The Crisis Management Memo

Crisis Management on the cheap?

In today’s economic climate, it’s easy for companies to balk at anything that looks even remotely expensive, whether it’s business travel, office expenses or the cost of hiring an outside consultant to provide counsel on crisis management.

As the current recession progresses, we’ve been finding more and more resistance from companies who are balking at the price of crisis management. As a business owner, I understand the need to keep expenses down when times are tough. And in the 22 years I’ve been in business as a crisis management consultant, this is the toughest I’ve ever seen.

But what is the real price of crisis management? If the crisis is real and the need is great, it’s hard to place a value on a good crisis management strategy.

And what is the cost of not having a crisis management strategy? With more and more companies in bankruptcy these days, I believe we already know.

Throughout the two plus decades we’ve been in business, it seems most clients typically wait until they are in the middle of a crisis before they seek help. Some come at the very onset, but that’s not the norm. Most of our business comes from current clients or referrals from them, or as a result of our web site, speeches, articles or word-of-mouth.

Although some of our clients ask upfront what our fees will be and what we anticipate overall expenses to be, some never ask at all. If your company’s existence is at risk, they seem to think the cost of doing nothing would far exceed anything we could charge them.

Still, we see some organizations treat the purchase of crisis management consulting as they would purchasing a used car or hiring a plumber. They want to know in advance details of what we’ll do for them, what it will cost along with references and what kind of warranty we offer. I know I can’t speak for others, but isn’t that something you ought to think about before the crisis? When your house is burning down, do you want to start interviewing various fire departments and then go with the lowest bid?

I guess my advice to company leaders is this: give some thought to crisis management before you’re engaged in a real crisis. Check out who you’d like to work with if things suddenly turn sour and establish some kind of relationship with them now. Don’t wait until the crisis strikes. Believe me; while you’re interviewing potential consultants, you’re going to lose control of the crisis.

Fees are important. There’s no doubt about that. But, fees aren’t everything. You need to find someone you can work with who can be your partner in managing a crisis.

From my experience in handling a multitude of crisis situations over the past two decades, I can tell you that the cost of a good consultant is minimal compared to the cost of letting the crisis get out of hand.

In fact, it is my belief that crisis management – whether it’s on-the-scene consulting during a major crisis or preparing for the possibility of a crisis in advance – should cost you nothing. It should more than pay for itself in benefits you can take advantage of in better managing your organization.

Crisis management is just part of good overall management. And good management comes at a price. You can’t do it on the cheap.

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