5 Ways Crisis Communications Has Changed in Canada for 2024

Written By: Phoebe Yong, Founder and President, Magnolia Communications

A crisis can be a terrifying time for a business. Navigating the many unknowns that arise in a crisis is enough to cause panic, but the speed at which negative sentiment spreads online can heavily contribute to a company’s fears about their longevity. 62% of consumers reconsider purchasing products and services from a brand with a bad reputation.

But in times of crisis, organizations that are prepared and have a crisis communications plan in place will be better positioned to maintain their brand’s reputation and continue their operations seamlessly.

Having been in the communications field for more than 25 years, I have seen first-hand how crisis communications has evolved during this time. It’s a field that has been impacted by the speed and immediacy of technology. As a news hound by nature, access to immediate news through social channels has served my profession well. But that instant access is the very reason why a crisis can spiral out of a company’s control.

When I was working in the corporate world, crisis communications was always top of mind for me, in case there was a need to activate emergency plans. Once I started my own PR and marketing agency, Magnolia Communications, I brought my experience with crisis communications to clients dealing with reputation challenges, which, at the time, were mostly around employees leaving. In recent years, however, data leaks (breaches) have become an increasing cause of brand crises, but they certainly aren’t the only reason.

Highlighted below are 5 ways in which crisis communications has changed in Canada in 2024 and learnings through my years of experience on how businesses should navigate a crisis online.

The challenges posed by the digital sphere

The digital sphere has had a profound impact on crisis communications. I see it as a two-fold issue: ubiquity and speed.

1. Ubiquity: The digital sphere, particularly social media platforms, are extremely popular. News can now take many forms–short posts, longer essays, video reels, direct messages–and can be transmitted to thousands, even hundreds of thousands. That kind of instant access to information by so many people didn’t exist 15 years ago. But it does now and businesses must be prepared for that one-to-many access.
2. Speed of transmission: Social media messages can be sent immediately. Users’ appetite for instant gratification plays into the spread of information, and sometimes, misinformation.

When one combines the two elements of ubiquity and the speed of the digital sphere, along with the sophistication of online posting, commenting, and quoting, one gets a combustible mix of elements that makes crisis communications in the 21st century much harder to deal with.

I’ve found that as much as clients understand the impact social media can have during a crisis, they tend to underestimate its power and how smart audiences are. Which is why a crisis communications plan is a must–one simply cannot predict the speed at which details about a brand crisis can spread online.

Biggest mistakes businesses make during a crisis

There are three major errors companies make when a crisis appears: preparation, opportunity, and denial.

1. Preparation: It always surprises me how many organizations don’t follow the Boys Scouts’ motto: Be prepared. Of course, preparation takes a lot of work and planning. But preparation is vital if, or rather when, a crisis arises. If a company already has a crisis plan for multiple scenarios in hand, they can activate it immediately instead of mobilizing while the crisis spreads.
2. Opportunity: Another error I see 90% of businesses make is losing out on opportunities. Yes, a crisis is daunting, but it also paves the way for opportunities, such as the opportunity to really show how much the company cares about the community and stakeholders. This is the time to step up and demonstrate that the organization is concerned about their customers and prepared to deal with anything that comes their way. Be responsive to customer queries as well as questions from stakeholders. Transparency is key during a crisis moment.
3. Denial: The biggest mistake a company can make during a crisis is to ignore it or refuse to address it. I cringe when I see this reaction. The truth will come out, one can bank on that. Especially in cases with cybersecurity attacks where personal information is leaked. Not saying anything and trying to bury it will damage the brand’s reputation more than the actual crisis.

At the end of the day, nobody can stop bad things from happening or bad actors from causing a crisis. It’s how a company reacts to the problem and communicates about it that will have the most lasting effect on their community and stakeholders.

The importance of transparency and authenticity

The terms ‘transparency’ and ‘authenticity’ are used in crisis communications to such an extent that they are mistaken for buzzwords. But they can be so much more if they are actioned because action is where a company’s real intention shows.

