Crisis management in pr


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Crisis management in pr

  2. 2. DEFINITION Crisis Management is the systematic attempt to avoid organizational crisis, or to manage those crises events that do occur. PREPARED BY : MS GOMALA SUKUMARAN
  3. 3. WHAT IS CRISIS ? • Crisis is major, unpredictable event that threatens to harm an operation, staff, customers, reputation or the legal and financial status of an organization. • Crisis can strike any time and during this Situation it tends to be - Confusion, Uncertainty, fear. PREPARED BY : MS GOMALA SUKUMARAN
  4. 4. CONTINUED… • A crisis is an abnormal situation, or even perception, which is beyond the scope of everyday business and which threats the operation of an organization. • Crisis is an unpredictable events but it is unexpected. PREPARED BY : MS GOMALA SUKUMARAN
  5. 5. THREE COMMON ELEMENTS OF CRISIS • A threat to organization • The •A element short the of surprises decision time PREPARED BY : MS GOMALA SUKUMARAN
  6. 6. Types of crisis : PREPARED BY : MS GOMALA SUKUMARAN
  7. 7. ACCIDENTS AND NATURAL EVENTS • An accident or natural event of catastrophic magnitude can strike unexpectedly – whether it’s an earthquake, typhoon, tornado, hurric ane, blizzard, flood, fire, or some other disaster. • The impact of accidents and natural events can also be felt indirectly such as a break in supply – chain linkages. PREPARED BY : MS GOMALA SUKUMARAN
  8. 8. HEALTH AND ENVIRONMENTAL DISASTERS • Some health and environmental – related disasters though not necessarily caused by a company, are directly related to it. The company is responsible or is perceived to be responsible to deal with it. • Some catastrophic accidents such as in the Bhopal Gas Tragedy in 1984, are expensive to fix and cause real damage to the people. PREPARED BY : MS GOMALA SUKUMARAN
  9. 9. TECHNOLOGICAL BREAKDOWNS • A break down in technology could put a halt in the functioning of an organization. • The crisis potential of technological breakdowns grows as businesses become more dependent on computers to communicate, store information, conduct research, buy and sell. PREPARED BY : MS GOMALA SUKUMARAN
  10. 10. ECONOMIC AND MARKET FORCES • The fortunes of all businesses are to some extent bound to the ups and downs of the economic cycle. • Down phases are particularly dangerous for companies with fixed high costs, such as heavy investments in plants and equipment. PREPARED BY : MS GOMALA SUKUMARAN
  11. 11. EMPLOYEES • All companies depend on people to get things done. • With a greater need for speed and flexibility, employees are being given greater discretion over decisions. • An employee acting without close supervision or consultation may throw the organization into crisis PREPARED BY : MS GOMALA SUKUMARAN
  12. 12. THREE MAINSTAGES PHASES Pre crisis Crisis response PREPARED BY : MS GOMALA SUKUMARAN Postcrisis.
  13. 13. STAGES IN CRISIS MANAGEMENT PRE-CRISIS PHASE • The pre-crisis phase is concerned with prevention and preparation. • Prevention involves seeking to reduce known risks that could lead to a crisis. This is part of an Organization’s risk management program. • Preparation involves creating the crisis management • Plan, selecting and training the crisis management team, and conducting exercises to test the Crisis management plan and crisis management team. PREPARED BY : MS GOMALA SUKUMARAN
  14. 14. CRISIS RESPONSE • The crisis response is what management does and says after the crisis hits. Public relations plays a critical role in the crisis response by helping to develop the messages that are sent to various publics. • A great deal of research has examined the crisis response. That research has been divided into two sections: – (1) the initial crisis response and – (2) Reputation repair and behavioral intentions PREPARED BY : MS GOMALA SUKUMARAN
  15. 15. POST-CRISIS PHASE • In the post-crisis phase, the organization is returning to business as usual. The crisis is no longer • the focal point of management’s attention but still requires some attention. PREPARED BY : MS GOMALA SUKUMARAN
  17. 17. RISE OF THE CONTROVERSY • State FDA Commissioner Uttam Khobragade said a group of people approached him with chocolates that had worms in them. • Sebastian Fernandez had purchased Cadbury Dairy Milk chocolate from a shop at Pick and Pay, Vile Parle. • Fernandez discovered that the chocolate (Batch No28F3I10703) had worms in it. • Fernandez complained to the shopkeeper Jitendra Shah who later informed Pravin Marve, vice-president, Andheri Vyapar Manch. • Marve then contacted the FDA and gave them the sample. FDA Joint Commissioner Hindurao Salunkhe said Cadbury's Talegaon plant will also be inspected. PREPARED BY : MS GOMALA SUKUMARAN
  18. 18. EFFECTS OF THE CONTROVERSY ON CADBURY • The state Food and Drug Administration has ordered abduction of Cadbury's Dairy Milk chocolates from all over Maharashtra after worms were found in two of them in Mumbai. • bad storage practices by retailers and distributors that had led to the worms. • Festival season sales (Cadbury sells almost 1,000 tones of chocolates during Diwali) plummeted 30 per cent. PREPARED BY : MS GOMALA SUKUMARAN
