1

Stakeholder Management: what to learn from Crisis Management

Stakeholder Management and Crisis Management are dynamics that occur in different contexts. But
as Stakeholders are concerned by both, it is valuable for Project and Change Managers to integrate
some Crisis Management tips. Hereby a distillation of some lessons offered by Timothy Coombs,
professor of Crisis Communications in several institutions in the US and in Europe.
Crisis Management
Crisis management is the identification of threats to an Organization and its Stakeholders, and the
methods used by the Organization to deal with these threats.
For Projects involving Business Transformation and ERPs, this can encompass situations where
Business Continuity is at risk due to severe system related problems (eg. server breakdown, physical
damages to infrastructure, bug with severe impact on internal or external customers), non-system
related problems (eg. chemical or weather related hazards impacting health or security of people),
quality problems requiring rapid resolution, etc.
Stakeholder Management vs Crisis Management
In essence, the differences between both can be summarized as follows:
Crisis Management requires a reactive way of working. It is needed when the Project is in a exposed
situation, with Stakeholder being potentially hostile. Although early preparation of DRP or BCPs is
part of healthy Project Management, Crisis Management should remain exceptional.
Stakeholder Management, on the other hand, implies a more proactive mindset. It is an essential
part of Project Management and Change Management, on a day-to-day basis. It is focused on
understanding, canalising and following the more defensive reactions from the Project Stakeholders.
The lessons to be learned
As a crisis can have an important impact on Stakeholders, it is valuable for Project and Change
Managers to integrate some Crisis Management tips in their relations with Stakeholders. Based on
the article of T. Coombs, one can take away the following:
Lesson 1: Stakeholders have an impact, always
The role of Stakeholders can shift slightly depending on the nature of the crisis. The Stakeholder role
shifts depending on whether they are impacted by the crisis hitting the Project, or not. The role can
create different expectations and level of involvement from these Stakeholders. What remains
constant, however, is that Stakeholders can help to support a Project during a crisis or work against
it, exactly as during normal project circumstances.
Lesson 2 : In a period of tension, Stakeholders are driven by emotions
In a crisis, there are three emotions that tend to dominate: anger, sympathy, and anxiety. If
Stakeholders are angry about the crisis and direct that anger toward the Project, the crisis will inflict
severe damage. Anger motivates Stakeholders to act against a Project. Sympathy for the Project can
lead Stakeholders to engage in supportive behaviors during a crisis. They feel sorry for the Project
JRGEN JANSSENS

2
and, in some cases, will try to contribute. Anxiety is common in product harm or other crises that
threaten Stakeholders. The key is to establish effective corrective actions to prevent a repeat of the
crisis that harmed or threatened to harm the Stakeholders. More generally, Stakeholders can have
these reactions also during the traditional Project lifecycle. It is therefore essential to do regular,
proactive Stakeholder management, to increase the supportive (or at least constructive) behavior
with regards to the Project. The results of this investment will be reaped during the more
challenging times.
Lesson 3: The cultural setting affects the Stakeholders reactions and perceptions
Cultures vary in their tolerance to risk. Less tolerant cultures will react more negatively to crises and
the related risks. The greatest internal challenge is to remain sensitive to the lower tolerance
cultures. Project managers may have to act on a situation they do not consider a serious risk if the
Stakeholders are defining the situation as a major risk.
Lesson 4: Communication and expectation management can turn Stakeholders into assets
Stakeholders need to be kept informed. If information is lacking, they will
To me a brand
join those calling for more information and claiming communication is a
is one simple
failure. Uninformed Stakeholders are liabilities. Teams can get too
thing and that is
focused on the crisis and forget to communicate with any Stakeholders
trust Steve Jobs
very effectively. Crisis communication must be open and avoid statements
that provoke or antagonize Stakeholders. If there is incorrect information,
simply correct it and move on. Also find a way to validate concerns even if you seek to correct a
misperception on their part. Provoking Stakeholders is the quickest way to make them liabilities.
Lesson 5: It is all about People.
Project members are critical during a crisis. They are a very solicited source of information.
Colleagues will quickly ask them about the crisis. Leaving Project members uninformed will create a
negative perception of the Project, be it during a crisis or outside. Project members are significant
communication assets that should be leveraged rather than ignored.
Overall, Crisis Management and Stakeholder Management are thus different by nature - and should
be embedded accordingly in the Project approach. But integrating the shared lessons learned of one
in the other will certainly benefit the Project and Change Management quality.

References & Further Reading:

Coombs, T., (2014). The role of stakeholders in a crisis: from liabilities to assets. Lugano, Italy: USI, Retrieved
May 5 2016, from: http://www.emscom.usi.ch/

Information about the Author: https://be.linkedin.com/in/janssensjurgen

Information about TETRADE Consulting : http://www.tetrade.be/

JRGEN JANSSENS