Breaking Down the Top Crisis Blind Spots in 2024

Insights from KWT Global’s Special Situations Group 

TL;DR: 2024 has just begun, and we’ve already seen several companies in crisis. While the year is still young, and crises by their nature are notoriously difficult to predict, there are underlying factors at the root cause of many crises that companies are likely to face in the year ahead.   

While we’re just a month and change into the new year, unforeseen challenges have already battered the reputations of numerous companies. Within the intricate tapestry of corporate landscapes, crises loom ominously. While their arrival is as unpredictable as they are disruptive, there are often steps that could have been taken to prevent the ensuing fallout — or even the situation from occurring in the first place. 

Navigating the treacherous waters of crisis management in 2024 demands a keen awareness of the blind spots that can sink even the strongest organizations. Through proactive measures and strategic communications, organizations can emerge stronger and more resilient than ever. 

Let’s explore some top blind spots to watch out for in 2024: 

1. Choosing policy over people: Companies implement policies for a myriad of good reasons — defining expectations, ensuring accountability, legal compliance and protecting the health and safety of employees. However, when strict adherence to policy results in a company losing sight of its larger purpose and ethos, the brand can risk permanently impeding their license to operate. Kyte Baby’s recent crisis is a perfect example; while the policies may have been clear, so too were the real-life human implications of blind adherence.  

2. Quality control breakdown: The last step in the manufacturing process can often be the most overlooked. Quality control checks help to ensure products are built to the specifications and standards that a company sets, often for safe use and operation. Miraculously, Boeing’s apparent failures in the Alaska Airlines case didn’t result in a loss of life, but Boeing has lost the trust of customers and the public worldwide.  

3. Governance without controls: What good are corporate policies if you don’t have the infrastructure — or culture — in place to properly enforce them? Take the case of Carta — an employee misused private customer data from one side of their business to secure a sale for another side of their business. It apparently wasn’t an isolated incident, and the Carta CEO’s public comments didn’t improve the situation. Reputational damage was swift.   

4. Cancel culture: The term ‘cancel culture’ — and its intended affect — draws visceral reactions from across the political spectrum. It’s important to remember that the actual mechanism of cancelation is to publicly undermine the reputation of people and organizations. Whether you agree with its use, it’s critical to understand where your organization may be vulnerable and the steps you can take to mitigate risk.  

These crises are all a result of exploiting unidentified or underappreciated blind spots. And while many didn’t begin as communications problems, failure to properly anticipate and address them means communications needs to part of the solution — one of many reasons why all organizations should have communications professionals involved in C-suite operations.   

Determining your risks 

While the above are examples of full-blown crises, they started as vulnerabilities. Left unaddressed, vulnerabilities open organizations up to lasting reputational harm.   

The first step in crisis management is prevention, and that starts by determining where your company is susceptible to reputational harm. We consider all aspects of a company’s operations — from data security and regulatory compliance to supply chain and safety protocols — that may be prone to failures and multifaceted threats. 

“We think of potential reputation-damaging situations as living on a continuum,” said Dan Brady, executive vice president, corporate at KWT Global. “Starting with an isolated event that’s relatively contained, to an issue that can be seen as a systemic problem and ultimately an acute crisis that can quickly derail your operations and impart lasting damage to the organization.” 

Once vulnerability has been identified, the next step is to plot the scenario along a threat spectrum that accounts for the likelihood of it occurring and the severity of its reputational impact if it did occur. By assessing the severity and reputational impact of a scenario, we can effectively consider the necessary actions and communications to be developed. 

Putting plans and processes in place 

As the saying goes, “you’re overprepared until something happens.” Inevitably, things will arise; what matters is the actions you take when they do. 

“One way to ensure your organization is prepared is to create an overarching crisis response playbook which categorizes potential organizational vulnerabilities with corresponding messaging and communications sequencing,” said Brady. “When the time comes, you’ll be ready to take action in a strategic way with the confidence that decisions aren’t hastily made.”   

In the event one of the situations does happen, there will be a set of communications sequences and protocols which can be activated. A critical component of this is ensuring all members of the crisis response team know their roles, which is why we recommend regular review and testing of the crisis response plans.  

Setting up for success 

The modern business landscape is more complex than ever before, and strategic communication is not just advisable, but essential for long-term success. You cannot overstate the vital role that crisis communications plays in preserving an organization's reputation and relationships with stakeholders. It can’t be an afterthought; it’s an integral part of business operations.  

To learn more about how our Special Situations Group helps brands manage their reputations, check out our services here.