What To Do When Things Go Wrong: Part I, Essential Steps In Crisis Management

Photo: N i c o l a

In this series we will consider “crisis management”—what to do when things go wrong. 

This is a big subject. “Crisis” can mean something your agency did that led to the major unhappiness of a client, or it can be something completely outside your control or responsibility, such as the sudden collapse of a local tour operator (often mistaken for being a “travel agency” by the media) that was operating holiday trips for school children. It may involve acts of terrorism, problems on a cruise ship that capture media attention, or any of the many other disruptions that can affect how current and future clients view your business. 

In the minds of the public and even your loyal clients, you can, if you are not careful, acquire “ownership” of problems not of your making. The widespread use of social media by the traveling public can spread bad news at viral speed based on little or no factual information or regard for the impact that false or incomplete information may have. Finally, there is the reality that most people do not react well to the sudden defeat of their expectations. They go on the attack and the “fight or flight” response kicks in at the agency, leading to mistakes that can have serious and long-lasting consequences. A manageable situation can quickly escalate into anger and defensiveness, a toxic combination. 

The Harvard Business School developed a set of principles for “Dealing with an Angry Public” that are very useful in almost any crisis situation. These principles can help you regain some degree of control and snatch victory, or at least an acceptable outcome, from the gaping jaws of defeat. 

A word of advance warning: some of these principles may conflict with the way you have handled crises in the past. And they may not enjoy the approval of your legal advisor. Lawyers typically do not approve of actions that may appear to be admissions of responsibility that could lead to liability. Finally, bear in mind throughout that these principles work together, so don’t reject any of them until you’ve digested them all.

So, let’s assume your agency has made a bad mistake. Your angry client has become belligerent and has contacted the local newspaper and radio and TV stations to complain about what he claims is your incompetence, bordering on dishonesty, and your indifference to his plight. He already has posted a hostile report on Facebook and nasty messages on Twitter. A reporter who knows little to nothing about the travel agency business has asked to speak with you and the local broadcast media want to do live interviews. It doesn’t get much worse than this. Nothing makes better news than a local disaster. 

While denial is the tempting first response, it often results only in further escalation of the claims of injury and attacks on your integrity, without actually improving your chances of escaping liability. The better approach is to immediately acknowledge the concerns of the other party. Such acknowledgement is fundamental to de-escalating the emotional “load” the event has created. It opens the door to a resolution that does not require defeating the other party, and that signals you are not taking a hardline opposition to the claims. You may later bargain hard, but right out of the gate you want to calm emotions as much as possible. Your communications to your client should remain private at this point.

This crucial first step is often very difficult. As the target of an attack, you may feel a deep internal conflict about “being nice” when challenged. But note that this acknowledgement is not an admission of guilt or responsibility; rather it is an explicit recognition that the other party genuinely believes that she has been harmed. It is a form of validation without submission.

Next month, we will move into other phases, building on the platform of trust that initial acknowledgement has begun to establish.