According to a PwC study, 95% of business leaders say their crisis management skills need improvement, but only 35% have a crisis response plan in place. This gap often leads to costly mistakes and a lasting impression.
Take the example of Zilingo, a once-promising fashion tech startup from Singapore. In 2022, the company faced leadership issues, financial irregularities and a sudden suspension of its CEO. With no clear strategy, internal communication broke down and the company eventually collapsed.
But building a crisis management plan can be tough if you don’t know where to start, what to include, or how to train your team. There are also emotional challenges, like handling fear, uncertainty, or employee resistance.
In this article, we’ll walk you through a step-by-step crisis handling process tailored for HR teams. You’ll also learn what to keep in mind while creating your plan, who should be your crisis manager and the process of crisis management that works in real life.
What is a crisis management plan?
In the event of unexpected situations, like a workplace accident, a sudden resignation, a data breach or even bad press, your business needs to respond quickly without losing control. That’s where a crisis management plan comes in. The goal is to reduce damage, keep everyone safe and get back on track as soon as possible. The plan gets reviewed and updated after every single application, especially as your business grows or changes.
Most plans are simple, like checklists that are easy to follow, quick to access and built for action. When something goes wrong, your team can go straight to the plan, follow the steps and avoid panic. As the plan clearly states individual roles, you save a massive amount of time on team formation.
You can’t always predict when a crisis will hit, but you can prepare for the most likely ones. That’s why many businesses start with a risk analysis based on your industry, team structure and operations.
For example:
- If you run a social media marketing agency, a major mistake on a client’s account could lead to public backlash.
- A tech company might face threats like cyberattacks or server downtime.
- A manufacturing business may deal with equipment failure or safety incidents.
When you know what kind of risks are more likely, it becomes easier to prepare for them.
However, crises are not always external. Sometimes, there could be an internal crisis such as:
- Employee misconduct
- Low employee morale
- Poor communication
- Mass resignations
With strong crisis management, HR remains prepared to handle situations with confidence.
Creating a crisis management plan might seem overwhelming at first. But when you break it into smaller, manageable steps, the process becomes easier and more effective.
6 steps to create a crisis management plan
While creating your crisis management plan for the first time, take it one step at a time so you don’t get stuck thinking about everything that could go wrong all at once. Here’s how you can get started:
1. Build your crisis leadership team
Before anything else, you need to decide who’s going to be the crisis manager. Choose a small group of people who are calm under pressure and understand your business well. This team will help shape the plan and also carry it out when needed. Include members from different departments, HR, operations, legal, communication or IT, so you’re covering all angles.
This team should be involved from day one. When people help build the plan, they understand it better and act faster when something goes wrong.
2. Identify the risks
How should you list out the types of crises that could affect your business?
At the beginning phase, build a plan for probable crises related to:
- Work environment
- Industry
- Location
- Day-to-day operations
It could be a fire in the office, a public relations issue, employee misconduct, or a cyberattack.
Bring your crisis leadership team together for a brainstorming session. Don’t aim to predict every single issue, just focus on the most likely and most damaging ones. This helps you stay realistic and prepared.
3. Understand the impact on your business
Every crisis can hit your organization differently. Some might slow down sales, while others might harm your brand’s image, cause legal trouble or lead to staff burnout.
Look at each risk separately and map out the possible outcomes. For example, what happens if your HR software fails during payroll? Or if sensitive employee data is leaked? Think about how it would affect your team, your customers and your everyday operations.
Being specific here helps you come up with better solutions later.
4. Plan your response
For every risk on your list, write down the exact steps your team should follow.
- Who needs to do what?
- How fast should they act?
- What message should be communicated to employees or customers and by whom?
For instance, if there is a data breach in your organization, the crisis plan should list who will alert IT, who will prepare team communication mail and who from the HR team might step in to support affected employees. The more clearly you define roles and actions, the less confusion you’ll face during a real crisis.
5. Write it all down and make it clear
You now have the key pieces of your plan. The next step is to put them all together and draft a simple, clear document your team can follow. This document should include:
- The list of your crisis leadership team and their contact details
- The key risks and how they impact your business
- The specific response plan for each risk
- Steps to notify internal teams and external stakeholders
- Emergency contacts and backup systems
- A clear flow of who reports to whom
Don’t make it too long or complicated. The goal is to have something easy to use in a stressful moment.
Also, share the plan with the rest of your leadership team and make sure they understand it. Everyone should be on the same page.
6. Review and update regularly
Crisis planning isn’t a one-time task. Your risks, team members and processes will change over time, so your plan needs to change too. Set a reminder to review it at least once a year, or more often if your business is growing quickly.
Most importantly, all employees must have access to the crisis management plan from a central server during the time of need. In this regard, dedicated software tools can make your job easy. While you can centralize employee records, leave management and company directory, its true power lies in empowering employees. Employees can make informed decisions during the time of crisis without waiting for the HR email.
