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Crisis Management

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Crisis Management

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    1. Crisis Management Yipsir (www.yipsir.com.hk)

    2. What is a crisis? In general? Give some examples of crisis that may happen in an organisation (Disney), in a private company (travel agency), in a tour or in a clubhouse programme.

    3. Topics The nature of crisis Key and common features of a crisis Seven types of crisis Adverse effects of a crisis Crisis management Risk Communications

    4. Key features of a Crisis Low probability High impact Uncertain/ambiguous causes and effects Differential perceptions

    5. Common features of a crisis: Time is short Decisions are required urgently Specific threats are identified Urgent demands for information are received There is sense of loss of control Pressures build over time Demands are made to identify someone to blame Reputation suffers Communications are increasingly difficult to manage

    6. Seven types of sudden emergencies Natural disasters (e.g. fire, explosions, bad weather) Technical disasters (e.g. faulty equipment) Crises of confrontation (e.g. industrial disputes) Acts of malevolence (e.g. terrorism, kidnapping) Misplaced management values (e.g. strategic investment errors) Acts of deception (e.g. fraud, false invoicing) Management misconduct (e.g. harassment, corruption

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

    8. Crisis management includes: Prevention Level: risk assessment Remedial Level: crisis communication and crisis decision making

    9. ??????????????

    10. Risk assessment is: Identification define and describe Estimation likelihood and consequences Evaluation acceptability of risk

    11. Crisis Communications

    12. Communication plan: Core elements are: Identifying audiences (Who?) How communication is to take place (How?) What messages are to be communicated (What?) The core process is: Active, two-way communication

    13. Message Options Full apology Corrective action Ingratiation Justification Excuse Denial Attack the attacker

    14. What does the world want to see? Acceptance of responsibility Willingness to take positive steps

    15. Critical activities: Initial response Lines to take

    16. Initial response: Tell the truth as it is known Facts beyond question Actions being taken Acknowledgement of emotions/psychological needs

    17. Lines to take: Essential responses planned Each new authorised response is logged Database Book Wallchart Message board

    18. Media demands Accuracy and simplicity Statistics which are explained Context of information Comments from highest authority Some controversial elements Both sides of the issue Speed, speed and speed

    19. The ideal spokesperson: Polite and patient Well-informed and authoritative Accurate and reliable Articulate Available Trustworthy Evidently committed to the process

    20. Decision making options Cash reparation Refund of goods and services Alternative substitutes (from most ideal to least acceptable) Immediate medical and logistic support, hotline Letter of apology Policy review and modification Follow up PR, image promotion

    21. Role Play Handling the crisis

    22. Scenario 1

    23. Scenario 2

    24. Scenario 3

    25. Scenario 4

    26. Consideration and actions to be undertaken by the operation team Safety Manpower deployment Compensation Alternative arrangement External assistance... Pros and cons of whatever actions Consideration and actions to be undertaken by the operation team Response: Apology? Explanation? Information to announce, what, how and when Follow up improvement...

    27. Small group discussion

    28. Scenario 1 Security / and police assistance Ticket refund arrangement Substitute tour arrangement, e.g. Ocean Park + partial refund. Distribute fans, caps and water for the awaiting customers. Arrange ad hoc programmes at the entrance space Arrange picture taking with cartoons figures Announce follow up improvement measures

    29. Scenario 2 State clearly with concrete examples the independent operation and financial matters between two agencies. Assure the public the agency has paid up the 0.3% stamp duty which gives a maximum protection of customers Highlight the strength of the agency and the favourite business record. Use social validation method to lift up your company’s image. If possible, take the opportunity to promote some of your first-digit tours.

    30. Scenario 3 Reputable licensed supplier Observe and implement all safety and hygienic procedures serving “Poon Choi” . Display some attractive posters selling the significant and happiness of enjoying “Poon Choi” Arrange some entertainment (e.g. magic show) Get some celebrities to enjoy the meal with customers together Some discounts for group tickets (e.g. buy 6 get 1 free) Negotiate with restaurant for a cut down of partial order for an amicable long term cooperation.

    31. Scenario 4 SOS, TICHK, HK Government, Chinese Consulate Ensure the best medical treatment to the injury Arrange flights and relevant transports for victims’ relatives Factual report of the accident to the public Periodic announcement of victims’ condition and progress of rescue. Follow up tasks: Response: apology, explanation, argue... Legal liability, financial liability Policy review and improvement ...

    32. The end

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