The opening ceremony of the Winter Olympics is just days away, but the atmosphere surrounding the games is less about athletic anticipation and more about crisis management. Italy’s Foreign Minister recently revealed the country had thwarted “Russian origin” cyber-attacks targeting the event, a stark reminder of the geopolitical tensions looming over the competition. However, this is merely the most visible symptom of a deeper malaise – a cascade of issues that highlight a new reality for mega-events: the Era of the “Compounding Crisis.”
From defaced Olympic rings – courtesy of Greenpeace protesting sponsor Eni with black oil – to cancelled training sessions due to extreme weather, power outages disrupting events, and a crucial cable car system remaining unfinished, the challenges are mounting. A leaked internal memo regarding the cable car, designed to transport 2,400 fans per hour, bluntly states it presents “significant organisational challenges” to local traffic flow and security.
This isn’t an isolated incident. Research from FleishmanHillard reveals that a staggering 99% of business leaders are currently navigating multiple crises simultaneously. While 72% recognize the serious financial repercussions of cultural and reputational missteps, a concerning one in three feel adequately prepared to manage these situations. For sports organizations operating on a global stage, where internal decisions instantly become public news, a lack of preparedness can be nothing short of catastrophic.
Three Reputation Failures Fueling the Fire
The compounding nature of these crises isn’t simply about the number of issues, but how they interact and amplify each other. FleishmanHillard’s research identifies three key reputation failures that exacerbate these situations:
- Delayed Decision-Making: 51% of leaders cite this as the primary trigger for issues spiraling out of control. Remaining silent isn’t a safe strategy; it creates a vacuum filled with speculation and criticism, eroding trust among stakeholders.
- Careless Internal Communications: Employees talk to journalists. Leaders’ private conversations find their way online. Internal memos become front-page news. The reality is, internal communications can create external risk.
- Misalignment Between Words and Actions: Stakeholders are increasingly vocal in scrutinizing corporate values, with 58% of leaders acknowledging this trend. If communications don’t align with actions, reputation suffers rapidly.
Getting Match Fit for a New Era
Mega-events are no longer simply sporting competitions; they are global reputation activations. Organizations are under constant scrutiny, navigating record rights fees, a fragmented media landscape, soaring fan expectations, and a relentless demand for proof of both business and societal impact. This pressure isn’t unique to sport, however. In a world grappling with cultural missteps, geopolitical complexities, misinformation campaigns, and boycotts, prioritizing crisis readiness is paramount for all businesses.
So, what steps can organizations take to prepare for this new reality? The answer lies in building a robust and proactive crisis management framework.
- Cross-Functional Alignment: Ensure that communications, operations, legal, and leadership teams make decisions collaboratively, rather than sequentially.
- A Culture of Transparency: Foster an environment where issues are surfaced early, rather than hidden until they explode in the public eye.
- Proactive Scenario Testing: Regularly test communications scenarios in advance to ensure a swift and effective response under pressure.
- Clear Messaging Frameworks: Develop clear messaging frameworks that can be deployed rapidly across all stakeholder groups.
- Internal Communications Protocols: Implement robust internal communications protocols to ensure due diligence across the network, with employee-first but press-ready materials available.
When crises inevitably strike, stakeholders won’t judge organizations on what happened, but on how they communicate. Clarity, timeliness, authenticity, and control of the narrative – these are the hallmarks of effective crisis management in the Era of the Compounding Crisis. The Tokyo 2020 Olympic Games, as analyzed in a recent study published in Commun Sport, serve as a case study in navigating such challenges, highlighting both successes and failures in crisis communication during the COVID-19 pandemic. The study, aptly titled “The Good, The Bad, and The Ugly,” underscores the importance of proactive and transparent communication in maintaining public trust during times of uncertainty.
As the Winter Olympics prepare to begin, the lessons are clear: in a world defined by constant disruption, preparedness isn’t just an advantage – it’s a necessity. The ability to navigate the compounding crisis will determine not only the success of these Games, but the long-term viability of mega-events in the years to come. A recent report by River Effra emphasizes the need for leaders to acknowledge that even being correct 99% of the time can be undermined by “masterful bias” – a tendency to cling to pre-conceived notions even in the face of contradictory evidence – during a crisis.
