Transcript Crisis Management - Ball State University

Crisis Management
Lecture #9
In Class Assignment #5
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Name 5 crises that you can think of that have taken
place in the fashion industry?
What Classifies a “Crisis”
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Can range from:
Natural Disaster
 Misrepresentation
 Fraudulent Accusations
 Rumors
 Lies
 Unpreparedness
 Language
 In adequate or harmful release of products/services
 Even how you handle a customer complaint can result in a
crisis
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The Speed of Crisis
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Today, the internet can help even the smallest crisis
reach thousands of individuals within minutes.
With that said, individuals and organizations are
even closer to creating a crisis.
In the 21st century our society is filled with issues
that affect us daily and even hourly.
Issues Management
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The ability to understand, mobilize, and direct
strategic and policy planning functions, and public
relations skills. Toward achieving one objective:
meaningful participation in creation of public policy
that affects personal and organizational destiny.
5 Steps to Issues Management
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Identifies issues which the organization must be
concerned.
Analyzes and Delimits each issue with respect to
impact on its publics.
Displays various strategic options.
Implements an action program to communicate the
organization’s views and influence perception of an
issue.
Evaluates its program in terms of reaching
organizational goals.
Issues Management
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Anticipated Emerging Issues
Identifies Issues Selectivity
Deals With Opportunities and Vulnerabilities
Plans From Outside In
Bottom-Line Orientation
Action Timetable
Dealing With The Top- must operate with the
support of the chief executives
Risk Communication
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Risk Communication- an outgrowth of issues
management. It began as a process of taking
scientific data related to health and environmental
hazards and presenting them to an audience in a
manner that is understandable and meaningful.
Risk Communication
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Helps individuals understand messages when they are in
high-stress situations. To help with this communicators
have developed a message mapping process
Identify Stakeholders
 Determine stakeholders concerns
 Analyze specific concerns to fit general concerns
 Construct Brainstorming
 Put together supporting facts and proof for each message
 Ask outside experts to test messages
 Plan delivery of resulting messages and supporting
materials
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Risk Communication
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Depends basically on the organization’s actions.
In the long-run actions speak louder than words in
communicating risk
Message Maps
 Three
Key Messages
 Seven to 12 words per message
 Three supporting facts for each key message
Managing in a Crisis
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Accidents and Disasters, known as crises, are often
the biggest test of an organization or individual
Crisis- a situation that has reached a critical phase
for which dramatic and extraordinary intervention is
necessary to avoid or repair major damage.
How an organization handles itself during a crisis
can influence its reputation for many years.
Managing in a Crisis
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It can also cripple its reputation and suffer a large
monetary loss.
If you think logically, be thoughtful, and act quickly
you can help create a positive reputation.
When Crisis Takes Place
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When a crisis takes place there are usually many
signs that appear shortly after.
 Surprise-
when crisis breaks out, its usually unexpected.
 Insufficient
Information- things happen at once, rumors
come out, blogs report false stories
 Escalating
Death
Events- the crisis expands, CrisisInjury
When Crisis Takes Place
 Increased
Outside Scrutiny- Bloggers, the media, stock
brokers, talk-shows, and the public feed the rumors
 Siege Mentality- The organization feels surrounded
 Lawyers
advise to say no comment because anything said
could be used against the organization.
 Panic-
with all the walls caving in, panic sinks in.
Planning in a Crisis
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The key to crisis management is making sure your
organization is prepared.
All accidents make great headlines and wonderful
reporting.
Planning in a Crisis
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For each potentially impacted audience, define the
risk.
 The
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For each risk, define the actions that mitigate the
risk.
 The
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dies in the garment have resulted in skin irritation
product has been recalled
Identify the Cause of the Risk
 If
the public is aware that you know what took place,
they are more likely to accept that you will fix it
quickly.
Planning in a Crisis
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Demonstrate Responsible Management Action
 Acting
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to Correct the Issue
Create a Consistent Message
 Agree
on a spokesperson who can be the voice of the
organization
 The more serious the incident, the higher up in the
organization you will want that individual to be.
 Be honest, don’t cover up a lie.
Planning in a Crisis
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Letting people know that the organization has a
plan and is implementing it helps convince them that
the organization is in control.
