Crisis Management Revised

8/2/2019 Crisis Management Revised

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Role of Communication inCrisis Management

A Presentation by

Team 13:

13.1 Surbhi13.2 Veer Kunwar13.3 Kanu Sharma13.4 Veenu Goyal

M.B.A 1st Semester 1


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What is communication ?Communis the Latin origin of the word

Communication .

Communication is what it does bringing people together

. How does we do that by establishing commonness

among people.

The message , medium and the environment bringabout this commonness for a common purpose .


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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


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What is Crisis?Any situation that is

threatening or couldthreaten to:

harm people,

Property seriously interrupt business

damage reputation

negatively impact sharevalue.

Every organization isvulnerable to crisis.


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Crisis can affect all

segments of society.

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Key features of a CrisisLow Probability

High Impact

Uncertain/ambiguouscauses and effects

DifferentialPerceptions


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TYPES OF CRISIS On the Basis of Social

Settings:

1. Domestic Crisis

2. Industrial Crisis3. Natural Crisis

4. Professional Crisis

5. Social Crisis6. Financial Crisis

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High level threats:

Safety

Health

Environment

National security


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Specific threats to

organisation:Operational viability

Reputation

Credibility

Financial stability

Legal action

C f t f


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Common features of acrisis:The situation materialises unexpectedlyDecisions are required urgentlyTime is shortSpecific threats are identifiedUrgent demands for information are receivedThere is sense of loss of controlPressures build over timeRoutine business become increasingly difficult

Demands are made to identify someone to blameOutsiders take an unaccustomed interestReputation suffersCommunications are increasingly difficult to

manage


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Intrinsic

crisis:Total situation as seen by neutral observer with all the

facts

As seen by all individuals from particular viewpoints

Perceived

crisis:


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INTRODUCTION

Crisis management includes the developmentof plans to reduce the risk of a crisis occurring.

To deal with any crisis that do arise.Implementation of these plans so as to

minimize the impact of crisis and assist theorganization to recover from them.

Crisis situations may occur as a result ofExternal Factors such as the development ofa new product by a competitoror Internal Factors such as a product failure

or faulty decision making, and often involve theneed to make quick decisions.

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Existing conditions:Crisis-prepared

or crisis-prone?


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Three main Stages

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St i i i


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Stages in crisismanagement

Pre-Crisis Phase The pre-crisis phase is concerned with prevention

and preparation.

Prevention involves seeking to reduce known risks

that could lead to a crisis. This is part of anOrganizations risk management program.

Preparation involves creating the crisismanagement team.

Plan, selecting and training the crisismanagement team, and conducting exercises totest the Crisis management plan and crisismanagement team.


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Crisis ResponseThe crisis response is what management does and

says after the crisis hits. Public relations plays acritical role in the crisis response by helping todevelop the messages that are sent to various

people.A great deal of research has examined the crisis

response. That research has been divided into twosections:

(1) Immature crisis response(2) Mature crisis response


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Immature crisis response:

Instant and irrational(denial/shock/panic)


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a ure cr s smanagement:

Grasp intrinsic crisisImplementation of plans and procedures

Technical intelligence

Emotional intelligence


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Post-Crisis Phase

In the post-crisis phase, the organization isreturning to business as usual.

The crisis is no longer prevalent.

The focal point of managements attention

but still requires some attention.


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The first goal of crisismanagement is

prevention


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Intelligence:Continuous scanning

(networks/media/publicopinion, etc)

Outward focusCollaboration

Positive relationships


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Assess risks


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Risk assessment is:Identification

define and describe

Estimationlikelihood and consequences

Evaluation

acceptability of risk


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Crisis Communications


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Ten Steps Of CrisisManagement

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1. Identify Your Crisis Communication TeamA small team of senior executives should be identified to serve

as your organization's Crisis Communication Team. Ideally, the

team will be led by the organization's CEO, with the firm's toppublic relations executive and legal counsel as his or her chiefadvisers.

2. Identify SpokespersonsThe fact is that some chief executives are brilliant businesspeople but not very effective in-person communicators. Thedecision about who should speak is made after a crisis breaks but the pool of potential spokespersons should be identified andtrained in advance.

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3. Spokesperson Training

All stakeholders internal and external are just as capableof misunderstanding or misinterpreting information about yourorganization as the media, and it's your responsibility to

minimize the chance of that happening. Spokesperson trainingteaches you to be prepared, to be ready to respond in a waythat optimizes the response of all stakeholders.

