A crisis management firm is a firm that helps businesses, organizations, or individuals prepare for, respond to, and recover from unexpected situations that are threatening their reputation or operations. Its specialists are well-equipped with industry knowledge to create crisis management plans that can help clients build their resilience in facing potential issues and risks. 

Crisis management companies cover five areas of crisis management. They deliver end-to-end solutions to businesses in some or all the following areas: 

• Crisis preparedness: The foundation of effective crisis management. It involves taking proactive measures to identify potential risks, assess vulnerabilities, and formulate comprehensive strategies to mitigate and manage crises. Crisis preparedness also includes creating crisis management protocols and response plans.
• Crisis response: Solutions implemented during a crisis to minimize the impact on a business, organization, or individual. They involve immediate decisive actions and real-time incident reporting to maintain public trust.
• Crisis communication: Setting an open communication line with internal teams, stakeholders, media connections, and the public to ensure effective damage control and avoid misinformation.
• Crisis recovery: Steps taken in guiding organizations through the aftermath of a crisis. This includes assessing the damage, implementing corrective actions, and ensuring accountability to start restoring normal operations.
• Crisis evaluation: Learning from past crises to improve future crisis management capabilities. By evaluating a crisis response, crisis management firms gather data to analyze response performance and use it to create data-driven changes to an organization’s resilience plan.

Businesses face a wide range of crises, spanning from unforeseen to predictable. PwC’s Global Crisis and Resilience Survey found that 96% of businesses have faced disruption in the past two years. According to a PRNews survey, ethics and compliance crises top the list, with 55% of respondents saying those affect their industries the most. Extreme weather crises follow with 41%, while mismanagement and cyberattacks crises are at 39% chance of affecting an industry.

PwC also pointed out that the lack of expertise presents a significant challenge for organizations, with 31% of respondents facing difficulty building a team of their own with the right skills to create or execute a strategic crisis management plan.

Hiring a crisis management company removes that burden as it offers a ready-to-deploy team of professionals who can handle and monitor your crises to protect your business’ reputation. The following case study is an excellent example. Namely, a leading company in the natural resources industry struggled with a bad publicity crisis; a minority shareholder used strong media connections to promote negative articles about the company.

Percepto addressed these challenges by highlighting the company’s strengths previously unknown to the public, such as good employee benefits, innovative products, and its focus on sustainability. It also revamped the client’s website to enhance user experience (UX) and implemented SEO improvements to boost organic traffic and results.

The crisis management team implemented major content updates highlighting the company’s achievements and philanthropic efforts. Through a niche website, it provided a platform focusing on company news, human resources, and career opportunities. The Percepto team also added profiles for its stakeholders to connect with the audience on a deeper level and created a personal website for the majority shareholders to increase company transparency.

The crisis management strategy that Percepto executed has helped the client establish a positive reputation, diminishing the public’s negative perception of the company after 14 months of the campaign implementation.

Crisis management firms offer services that prepare organizations to face adverse incidents, control reputation damage, and communicate effectively with clients’ stakeholders and audiences. Here are some of the services they provide:

• Risk identification and assessment: This involves pinpointing potential threats an organization might face, such as security breaches, product recalls, or natural disasters.
• Crisis planning and development: Creating a crisis response plan that outlines communication protocols, a chain of command, and procedures for handling various crisis scenarios.
• Crisis simulation and training: Conducting realistic simulations to test the crisis plan, identify weaknesses, and train personnel on their roles and responsibilities.
• Business continuity planning: Developing strategies to ensure critical business functions continue operating even during a crisis. These include incident response procedures, disaster recovery procedures, and a communication plan to keep stakeholders informed during the crisis and throughout the recovery process.
• Crisis communication strategy: Crafting clear and concise messaging for affected employees, customers, media, or stakeholders and publish them through various channels to address or clarify the issue.
• Media relations management: Handling media inquiries, pitching stories, and ensuring accurate information reaches the public.
• Stakeholder engagement: Maintaining clear communication with employees, investors, and other relevant parties to address concerns and maintain trust.
• Incident command and control: Establishing a central command center to coordinate the crisis response and information flow.
• Reputation management: Implementing strategies to repair any damage to the organization's reputation caused by the crisis.
• Litigation support: Assisting with legal issues that may arise from the crisis, such as lawsuits or regulatory investigations.
• Recovery planning and execution: Developing a plan for restoring normal operations, including rebuilding damaged infrastructure and mitigating any lingering effects of the crisis.
• Psychological support: Providing counseling and support services to employees who may be traumatized by the crisis.

