
  disaster, or external threats by
  special-interest groups.

CASE STUDY

MERCK & COMPANY

In September 2004,

pharmaceutical firm Merck &

Company made the decision to

remove its painkilling drug Vioxx

from the market because of

cardiovascular risks. More

than 100 million prescriptions

had been written for the drug.

Within 60 hours of the initial

announcement, Merck’s

communications team launched

a website and established a

toll-free telephone number to

address concerns. Traffic on the

company’s Vioxx website grew

from 4,000 hits daily to 234,000 in

just 24 hours. The toll-free number

received more than 120,000 calls

in the first six days following

the announcement. Without its

sophisticated web presence and

competently staffed call center,

Merck would not have been able

to address the enormous wave of

public concern that arose overnight

about Vioxx, and its reputation

would have been badly damaged.

It is important to recognize the type of

crisis you are facing, because this will

help you pinpoint the groups of people

you will need to communicate with,

and give you an idea of how fast and

how far the effects of the crisis could

potentially spread.

Assemble an effective team^

and isolate its members from

other day-to-day concerns

US_312-313_Comm_in_a_Crisis.indd 312 30/05/16 3:05 pm