This document discusses crisis management and provides examples. It defines crisis management as dealing with unpredictable threats before, during and after they occur. There are typically three elements to a crisis: a threat, an element of surprise, and a short decision time. Crisis management involves establishing metrics to define crisis scenarios and communicating effectively during responses. Organizational credibility can be influenced by crisis responses. The document outlines various types of crises and provides Toyota as an example of a crisis management failure due to a lack of timely and full communication.

1. CRISIS MANAGEMENT
Eng.Ahmed Ali El-Kosairy
Eng.aelkosairy@gmail.com

2. Crisis Management
Crisis management is the process by which an
organization deals with a major unpredictable event
that threatens to harm the organization, its
stakeholders, or the general public

3. Elements of a Crisis
Three elements are common to most definitions of crisis:
(a)a threat to the organization,
(b) the element of surprise,
(c)a short decision time

4. Elements of a Crisis
• Crisis management & risk management
• In contrast to risk management, which involves
assessing potential threats and finding the best ways
to avoid those threats, crisis management involves
dealing with threats before, during, and after they
have occurred. It is a discipline within the broader
context of management consisting of skills and
techniques required to identify, assess, understand,
and cope with a serious situation, especially from the
moment it first occurs to the point that recovery
procedures start

5. Crisis management - 1
Crisis management consists of:
• Methods used to respond to both the reality and
perception of crises
• 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

6. Crisis Management - 2
The credibility and reputation of organizations is heavily
influenced by the perception of their responses during
crisis situations

7. Crisis Management - 3
* respond to a crisis in a timely fashion makes for a
challenge in businesses.
* must be open and consistent communication
throughout the hierarchy to contribute to a successful
crisis communication process.

8. Types of Crises
• Natural disasters // fires,earthquakes, volcanic eruptions, tornadoes
and hurricanes, floods, tsunamis, storms, etc...
• Technical breakdowns // IPS , Microsoft
• Human breakdowns // employees
• Challenges // ww2 England , USA
• Organizational misdeeds
• Rumors // P&G Procter & Gamble logo, Intelligences

9. P&G Crisis
Products:
Camay
Gillette
Head & Shoulders
Herbal Essences
Pantene
Pert Plus
Ariel
Bonux
Braun
Downy
Tide

10. Crisis Management
Crisis management model - Gonzalez-Herrero and Pratt 95
There are 3 phases in any Crisis Management as shown
below :
1)The diagnosis of the Crisis or the danger signals.
2)Choosing appropriate Turnaround Strategy.
3)Implementation of the change process and its
monitoring.

11. Crisis Management
Crises of organizational misdeeds
- when management takes actions it knows will harm or
place stakeholders at risk for harm without
precautions

12. Crisis Management
Types of crises of organizational misdeeds:
- crises of deception
- crises of management .

13. Contingency
Planning
a plan devised for an outcome other than in the usual (expected)
plan.
when an exceptional risk that, though unlikely, would have
catastrophic consequences.
Example: “suppose many employees of a company are traveling
together on an aircraft which crashes, killing all aboard.”
The plan may also include standing policies to mitigate a
disaster's potential impact.

14. TOYOTA –
CRISIS MANAGEMENT FAILURE
Toyota’s communication strategy:
“Too little, too late”
Beyond the quality problem
Toyota mismanaged the crisis

15. TOYOTA
Basic Rules Violated
• For senior mgmt: crises must become their #1 priority
immediately.
• Sticking accelerators in 2008 - not treated as a serious
matter

16. TOYOTA
Basic Rules violated
Find facts & solutions fast:
- Toyota managers at first in denial
- accepted a ‘patch’ (remove floor mats), not solution
- when crisis exploded -- engineering solution/stopped
production
- Even today no one outside of Toyota knows what the
real problems are – open to speculation and rumors

17. TOYOTA
Basic rules violated
Communicate fully and accurately:
- to all constituents to sustain trust
- maintain trust with a recall
What Toyota did:
hushed problem and hoped it go away