Transcript Crisis Management

Crisis Communication
and
Crisis Management
Peggy Simcic Brønn
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Proactive
Signal
Detection
Crisis
Reactive
Containment/
Damage
Limitation
Preparation
Prevention
Recovery
Learning
Interactive
Pauchant & Mitroff
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•Education
•Prior experience
•Position in
organization
Proactive side
of Crisis
Management
Involvement
with TMT
Existence
of a Plan
Use of
research-based
information
Strategic
Approach
Improved
Signal
Detection
More effective
preparation/
prevention
Learning
Enhanced reputation
Desired Stakeholder behavior
Improved Organizational Performance
Broad Categories of Crises
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Technological
» Chernobyl, Bhopal
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Confrontation
» Boycott of products, Nestle
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Crises of Malevolence
» Terrorists, IRA bombs,
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Management Failure
» Kartongfabrikk, Ericcson
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Other - f. eks. takeover bids, Nycomed
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Technical/Economic
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Cell 1
Product/Service Defects
Plant defects/industrial
accidents
Computer breakdown
Defective, undisclosed
information
Bankruptcy
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Cell 2
Widespread environmental
destruction/industrial accidents
Large-scale systems failures
Natural disasters
Hostile Takeovers
Governmental crises
International crises
External
Internal
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Cell 3
Failure to adapt to change
Organizational breakdown
Miscommunication
Sabotage
On-site product tampering
Counterfeiting
Rumors, sick jokes,
malicious slander
Illegal activities
Sexual Harassment
Occupational health diseases
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Cell 4
Symbolic projection
Sabotage
Terrorism
Executive kidnapping
Off-site product tampering
Counterfeiting
False rumors, sick jobkes,
malicious slander
Labor strikes
Boycotts
People/Social/Organizational
Figure 2._: Types of corporate crises. From Mitroff et al. (1987).
Examples
Fire and Explosion
 Emission and Environmental Scandals
 Layoffs
 Bankruptcy
 Strikes
 Accidents
 Sudden Resignations
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Examples
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Public perception: Johnson & Johnson (Tylenol)
Sudden Market Shift: Atari (computer games)
Product Failure: A. H. Robins (Dalkin Shield)
Management Succession: United Technologies
Cash Crisis: Chrysler Corporation
Industrial Relations Crisis: International
Harvester
Hostile Takeover: Bendix/Martin Marietta
International Events: General Motors/OPEC
Regulation/Deregulation: Braniff
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News Coverage of Crises
Increasing
Business crisis events increased 13%
first half of 1996 (worldwide)
 Sexual harassment -- increased 192% - fastest growing category
 Class action suits, particularly against
tobacco industry -- up 83%
 Automotive industry -- most crisis prone
industry -- Banking #2
 Commercial airlines close behind
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What is Crisis
Communication?
It is spontaneous.
 It is dependent on the size and nature of
crisis.
 It is a ‘happening’.
 It needs other demands from
management than ‘normal’ routines.
 It will normally affect many different
stakeholders than planned
communications.
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When an accident, crisis or catastrophe
happens, it is too late to develop a crisis
information plan.
A media plan and mental readiness must
be in place before an accident, not
developed during the accident.
E. R. Sjøberg
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Two Key Words
» Speed
» Confidence
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Two Strategies
» Information -- one-way spreading of facts
and information
» Communications -- two-way method of
giving out information
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Information Strategy
 Internal
 External
 Crisis
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Crisis Information Strategy
Who is contact person, first and
reserve. Who should do what?
 List of everyone who has responsibility
for notifying people.
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» Switch board, security personnel, safety
people
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Alternative places for press center.
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Crisis Information Strategy
Cooperation plans with company,
police, fire department.
 General rules on who can/can not make
statements.
 Information on other relationships with
company, such as communications
network
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Most Important Elements
 Make
sure responsibilities are clear
and these people have full
responsibility.
 Make sure they are prepared
mentally -- practice, drill, etc.
 Make plans as simple as possible.
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Most Important Elements
 Spokesperson
must have ability to
answer questions.
 Spokesperson should not be given
any other responsibilities.
 Decide how to handle press.
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Which Stakeholders Need
Informing?
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Media (TV, radio,
papers)
Employees
Relatives
Government
Agencies
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Customers
Police
Suppliers
Local Community
Owners,
Shareholders, Board
of Directors
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INFORMATION PLAN
Groups
Employees
Family
Customers
Suppliers
Neighbors
Police
SFT
Local Media
Nat’l. Media
Board
Other
Should Inform
No Yes
By Whom
Objectives
Provide accurate, timely information to
all targeted internal and external
audiences
 Demonstrate concern for safety of lives
 Safeguard organizational facilities and
assets
 Maintain a positive image of the
organization as a good corporate or
community citizen
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Major action areas
 PR
Headquarters
 Media Information Center
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PR Headquarters
Responsible for notification of all
internal and external emergency
audiences
 Preparing material for the media
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» Exercise principles of ‘one voice’ and fulldisclosure
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Establishing a public information center
to answer questions and control rumors
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Media Information Center
 Away
from PR headquarters
 Telephone that can not be shut off
or used by other personnel
 Assign people to escort media
 Room equipped with technology
needed by media
 Spokesperson - never PR person
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Avoid These Mistakes Before
a Crisis Occurs
Define the PR Function and Recognize
its Importance
 Put PR in the Right Organizational Box
 Don’t Forget the World is a Small Place
 Have Clear PR Goals and Ongoing
Programs
 Have Crisis Planning/Be Prepared for
the Unexpected
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Avoid These Mistakes Before
a Crisis Occurs
Avoid Bad Advice and Don’t Ignore
Good Advice
 Keep Up with Technology
 Don’t Forget Internal Audiences
 Don’t Blame the Media
 Don’t Kill the Messenger
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Questions
What can go wrong?
 Are the facilities vulnerable to fire,
explosion or other crisis?
 Is dangerous equipment on the
premises?
 What are potential trouble spots?
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