Crisis Management and Communication

1. Crisis Management and Communication Jeremiah Maxel Jeremiah.maxel851@myci.csuci.edu 4/19/2014

2. Crisis And Communication • Crisis (noun; krī-səs)- an unstable or crucial time or state of affairs in which a decisive change is impending especially one with the distinct possibility of a highly undesirably outcome • Communication (noun, kə-ˌmyü-nə-ˈkā-shən)- the act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feeling, etc. to someone else

3. Three Components of a Crisis • Truth- Is the crisis caused by something true/real? • Severity- To what degree is the crisis an issue? • Customers- How close are the customers with your product?

4. Flowchart

5. The Lethal Tylenol Crisis • Fall of 1982 • Consumption of Extra Strength Tylenol capsules resulted in 7 deaths • Tylenol capsules had contained lethal doses of cyanide

6. Johnson and Johnson’s Response • Immediate warning to all customers via mass media • Production of Tylenol halted • Tylenol recalled until source could be identified

7. How Their Response Differed • Full Truth • Customer interests first • Did not attempt to deny or duck responsibilities

8. Result • Tylenol, instead of dying, continued going strong • Improved public image • Consumer loyalty increased

9. Reference • Rhode, David, Tylenol for users and a lesson for Ebbers, Network World, August 1999 • Centennial Journal: 100 Years in Business === Chicago’s Poisoned Tylenol Scare, 1982, Wall Street Journal, November 1989 • Gita V. Johar, Matthias M. Birk, Sabine A. Einwiller, How to Save your Brand in the Face of Crisis, MITSlogan Management Review, June 2010

10. Two Multiple Choice Questions • What is NOT a quality you have to consider when assessing a crisis? • Accountability • Truth • Severity • Customer Loyalty • What did Johnson and Johnson do in response to the Tylenol Scare? • Polishing the Halo • Yes but… • Customers Safety First • No, Not I