One example is the case study of AEye, a light detection and ranging (LiDAR) company targeting cities, transportation, automotive, industrial, and defense industries. The company found it difficult to break into the industry because of the negative media coverage surrounding LiDAR tech. Its team contacted Landis Communication to establish itself in the field and in other industries adopting LiDAR technology.

Landis Communications devised a comprehensive plan to address AEye's challenge. This included targeted media outreach campaigns for smart cities, defense, and B2B automotive sectors. It also focused on brand awareness for the client’s market launch, securing positive media coverage regarding safety in the autonomous vehicle space.

To further establish AEye as a thought leader, Landis Communications created the Green Triangle platform, highlighting the client’s position at the forefront of key industries. It even developed a software-defined electric vehicle toolkit and facilitated a major AEye event at the US embassy in Tokyo.

The collaboration led to the following wins for AEye:

• Secured mentions in over 16,200 media outlets across various industries
• National broadcast coverage on ABC for its internship program for displaced Ukrainian students in the US
• A successful AEye event during the Consumer Electronic Show (CES) 2023, showcasing partnerships, product functionality, and a 50% increase in media attention.

The costs of crisis management firms heavily rely on their professional experience and the specifications of the work you intend for them to do for your company.

Depending on the industry you are in, and the scope of geographies involved, the fees of a crisis public relations firm range between $60,000 to $500,000.

On DesignRush, the top 50 crisis management companies charge an average of $147 per hour. Roughly 11.5% of the crisis management firms on DesignRush accept projects with a minimum budget of less than $1,000, while 1.4% require a $50,000+ minimum budget.

You should hire a crisis management firm to safeguard your business from any crises that may arise. Their expertise, resources, and strategic approach provide invaluable guidance in navigating difficult situations effectively, minimizing damage, and protecting your reputation. Moreover, it helps businesses by:

• Leveraging industry experience: A crisis management firm has the experience and knowledge to develop a strategic response plan, manage media relations, and communicate effectively with stakeholders. They’ve likely handled similar situations and have the objectivity and industry perspective to fix it.
• Responding quickly: The quicker you respond to a crisis, the better your chance of containing the damage. A crisis management firm can react quickly and efficiently, taking the pressure off your internal team and allowing them to focus on core business functions.
• Protecting your reputation: A well-managed crisis plan can prevent long-term damage to a business’ reputation. It can also help you navigate the situation strategically, minimize negative impacts, and work toward reputation recovery.
• Enhancing communication: A crisis communications agency specializes in crafting clear and concise statements that can control the narrative to avoid misinformation. They can proactively address concerns and manage media inquiries, ensuring your message reaches the public first.
• Providing access to resources: Crisis firms offer various resources, including legal counsel, media contacts, and communication specialists. These resources allow them to address the crisis from multiple angles, ensuring a comprehensive response to your company’s issues.
• Proactive planning: According to a survey, only 54% of businesses have a plan in place to deal with a crisis. Crisis communication agencies can help you develop a crisis communication plan even before a crisis hits. This proactive approach allows you to be better prepared for any potential situation.

One prime example of crisis management is the case study of Accounting Seed, an online accounting software provider, that faced a crisis due to its lack of online customer reviews. This was especially evident during sales calls when potential customers brought up the positive reviews of their competitors. These challenges prompted their team to contact Rhino Reviews to create a reputation strategy.

Rhino Reviews conducted thorough research to identify review platforms based on the client’s existing presence and potential impact on the business. It also used a net promoter score (NPS) survey, which helped the team pinpoint the ideal moments in a customer’s journey to request reviews. This strategic timing helped maximize the likelihood of receiving positive feedback.

With a robust reputation strategy, Accounting Seed achieved a 50% increase in reviews. Its collaboration with Rhino Reviews has continued even after two years, solidifying the need to partner with a trusted crisis management firm.