4. Establish Notification Systems

Today, we have to have immediately at hand the meansto reach our internal and external stakeholders using multiplemodalities. Many of us have several phone numbers, more thanone email address, and can receive SMS (text) messages orfaxes. Instant Messenger programs, either public or proprietary,are also very popular for business and personal use.

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5. Identify and Know Your Stakeholders

Who are the internal and external stakeholders thatmatter to your organization? I consider employees to be

your most important audience, because every employeeis a PR representative and crisis manager for yourorganization whether you want them to be or not.

6. Anticipate CrisisIf you're being proactive and preparing for crisis, gatheryour Crisis Communication Team for long brainstormingsessions on all the potential crisis which can occur atyour organization. Here it also means that to anticipate

the consequences of crisis.

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7. Develop Holding StatementsWhile full message development must await theoutbreak of an actual crisis, "holding statements"

messages designed for use immediately after a crisisbreaks can be developed in advance . For example-

"Our hearts and minds are with those who are in harm'sway, and we hope that they are well."

8. Assess the Crisis Situation

Reacting without adequate information is a classic"shoot first and ask questions afterwards" situation inwhich you could be the primary victim.

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9. Identify Key Messages

The team already knows, categorically, what type ofinformation its stakeholders are looking for. Keep it simple

have no more than three main messages for all stakeholdersand, as necessary, some audience-specific messages forindividual groups of stakeholders.

10. Riding Out the StormNo matter what the nature of a crisis...no matter whether it's

good news or bad...no matter how carefully you've preparedand responded...some of your stakeholders are not going toreact the way you want them to. This can be immenselyfrustrating. What do you do? Take a deep breath, decide ifanother communication to those stakeholders is likely to

change their impression for the better.

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Examples of CrisisManagement

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SY


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THEWORMCONTR

OVERSY

RISE OF THE


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RISE OF THECONTROVERSY

State FDA Commissioner Uttam Khobragade said a groupof people approached him with chocolates that hadworms in them.

Sebastian Fernandez had purchased Cadbury Dairy Milkchocolate from a shop at Pick and Pay, Vile Parle.

Fernandez discovered that the chocolate (BatchNo28F3I10703) had worms in it.

Fernandez complained to the shopkeeper Jitendra Shahwho later informed Pravin Marve, vice-president, Andheri

Vyapar Manch.Marve then contacted the FDA and gave them the

sample. FDA Joint Commissioner Hindurao Salunkhe saidCadbury's Talegaon plant will also be inspected.

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CONTROVERSY ON

CADBURYThe state Food and Drug Administration hasordered abduction of Cadbury's Dairy Milkchocolates from all over Maharashtra after

worms were found in two of them in Mumbai.Bad storage practices by retailers and

distributors that had led to the worms.

Festival season sales (Cadbury sells almost

1,000 tones of chocolates during Diwali)plummeted 30 per cent.

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ROLE OF COMMUNICATION

NOT DENYING THE FACT

Maharashtra Food and Drug Administration

had given a clean chit to the company'stwo plants in the state.

Told consumers about improper storage

Bharat Puri, Cadbury's mild-mannered MD,went to media offices around the country

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ROLE OF COMMUNICATION(cont)

TAKING PRECAUTIONS

Company launched Project Vishwas, a retail educationprogramme. (generating awareness and providingassistance in improving storage quality.) Steps toensure quality & regain the confidence

New double packaging even for the smallest offering

Wrapped in aluminium foil and enclosed in a poly flowpack, which was sealed on all sides.

Company also carried out quality checks

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Role of Communication (cont)

GAINING BACK TRUST

AB played a pivotal role in allcommunication relating to Cadbury'sproducts and brands

Created a campaign which aimed for bothrational and emotional appeal.

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ROLE OF COMMUNICATIONBENEFITS OF A GOOD CAMPAIGN

The company bounced back soon after the

campaign hit the screens. BetweenOctober 2003 and January 2004, Cadbury'svalue share melted from 73 per cent in to69.4 per cent. The recovery began in May

2004 when Cadbury's value share went upto 71 per cent.

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CRISIS MANAGEMENT IN

THE OUTSIDE WORLD


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Conclusion

A crisis management plan generates order out ofchaos. It needs strong leadership by well-trainedand rehearsed individuals. Everyone within anorganization should know what his or her role is in

a crisis and should be prepared to deal with one.

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and good luck!(though luck has nothing to do with goodcrisis management!)

Documents

Crisis Management Revised