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Crisis management


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Crisis management

  1. 1. Crisis Management September 27
  2. 5. Today <ul><li>Introduction and admin </li></ul><ul><li>Quick look at traditional PR </li></ul><ul><li>Recognise the difference between pro active PR and Crisis Management </li></ul><ul><li>Discuss Crisis Management exercises </li></ul><ul><li>Questions </li></ul><ul><li>Task for next week </li></ul>
  3. 6. Th
  4. 7. The official definition of the Institute of Public Relations - <ul><li>Public relations... </li></ul><ul><li>is about reputation: the result of what you do, what you say and what others say about you </li></ul>
  5. 8. Public relations practice <ul><li>is the discipline which looks after reputation – with the aim of earning </li></ul><ul><li>understanding and support, and influencing opinion and behaviour. </li></ul><ul><li>It is the planned and sustained effort to establish and maintain goodwill and </li></ul><ul><li>understanding between an organisation and its publics </li></ul>
  6. 9. Peter Hutton of research organisation MORI <ul><li>The planned attempt/effort to influence what people know and think about, and </li></ul><ul><li>how they behave towards, a company, organisation, product, service or cause </li></ul>
  7. 10. The basic elements of a PR strategy are: <ul><li>Aim: “What do we want to achieve?” </li></ul><ul><li>Research: “What do people think of us/our product? </li></ul><ul><li>What do we want them to think?” </li></ul><ul><li>Objective(s): “What are the measurable steps we can take to achieve the aim? </li></ul><ul><li>Messages: “What do we need to tell them?” </li></ul><ul><li>Audiences: “Who do we need to tell it to?” </li></ul>
  8. 11. Basic aims of a PR strategy <ul><li>Channels: “How do they receive their information? How are their opinions and </li></ul><ul><li>attitudes formed?” </li></ul><ul><li>Methods: “How do we do it?” </li></ul><ul><li>Resources: “What are the budget, people and facilities?” </li></ul><ul><li>Timescale: “When do we do what?” </li></ul><ul><li>Evaluation: “Is it working?” </li></ul>
  9. 12. Typical PR devices include: <ul><li>Announcing new products and services </li></ul><ul><li>Events </li></ul><ul><li>Surveys </li></ul><ul><li>Media relations </li></ul><ul><li>Press releases </li></ul><ul><li>Press conferences </li></ul><ul><li>Sponsorships </li></ul>
  10. 13. Typical PR devices include: <ul><li>Awards </li></ul><ul><li>Conferences and seminars </li></ul><ul><li>Speeches </li></ul><ul><li>Open days </li></ul><ul><li>Employee activities </li></ul><ul><li>Lobbying </li></ul><ul><li>Case histories </li></ul>
  11. 14. Typical PR devices include <ul><li>Community activity </li></ul><ul><li>Exhibitions </li></ul><ul><li>Spokespeople </li></ul><ul><li>Investor Relations </li></ul><ul><li>Internet: web sites; streaming; forums… </li></ul>
  12. 15. So what makes a crisis? <ul><li>A simple definition from Michael Bland author of When It Hits The Fan </li></ul>
  13. 16. What is a crisis <ul><li>A serious incident that affects, for example, human safety, the environment,and/or product or corporate reputation – and that has attracted or could attract adverse publicity </li></ul>
  14. 17. What would you do? Test your crisis skills <ul><li>A crisis or major issue strikes your organisation and its reputation </li></ul><ul><li>is on the line – maybe its very existence </li></ul><ul><li>How well would you cope? </li></ul><ul><li>The following are all real-life examples. How would you handle them </li></ul>
  15. 18. <ul><li>1 You sell baby care products nationwide and a lone scientist </li></ul><ul><li>claims to have discovered that a chemical in cot mattresses is </li></ul><ul><li>the cause of mystery cot deaths. A national consumer </li></ul><ul><li>television programme tells you that they are going to </li></ul><ul><li>broadcast a documentary profiling the scientist’s claims and </li></ul><ul><li>your mattresses. You are certain that the scientist’s research is </li></ul><ul><li>flawed and that your mattresses are safe – but it could take </li></ul><ul><li>months to prove it. You </li></ul>
  16. 19. <ul><li>a) robustly argue against the scientist’s claims on the programme </li></ul><ul><li>and elsewhere – and run a customer reassurance programme. </li></ul><ul><li>b) say and do nothing, as the scientist is a lone wolf and the </li></ul><ul><li>programme is only a one-off – so the fuss will all die down </li></ul><ul><li>soon. </li></ul><ul><li>c) withdraw all your cot mattresses from sale at a huge cost to </li></ul><ul><li>yourselves, announcing that you are certain they are safe but </li></ul><ul><li>will leave absolutely nothing to chance </li></ul>
