peggy simcic brønn 1 crisis communication and crisis management
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PreparationPrevention
SignalDetection
Containment/DamageLimitation
Recovery
Learning
CrisisProactive Reactive
Interactive
Pauchant & Mitroff
Proactive side of Crisis
Management
•Education•Prior experience•Position in organization
Involvementwith TMT
Existenceof a Plan
Use of research-basedinformation
StrategicApproach
ImprovedSignal Detection
More effectivepreparation/prevention
Enhanced reputation
Desired Stakeholder behavior
Improved Organizational Performance
Learning
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Broad Categories of Crises Technological
» Chernobyl, Bhopal Confrontation
» Boycott of products, Nestle Crises of Malevolence
» Terrorists, IRA bombs, Management Failure
» Kartongfabrikk, Ericcson Other - f. eks. takeover bids, Nycomed
Cell 2 Widespread environmental
destruction/industrial accidents Large-scale systems failures Natural disasters Hostile Takeovers Governmental crises International crises
Internal External
Technical/Economic
Cell 1 Product/Service Defects Plant defects/industrial
accidents Computer breakdown Defective, undisclosed
information Bankruptcy
Cell 3 Failure to adapt to change Organizational breakdown Miscommunication Sabotage On-site product tampering Counterfeiting Rumors, sick jokes,
malicious slander Illegal activities Sexual Harassment Occupational health diseases
Cell 4 Symbolic projection Sabotage Terrorism Executive kidnapping Off-site product tampering Counterfeiting False rumors, sick jobkes,
malicious slander Labor strikes Boycotts
People/Social/Organizational
Figure 2._: Types of corporate crises. From Mitroff et al. (1987).
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Examples
Fire and Explosion Emission and Environmental Scandals Layoffs Bankruptcy Strikes Accidents Sudden Resignations
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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
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News Coverage of Crises Increasing
Business crisis events increased 13% first half of 1996 (worldwide)
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
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What is 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.
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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
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Two Key Words» Speed» Confidence
Two Strategies» Information -- one-way spreading of facts
and information» Communications -- two-way method of
giving out information
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Crisis Information Strategy
Who is contact person, first and reserve. Who should do what?
List of everyone who has responsibility for notifying people.» Switch board, security personnel, safety
people Alternative places for press center.
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Crisis Information Strategy
Cooperation plans with company, police, fire department.
General rules on who can/can not make statements.
Information on other relationships with company, such as communications network
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Most Important Elements
Make sure responsibilities are clear and these people have full responsibility.
Make sure they are prepared mentally -- practice, drill, etc.
Make plans as simple as possible.
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Most Important Elements
Spokesperson must have ability to answer questions.
Spokesperson should not be given any other responsibilities.
Decide how to handle press.
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Which Stakeholders Need Informing?
Media (TV, radio, papers)
Employees Relatives Government
Agencies
Customers Police Suppliers Local Community Owners,
Shareholders, Board of Directors
INFORMATION PLANGroups Should Inform By Whom
No YesEmployeesFamilyCustomersSuppliersNeighborsPoliceSFTLocal MediaNat’l. MediaBoardOther
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Objectives 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
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PR Headquarters
Responsible for notification of all internal and external emergency audiences
Preparing material for the media» Exercise principles of ‘one voice’ and full-
disclosure Establishing a public information center
to answer questions and control rumors
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Media Information Center
Away from PR headquarters Telephone that can not be shut off or
used by other personnel Assign people to escort media Room equipped with technology
needed by media Spokesperson - never PR person
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Avoid These Mistakes Before a Crisis Occurs
Define the PR Function and Recognize its Importance
Put PR in the Right Organizational Box Don’t Forget the World is a Small Place Have Clear PR Goals and Ongoing
Programs Have Crisis Planning/Be Prepared for the
Unexpected
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Avoid These Mistakes Before a Crisis Occurs
Avoid Bad Advice and Don’t Ignore Good Advice
Keep Up with Technology Don’t Forget Internal Audiences Don’t Blame the Media Don’t Kill the Messenger