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Crisis Management
Definition
• A crisis is defined as an event that by its nature
or its consequences:
• constitutes a threat to vital national interests
or to the essential needs of the organization,
its stakeholders or public;
• prompts rapid decision making;
• demands coordination between different
departments and organisms
Key features of a Crisis
• Low probability
• High impact
• Uncertain/ambiguous causes and
effects
Common features of a crisis
• The situation materialises unexpectedly (strong element of
surprise)
• Decisions are required urgently
• Time is short
• Specific threats are identified
• Urgent demands for information are received
• There is sense of loss of control
• Pressures build over time
• Routine business become increasingly difficult
• Demands are made to identify someone to blame
• Outsiders take an unaccustomed interest
• Reputation suffers
• Communications are increasingly difficult to manage
Types of Crises
• Natural disasters
• Malevolence
• Technical breakdowns
• Human breakdowns
• Challenges
• Mega-damage
• Organizational misdeeds
• Workplace violence
• Rumors
Crisis Management
• prevents a crisis from becoming a catastrophe.
• Crisis management can be defined as a system or
methodology of solving crisis situations. We can be
sure that the actual crisis situation will differ from our
expectation.
A crisis is like a virus, the effects can be sudden, insidious,
infectious and extremely dangerous…
Problem characterizationProblem characterization
Crisis management is a very complex and not easily
predictable process. The problem can be explicated in
three claims:
• Nobody knows when a crisis event will happen.
• The scenario of a crisis/emergency event can be
expected and prepared for but the real situation will
change it.
• Our knowledge of a crisis/emergency event solution
is developed step-by-step and hour-by-hour and its
”current version” has to be utilized continuously in
the crisis event solution.
Purpose of crisis management:
• Prevention
• Survival
• Successful outcomes
Three criteria of success
• Has organisational capacity been restored?
• Have losses been minimised?
• Have lessons been learned?
Crisis Planning
• Assess risks
• Produce plans
• Define roles and responsibilities
• Appoint crisis management team
• Draw up communication plan
• Produce contact and organisation chart
• Promote crisis-ready culture
• Publish plans and conduct training
• Test, review and practise
• Plan in advance
• Rehearse via simulation
• Stipulate who the spokesperson is
• Crisis is no time to find yourself on a learning curve.
Community measures and Emergency procedures are
essential
• Planning requires that crisis can occur at any time. Nine out
of ten crisis occur when you are asleep, probably after a late
night or at a week-end!
Pre-Crisis Actions and
Preparations
• Pre-crisis actions costs are often (but not always) a tiny
fraction of the losses that are typically incurred by crisis for
which there has been inadequate preparation;
• It is very easy to underestimate the damage a crisis can do and
the costs it can have.
Pre-Crisis Actions and Preparations
• Emergency Procedures
• Staff awareness
• Network of experts for urgent meeting/advice
• Standard Decisions (safeguard clauses) ready in all official
languages
Pre-Crisis Actions and Preparations
Pre-crisis actions and preparations
• The crisis unfolds
• After the crisis
• In a Nutshell
The Crisis Unfolds
• Appointment of a press contact person who is
always available and ready to reply immediately
• Quick reaction in taking and repealing measures
• Dispatch of information in real time
• Consistency of information (everyone should
have the same story)
• Development of a detailed chronology
The Crisis Unfolds
• The services/officials concerned ought to show
flexibility and may have to stay late hours, work on
week-ends or report their vacations
• The work-plans and tasks should be re-organized so
as to allow for an effective management of the crisis
and all its side effects (letters, working groups…)
• Risk assessors and risk managers must work in strict
co-operation!
The Crisis Unfolds
• Coordination between the Units and Directorates
concerned is essential, so as to ensure that all the
aspects of the crisis are being tackled .
• Show sympathy for those affected by the crisis.
After the Crisis
• Promote positive stories in the media
• Analyze the management of the crisis
• Update Emergency Procedures
In a Nutshell
Be prepared
• Sooner or later you may also be involved in a crises,
which will involve a lot of extra work
• What is the most likely scenario for you/your
service? Are you ready for it?
• The crisis may be worse than you expected!
In a Nutshell
Say the truth
• People and institutions do not like facing and
managing crisis. This may lead them into half-
truths, lies and evasions
• What is said to the media, other bodies needs to be
updated and consistent
Role of apologies in crisis
management
• Controversial - for fear of legal outcomes
• Evidence says that a compensation and sympathy are effective
• True contrition includes sympathy for victims and offers of
compensation to offset losses or suffering
In a Nutshell
Be visible
• If the crisis is major, then organization needs to be at the site of
the crisis quickly and to be visible
• Failure to show sympathy will be punished by the media and by
all members of the public and can destroy the reputation of the
organization
Crisis Communications
Communication plan:
Core elements are:
• Identifying audiences (Who?)
• How communication is to take place (How?)
• What messages are to be communicated (What?)
