Crisis Management

Crisis Management Lecture #9

In Class Assignment #5 • Name 5 crises that you can think of that have taken place in the fashion industry?

What Classifies a “Crisis” • Can range from: • Natural Disaster • Misrepresentation • Fraudulent Accusations • Rumors • Lies • Unpreparedness • Language • In adequate or harmful release of products/services • Even how you handle a customer complaint can result in a crisis

The Speed of Crisis • Today, the internet can help even the smallest crisis reach thousands of individuals within minutes. • With that said, individuals and organizations are even closer to creating a crisis. • In the 21st century our society is filled with issues that affect us daily and even hourly.

Issues Management • The ability to understand, mobilize, and direct strategic and policy planning functions, and public relations skills. Toward achieving one objective: meaningful participation in creation of public policy that affects personal and organizational destiny.

5 Steps to Issues Management • Identifies issues which the organization must be concerned. • Analyzes and Delimits each issue with respect to impact on its publics. • Displays various strategic options. • Implements an action program to communicate the organization’s views and influence perception of an issue. • Evaluates its program in terms of reaching organizational goals.

Issues Management • Anticipated Emerging Issues • Identifies Issues Selectivity • Deals With Opportunities and Vulnerabilities • Plans From Outside In • Bottom-Line Orientation • Action Timetable • Dealing With The Top- must operate with the support of the chief executives

Risk Communication • Risk Communication- an outgrowth of issues management. It began as a process of taking scientific data related to health and environmental hazards and presenting them to an audience in a manner that is understandable and meaningful.

Risk Communication • Helps individuals understand messages when they are in high-stress situations. To help with this communicators have developed a message mapping process • Identify Stakeholders • Determine stakeholders concerns • Analyze specific concerns to fit general concerns • Construct Brainstorming • Put together supporting facts and proof for each message • Ask outside experts to test messages • Plan delivery of resulting messages and supporting materials

Risk Communication • Depends basically on the organization’s actions. • In the long-run actions speak louder than words in communicating risk • Message Maps • Three Key Messages • Seven to 12 words per message • Three supporting facts for each key message

Managing in a Crisis • Accidents and Disasters, known as crises, are often the biggest test of an organization or individual • Crisis- a situation that has reached a critical phase for which dramatic and extraordinary intervention is necessary to avoid or repair major damage. • How an organization handles itself during a crisis can influence its reputation for many years.

Managing in a Crisis • It can also cripple its reputation and suffer a large monetary loss. • If you think logically, be thoughtful, and act quickly you can help create a positive reputation.

When Crisis Takes Place • When a crisis takes place there are usually many signs that appear shortly after. • Surprise- when crisis breaks out, its usually unexpected. • Insufficient Information- things happen at once, rumors come out, blogs report false stories • Escalating Events- the crisis expands, CrisisInjury Death

When Crisis Takes Place • Increased Outside Scrutiny- Bloggers, the media, stock brokers, talk-shows, and the public feed the rumors • Siege Mentality- The organization feels surrounded • Lawyers advise to say no comment because anything said could be used against the organization. • Panic- with all the walls caving in, panic sinks in.

Planning in a Crisis • The key to crisis management is making sure your organization is prepared. • All accidents make great headlines and wonderful reporting.

Planning in a Crisis • For each potentially impacted audience, define the risk. • The dies in the garment have resulted in skin irritation • For each risk, define the actions that mitigate the risk. • The product has been recalled • Identify the Cause of the Risk • If the public is aware that you know what took place, they are more likely to accept that you will fix it quickly.

Planning in a Crisis • Demonstrate Responsible Management Action • Acting to Correct the Issue • Create a Consistent Message • Agree on a spokesperson who can be the voice of the organization • The more serious the incident, the higher up in the organization you will want that individual to be. • Be honest, don’t cover up a lie.