  19. 19. ROLE OF THE PUBLIC RELATIONS • NOT DENYING THE FACT  Maharashtra Food and Drug Administration had given a clean chit to the company's two plants in the state.  tell consumers about improper storage  Bharat Puri, Cadbury's mild-mannered MD, went to media offices around the country PREPARED BY : MS GOMALA SUKUMARAN
  20. 20. ROLE OF THE PUBLIC RELATIONS (cont…) • TAKING PRECAUTIONS  company launched Project Vishwas, a retail education programme.(generating awareness and providing assistance in improving storage quality.) “Steps to ensure quality & regain the confidence”  new double packaging even for the smallest offering  wrapped in aluminium foil and enclosed in a poly flow pack, which was sealed on all sides.  company also carried out quality checks PREPARED BY : MS GOMALA SUKUMARAN
  21. 21. ROLE OF THE PUBLIC RELATIONS (cont…) GAINING BACK TRUST AB played a pivotal role in all communication relating to Cadbury's products and brands created a campaign which aimed for both rational and emotional appeal. PREPARED BY : MS GOMALA SUKUMARAN
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  23. 23. ROLE OF THE PUBLIC RELATIONS BENEFITS OF A GOOD CAMPAIGN • The company bounced back soon after the campaign hit the screens. Between October 2003 and January 2004, Cadbury's value share melted from 73 per cent in to 69.4 per cent. The recovery began in May 2004 when Cadbury's value share went up to 71 per cent. PREPARED BY : MS GOMALA SUKUMARAN
  24. 24. CRISIS MANAGEMENT PROGRAMS Although no two Crisis Management Programs are exactly alike, there are critical aspects of any Crisis Management Program. The need for an effective Crisis Management Program cannot be underestimated. Such a program provides for: • Effective coordination of activities among the organizations having a management/response role; • Early warning and clear instructions to all concerned if a crisis occurs; • Continued assessment of actual and potential consequences of the crisis. • Continuity of business operations during and immediately after the crisis. PREPARED BY : MS GOMALA SUKUMARAN
  25. 25. FOUR STAGES OF CRISIS MANAGEMENT • Compliance • Preparedness • Training & Resource Development • Information Management PREPARED BY : MS GOMALA SUKUMARAN
  26. 26. COMPLIANCE • An effective system for compliance can be developed only if there is adequate awareness of what laws and regulations pertain to the organization’s operation. • In order to accomplish this task, a survey of all operations should be undertaken to identify areas in need of attention, establishing a list of potential crisis situations and documenting current efforts. • Once the survey program has been developed and implemented, it must be evaluated and kept up-to-date. PREPARED BY : MS GOMALA SUKUMARAN
  27. 27. CONTINUED… • The survey program is the initial step, toward reducing vulnerability. Next, the operation must be organized. All levels of management must become part of the program. This can be achieved by : • Assigning a senior manager to a position like that of a “ Crisis Management Program, Director” who is directly responsible to top management & the board of directors. • Preparing an agenda for senior staff and board of director meetings that includes a discussion of crisis management preparedness as a mandatory item. • Making crisis management planning issues part of the strategic planning process. • Communicating compliance through all levels of the organization through company policy and procedures. PREPARED BY : MS GOMALA SUKUMARAN
  28. 28. PREPAREDNESS Preparedness used in the broadest context means any and all measures taken to prevent, prepare for, respond, mitigate and recover from a crisis. Preparedness consists of four critical aspects: • Preparation and Prevention: These refer to any set of activities that prevent a crisis, reduce the chance of a crisis happening, or reduce the damaging effects of a crisis. • Detection and Incident Classification: These include actions taken to identify, assess and classify the severity of a crisis. • Response and Mitigation: These include actions taken to save lives, prevent further damage and reduce the effects of the crisis. • Reentry and Recovery: These include actions taken to return to a normal or an even safer situation following the crisis. PREPARED BY : MS GOMALA SUKUMARAN
  29. 29. TRAINING AND RETRAINING The training of the Crisis Management/Response Organization is one of the critical success factors that must be addressed if an adequate response is to be achieved. An approach to preparing effective training programs should consist of : PREPARED BY : MS GOMALA SUKUMARAN
  30. 30. TASK ANALYSIS • When designing an integrated training program, the skills, knowledge and procedures required for satisfactory performance of each task must be determined. PREPARED BY : MS GOMALA SUKUMARAN
  31. 31. LESSON DEVELOPMENT • Learning objectives are defined from the skills, knowledge and procedures developed during task analysis. • Instructional plans are then prepared to support the learning objectives. PREPARED BY : MS GOMALA SUKUMARAN