The core process is:
• Active, two-way communication
The Top 12 Crises of 2015
1.Volkswagen
2. FIFA
3. Chipotle
4. Ashley Madison
5. HSBC
6. Petrobas-Dilma Roussef (company executives accepted bribes from a
cartel of 20 companies)
7. Mecca Crane Collapse
8.Starbucks (wading into the discussions around race that followed
police shootings in Ferguson and elsewhere)
9.Theranos
10. Nestle India

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Chapter 2 (crisis management)

  • 2. Definition • A crisis is defined as an event that by its nature or its consequences: • constitutes a threat to vital national interests or to the essential needs of the organization, its stakeholders or public; • prompts rapid decision making; • demands coordination between different departments and organisms
  • 3. Key features of a Crisis • Low probability • High impact • Uncertain/ambiguous causes and effects
  • 4. Common features of a crisis • The situation materialises unexpectedly (strong element of surprise) • Decisions are required urgently • Time is short • Specific threats are identified • Urgent demands for information are received • There is sense of loss of control • Pressures build over time • Routine business become increasingly difficult • Demands are made to identify someone to blame • Outsiders take an unaccustomed interest • Reputation suffers • Communications are increasingly difficult to manage
  • 5. Types of Crises • Natural disasters • Malevolence • Technical breakdowns • Human breakdowns • Challenges • Mega-damage • Organizational misdeeds • Workplace violence • Rumors
  • 6. Crisis Management • prevents a crisis from becoming a catastrophe. • Crisis management can be defined as a system or methodology of solving crisis situations. We can be sure that the actual crisis situation will differ from our expectation. A crisis is like a virus, the effects can be sudden, insidious, infectious and extremely dangerous…
  • 7. Problem characterizationProblem characterization Crisis management is a very complex and not easily predictable process. The problem can be explicated in three claims: • Nobody knows when a crisis event will happen. • The scenario of a crisis/emergency event can be expected and prepared for but the real situation will change it. • Our knowledge of a crisis/emergency event solution is developed step-by-step and hour-by-hour and its ”current version” has to be utilized continuously in the crisis event solution.
  • 8. Purpose of crisis management: • Prevention • Survival • Successful outcomes
  • 9. Three criteria of success • Has organisational capacity been restored? • Have losses been minimised? • Have lessons been learned?
  • 10. Crisis Planning • Assess risks • Produce plans • Define roles and responsibilities • Appoint crisis management team • Draw up communication plan • Produce contact and organisation chart • Promote crisis-ready culture • Publish plans and conduct training • Test, review and practise
  • 11. • Plan in advance • Rehearse via simulation • Stipulate who the spokesperson is • Crisis is no time to find yourself on a learning curve. Community measures and Emergency procedures are essential • Planning requires that crisis can occur at any time. Nine out of ten crisis occur when you are asleep, probably after a late night or at a week-end! Pre-Crisis Actions and Preparations
  • 12. • Pre-crisis actions costs are often (but not always) a tiny fraction of the losses that are typically incurred by crisis for which there has been inadequate preparation; • It is very easy to underestimate the damage a crisis can do and the costs it can have. Pre-Crisis Actions and Preparations
  • 13. • Emergency Procedures • Staff awareness • Network of experts for urgent meeting/advice • Standard Decisions (safeguard clauses) ready in all official languages Pre-Crisis Actions and Preparations
  • 14. Pre-crisis actions and preparations • The crisis unfolds • After the crisis • In a Nutshell
  • 15. The Crisis Unfolds • Appointment of a press contact person who is always available and ready to reply immediately • Quick reaction in taking and repealing measures • Dispatch of information in real time • Consistency of information (everyone should have the same story) • Development of a detailed chronology
  • 16. The Crisis Unfolds • The services/officials concerned ought to show flexibility and may have to stay late hours, work on week-ends or report their vacations • The work-plans and tasks should be re-organized so as to allow for an effective management of the crisis and all its side effects (letters, working groups…) • Risk assessors and risk managers must work in strict co-operation!
  • 17. The Crisis Unfolds • Coordination between the Units and Directorates concerned is essential, so as to ensure that all the aspects of the crisis are being tackled . • Show sympathy for those affected by the crisis.
  • 18. After the Crisis • Promote positive stories in the media • Analyze the management of the crisis • Update Emergency Procedures
  • 19. In a Nutshell Be prepared • Sooner or later you may also be involved in a crises, which will involve a lot of extra work • What is the most likely scenario for you/your service? Are you ready for it? • The crisis may be worse than you expected!
  • 20. In a Nutshell Say the truth • People and institutions do not like facing and managing crisis. This may lead them into half- truths, lies and evasions • What is said to the media, other bodies needs to be updated and consistent
  • 21. Role of apologies in crisis management • Controversial - for fear of legal outcomes • Evidence says that a compensation and sympathy are effective • True contrition includes sympathy for victims and offers of compensation to offset losses or suffering
  • 22. In a Nutshell Be visible • If the crisis is major, then organization needs to be at the site of the crisis quickly and to be visible • Failure to show sympathy will be punished by the media and by all members of the public and can destroy the reputation of the organization
  • 24. Communication plan: Core elements are: • Identifying audiences (Who?) • How communication is to take place (How?) • What messages are to be communicated (What?) The core process is: • Active, two-way communication
  • 25. The Top 12 Crises of 2015 1.Volkswagen 2. FIFA 3. Chipotle 4. Ashley Madison 5. HSBC 6. Petrobas-Dilma Roussef (company executives accepted bribes from a cartel of 20 companies) 7. Mecca Crane Collapse 8.Starbucks (wading into the discussions around race that followed police shootings in Ferguson and elsewhere) 9.Theranos 10. Nestle India