Prepare, Prevent, Prevail: A Guide to Proactive Crisis Management
Throughout the first quarter of 2024, retailers continued to grapple with the effects of hiring freezes and supply chain disruptions from the pandemic years. These challenges, compounded by the intense political climate surrounding the presidential election, are placing increased pressure on companies to respond to the moment.
To help organizations, Penta assists in defining, informing, and strengthening decision-making and understanding between corporations and their shareholders. The firm works with companies to develop crisis response plans that lead with a brand’s core values. Penta serves as a strategic sponsor to the Retail Industry Leaders Association (RILA).
To help our partners consider how they can prepare for emergencies, Open to All has partnered with the Retail Industry Leaders Association (RILA) to host a five-part briefing series on crisis management. As a strategic partner to RILA, Penta provides purpose-built processes designed to help businesses navigate highly complex environments by offering mission-driven solutions, conversation monitoring, and stakeholder engagement opportunities.
1. Establish a Mission-Oriented Approach
A company’s ideals should serve as its foundation. When defining their mission, companies should consider their guiding principles, fundamental values, and business objectives. These elements should be deeply embedded into decision-making processes, hiring practices, external partnerships, and crisis management techniques. Companies should ask themselves: Is your mission woven into the work of every department? Of every store? Of every distribution center?
Retailers must prepare to face a myriad of crises challenging their company ethos, such as supply chain disruptions and public relations setbacks. Aligning organizational values with day-to-day operations is an essential way to do so. That way, when incidents arise, companies can remain confident that their values are effectively articulated and easily understood by all personnel.
Weaving a values-driven approach throughout an organization begins with its leaders. Ethical leadership instills honesty and accountability throughout a corporation, from its store associates to senior executives. Employees and customers alike feel more secure supporting a brand in crisis when its leaders have previously demonstrated their trustworthiness and transparency. When stakeholders are confident in an organization’s ability to maintain its values while addressing a crisis, they are more likely to remain loyal to the brand.
2. Stay on Top of the Conversation
Corporations must monitor sociopolitical conversations to maintain reputation and relevance. By keeping a finger on the pulse of public opinion, companies can anticipate potential issues and proactively address them before they escalate into crises. Leaders should invest time and energy into studying trends and investigating issues by reviewing news stories, search engine analytics, and social media discourse. Brands can also use similar strategies to screen brand ambassadors, influencers, and charitable partners.
Not only should businesses investigate topics and trends important to their stakeholders, but brands should also pay attention to their peers’ responses. Companies can even set up a proactive monitoring system to receive real-time updates on what other industry leaders are sharing on their media channels. By tracking the responses of their rivals, corporations can gain valuable insight into emerging trends, best practices, and potential pitfalls.
3. Focus on Key Stakeholders
Listening to stakeholders, including customers, employees, investors, and vendors, is a fundamental aspect of connecting with an intended audience. Gathering feedback allows companies to uncover recurring areas of concern among stakeholders. By incorporating community input into decision-making processes, companies can strengthen relationships and bolster credibility.
To stay ahead of the curve, businesses must understand who is influencing their target market. Celebrities, politicians, scholars, and other officials, known as key opinion leaders (KOLs), impact public opinion. By identifying influential voices, companies can anticipate the channels through which information spreads and narratives are shaped. Additionally, proactive engagement with KOLs establishes integrity and goodwill, which can be leveraged during a crisis to disseminate accurate information and rally support.
When armed with a deeper understanding of stakeholder priorities, brands can prioritize their actions and initiatives accordingly. Organizations can focus their resources and efforts on the issues most pressing to their audience, exhibiting genuine commitment to stakeholder needs. An iterative process of listening, learning, and acting enables companies to stay agile.
To navigate uncertainty successfully, companies must prioritize proactive crisis preparation as a business imperative. Brands can establish a solid foundation for crisis management by adopting a purpose-driven approach. Staying on top of the conversation through continuous monitoring of geopolitical trends and engaging with key stakeholders allows brands to anticipate challenges and respond accordingly. Preemptive planning is not just advantageous but essential for safeguarding brand reputation.
