CRISIS (Seri Management Crisis)

1. CRISIS(Seri Management Crisis) Rachmat Kriyantono, Ph.D (Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta)

2. WHY IMPORTANT TO STUDY CRISIS....??? • Every organization is likely to experience crisis • Crisis generally threat: the reputation & other organization resources • Crisis is starting point: good reputation or bad reputation • For PR: this is the best challenge and PR can be called “The truly PR” based on how PR deals with the crisis Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

3. Operational viability • Reputation • Credibility • Financial stability • Legal action Specific threats to organisation:

4. DEFINITION • Devlin (2007, h.5): “an unstable time for an organization, with a distinct possibility for an undesirable outcome” • Borodzics (2005): crisis is more than emergency situation. • Duke & Masland (2002) & Kouzmin (2008): • Crisis as situation that causes physical & nonphysical damages & disrupts organization system & the environment as a whole, especially for the victims. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

5. Seeger, Sellow & Ulmer (1998), cited in Smudde (2001, h.34): “a specific, unexpected, and non-routine event or series of events that create high levels of uncertainty and threaten or are perceived to threaten an organization’s high-priority goals”. • Burnet (in G. Harrison, 2005, h.7): “composed of a continuum, beginning with an incident, followed by a conflict, and ending with a crisis, the most serious form of disruption”. RachmatKriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

6. G. Harrison (2005, h.11) : “a crisis is a critical period following an event that might negatively affect an organization in which decisions have to be made that will affect the bottom line of an organization. It is a time of exploration requiring rapid processing of information and decisive action to attempt to minimize harm to the organization and to make the most of a potentially damaging situation”. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

7. CHARACTERISTICS.... • Specific event • The cause of crisis can be identified. • Organization can experience more than one crisis, such as employees demonstration & product tamper. • Unexpected & happen any time • Tends to threat organization life & cause damage. • As a part of organization process. • Unpredictable time / Low probability • Although we acknowledge that crisis may happen, but nobody knows the exact time when it comes (Coombs, 2007, h.136). Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

8. Crisis produces information uncertainty. • Rumours spread out at the beginning. • Public relations must actively provide communication channel to disseminate truth and open information (crisis communication). • Causing panic • As a result of uncertainty situation. • Differential perceptions • High impact on organization activities. • Negative impact: profit decrease, public trust loss, media scrutiny, public & regulator investigation, unproductive changes. • Positive impact: new hero, new strategy, new regulation, better changes (it depends on post crisis communication. • Potential for conflicts • External & internal • Pro & contra Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

9. Common features of a crisis: The situation materialises unexpectedly 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

10. SOURCES OF CRISIS • G. Harrison (2005) & White & Mazur (1995): • Internal sources: human, managemen, & technology • External: goverment regulation, natural disaster, malevolent. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

11. Types of sources • Technological crisis - Technology misconduct during organization activities (Chernobyl, Lumpur Lapindo, Bhopal, Exxon Valdez, Korean rocket). • Confrontation crisis • Bad relations between organization & public. • Crisis happens when the public express its anger (publik outrage) Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

12. malevolence - someone/group wants to harm organization: sabotage, terorism. • Management crisis - Management fails to do its resposibility: corruption, loss of valas, change of board of directors, take over (aquitition). • Natural disaster crisis • Product crisis • Product tamper • misproduction Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

13. Coombs (2010); Devlin (2007); Smudde (2001): • Pra-krisis (pre-crisis) • Serious situation starts & the organization begins to aware. • If it is ignored, it will cause the crisis worse. Example: Union carbide Bhopal. Some staff had anticipated gas leaking without inform management in Bhopal. 2000 people dead. • Issue management is crucial, as a part of crisis plan. • Media begins to sniff at something trouble, then investigate it. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia CRISIS STAGES

14. Krisis (acute crisis) • The situation can’t be managed by organization so the situation spread out the organization widely. • This stage = critical stages of the issue life cycle. • No crisis without public outrage. • Bad example: biscuit poisonous or employees strike. • Good example: Sukhoi Russia Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

15. Pascakrisis (post-crisis) • Crisis has been accummulated • Organization tries to maintain reputation or lose it. • Recovery stage: detemine success or failure • Self-Reflexion diri agar situasi yang sama tidak terulang. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

16. HAPPY STUDYING • Rachmat Kriyantono, Ph.D RachmatKriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

17. Happy Studying Baca yuuk... References: • Kriyantono, R. (2012). PR & Crisis Management. Jakarta: Prenada • Regester & Larkin (2008). Risk & Issue Management.