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Opinions of Monday, 19 August 2024

Columnist: Dr. Mrs Juliana Akushika Andoh

Brand Resilience and Crisis Management: Insights from Ghanaian brands – Part 2

Dr. Mrs Juliana Akushika Andoh Dr. Mrs Juliana Akushika Andoh

Crisis Management in the Ghanaian Context: Examples and Lessons

Several Ghanaian businesses have demonstrated effective crisis management, providing valuable lessons for others. Below are a few examples:

1. MTN Ghana and the Data Price Hike (2019):

In 2019, MTN Ghana, the leading telecommunications provider in the country, faced a major crisis when it announced an increase in data prices. The decision led to widespread public outcry, with customers expressing their dissatisfaction on social media and other platforms. MTN quickly realized the severity of the backlash and took immediate steps to address the situation.

The company issued a public apology, explained the rationale behind the price increase, and engaged with customers through various channels to address their concerns. MTN also rolled back some of the price increases, demonstrating a willingness to listen to its customers and make adjustments. This crisis highlighted the importance of transparent communication and responsiveness in crisis management.

2. Melcom Group and the 2012 Building Collapse:

The Melcom Group, a leading retail chain in Ghana, faced a significant crisis in 2012 when one of its stores in Accra collapsed, resulting in the deaths of several people. The tragedy attracted widespread media attention and public scrutiny. In response, Melcom's management acted swiftly, cooperating with rescue efforts, supporting the victims and their families, and communicating openly with the public. The company also took steps to improve its safety standards and prevent future incidents. Melcom's handling of the crisis demonstrated the importance of empathy, responsibility, and transparency in crisis management.

3. Zoomlion and the Public Perception Challenge:

Zoomlion, one of Ghana's leading waste management companies, has faced several crises related to public perception and accusations of corruption and inefficiency. Over the years, the company has taken steps to rebuild its reputation by improving service delivery, engaging with communities, and implementing corporate social responsibility initiatives. Zoomlion's efforts to address public concerns and enhance its brand image highlight the importance of long-term commitment to rebuilding trust after a crisis.

4. The Financial Sector Cleanup (2017-2020):

Ghana's financial sector underwent a significant cleanup between 2017 and 2020, leading to the closure of several banks, microfinance institutions, and savings and loan companies. This created a crisis of confidence among customers and investors. However, some financial institutions that survived the cleanup, such as Ecobank Ghana and Fidelity Bank, managed to maintain their brand resilience by ensuring transparency, improving governance practices, and strengthening customer relations. These banks' ability to navigate the crisis and emerge stronger underscores the importance of sound governance and customer trust in crisis management.

The Role of Communication in Crisis Management

Effective communication is a cornerstone of both brand resilience and crisis management. In the Ghanaian context, where word-of-mouth and social media play significant roles in shaping public opinion, businesses must be proactive in managing their communication during a crisis.

1. Transparency: Transparency is crucial in crisis communication. Companies must provide accurate and timely information to stakeholders, addressing the issue at hand and outlining the steps being taken to resolve it. In Ghana, where consumers often rely on trusted sources for information, transparency helps build credibility and trust.

2. Empathy: Demonstrating empathy during a crisis is essential for maintaining customer loyalty and support. Businesses must acknowledge the impact of the crisis on stakeholders and show that they care about their well-being. In a culturally rich society like Ghana, where community and relationships are highly valued, empathy can go a long way in preserving a brand reputation.

3. Consistency: Consistent messaging across all communication channels is vital to avoid confusion and misinformation. Companies must ensure that their messages align with their brand values and that all representatives communicate in a unified manner. In Ghana, where social media can amplify both positive and negative messages, consistency is key to managing public perception.

In conclusion, brand resilience and crisis management are critical components of business success in Ghana. The country's unique socio-economic, cultural, and political landscape presents both challenges and opportunities for businesses. By building strong organizational cultures, emphasizing quality and consistency, engaging with stakeholders, investing in innovation, and developing effective crisis management plans, Ghanaian businesses can enhance their brand resilience and navigate crises effectively.

The examples of MTN Ghana, Melcom Group, Zoomlion, and the financial sector cleanup demonstrate that while crises are inevitable, they can be managed in ways that not only protect but also strengthen brand reputation. Ultimately, the ability to communicate transparently, demonstrate empathy, and maintain consistency during a crisis will determine a brand's resilience and long-term success in the Ghanaian market.