Crisis Management

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  • Created by: charlotte
  • Created on: 29-04-14 15:06

What is a Crisis?

Joep Cornellison (2008)

'A point of great difficulty or danger to an organisation possibly threatening its existence and continuity that requires decisive change'

Kathleen Fearn-Banks (2011)

'A crisis is a major occurence with a potentially negative outcome affecting the organization, company, or industry, as well as its publics, products, services, or good name. A crisis interrupts normal business transactions and can sometimes threaten the existence of an organisation'

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Types of Crises - Seymour and Moore (2000)

  • Cobra = Sudden
  • Python = Slow-burning
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Costs of Crisis

  • Reputation
  • Employee morale
  • Political backlash
  • Customer backlash
  • Legal action
  • Market confidence
  • Management distraction
  • All = Loss of money
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Benefits of Getting it Right

  • Enhanced reputation
    • Heroes are born
    • Change is accelerated
    • Latent problems are faced
    • Early warning systems developed
    • New competitive edges appear
    • All = enhanced reputation
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Challenges of Crisis Management

  • Staying calm
  • Keeping a variety of publics informed - the better your systems are the easier this will be
  • Getting the head of the organisation to face the media
  • Having a clear message that is communicated by the whole organisation
  • Providing information quickly yet keeping it accurate
    • Particularly with the speed of online communications and social media
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Five Stages of a Crisis - Fearn-Banks (2011)

  • Detection
  • Prevention/Preparation
  • Containment
  • Recovery
  • Learning
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Stage 1: Detection

  • Set up systems that help you anticipate crises
    • What might you do?
  • Learn from crises of other organisations in your industry
  • Crisis audit
    • Identify various threats. Consider the probability of different crises happening and also the likely severity of different crises
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Stage 2: Prevention/Preparation

  • Prevention
    • On-going PR programmes with key stakeholder groups that foster two-way communications
    • Corporate social responsiblity
  • Preparation
    • Produce crisis communications plan
      • System for fast communications laid out
      • Key audiences, messages and statements specified
      • Crisis team names and contact details
      • Legal, technical, PR representatives and headed by CEO
      • Set up communication cahnnels that you may need to use in an emergency that you do not already have access to
      • Crisis simulation and training
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Stage 3: Containment

  • Execute plans for crisis communications, plans - every crisis unique so use plans as a guide
  • If situation different from that anticipated, quickly refine or develop the plan
  • Your message will convey the strategy of your organisation to the crisis
    • Apologetic, defensive, explanation
    • Often need to show what action your organisation is taking
  • When communicating with the media use the 5C model
    • Concern, clarity, control, confidence, competence
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Stage 4: Recovery

  • Getting back to normal
  • What are the effects and follow up actions needed?
    • Have stakeholders views changed?
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Stage 5: Learning

  • Evaluate response
  • Take actions based on lessons learned about crisis management
    • Were actions before, during and after crisis appropriate?
    • What did we fail to plan?
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