Crisis Management Lecture 9 In Class Assignment 5

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Crisis Management Lecture #9

Crisis Management Lecture #9

In Class Assignment #5 Name 5 crises that you can think of that have

In Class Assignment #5 Name 5 crises that you can think of that have taken place in the fashion industry?

What Classifies a “Crisis” Can range from: � Natural Disaster � Misrepresentation � Fraudulent

What Classifies a “Crisis” 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

The Speed of Crisis Today, the internet can help even the smallest crisis reach

The Speed of Crisis 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 21 st century our society is filled with issues that affect us daily and even hourly.

Issues Management The ability to understand, mobilize, and direct strategic and policy planning functions,

Issues Management 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 Identifies issues which the organization must be concerned. Analyzes

5 Steps to Issues Management 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 Anticipated Emerging Issues Identifies Issues Selectivity Deals With Opportunities and Vulnerabilities Plans

Issues Management 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 Risk Communication- an outgrowth of issues management. It began as a process

Risk Communication 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 Helps individuals understand messages when they are in high-stress situations. To help

Risk Communication 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

Risk Communication Depends basically on the organization’s actions. In the long-run actions speak louder

Risk Communication 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 Accidents and Disasters, known as crises, are often the biggest

Managing in a Crisis 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

Managing in a Crisis It can also cripple its reputation and suffer a large

Managing in a Crisis 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 When a crisis takes place there are usually many signs

When Crisis Takes Place 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 Events- the crisis expands, Crisis Injury Death

When Crisis Takes Place � Increased Outside Scrutiny- Bloggers, the media, stock brokers, talk-shows,

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 The key to crisis management is making sure your organization

Planning in a Crisis The key to crisis management is making sure your organization is prepared. All accidents make great headlines and wonderful reporting.

Planning in a Crisis For each potentially impacted audience, define the risk. � The

Planning in a Crisis For each potentially impacted audience, define the risk. � The dies in the garment have resulted in skin irritation For each risk, define the actions that mitigate the risk. � The 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 Demonstrate Responsible Management Action � Acting to Correct the Issue

Planning in a Crisis Demonstrate Responsible Management Action � Acting 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 Letting people know that the organization has a plan and

Planning in a Crisis 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 Lawyers traditionally have advised clients to do one of the

Communicating in a Crisis 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 The best crisis communicators are those who respond promptly, honestly, and

Communicating in Crisis 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 By saying nothing, an organization is perceived as already making

Communicating in a Crisis 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 The goals, when communicating in crisis should be: � Terminate

Communicating in a Crisis The goals, when communicating in crisis should be: � Terminate the crisis quickly � Limit the damage � Restore Credibility

Engaging the Media When crisis strikes, the media becomes hungry for information. There a

Engaging the Media When crisis strikes, the media becomes hungry for information. There a series of things an organization should do to make themselves available to the media.

Engaging the Media Set up a media headquarters- all authorized communication must flow through

Engaging the Media 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 Do not speculate- if you don’t know the numbers do not

Engaging the Media 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. 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

Speaking to the Media Speak first and speak often Don’t speculate Go off the

Speaking to the Media 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 Preemptive Action Strategy � An organization tries to be the first

Crisis Response Strategies 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 Offensive Strategies � An organization may attempt to attack the accuser

Crisis Response Strategies 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 Defensive Response Strategies � Denial � Excuse � Justification

Crisis Response Strategies Defensive Response Strategies � Denial � Excuse � Justification

Crisis Response Strategies Diversionary Response Strategies � Concession: the organization gives the public something

Crisis Response Strategies 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 Vocal Commiseration Strategies � Concern: organization does not admit guilt, but

Crisis Response Strategies 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.

Crisis Response Strategies Rectifying Behavior Strategies � Investigation: short-term strategy to examine the facts

Crisis Response Strategies 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 Strategic Inaction � Silence: may choose to remain silent when it

Crisis Response Strategies 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 Crises can range from natural disasters to crises brought on by carelessness.

Final Thoughts 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 Seitel, F. P. (2011). The Practice of Public Relations. Prentice Hall: Boston.

References Seitel, F. P. (2011). The Practice of Public Relations. Prentice Hall: Boston.