Organizational Crisis A major unpredictable event that has ...


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Organizational Crisis A major unpredictable event that has ...

  1. 2. Organizational Crisis <ul><li>A major unpredictable event that has the potential to severely damage the organization’s reputation among employees, stockholders, and the general public </li></ul>
  2. 3. Organizational Crisis <ul><li>Natural disasters </li></ul><ul><li>Malevolence </li></ul><ul><li>Technical breakdowns </li></ul><ul><li>Human Error </li></ul><ul><li>Environmental Damage </li></ul><ul><li>Misdeeds </li></ul><ul><li>Violence </li></ul><ul><li>Rumors </li></ul>
  3. 4. Organizational Crisis <ul><li>More Frequent and Serious </li></ul><ul><ul><li>Globalization has created complex webs of financing, manufacturing, and distribution </li></ul></ul><ul><ul><li>Consumer and environmental groups carefully scrutinize business and government </li></ul></ul><ul><ul><li>24 hour Media/Internet </li></ul></ul><ul><ul><ul><li>Bad news travels fast! </li></ul></ul></ul>
  4. 5. “ Reputation is like fine china; fragile and easily broken” - Benjamin Franklin
  5. 6. “ If you lose money for the firm, I will be very understanding. If you lose reputation for the company, I will be ruthless.” - Warren Buffet
  6. 7. Crisis Communication <ul><li>What the organization says to its employees, the media, the community, customers, suppliers, stockholders and creditors during and after the crisis </li></ul>
  7. 8. Crisis Communication <ul><li>Goals </li></ul><ul><ul><li>Protect affected groups </li></ul></ul><ul><ul><li>Restore the organization’s image </li></ul></ul>
  8. 9. Crisis Management and Communication <ul><li>Crisis Team </li></ul><ul><ul><li>Pre crisis planning </li></ul></ul><ul><ul><li>Coordinates crisis management during the actual emergency </li></ul></ul><ul><ul><li>Oversees crisis communication with various groups </li></ul></ul>
  9. 10. Crisis Communication Strategies <ul><li>Denial </li></ul><ul><ul><li>Organization does not acknowledge wrongful act or denies that a wrongful act occurred </li></ul></ul><ul><ul><li>Simple Denial </li></ul></ul><ul><ul><li>Shifting the Blame </li></ul></ul><ul><li>Evading Responsibility </li></ul><ul><ul><li>Organization attempts to avoid or diminish responsibility for the crisis </li></ul></ul><ul><ul><li>Provocation </li></ul></ul><ul><ul><li>Defeasibility </li></ul></ul><ul><ul><li>Accident </li></ul></ul><ul><ul><li>Good Intentions </li></ul></ul>
  10. 11. Crisis Communication Strategies <ul><li>Reducing Offensiveness </li></ul><ul><ul><li>Organization tries to reduce degree of harm experienced by affected group. </li></ul></ul><ul><ul><li>Bolstering </li></ul></ul><ul><ul><li>Minimization </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Transcendence </li></ul></ul><ul><ul><li>Attack the Accuser </li></ul></ul><ul><ul><li>Compensation </li></ul></ul><ul><li>Corrective Action </li></ul><ul><ul><li>Organization vows to correct the problem that created the crisis </li></ul></ul><ul><ul><ul><li>Restoration </li></ul></ul></ul><ul><ul><ul><li>Prevention </li></ul></ul></ul><ul><li>Mortification </li></ul><ul><li>- Organization admits responsibility for the crisis and asks for forgiveness </li></ul>
  11. 12. Effective Crisis Communication <ul><li>Use multiple strategies in concert with one another </li></ul><ul><li>Support all strategies with strong reasoning and evidence </li></ul><ul><li>Exercise visible leadership from the highest executives </li></ul><ul><li>Identify target audiences and select strategies accordingly </li></ul>
  12. 13. Tylenol - 1982
  13. 14. Exxon Valdez - 1989
  14. 15. Effective Crisis Communication <ul><li>Control </li></ul><ul><ul><li>Determine goals and develop agenda </li></ul></ul><ul><ul><ul><li>Who is your specific target audience(s)? </li></ul></ul></ul><ul><ul><li>Assert your agenda! </li></ul></ul><ul><li>Confidence </li></ul><ul><ul><li>Enter as an equal and enthusiastic participant </li></ul></ul><ul><li>Credibility </li></ul><ul><ul><li>Ensure audience believes your message </li></ul></ul>
  15. 16. Effective Crisis Communication <ul><li>Message Points </li></ul><ul><ul><li>Concise thoughts, ideas, arguments and impressions that you most want to leave with your audience </li></ul></ul><ul><ul><li>Must be provable assertions that you can back up with facts </li></ul></ul><ul><ul><li>Look to goals of your interview to formulate your message points </li></ul></ul>
  16. 17. Structuring your presentation <ul><li>Introduction </li></ul><ul><li>Narrative (use strategies) </li></ul><ul><li>Use more strategies </li></ul><ul><li>Conclusion </li></ul>
  17. 18. Handling Questions <ul><li>Answers should be clear and concise </li></ul><ul><ul><li>- free of organizational jargon </li></ul></ul><ul><ul><li>- explain technical information in simple language/use analogies </li></ul></ul><ul><li>Don’t know the answers… </li></ul><ul><li>- avoid “no comment” </li></ul><ul><li>- don’t make things up </li></ul><ul><li>- indicate that you will get the answers ASAP </li></ul>
  18. 19. Handling Questions <ul><li>Be prepared for difficult, complicated questions </li></ul><ul><li>- Ask questioner to clarify or you can restate </li></ul><ul><li>- multipart questions, answer most favorable first </li></ul><ul><li>- “If you dread it, you will get it” </li></ul><ul><li>Correct and challenge questions based on erroneous information </li></ul><ul><li>Multiple choice questions </li></ul><ul><ul><ul><li>- make sure options are fair </li></ul></ul></ul><ul><ul><ul><li>- don’t feel constrained </li></ul></ul></ul>