Reputation repair: The 5 stages of crisis recovery

Reputation repair: The 5 stages of crisis recovery
Communication World Magazine

The immediate crisis has been handled, but the corporate brand is damaged. How does a company repair a tarnished reputation? Once lost, how does a company rebuild brand equity? While the acute phase of crisis communication is well documented, crisis recovery is less understood and equally critical.

Research shows that crises are long-tail events occurring with increasing frequency. Financial fallout extends well beyond the immediate incident. According to an Oxford Metrica study, post-crisis share price drops as much as 15 percent a full year later. An analysis of crisis-linked media mentions for the top 100 Forbes-ranked companies showed it is 80 times more likely that a company will be associated with a crisis in this decade than the last.More crises. Greater frequency. Broader coverage. Faster reporting. It’s a devil’s brew that can continue to ferment unless proactive steps are taken to rebuild the brand.The “Five Stages of Crisis Recovery” model presents a framework that will lead the company from the adrenaline-fueled crisis response mindset to a strategic, methodical, purpose-driven outreach program.

Five stages of crisis recovery

Recognize the acute crisis has ended, time for a shift to recovery mode.
Recalibrate activities, assess the damage to the company, brand.
Repair reputation, articulate an outreach strategy for key stakeholders.
Redirect negative dialogue, preempt with positive programming.
Reinvigorate brand values and the stated social contract.

A common thread woven into each of the five stages is the idea of expectation management. Often overlooked, expectation management can determine the success or failure of even the best-laid plan. It is critical to manage recovery expectations at all levels of the organization and across all stakeholder groups.

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