  17. 20. <ul><li>2 You run a food chain and a Sunday tabloid newspaper calls </li></ul><ul><li>you late on a Friday to say that your burgers have been </li></ul><ul><li>When it hits the fan • 5 </li></ul><ul><li>Page 4identified as ‘Worst in the Country’ in a survey of fast food </li></ul><ul><li>outlets. They will run the story on Sunday’s front page and </li></ul><ul><li>ask if you would like to comment. You </li></ul>
  18. 21. Q2: <ul><li>a:1 b:5 (the brilliantly successful choice of Happy Eater </li></ul><ul><li>against the Sunday People) c:0 </li></ul>
  19. 22. <ul><li>a) call in your lawyers and seek an injunction to stop the </li></ul><ul><li>newspaper publishing. </li></ul><ul><li>b) offer the newspaper a deal offering a free burger to anyone who </li></ul><ul><li>visits one of your outlets on Sunday morning carrying a copy </li></ul><ul><li>of their newspaper. </li></ul><ul><li>c) provide the newspaper with a written statement defending </li></ul><ul><li>your burgers and warn them that you will sue them out of </li></ul><ul><li>existence if they unfairly harm the reputation of your product. </li></ul><ul><li>3 </li></ul>
  20. 23. <ul><li>4 A former employee says that unless he is reinstated and paid </li></ul><ul><li>compensation for what he claims to be unfair dismissal he </li></ul><ul><li>Introduction </li></ul><ul><li>6 • When it hits the fan </li></ul><ul><li>Page 5will go to the press with a big dossier of alleged corruption, </li></ul><ul><li>including large scale customer rip-offs. Some of the </li></ul><ul><li>allegations could be true but you don’t have time to </li></ul><ul><li>investigate before his deadline. You </li></ul>
  21. 24. Q 4: <ul><li>: a: 5 b: 0 c: 2 (in real life the company concerned chose </li></ul><ul><li>option c and it worked. Option a assumed a high likelihood </li></ul><ul><li>of the story getting out and created an opportunity to </li></ul><ul><li>demonstrate integrity to customers </li></ul>
  22. 25. <ul><li>) pre-empt him by going to the press yourself, showing </li></ul><ul><li>concern at the allegations and demonstrating to your </li></ul><ul><li>customers that you are launching an independent </li></ul><ul><li>investigation, and will compensate them if any actual </li></ul><ul><li>malpractice is discovered. </li></ul><ul><li>b) give in to his demands and keep it all quiet. </li></ul><ul><li>c) call his bluff and tell him you’re not giving in. </li></ul>
  23. 26. <ul><li>6 You operate a large chemical plant which has leaked a small </li></ul><ul><li>volume of toxin into a major river, killing hundreds of </li></ul><ul><li>thousands of fish which are floating for miles downstream. </li></ul><ul><li>The local community and the media are incensed, but you </li></ul><ul><li>have quickly identified the source of the leak, repaired it and </li></ul><ul><li>all is now safe and well. You </li></ul>
  24. 27. <ul><li>a) close the plant – even though you don’t actually need to – while </li></ul><ul><li>you are seen to conduct an independent investigation into the </li></ul><ul><li>leak. </li></ul><ul><li>b) apologise and offer compensation – but keep the plant </li></ul><ul><li>running. </li></ul><ul><li>c) close the plant, apologise and compensate </li></ul>
  25. 28. What did you score? <ul><li>Before you add up your score, there are seldom any ‘right’ or </li></ul><ul><li>‘ wrong’ answers in crisis management. Sometimes you can do the </li></ul><ul><li>‘ wrong’ thing and get away with it, and sometimes you can do </li></ul><ul><li>everything ‘right’ and still be deep in it. Crisis is about a balance of </li></ul><ul><li>judgement, so all the answers here are potentially valid solutions. </li></ul><ul><li>But higher marks are given for the ones which will probably do </li></ul><ul><li>most to help you come out smelling of roses </li></ul>
  26. 29. Q1: <ul><li>a:3 b:1 c:5 (the real life action by Boots the Chemist </li></ul>
  27. 30. Q 6: <ul><li>a: 3 b: 3 c: 5 (all choices are ‘correct’ but c. would be the text </li></ul><ul><li>book answer. In real life, the company concerned only chose </li></ul><ul><li>option b and still came out of it pretty well </li></ul>
  28. 31. Many of the real-life examples in happened in the UK but the country is irrelevant <ul><li>the lessons from one country apply </li></ul><ul><li>with equal validity to all. But much of crisis management best </li></ul><ul><li>practice is derived from the UK because it has probably the world’s </li></ul><ul><li>most cynical public attitudes and the most sensationalist and </li></ul><ul><li>hostile media. If you can handle an issue or crisis in Britain, you </li></ul><ul><li>can handle one anywhere. </li></ul>