CRISIS

CRISIS is defined as situationthat is unpredictable but it is not unexpected.

A crisis is anything that has the potential to significantly impact an organization.

COMMON FEATURES OF A CRISIS The situation materialises unexpectedly Decisions are required urgently Time is short Specific threats are identified Communications are increasingly difficult

to manage Urgent demands for information are

received There is sense of loss of control Pressures build over time Routine business become increasingly

difficult Outsiders take an unaccustomed interest Reputation suffers

TYPES OF CRISIS

• Natural disaster• Technological crises• Confrontation• Malevolence• Organizational Misdeeds• Workplace Violence• Rumours• Terrorist attacks/man-made disasters

WHAT IS CRISIS MANAGEMENT ?

The overall coordination of an organization's response to a crisis, in an effective, timely manner, with the goal of avoiding or minimizing damage to the organization's profitability, reputation, or ability to operate.

Crisis management involves identifying a crisis, planning a response to the crisis and confronting and resolving the crisis.

OBJECTIVES OF CRISIS MANAGEMENT

Reducing tension during the incident; Demonstrating corporate commitment and

expertise Controlling the flow and accuracy of

information Managing resources effectively

THREE MAIN STAGES

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 an Organization’s risk management program.

Preparation involves creating the crisis management Plan, selecting and training the crisis management team, and conducting exercises to test the Crisis management plan and crisis management team.

CRISIS RESPONSE

The crisis response is what management does and says after the crisis hits. Public relations plays a critical role in the crisis response by helping to develop the messages that are sent to various publics.

A great deal of research has examined the crisis response. That research has been divided into two sections:

(1) the initial crisis response and (2) Reputation repair and behavioral

intentions

POST-CRISIS PHASE

In the post-crisis phase, the organization is returning to business as usual. The crisis is no longer the focal point of management’s attention but still requires some attention.

WAYS OF MANAGING A CRISISStrong leadership :- strong leadership is

key to establishing confidence the way in which the organisation is responding to the crisis. It demonstrates organisation and enables consistent clear communication.

Swift decision making :- delays and unnecessary debate will quickly undermine the confidence in team and its approach however be aware that often a good sound decision made promptly is far more better than a perfect decision made too late.

Prompt, effective action :-it is vital that the organisation puts peoples interests far ahead of cost consideration – customers hurt needs the attention immediately. All companies are expected to behave morally

Proactive action to mitigate any environmental impact :- any industrial accedent that leads to contamination or damage to our environment will inevitably attract significant attention.

Apologies :- apologising to the people who were affected by the crisis is one of the important factor in post crisis phase.

Ensure crises management team :- having a crisis management team is not enough it should have had the opportunities to rehearse and be properly trained to achieve its objectives.

Good stakeholders relationships :- good stakeholder relationships are the cornerstone. Have a good brand image. It is not about what the company believe in the end – it is about those around.

Effective spokespeople:- getting the message across clearly and with conviction it is absolutely vital. Carefully consider who within the organisation can convey your message effectively.

Be transparent :- If you made a mistake, admit it, apologize, and do everything in your power to correct it. We are all human and humans make mistakes. Your customers don’t expect you and your teams to be perfect, just transparent and honest.

Do Not Lose Your Cool Ever :- There may be times when you disagree with your customers. But being rude or attacking them in social forums is absolutely unacceptable. Provide the best information you can and do your best to satisfy every inquiry.

Manage Access To Your Social Media Accounts Carefully :- there have been instances of employees posting personal updates to brand accounts not realizing that they haven’t switched to the right account. Making sure you are limiting access to only knowledgeable community managers who have appropriate training with avoid mistakes such as these.

And Remember… You Will Never Please Everybody

UNDERSTANDING THE CRISIS MANAGEMENT FROM TAJ CASE STUDY PERSPECTIVE

Prior to 26 November, 2008 (pre-crisis phase)

26 November, 2008-29 November, 2008 (crisis phase)

29 November, 2008 onwards (post-crisis phase)