Complex scenarios or unexpected contexts can create in companies a need for crisis management in Argentina. Whether local or foreign, carrying out a quick and effective strategy will help you achieve a better response
The word ‘crisis’ is not uncommon in Argentina – it applies to everything, from economics and society to the current health crisis. Naturally, in this complex context companies are more exposed to communication crises, and having to deal with them.
Layoffs, changes in investment or expansion plans, restructuring, terminations, rumors or real events – all of these attract media attention, and it is up to the company to know how to react in time and handle a crisis that can affect its business, not only in the country, but also globally if the company is international. Furthermore, related companies (for example suppliers) can become multipliers of the crisis, which makes communication even more of a concern
The first rule is to never stop communicating, even when it comes to bad news. The company must be the first to provide clarification and generate trust among its customers, employees, suppliers and environment, in addition to earning its place as a reliable source for journalists.
At the risk of generalizing, all companies in Argentina should be prepared for a crisis. Being prepared will mitigate the impact of breaking news, and provide clarity on what comes next. It is advisable to form an internal or external crisis committee which can act immediately, with an assigned spokesperson, potential messages for broadcast, designated channels through which the company will communicate, and a plan for coordinating the same message in each one. On many occasions you will see companies in crisis taking great steps to convey their response to the press, while maintaining a message of complete normality – or rather, unreality – on social networks, which is greatly detrimental to the perception of a responsible image.
Today, technological tools can immediately facilitate crisis management in Argentina, but can also broadcast negative information to the entire spectrum of audiences in record time. Companies should anticipate a negative chain reaction of events – for example, protests and demonstrations outside company property, so common in Argentina.
With this in mind, all personnel should be trained to face a crisis. Constant training, together with established communication protocols, will no doubt make the job easier.
Each company knows what its weaknesses are, although no one is exempt from nasty surprises. Just as each department handles certain risks, it helps to share the possible responses to a crisis within the same department.
Multinational companies that carry out operations in Argentina should also count the actions of its headquarters in other countries, or of the central office, among their crisis risks. In this case, a special protocol should be prepared, dictating what the company will communicate worldwide. It is essential to maintain the same message, anywhere in the world.
Small and Medium Enterprises make up the bulk of companies operating in Argentina. Currently the country has more than 650,000 SMEs, which account for 99.6% of total productive resources, both goods and services. These companies contribute 70% of total employment and 50% of total sales.
For effective SME crisis management, bear in mind that crises will unfold differently – the first and most interested parties will not be the press, but rather the customers, both external and internal. The company should be the one to anticipate information, and contact journalists if necessary. Like larger companies, SMEs must gain the trust of their audience.
A competitive advantage of SMEs is that they know each client and their needs, and communicate regularly with them. This will help the company to carry out effective crisis management. A smaller audience makes for more direct communication, which will result in a faster regaining of trust if handled positively.
Therefore direct contact with customers is very important for SMEs, as is maintaining good communication at all times:in the long run this will benefit the company when it is called on to respond to a crisis. The company should anticipate possible crisis triggers, assign a spokesperson and align its messages over all communication channels.
Some SMEs do not attribute importance to communication, counting solely on the trust and closeness of their customers, employees and suppliers. This is a mistake since they will lose their competitive edge over other companies that view their communication as a measurable, positive investment – not just in a crisis, but also in the long term.
Crisis management in Argentina is common, and companies need to know how to prevent, anticipate and act in a timely manner, while remembering to measure the damage to their image and reputation once it’s all over.
