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Crisis Management

Crisis Management. Introduction to Public Relations School of Communication Studies James Madison University Dr. Michael Smilowitz. What to expect?. Define the term “crisis.” Identify the possible consequences of mismanaging a crisis.

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Crisis Management

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  1. CrisisManagement Introduction to Public Relations School of Communication Studies James Madison University Dr. Michael Smilowitz

  2. What to expect? • Define the term “crisis.” • Identify the possible consequences of mismanaging a crisis. • Distinguish reactive from proactive crisis management strategies. • Discuss the elements of a good crisis plan.

  3. No comment! In a recent survey, 65% of the respondents thought declining to comment almost always means the company is guilty of wrong doing.

  4. Even worse: • 75% of respondents felt that companies in general fail to take their due responsibility for crises. • Only one in five felt that companies are generally completely truthful during a crisis.

  5. Crisis response Responses to crises affect perceptions of the organization’s: • Credibility • Whether the organization’s words can be believed now, or in the future. • Character • Whether the organization is regarded a good neighbor and a fair player. • Competence • Whether the organization can continue to perform as expected and be successful.

  6. What is a crisis? According to Steven Fink: Crises are forewarning situations that run the risk of escalating in intensity, falling under close media or government scrutiny, interfering with normal operations, jeopardizing organizational image, and damaging a company’s bottom line.

  7. Potential Crisis Situations Wilcox, Ault and Agee list: • Disasters • Civil litigation • Public allegations of impropriety • Criminal charges filed against employees. • Product failures • Labor strikes

  8. Management Strategies Crisis management strategies can be grouped into two categories: Reactive versus Proactive Reactive strategies are inherently flawed: 1. Depend on the unrealistic assumption that crises only happen to the “other guy.” 2. Ignore the simple fact that it is even harder to think well during a crisis.

  9. Management Strategies Crisis management strategies can be grouped into two categories: Reactive versus Proactive Proactive strategies benefit the organization’s response by: 1. Preparing for a variety of contingencies. 2. Identifying the responsible spokespersons. 3. Providing guidance in times of high stress.

  10. 3 Proactive Components • Prepare a crisis plan. • Train spokepersons. • Maintain a history of integrity.

  11. Proactive Components 1. The crisis plan: • Identifies spokespersons and backups. • Provides guidelines for initial responses for a variety of situations. • Contains all phone numbers of relevant personnel. • Includes prepared releases and the fax numbers of media contacts.

  12. Proactive Components 2. Training spokespersons • Prepare for the hard questions. • Why didn’t your company take precautions to prevent this from happening? • Are you going to make compensations? • How dangerous is this problem? • Media Training. • Practice talking to “reporters.” • Practice being in front of the camera. • Develop familiarity with legal constraints.

  13. Proactive Components • Maintain a history of integrity. Publics that are ignored or uninformed may choose to force minor issues into major crises. Community relations can provide supporters when they are most needed.

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