Planning in a Crisis • Letting people know that the organization has a plan and is implementing it helps convince them that the organization is in control. • Be prepared • Be available • Be credible • Act Appropriately

Communicating in a Crisis • Lawyers traditionally have advised clients to do one of the following • Say nothing • Say as little as possible and release it quietly as possible • Say as little as possible citing privacy laws, company policy, and sensitivity • Deny guilt and act angry that such charges could possibly have been made • Shift blame or share blame with others

Communicating in Crisis • The best crisis communicators are those who respond promptly, honestly, and provide full information to the media during the crisis. • Executives often want to wait to communicate until all facts are in.

Communicating in a Crisis • By saying nothing, an organization is perceived as already making a decision • “No comment” makes the organization seem guilty. • Silence angers the media and makes the problem worse • Inexperienced spokespeople speculating nervously or using emotionally charged language are even worse. • Cardinal rule of public relations during times of crises is to tell it all and tell it fast.

Communicating in a Crisis • The goals, when communicating in crisis should be: • Terminate the crisis quickly • Limit the damage • Restore Credibility

Engaging the Media • When crisis strikes, the media becomes hungry for information. • There are a series of things an organization should do to make themselves available to the media.

Engaging the Media • Set up a media headquarters- all authorized communication must flow through • Establish Media Rules- the media are sneaky during crises. Determines which parts of the organization are off limits, what executives will be unavailable. • Media live for the “box score”- Crisis specifics make news. • How many were fired? • How many were missing? • How many died?

Engaging the Media • Do not speculate- if you don’t know the numbers do not make them up or pretend you do • Feed the Beast- provide answers to the media 24/7 • Strive to keep the media updated on new information about the crisis. • Speed Triumphs- the media is often about speed first and accuracy later. Must monitor media to address what is inaccurately being reported • Cable Rules- 24/7 news channels make attending to a crisis an around the clock ordeal.

Speaking to the Media • Speak first and speak often • Don’t speculate • Go off the record at your own peril • Stay with the facts • Be open and concerned, not defensive • Make your point, repeat your point • Don’t argue with the media • Establish yourself as the most authoritative source • Stay calm and cooperative • Never lie

Crisis Response Strategies • Preemptive Action Strategy • An organization tries to be the first to tell the story and set the tone before others have the chance to tell their own.

Crisis Response Strategies • Offensive Strategies • An organization may attempt to attack the accuser when its logic or facts are faulty or if the accuser is negligent or malicious • The organization may try to embarrass the accuser through shame or humiliation

Crisis Response Strategies • Defensive Response Strategies • Denial • Excuse • Justification

Crisis Response Strategies • Diversionary Response Strategies • Concession: the organization gives the public something it wants which is valued by both groups • Ingratiation: actions are taken to appease the publics involved • Disassociation: distances the organization from the wrongdoer • Relabeling: devising a new name for a product or service, or even the organization

Crisis Response Strategies • Vocal Commiseration Strategies • Concern: organization does not admit guilt, but expresses concern • Condolence: a more formal vocal response, recognizes the sorrow of the personal loss or misfortune, but does not admit guilt. • Regret: admitting sorrow and remorse for a situation– the organization may or may not admit fault for the situation. • Apology- the organization takes responsibility and asks forgiveness– sometimes included compensation, aid, or money.

Crisis Response Strategies • Rectifying Behavior Strategies • Investigation: short-term strategy to examine the facts that led to the situations • Corrective Action- steps are take to repair the damage from the crisis and to prevent it from happening again • Restitution: the organization offers to provide the public with ways to compensate victims and restore the situation. • Repentance: fully accepts responsibility for its actions and offers to change its practices.

Crisis Response Strategies • Strategic Inaction • Silence: may choose to remain silent when it is under fire. • Used to protect victims privacy • Sometimes providing a short statement of why the organization is not speaking is beneficial • Not the same as “no comment”

Final Thoughts • Crises can range from natural disasters to crises brought on by carelessness. • Internet and social media cause a crisis to travel extremely quickly. • When faced with a crisis your organization should be the first to communicate with the media and you should communicated with them frequently.

References • Seitel, F.P. (2011). The Practice of Public Relations. Prentice Hall: Boston.

Crisis Management