8 Steps to Effective Crisis Communications for Businesses: Lessons from Silicon Valley Bank's Recent Failure
On Friday March, 2023, Silicon Valley Bank failed after a bank run, causing the largest bank failure since the 2008 financial crisis. The bank, favored by venture capitalists in Silicon Valley in technology, spanned the gamut of top-tier venture and private equity firms including Ginkgo Bioworks Holdings, Inc (DNA), Roblox Corp. (RBLX), and VOX Media and sent shockwaves through the industry. Merchants on Etsy have started receiving communications from the e-commerce company that they won’t be receiving scheduled deposits.
Whether or not your company was directly effected by the recent bank failure, it’s important for your company to clearly communicate your customers and employees. Not having a plan for crisis communications and ignoring an industry-wide crisis like the recent bank failure could have dire consequences for your business including loss of trust, damage to reputation, and financial losses. The time to act is now. Here are some steps that your company can take to address crisis communications:
Develop a crisis management plan: Before any crisis occurs, it is important to develop a comprehensive crisis management plan that outlines how the company will handle a crisis. This plan should identify potential crisis scenarios and provide a clear roadmap for how the company will respond.
Designate a crisis communication team: A crisis communication team should be designated, consisting of individuals who are trained in crisis communication and have experience in managing crisis situations. This team should be responsible for managing all communications related to the crisis.
Assess the situation: Once a crisis occurs, the crisis communication team should assess the situation to determine the severity of the crisis and the potential impact it may have on the company.
Develop key messages: The crisis communication team should develop key messages that are clear, concise, and consistent with the company's values and messaging. These messages should be crafted to address the specific crisis and provide information that is important to stakeholders.
Identify communication channels: The crisis communication team should identify the most appropriate communication channels to reach stakeholders, including employees, customers, investors, and the media. This may include social media, email, phone, or other communication channels.
Communicate regularly: During a crisis, it is important to communicate regularly with stakeholders to keep them informed of the latest developments. The crisis communication team should provide regular updates on the situation and any actions being taken to address the crisis.
Monitor feedback: The crisis communication team should monitor feedback from stakeholders and adjust communication strategies as needed. This may include addressing concerns or providing additional information to address any misunderstandings.
Conduct a post-crisis review: Once the crisis has been resolved, the crisis communication team should conduct a post-crisis review to identify any areas for improvement in the crisis management plan or communication strategies. This review can help to prepare the company for future crisis situations.
Overall, addressing crisis communications requires careful planning, clear messaging, and effective communication strategies. By following these steps, a company can effectively manage a crisis situation and minimize the impact on stakeholders. Need help on crafting your crisis communications? Contact me, Nicole Porter at iam@nicoleporter.com.
