Crisis Communication and Crisis Management Peggy Simcic Brnn

Crisis Communication and Crisis Management Peggy Simcic Brønn 1

Pauchant & Mitroff Peggy Simcic Brønn 2

• 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 l Technological » Chernobyl, Bhopal l Confrontation » Boycott of products, Nestle l Crises of Malevolence » Terrorists, IRA bombs, l Management Failure » Kartongfabrikk, Ericcson l Other - f. eks. takeover bids, Nycomed Peggy Simcic Brønn 4

Examples Fire and Explosion l Emission and Environmental Scandals l Layoffs l Bankruptcy l Strikes l Accidents l Sudden Resignations l Peggy Simcic Brønn 6

Examples l l l l l 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 Peggy Simcic Brønn 7

News Coverage of Crises Increasing Business crisis events increased 13% first half of 1996 (worldwide) l Sexual harassment -- increased 192% -fastest growing category l Class action suits, particularly against tobacco industry -- up 83% l Automotive industry -- most crisis prone industry -- Banking #2 l Commercial airlines close behind l Peggy Simcic Brønn 8

What is Crisis Communication? It is spontaneous. l It is dependent on the size and nature of crisis. l It is a ‘happening’. l It needs other demands from management than ‘normal’ routines. l It will normally affect many different stakeholders than planned communications. l Peggy Simcic Brønn 9

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 Peggy Simcic Brønn 10

l Two Key Words » Speed » Confidence l Two Strategies » Information -- one-way spreading of facts and information » Communications -- two-way method of giving out information Peggy Simcic Brønn 11

Information Strategy l Internal l External l Crisis Peggy Simcic Brønn 12

Crisis Information Strategy Who is contact person, first and reserve. Who should do what? l List of everyone who has responsibility for notifying people. l » Switch board, security personnel, safety people l Alternative places for press center. Peggy Simcic Brønn 13

Crisis Information Strategy Cooperation plans with company, police, fire department. l General rules on who can/can not make statements. l Information on other relationships with company, such as communications network l Peggy Simcic Brønn 14

Most Important Elements l Make sure responsibilities are clear and these people have full responsibility. l Make sure they are prepared mentally -- practice, drill, etc. l Make plans as simple as possible. Peggy Simcic Brønn 15

Most Important Elements l Spokesperson must have ability to answer questions. l Spokesperson should not be given any other responsibilities. l Decide how to handle press. Peggy Simcic Brønn 16

Which Stakeholders Need Informing? l l Media (TV, radio, papers) Employees Relatives Government Agencies Peggy Simcic Brønn l l l Customers Police Suppliers Local Community Owners, Shareholders, Board of Directors 17

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 l Demonstrate concern for safety of lives l Safeguard organizational facilities and assets l Maintain a positive image of the organization as a good corporate or community citizen l Peggy Simcic Brønn 19

Major action areas l PR Headquarters l Media Information Center Peggy Simcic Brønn 20

PR Headquarters Responsible for notification of all internal and external emergency audiences l Preparing material for the media l » Exercise principles of ‘one voice’ and fulldisclosure l Establishing a public information center to answer questions and control rumors Peggy Simcic Brønn 21

Media Information Center l Away from PR headquarters l Telephone that can not be shut off or used by other personnel l Assign people to escort media l Room equipped with technology needed by media l Spokesperson - never PR person Peggy Simcic Brønn 22

Avoid These Mistakes Before a Crisis Occurs Define the PR Function and Recognize its Importance l Put PR in the Right Organizational Box l Don’t Forget the World is a Small Place l Have Clear PR Goals and Ongoing Programs l Have Crisis Planning/Be Prepared for the Unexpected l Peggy Simcic Brønn 23

Avoid These Mistakes Before a Crisis Occurs Avoid Bad Advice and Don’t Ignore Good Advice l Keep Up with Technology l Don’t Forget Internal Audiences l Don’t Blame the Media l Don’t Kill the Messenger l Peggy Simcic Brønn 24

Questions What can go wrong? l Are the facilities vulnerable to fire, explosion or other crisis? l Is dangerous equipment on the premises? l What are potential trouble spots? l Peggy Simcic Brønn 25