Once you’ve got a structure in place, it’s time to fill in the details of your crisis management plan.
Things to include in a crisis management plan
This part matters because when something goes wrong, your team won’t have time to figure things out from scratch. Here’s what your crisis management plan should include:
1. Clear risk analysis
Start by listing the potential risks your business could face and how likely each one is to happen. Rank the risks in order, from the most likely to the least likely, in simple words. If your leadership team changes or someone new joins, they should be able to look at this and instantly get the full picture. Also, revisit this list regularly. Risks change as your business grows or your industry evolves.
2. Activation protocol
Your crisis plan should include a trigger point, a clear signal that tells your team when to act. Not every issue is a crisis, so you’ll need to define when something crosses that line. For example, a few negative customer comments online may not need a full-blown response. But if the issue grows and starts affecting your reputation or customer trust, that’s when the activation protocol kicks in. The goal here is to avoid panic and ensure your team knows exactly when to step in and take action.
3. Emergency contacts
Your plan should include an up-to-date list of emergency contacts. Besides police, fire brigades and nearby hospitals, the list should also include anyone your team might need to call, depending on the type of crisis, such as:
- Building security
- IT vendors
- Electricians
- HR
- Legal advisors
- Mental health professionals
- Physicians
Also, don’t forget to add alternate contacts in case someone is unavailable. Store this list in a place your team can access easily, both online and offline, just in case power or internet is down during an emergency.
4. Clear response procedures
This part of the plan should include detailed response steps for different types of crises. Make a clear list of roles and responsibilities. You can use a tool like a RACI chart to show who is accountable for each action. It allows you to classify workers or teams as Responsible (doing the work), Accountable (ultimately answerable), Consulted (providing input), or Informed (kept updated). This will help avoid confusion and help your team move quickly, even under pressure.
5. External communication strategy
If the crisis affects customers, partners, media, or the public, you’ll need a communication strategy ready.
Decide in advance:
- Who will be the media spokesperson?
- What should they talk about?
- What should they avoid talking about?
- How will you handle questions or criticism?
You don’t need to prepare exact messages for every possible crisis, but having templates or tone guidelines helps you respond faster.
6. Post-crisis review
Once the crisis is under control, your job isn’t done. This is the time for a post-crisis assessment.
Get your crisis leadership team together and ask:
- What went well?
- What could have gone better?
- What do we need to fix or improve for next time?
Use these insights to update your plan. Every crisis teaches you something new. Capture those lessons now so you’re stronger and faster in the future. For more inspiration, let’s look at some real-life examples.
Examples of a crisis management plan
Let’s look at real-life examples of two big brands to see how they handled their toughest moments with a robust crisis management plan.
1. Johnson & Johnson – putting public safety first
One of the most famous crisis responses in history comes from Johnson & Johnson. In 1982, seven people died after taking Tylenol capsules laced with cyanide. Although the tampering was traced to external sabotage, Johnson & Johnson didn’t wait to act.
They pulled 31 million bottles from shelves, issued warnings through the media, stopped all advertising and set up a hotline for worried consumers. The decision cost the company millions, but it saved their reputation.
This response became a gold standard in crisis management. It showed that putting people before profit can strengthen trust in the long run. Even decades later, Johnson & Johnson remains a trusted household name.
2. Nike – a shoe fail on live TV
In 2019, NBA player Zion Williamson’s Nike shoe split open during a game, broadcast live and seen by millions. He was injured and Nike instantly became the target of jokes, criticism and even a stock dip.
Nike didn’t wait. They immediately wished Williamson a speedy recovery and launched an investigation the very next day. Their team visited the stadium, traced the issue back to the factory and made sure it wouldn’t happen again. They even created a custom pair of shoes just for Williamson.
Nike’s fast, thoughtful response helped limit the damage. They showed they cared about their athletes and took quality issues seriously. For you, this example underlines the importance of acting quickly, being present and solving the problem at its root.
Conclusion
A crisis could knock at your company’s doorstep anytime. But if you have a solid plan in place, your team can handle it without chickening out. Apart from that, the real strength of good crisis handling comes from having a leadership team to act on your plan promptly.
What is the purpose of crisis management? It’s to prepare your team to act fast without losing time or trust.
FAQ
What is HR’s main role in a crisis?
During the time of crisis, HR employees should work on protecting employees and supporting business continuity. Their focus should be on ensuring well-being, communication and clear guidance.
Why does HR need a crisis plan?
A well-thought-out crisis plan helps HR to act quickly with an organized response. Through swift action, HR can lower the impact of disruption and restore employee trust in the management.
What happens after a crisis subsides?
After a crisis, the HR department should assess the impact on employees and operations. They should also review all the responses and update plans for future preparedness.
