Less Than Half Of Surveyed U.S. Companies Have A Formal Crisis Communication Plan: Report

Communication is key in responding to any crisis. The longer it takes to respond and tell their side of the story about the situation, the worse things can get for companies, organizations, and their leaders.

The results of a new study released today found that only 49% of surveyed U.S. companies have a formal crisis communication plan. Another 28% have an informal (i.e., undocumented) crisis communications plan, and almost a quarter (23%) don’t have one at all—or are not confident that they have one.

That’s according to Capterra’s Crisis Communications Survey, which quErie’s 243 executives in January 2023. All respondents held leadership positions of director or above.

‘More Important Than Ever’

“In a world where social media and ‘fake news’ often distort the truth and skew facts, it’s more important than ever to tell your own stories and make sure the information you share is accurate,” Evan Nierman funder and CEO of Red Banyan, an international crisis public relations agency, wrote in Fast Company.

“This holds true for businesses, nonprofits, private individuals, and any other kind of organization. All can be negatively affected if a crisis occurs and the surrounding narrative spins out of control unchecked. Misstatements can be hard to recall. They can also cause long-term damage,” Nierman observed.

Some Good News

There was some good news to come out of the Capterra survey, however.

• 98% of business leaders who have activated their crisis communications plan said it was effective—77% say it was very effective.
• After using it during a crisis, 72% of business leaders said they would broaden the scope of their crisis communications plan.

At least one organization learned the hard way about the importance of being ready to communicate in a crisis—and is taking steps to make sure they are prepared for the next crisis.

The Hill reported this week that the Academy Awards “is including a new addition in its awards ceremony this year following Will Smith’s shocking slap of comedian Chris Rock: a crisis communications team.”

“The rapid response professionals will be on-hand during the March 12 broadcast on ABC, according to Academy of Motion Picture Arts and Sciences CEO Bill Kramer,” according to the news outlet.

‘We’ve Opened Our Minds’

“Because of last year, we’ve opened our minds to the many things that can happen at the Oscars,” Kramer told Time in an interview published Tuesday.

“But these crisis plans—the crisis communication teams and structures we have in place—allow us to say this is the group that we have to gather very quickly. This is how we all come together. This is the spokesperson. This will be the statement,” Kramer said.

“And obviously depending on the specifics of the crisis—and let’s hope something doesn’t happen and we never have to use these, but we already have frameworks in place that we can modify,” he noted.

How To Help Ensure Plans Work

Ensuring crisis response plans work when needed is just as important as having a plan in the first place. Which is why it is critical to conduct exercises throughout the and to modify the plans as needed.

Capterra’s survey found that:

• 84% of business leaders who have been through a crisis said they would increase practicing in advance
• More than half said they’d strongly increase practice.
• More than three in four (78%) said they’d increase the tools used for communication
• 72% said they’d increase the scope of the plan