Crisis Mitigation with 3 Practical Moves à la Bill McFarlan
Have you ever heard of a sweet beverage brand that issued a legal notice to its consumers? Yup, in 2022, a consumer was asked to classify and apologize after criticizing the sweet beverage product. However, the company faced massive backlash from netizens instead of gaining sympathy. This case exemplifies a company’s challenges when encountering crises.
Every company must prepare to face crises, whether they occur internally or externally. Companies must handle a crisis strategically because their impact can threaten credibility and potentially destroy public trust.
According to the Global Crisis Survey 2023, 89% of company leaders admit that resilience in facing problems is a competitive advantage. Even 70% of respondents believe in a company’s ability to respond to various disruptions. Unfortunately, this data often contrasts with the realities on the ground.
Most companies still need to gain the business resilience they need to navigate a crisis successfully. The same survey revealed that 76% of high-level disruptions still have a medium-to-high impact on company operations. So, what is the right and proven way to face a crisis?
Quoting Bill McFarlan from his book “Dropping the Pink Elephant: 15 Ways to Say What You Mean and Mean What You Say,” there are three apologies designed to soothe the hearts of the public when a company takes actions that tarnish its reputation: Regret, Reason, and Remedy. These three formulas are the essential elements of an apology that can guide companies through a crisis.
The first is ‘regret’. A company must show that it sincerely regrets its actions that have disappointed various parties. At this stage, the company must understand how it feels to be on the side of those negatively impacted and show that it empathizes. One important thing at this stage is to never adopt a defensive attitude by using words like “but” to make a defense. The company can gradually move towards a more conducive condition with a sincere apology.
The second thing to consider is ‘reason.’ A company must provide a reasonable explanation for the Crisis that has occurred. Acknowledge and explain why the unsatisfactory situation happened. There’s no need to highlight the great things the company has done previously in an attempt to cover up the Crisis, as it can demonstrate a lack of empathy. The company should focus on honestly and genuinely addressing the issues that have arisen.
The third and final formula is ‘remedy,’ taking follow-up actions and providing solutions to those affected by the company. Instead of promising not to repeat the same mistakes, the company can communicate the steps to rectify the situation. The parties involved and the public can feel much more at ease with the solutions offered and implemented.
The best approach to crisis management is preparation before the Crisis occurs. Companies need thorough planning before disclosing any steps to the public. However, if a crisis has already occurred, the three basic formulas from Bill McFarlan mentioned above can more effectively guide the execution of crisis management.