 Be
prepared
 Be available
 Be credible
 Act Appropriately
Communicating in a Crisis
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Lawyers traditionally have advised clients to do one
of the following
 Say
nothing
 Say as little as possible and release it quietly as
possible
 Say as little as possible citing privacy laws, company
policy, and sensitivity
 Deny guilt and act angry that such charges could
possibly have been made
 Shift blame or share blame with others
Communicating in Crisis
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The best crisis communicators are those who respond
promptly, honestly, and provide full information to
the media during the crisis.
Executives often want to wait to communicate until
all facts are in.
Communicating in a Crisis
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By saying nothing, an organization is perceived as
already making a decision
“No comment” makes the organization seem guilty.
Silence angers the media and makes the problem
worse
Inexperienced spokespeople speculating nervously
or using emotionally charged language are even
worse.
Cardinal rule of public relations during times of
crises is to tell it all and tell it fast.
Communicating in a Crisis
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The goals, when communicating in crisis should be:
 Terminate
the crisis quickly
 Limit the damage
 Restore Credibility
Engaging the Media
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When crisis strikes, the media becomes hungry for
information.
There are a series of things an organization should
do to make themselves available to the media.
Engaging the Media
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Set up a media headquarters- all authorized
communication must flow through
Establish Media Rules- the media are sneaky during
crises. Determines which parts of the organization
are off limits, what executives will be unavailable.
Media live for the “box score”- Crisis specifics make
news.
 How
many were fired?
 How many were missing?
 How many died?
Engaging the Media
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Do not speculate- if you don’t know the numbers do
not make them up or pretend you do
Feed the Beast- provide answers to the media 24/7
 Strive
to keep the media updated on new information
about the crisis.
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Speed Triumphs- the media is often about speed
first and accuracy later. Must monitor media to
address what is inaccurately being reported
Cable Rules- 24/7 news channels make attending
to a crisis an around the clock ordeal.
Speaking to the Media
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Speak first and speak often
Don’t speculate
Go off the record at your own peril
Stay with the facts
Be open and concerned, not defensive
Make your point, repeat your point
Don’t argue with the media
Establish yourself as the most authoritative source
Stay calm and cooperative
Never lie
Crisis Response Strategies
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Preemptive Action Strategy
 An
organization tries to be the first to tell the story and
set the tone before others have the chance to tell their
own.
Crisis Response Strategies
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Offensive Strategies
 An
organization may attempt to attack the accuser
when its logic or facts are faulty or if the accuser is
negligent or malicious
 The organization may try to embarrass the accuser
through shame or humiliation
Crisis Response Strategies
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Defensive Response Strategies
 Denial
 Excuse
 Justification
Crisis Response Strategies
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Diversionary Response Strategies
 Concession:
the organization gives the public something
it wants which is valued by both groups
 Ingratiation: actions are taken to appease the publics
involved
 Disassociation: distances the organization from the
wrongdoer
 Relabeling: devising a new name for a product or
service, or even the organization
Crisis Response Strategies
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Vocal Commiseration Strategies
Concern: organization does not admit guilt, but expresses
concern
 Condolence: a more formal vocal response, recognizes the
sorrow of the personal loss or misfortune, but does not admit
guilt.
 Regret: admitting sorrow and remorse for a situation– the
organization may or may not admit fault for the situation.
 Apology- the organization takes responsibility and asks
forgiveness– sometimes included compensation, aid, or
money.
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Crisis Response Strategies
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Rectifying Behavior Strategies
 Investigation:
short-term strategy to examine the facts
that led to the situations
 Corrective Action- steps are take to repair the damage
from the crisis and to prevent it from happening again
 Restitution: the organization offers to provide the public
with ways to compensate victims and restore the
situation.
 Repentance: fully accepts responsibility for its actions
and offers to change its practices.
Crisis Response Strategies
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Strategic Inaction
 Silence:
may choose to remain silent when it is under
fire.
 Used to protect victims privacy
 Sometimes providing a short statement of why the
organization is not speaking is beneficial
 Not the same as “no comment”
Final Thoughts
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Crises can range from natural disasters to crises
brought on by carelessness.
Internet and social media cause a crisis to travel
extremely quickly.
When faced with a crisis your organization should
be the first to communicate with the media and you
should communicated with them frequently.
References
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Seitel, F.P. (2011). The Practice of Public Relations.
Prentice Hall: Boston.