3. What is a crisis?
Any situation that is threatening or could
threaten to harm people or property,
seriously interrupt business, damage
reputation or negatively impact share
value.
4. Crisis
(a) a threat to the organization
(b) the element of surprise, and
(c) a short decision time
20. Bophal
1984
Gas leak at Union Carbide‟ pesticide
World‟s worst industrial disaster
560.000 injured
Dow Chemicals
21. Crisis management consists of:
• Methods used to respond to both the reality
and perception of crises (crisis management
plan)
• Establishing metrics to define what
scenarios constitute a crisis and should
consequently trigger the necessary
response mechanisms.
• Communication that occurs within the
response phase of emergency management
scenarios.
22. Crisis management has four objectives:
• Reducing tension during the incident
• Demonstrating corporate commitment and
expertise
• Managing resources effectively
• Controlling the flow and accuracy of
information
25. The Crisis Life Cycle
• Stage one: The Storm Breaks
• Stage two: The Storm Rages
• Stage three: The Storm Passes
26. 1- The Breaking Crisis
• Control seems to be slipping out of the
company.
• Lack of solid detail about the crisis. Hard-to-
provide information demanded by the media,
analysts and others.
• Temptation to resort to a short-term focus, to
panic and to speculate.
• For a period of time, everyone loses perspective.
27. 2- Spread and Intensification of Crisis
• Speculation and rumours develop in the
absence of hard facts.
• Third parties- regulators, scientists and other
experts – add weight to the climate of opinion.
• Corporate management comes under intense
scrutiny from internal and external groups.
28. 3- Rebuilding Needs
• To manage reputation. There are opportunities
in a crisis to build positive perceptions of the
company or product that last beyond the crisis
period.
• Company communication/ culture. The
company embarks on a long-term programme to
tackle management issues and communication
problems that exacerbated the crisis.
29. Challenges in Crisis Decision-Making
• Surprise and hesitation. The shock of a crisis
can create a delay in response that allows your
critics and the media to fill the gap with negative
comment and speculation
CRISIS RESPONSE
30. Challenges in Crisis Decision-Making
• Pressure and stress must be channelled by the
discipline of a crisis strategy.
31. Challenges in Crisis Decision-Making
Mistaking information distribution for communication
the risk of floor mat entrapment
32. Challenges in Crisis Decision-Making
• Don‟t treat key audiences as “opponents”?
33. Tips
Good communication
• is the heart of any crisis management plan
• should reduce tension
• demonstrate a corporate commitment to
correct the problem and take control of the
information flow
• involves communicating with the media,
employees, neighbours, investors,
regulators and lawmakers
50. a crisis
• may affect you, by damaging your brand
reputation, bring legal actions, internal
turmoil, loose shareholders‟ confidence
and slash market value
or
• may benefit you, by providing you visibility
51. • Most organizations have risk management
plans, foreseeing fires, storms, floods and
other risk and crisis scenarios
• Very few organizations have:
– communication strategies
– media crisis plans
52. The most common reasons for management
to ignore the warning signs are:
- denial that a crisis can happen
- belief in the current procedures and
- concerns for the effect disclosure may
have on the reputation of the organization.
53.
54. Be aware
• The public does not care what turmoil the
organisation is in – they want assurances
that something is being done and that they
are being protected.
• Media should not be regarded as the
enemy, but as a significant stakeholder
that can shape the perceptions of an
organisation's performance during a crisis.
55. How to get it right
• Bring the news media inside your crisis:
– Be proactive, to remain in control
– Don‟t talk off the record
– Press releases
– Collateral materials
• Let them watch at close range how you
handle the crisis
56. Be smart
• Being inside gives them special
knowledge and prestige
• The „Stockholm Syndrome‟ takes over
• Your organisation must take the time to
meet the needs of each media outlet
57. Tips
• Develop a loyal following before a crisis
strikes
• Leverage the powerful help of your still-
loyal customers
• Communicate right
• CEO shows up
