HOW TO BUDGET FOR CRISIS MANAGEMENT SERVICES
For many organizations, the fall season brings strategic planning sessions and budget discussions as we look toward a new year. While many marketing and communications decisions can be forecast, crisis management services have become a necessary evil in that there must be some funds set aside to deal with the unknown but how much and to whom they should be budgeted are tough questions. To help simplify your budget season, here are five questions to streamline your crisis management decision-making.
1. Who leads in a crisis? Many organizations lean on their executive teams to make final decisions in a crisis situation, but even the most experienced executive leaders need access to critical context and information. Whoever delivers that information is likely your organization’s de facto crisis leader. For some organizations, these leaders will be found in legal teams, outside law firms or public relations teams. Once you have determined who leads, the necessary resources become clearer.
2. What are our internal teams, mission-critical objectives? In addition to knowing who leads in a crisis, you also need to know who or what initiatives cannot be disturbed by a crisis. These are company resources that need to be fully protected and/or bolstered by external resources to ensure they continue to achieve results no matter the challenge. Take the in-house public relations team for example. Your PR team might have significant business goals to achieve, including maintaining significant media relationships or creating a new stakeholder relationship. If they are your de facto leader in crisis as well, you may want to consider external crisis management support to either help manage issues or support ongoing public relations efforts.
3. Do you have financial and/or reputational savings to fall back on? Some organizations will take the risk that they won’t need crisis management services with the knowledge that their lack of a dedicated budget could cost them more in the long run. To be successful with this strategy, your organization must not only be financially stable but also have strong reputational collateral. If that doesn’t sound like your business today (which is OK!), then budgeting proactively can save you big in the long run.
4. What resources are available through other external sources? Law firms, insurance companies and management consultants often maintain relationships with crisis communications consultants to assist their clients in times of need. Check with these sources to see if they provide access to such services, or if they maintain a list of recommended referral organizations. If not, you may need to encourage them to create such a program or build one for your business.
5. How much uncertainty can you handle? A good crisis management budget comes down confidence in your tolerance for risk. Every year, your business will face new challenges – and take on measured risks to reach the next level. So take some time each year to determine how much risk you’re willing to assume on your own, and how much would be beneficial to offset through proactive crisis planning. A reputable crisis communications professional can help you make this assessment and offer tailored solutions for your budget.
In crisis, one thing is certain – you don’t want to go it alone. If you have questions about crisis management budget planning, reach out to our team at megan@paquinpr.com for custom insight and recommendations.
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