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Crisis Management: Strategies for Effective Communication and Response

Learn about crisis management strategies, including problem-sensing, decision-making, resource mobilization, and communication actions. Understand the importance of proactive planning and effective communication to limit damage and uphold corporate reputation. Discover how to react to crises, engage stakeholders, and maintain a positive image.

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Crisis Management: Strategies for Effective Communication and Response

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  1. Crisis ManagementChapter 12 Organizational and Managerial Communications Peggy Simcic Brønn

  2. Definition • There are many definitions -- most agree that crises are characterized by surprise and a high threat to the operations of an organization. • Should they be a surprise? Peggy Simcic Brønn

  3. Medical analogy • Bed rest • Medication • Chronic • Fatal Peggy Simcic Brønn

  4. Types of Corporate Crises

  5. Examples -- Norwegian Examples? • Public perception: Johnson & Johnson (Tylenol) • Sudden Market Shift: Atari (computer games) • Product Failure: A. H. Robins (Dalkin Shield) • Management Succession: United Technologies • Cash Crisis: Chrysler Corporation • Industrial Relations Crisis: International Harvester • Hostile Takeover: Bendix/Martin Marietta • International Events: General Motors/OPEC • Regulation/Deregulation: Braniff Peggy Simcic Brønn

  6. News Coverage of Crises Increasing • Business crisis events are increasing • Sexual harassment -- increased 192% -- fastest growing category • Class action suits, particularly against tobacco industry -- up 83% • Automotive industry -- most crisis prone industry -- Banking #2 • Commercial airlines close behind Peggy Simcic Brønn

  7. Crisis Management • Problem-sensing and diagnosis • Decision response • Resource mobilization and implementation • Internal information flow • External information flow Peggy Simcic Brønn

  8. Proactive and Reactive Sides of Crisis Management Pauchant & Mitroff Peggy Simcic Brønn

  9. Strategic Checklist • Strategic actions • Technical and structural actions • Evaluation and diagnostic actions • Communication actions • Psychological and cultural actions Peggy Simcic Brønn

  10. Crisis Management Group • Leader • Press spokesperson • Employees/next of kin • Authority liaison • Technical and legal advisors • Secretary Peggy Simcic Brønn

  11. Common Reactions to Crises • Denial or isolation • Anger • Bargaining for time • Depression and grief • Acceptance Peggy Simcic Brønn

  12. Crisis Communication • It is spontaneous. • It is dependent on the size and nature of crisis. • It is a ‘happening’. • It needs other demands from management than ‘normal’ routines. • It will normally affect many different stakeholders than planned communications. Peggy Simcic Brønn

  13. When an accident, crisis or catastrophe happens, it is too late to develop a crisis information plan. A media plan and mental readiness must be in place before an accident, not developed during the accident. E. R. Sjøberg Peggy Simcic Brønn

  14. Two Key Words • Speed • Confidence • Two Strategies • Information -- one-way spreading of facts and information • Communications -- two-way method of giving out information Peggy Simcic Brønn

  15. Effective communications may: • Reduce risk of problem becoming greater • Limit interference with normal operations • Limit damage to corporate reputation • Limit financial damage Peggy Simcic Brønn

  16. Reality • Many firms are not prepared for crises • Many hire PR firms to ‘put out fires’ • Very little proactive planning done Peggy Simcic Brønn

  17. What affects reaction by others: • Organizational behavior • Conduct of management • Research indicates that behavior of management key in recovery of firms • Reaction of stakeholders Peggy Simcic Brønn

  18. Be open, flexible and willing to accept responsibility • Don’t claim to be perfect • Initiate dialogue will all stakeholder groups • Provide accurate, timely information to all targeted internal and external audiences • Demonstrate concern for safety of lives • Safeguard organizational facilities and assets • Maintain a positive image of the organization as a good corporate or community citizen Peggy Simcic Brønn

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