  32. 32. INSTRUCTION • Lessons are systematically presented using appropriate instructional methods. Instruction may include lecture, self-paced or group-paced mediated instruction, simulation and team training. PREPARED BY : MS GOMALA SUKUMARAN
  33. 33. EVALUATION • Performance standards and evaluation criteria are developed from the learning objectives. • Each trainee's performance is evaluated during the course and during field performance testing. PREPARED BY : MS GOMALA SUKUMARAN
  34. 34. Information management  The crisis management process doesn't end just because you finished the crisis management plan, are in compliance, have involved management and trained the staff.  In order to facilitate planning requirements, a record of all initiatives should be retained. These records serve to document the accomplishments, requirements, commitments and reports relating to various program requirements. The identification of commitments in the areas of compliance, emergency preparedness and training is vital.  The establishment of a defined information management system structure will ensure that documentation will be available when needed. PREPARED BY : MS GOMALA SUKUMARAN
  35. 35. COMMON WEAKNESSES IN CRISIS MANAGEMENT PLANNING • No systematic collection of planning information. • No systematic dissemination of planning information. • Failure to identify and establish an incident command structure. • No, or minimal, coordination with effected entities. Poor communications with the community, neighboring industries, identified support entities can lead to confusion and chaos during an emergency. PREPARED BY : MS GOMALA SUKUMARAN
  36. 36. CONTINUED… • Lack of, or poorly defined, organizational responsibilities. • Once developed the program is not maintained or is, at best, poorly maintained. • The program lacks simple, easy-to-use supplemental materials that can be used as a quick reference guide during an emergency. • Failure in the dissemination of the plan to the proper authorities. PREPARED BY : MS GOMALA SUKUMARAN
  37. 37. How to deal with a crisis ? Never lie or claim ignorance on a particular matter. The media are extremely good at recognizing and uncovering lies, and the resulting story about a company’s deceit is often more newsworthy than the original issue. Immediately gather your senior management and fully describe to them the problem and how you intend to address it. Contact your attorneys and make them aware of exactly what is going on. Do not try to "sugar coat" the circumstances. They must know the full extent of the problem. PREPARED BY : MS GOMALA SUKUMARAN
  38. 38. CONTINUED… Decide how you will communicate the problem to the public, your customers, suppliers, shareholders, and others. It is essential that you be proactive and communicate with all constituencies. Contact other interested parties such as lenders, regulators, and organizations/associations that represent your industry. Again, be as clear and accurate as you possibly can be with the details. PREPARED BY : MS GOMALA SUKUMARAN
  39. 39. 10 CRISIS MISTAKES 1. Don't fall apart. Unraveling is no way to hold things together. If you become a basket case, everyone else will, too. 2. Don't freeze or become immobilized. CM requires action, not paralysis. 3. Don't run away -- physically, mentally or emotionally. The first keys to recovery from mishap are presence and visibility. 4. Don't ignore the problem. Pretending bad things didn't happen won't make them go away. It will only make you look like a fool on top of everything else. PREPARED BY : MS GOMALA SUKUMARAN
  40. 40. CONTINUED… 5. Don't deny the obvious. Denial is a form of lying. 6. Don't attempt a cover-up. It usually makes things worse. 7. Avoid blaming and finger-pointing. These are excuses, not solutions. 8. Don't procrastinate. Delaying action only adds to the problem. PREPARED BY : MS GOMALA SUKUMARAN
  41. 41. CONTINUED… 9. Don't just keep on doing what you've been doing. When something goes wrong, more of the same is not an antidote. 10. Don't give up. Once you surrender, there is no possibility for triumph. During the dark hours, avoiding costly mistakes can give you a leg up on out-lasting disaster. PREPARED BY : MS GOMALA SUKUMARAN
  42. 42. CONCLUSION • Crisis management deals with incidents of major impact. • Failing to plan for incidents may result in casualties and poor safety procedures, with many potential losses including money, equipment, reputation, staff morale, market share and ultimately loss of the business itself. • So, it is the one that saves lives, property and other assets. PREPARED BY : MS GOMALA SUKUMARAN
  43. 43. CONCLUSION A crisis management plan generates order out of chaos. It needs strong leadership by welltrained and rehearsed individuals. Everyone within an organization should know what his or her role is in a crisis and should be prepare to deal with one. PREPARED BY : MS GOMALA SUKUMARAN
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