When a crisis happens, especially in the magnitude of a cyberattack, a business must activate the 3 Cs of their crisis plan. Ensure communication is clear, consistent, and that the messaging is confident.

Transparency must first be demonstrated to the internal team. Often, one sees management choose to leave internal teams in the dark because the situation is still unfolding, or there aren’t any big updates. This is the wrong action to take. In a crisis situation, people want to be kept in the loop or they’ll use their own imagination and rumors to fill in the gaps.

Share information often and be open to answering questions as and when they arise. Even when there are no real updates, share that information as an update. No news is also good news. Management must demonstrate a greater level of empathy to internal teams to show that they have the team’s best interest at heart.

With the public, it’s a bit different. Holding press conferences or issuing frequent press releases with no significant updates can be annoying to the public and the press. Instead, organizations should have communications plans well-prepared that include holding statements for multiple crisis scenarios. With these plans in place, the organization can disseminate the right type of communications according to changing public sentiment online and in the community, either via online platforms, or town halls.

When it comes to authenticity, it’s not just about what one says, but how they say it. A crisis is frustrating and a company may be tempted to get real about being held to ransom for money or data, and the inevitable loss of revenue that the organization may never recover. But sharing these harsh truths with the public risks causing more concern and eventually damaging a brand’s reputation. Companies should focus instead on showing their audience that they have the situation under control and will have an effective solution soon.

Artificial intelligence in crisis communications

AI is a new area for many organizations, but I realize its importance in PR and communications. AI tools can examine large volumes of social media data in real-time and identify patterns that show how the public perceives the crisis. This information can be used to pinpoint areas of concern or misinformation that need to be addressed.

Since generative AI is capable of producing human-sounding messages in seconds, it can play a valuable role in helping PR teams swiftly draft response messages. After analyzing company data, AI can be used to generate initial statement drafts, social media posts, and press releases.

But the human element is crucial. Businesses need to train AI models on past crisis communication messages, key messaging guidelines, and brand tone so that AI messaging still sounds like the company. Authenticity, as mentioned earlier, is critical during a crisis. AI posts should not be shared until being thoroughly vetted by human team members. The risk to brand reputation is not worth creating more posts at a faster speed.

Building a crisis communications plan

All industries require a crisis communications plan, whether it’s the tech industry that holds a considerable amount of data, or the agricultural or food sectors that must concern themselves with sanitation and food safety.

In my experience, a crisis communications plan should include the following elements:

1. A protocol or hierarchy of communications, including the main points of contact for media communications and internal communications.
2. Defined stakeholders, both internal and external, such as the board of directors, chairperson, spokespeople, customers, staff, suppliers, and more.
3. Planned messaging that is personalized and segmented for each group.
4. Agility, especially being able to react appropriately to multiple crisis scenarios, as well as changing scenarios.
5. A group of external professionals who can provide an objective perspective.
6. The calendar of availability for management so they can address stakeholders.

The above six points are the very basic building blocks of a crisis communications plan. Once they are established, the company can add more elements that are relevant to their industry and business community.

The digital age has made it easier for any message, negative or positive, to spread quickly and to large numbers of people. While companies reap the benefits of viral, fun posts improving their brand reputation, the opposite is equally true when a crisis arises and isn’t well-managed. A crisis communications plan must be built, iterated on, and improved to ensure that the company knows what to do when a problem appears. A well-designed plan will enable companies to maintain their brand reputation, and capitalize on opportunities to build stronger relationships with communities and stakeholders.

About the Author

Phoebe Yong is the founder and President of Magnolia Communications. She founded the company in 2004 which has since grown to be an award-winning full-service B2B agency, serving clients in financial services, fintech and payments, and technology across North America, as well as global regional offices.

Before Magnolia, Phoebe held leadership roles in several companies that were at the forefront of breakthrough technologies.