To choose the best crisis management firm for your business, follow these steps:

1. Identify potential crises: Work with your team and list down the types of potential business crises you may face, including industry-specific risks and general vulnerabilities. Determine what you want to achieve by working with a crisis management company. Do you aim to protect your reputation? Build a good rapport with your target audience? Or establish a crisis management plan to reduce risk?
2. Consider your budget: Define the amount you will spend on crisis management. This will allow companies to align their proposals with your goals and the services that fit within your means.
3. Research potential partners: Browse online directories like DesignRush to find prospective crisis management firms. Filter options based on your specific requirements, location, and budget.
4. Evaluate industry expertise: Explore the crisis management company’s website to learn about its areas of expertise, case studies with similar businesses, and their overall approach to devising a crisis management plan.
5. Request for a client portfolio and reference: Look for companies with experience handling the same crises you are facing. Contact their previous clients and gather insights from their experiences and the results they achieved from the partnership.
6. Assess client testimonials: Check authentic reviews on platforms like DesignRush or Google My Business to see what other clients say about their experience working with the crisis management company.
7. Consider the location: Consider the crisis communications agency’s location. If you require onsite meetings, it is best to hire specialists who can meet with you in person. This will also ensure the confidentiality of the information you share with the crisis management firm, allowing you to monitor the campaign easily.
8. Shortlist the candidates: Narrow your options to crisis management firms and communicate your intentions to work with them.
9. Send a request for proposal: Send them a request for proposal (RFP) and ask for a project breakdown, including milestones, scope, schedule, costs, and other desired deliverables.
10. Check the team members’ expertise: Assess the qualifications and experience of team members assigned to your project. Ask about their certifications and crisis management methodologies.
11. Consider recovery support services: Crisis management firms can provide valuable recovery support services. These include repairing reputational damage through targeted communication, addressing employee anxieties, and maintaining open communication with stakeholders. Their litigation expertise can also prove crucial in navigating potential lawsuits.
12. Make a choice: Review contracts and select the crisis management firm that best suits your goals, budget, and requirements.

If you need assistance connecting with agencies that can draft proposals that fit your crisis management needs, explore DesignRush Marketplace. Our platform can help you narrow down possible partners — for free.

You can find the best crisis management firm on DesignRush that fits your budget by using our filters. Narrow your search based on the lowest minimum budget of under $1,000 or the highest minimum budget of over $50,000. It also has mid-range prices starting at $25,000, offering various options depending on your company’s size and project scope.

DesignRush also indicates the hourly rate of crisis management companies in its listings. However, for some, rates are only available upon inquiry.

You can reach these agencies through the agency portfolios on the DesignRush marketplace. They feature a short overview of the company and client reviews that offer insights into projects the company has worked on. The portfolios can help you assess the best crisis management firms that match your needs and budget.

Here are essential key success metrics to consider in assessing the effectiveness of a crisis management plan across all these stages:

Preparation:

• Number of training sessions conducted: Measures the organization’s commitment to training employees in crisis response procedures.
• Training attendance and participation rate: Indicates employee engagement with crisis preparedness training.
• Completion of crisis plans: Ensures comprehensive plans are in place for various crisis scenarios.
• Review of crisis plans: Measures how regularly plans are reviewed and updated to reflect evolving threats and best practices.
• Time taken to activate the crisis management team: Tracks efficiency in initiating the response process during a crisis.

Response:

• Crisis communication strategy reach: Measures the effectiveness of communication efforts in reaching target audiences (media, employees, customers). This could include metrics like social media impressions, website traffic, or press mentions.
• Media monitoring: Tracks the tone and sentiment of media coverage surrounding the crisis. Positive sentiment indicates successful communication.
• Social media engagement: Measures the level of interaction, such as likes, comments, and shares on social media posts related to the crisis. High engagement may indicate audience interest and potential for misinformation if not managed effectively.
• Stakeholder satisfaction: Surveys or focus groups can gauge how informed and satisfied stakeholders feel with the organization’s crisis communication efforts.
• Time to resolve the crisis: Tracks the efficiency of response efforts in containing and resolving the crisis.

Recovery:

• Recovery cost and resource utilization: Measures the financial impact of the crisis and the efficiency of resource allocation during recovery.
• Customer churn rate: Tracks the number of customers who discontinue business with the organization after the crisis. A lower churn rate indicates successful customer retention efforts.
• Employee turnover rate: Measures employee departures after the crisis. A low turnover rate suggests employee trust and confidence in the company's handling of the situation.
• Brand reputation metric: Tracks public perception of the organization's brand before, during, and after the crisis. It could involve social listening tools or brand reputation surveys.

Before hiring a crisis management company, you should ask these questions to ensure that they can effectively assess or mitigate the challenges that may arise: