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Crisis Communication

“A crisis is unpredictable but not unexpected”

- Timothy Combs

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1. Introduction

MTV, Protests over Beavis & Butthead, 1994

Dayton Hudson, Protests over Planned Parenthood grant, 1990

Gerber, Reports of glass in baby food, 1986

Nike, Mistreatment of Asian workers, 1997

Jack-in-the-Box, E. coli, 1993

General Dynamics, Contract fraud, 1985

Perrier, Benzene in its water, 1990

Snapple, Racism rumors, 1993

Heineken, Glass in beer, 1993

Sizzler, E. coli poisoning, 1993

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2. Overview

Precrisis•Scanning

•Assessing situation

•Designing Tools & Systems

•Monitoring

Crisis

•Detecting

•Containing

•Recovering

Post - Crisis•Following -up

•Shaping memories

•Assessing effectiveness

Learning

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3. Pre-crisis Planning

Objective - prevent or lessen the negative outcomes of a crisis and thereby protect the organization, stakeholders, and/or industry from damage $ loss reputation loss identity altered

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3a. Scanning

Definition - Looking out for potential sources of crises

Industry-wide issue analysisOrganization specific issue analysisRisk assessment (“implicit issues”Stakeholder relationships

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Scanning cont.

Issue Sources Newspapers Business Magazines TV News Trade Journals Public Opinion Polls Medical/Science

Journals On-line (web pages,

newsgroups, etc.

Risk Assessment Sources Safety/accident records Ethical climate surveys Financial audits Liability exposure Workers Comp. Product tampering Risk audits (70-80%) Sexual harassment

exposure

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Scanning cont.

Relationship Sources Shareholder

resolutions Stakeholder

complaints Rumors/grapevine at

conventions Speculative

discussions Potential Boycotts

Principle: Keep in continual contact with key constituents and listen to what they are saying.

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3b. Assessing situation

Evaluate issues in two dimensions likelihood impact

Evaluate risks with risk mgt. gridEvaluate relational threats

Power(Leverage) Legitimacy (Value driven) Willingness (Desire for action

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Assessing cont.

RelationshipsRelationshipsRisksRisksIssuesIssues

•Scenarios

•Rankings

•ROTsHistoryHistoryIntuitionsIntuitions

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Assessing cont.

Historical Types of Crises Natural disasters Malevolence

(kidnapping, product tampering, terrorism etc. )

Technical breakdowns

Human breakdowns

Challenges (boycotts, strikes, lawsuits, government actions)

Megadamage (oil spills, radioactivity)

Organ. MisdeedsWorkplace violenceRumors

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3c. Designing Tools & Systems

Select Crisis Management TeamSelect SpokespersonsDevelop Crisis Management PlanPrepare Crisis Communication

System

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Selecting the CMT

A cross-functional group who have been designated to handle ANY crisis

Characteristics of a good CMT Work together (conflict mgt) Apply the CMP (manage stress) Listen to others Make the right decisions Communicate proactively

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Selecting the CMT

Typical roles Legal Security/safety PR Operations Top Management (CEO) Victim manager

Make time for training (63% companies do)

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Selecting Spokespersons

Principle - “One voice is more important than one person”

Role - Manage the accuracy & consistency of the messages coming from the organization

Communication should be guided by the 5 C’s: Concern, clarity, control, confidence, & competence

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Selecting the CMT

Skills of the spokesperson Appear pleasant on camera (visual, nonverbal) Answer questions effectively

Don’t argue with reportersAvoid “no comment” comment (65% believe “no comment” =

“guilty”

Challenge incorrect informationAssess assumptions of questionsLegitimize

Present information clearly Avoid jargon Provide structure

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Develop Crisis Management Plan

What is it? A potential action plan Used during the crisis Focuses on “how-to”

What it is not? Overly detailed Rigid

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Components of CMP

Introduction (usually by CEO)

Rehearsal datesCMT membersCMT contact sheetCrisis Assessment

overview piece short likely scenarios

Incident report form (documents what happened)

Proprietary info. (list)

Strategy worksheetStakeholder contact

sheetCrisis control center

(e.g. where, capabilities)

Postcrisis evaluation

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Prepare Crisis Communication System

Physical setupPrepare tools

Intranet Internet Phones

Prepare team

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4. Managing the Crisis

A. Detecting the crisisB. Containing the crisisC. Recovering from the crisis

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4a. Detecting the crisis

Early monitoringConvince upper managementAssess type & character of crisis

different crises require different strategies

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4b. Containing the crisis

Respond quicklyAcknowledge what you don’t know yetSet fairly rigid information prioritiesExpress sympathyYou can express concern without

opening the company to liability issuesDevelop a strategy based on type of

crisis

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Strategic options

Full apology and corrective action - misdeedsCorrective action Ingratiation (remind audiences of the org. past

good deeds) Justification - minimize or no serious problemsExcuse - “no control”, “no bad intentions”Denial - no crisis existsAttack the accuser - confront, threaten, lawsuit

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Strategic options

Attack Denial Excuse Justification Ingratiation Corrective Full

Accuser Action Apology

Defensive Accommodative

Weak Crisis Strong Crisis

Responsibility Responsibility

Rumors Natural Disasters Malevolence Accidents Misdeeds

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4c. Recovering

Follow-up on information requestsCommunicate with stakeholdersInform people about corrective

actionsTalk about financial implicationsContinue expressing compassionContinue tracking issues, risks, etc.

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5. Managing post-crisis

Following-up Collect crisis records, stakeholder

feedback, & media coverage Conduct interviews with key personnel

Shaping memories Internal audiences External audiences What did we learn? So what?

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Cont. 5 - managing post-crisis

Assessing effectivenessExamine recordsLook at phases of crisisDetermine changes

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6. Learning

New ROTsChanges in CMPNew training opportunitiesNew personnel