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Crisis Management Strategies Overview

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0% found this document useful (0 votes)
23 views14 pages

Crisis Management Strategies Overview

Uploaded by

YeeKoon Tan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1. What is Crisis Management?

Crisis management is handling an unexpected event which can cause serious damage or
harmful effects or impact a company. This requires quick response and immediate action to
settle back to normal.

2. What Makes a Crisis?

A crisis can happen if something really bad is caused by a product or service. It's a problem
when something hurts people instead of helping them.

3. Crisis Management Techniques

✓ Create a plan for a plan


✓ Be ready to change your plan if needed
✓ Always stay alert and never get too comfortable

● PREPAREDNESS: Have a communication plan ready for when issues happen,


understand that no industry is without issues, and identify potential problems early to
prepare solutions.
● RESPONSE AND RESPONDING : Decide the speed of your response to problems and
practice handling technical issues.
● MITIGATION: Manage risks by monitoring and preparing for them, develop plans to
solve problems before they become serious, and build strong relationships that can help
during crises.
● RECOVERY: Think what a successful recovery looks like, decide if recovery success
can be measured or is more subjective, and use PR to communicate how you are
recovering from the crisis.
4. Stakeholder Management

The process of identifying, analyzing, communicating with, and maintaining good relationships
with the people and groups who are important to a company. It's about making sure that
everyone who has an interest in the company is happy and their needs are met.

Internal Stakeholders

These are the groups within the company who are directly involved in its operations:

● Employees: The workforce of the company.


● Manager: The individual(s) responsible for managing the company's operations and
employees.
● Owners: The people who own the company.

External Stakeholders

These are entities outside the company that it interacts with or that have an interest in its
activities:

● Suppliers: Businesses or individuals that provide goods or services to the company.


● Customers: Individuals or entities that buy or use the company’s products or services.
● Society: The wider community that may be affected by the company’s operations or
may influence the company.
● Government: Local, state, or federal government bodies that the company must comply
with and which may also provide essential services or regulation.
● Sponsors: Entities that support the company, often financially, in exchange for some
form of recognition or benefit.
● Creditors: Those who lend money to the company expecting repayment.
● Shareholders: Individuals or entities that own shares in the company and have a
financial stake in its success.

Learning Points:

● Know what a crisis is.


● Learn how to spot problems.
● Understand and use different ways to manage crises.
● Know how to keep everyone who's involved or affected informed and in agreement with
your plans.
The "Crisis Management Culture Ladder" in the image you provided outlines different levels of
how organizations handle crises, ranging from least effective to most effective. Here’s a simple
explanation of each step on the ladder:

1. Pathological

● Attitude: "Who cares as long as we do not get caught."


● Explanation: At this level, the organization doesn't really care about managing crises
properly. They only worry about problems if there is a chance they might get caught. It’s
like when you only clean up your room because you know your parents are going to
check.

2. Reactive

● Attitude: "Crisis management is important, we do a lot when we have a problem."


● Explanation: Here, the organization starts paying attention to crises, but only reacts
when something goes wrong. They’re like someone who only puts on a raincoat when it
starts raining, instead of carrying one just in case.

3. Calculative

● Attitude: "We have systems in place to manage crises."


● Explanation: At this level, the organization has planned and prepared some systems to
handle crises. They’ve thought about what could go wrong and have some tools ready,
like having a first aid kit handy for emergencies.
4. Proactive

● Attitude: "We continuously work on problems that we still find."


● Explanation: Organizations at this level are actively looking for potential problems and
trying to fix them before they turn into bigger issues. It's like checking and fixing leaks in
a boat regularly rather than waiting for it to start sinking.

5. Generative

● Attitude: "Crisis anticipation & prevention is how we do business around here."


● Explanation: This is the highest level, where preventing and anticipating crises is a
normal part of everyday work. It’s like always having your toys sorted and stored
properly, so they don’t get broken or lost.

Key Points

● Moving up the ladder, organizations become more resilient and vigilant.


● The focus shifts from just reacting to problems to actively preventing them.
● Higher steps on the ladder show a deeper commitment to managing and preventing
crises effectively.

Chapter 3
Recommended Crisis Management Techniques and Best Practice:
✓ Keep it simple
✓ Keep it sensitive
✓ Do not slip

1. Issue an apology to the audience: The company's PR team needs to apologize to


everyone. This apology should be shared on the company's website, on social media, through
emails, and other ways. The apology must show they are sorry and explain why they didn't keep
their promises.
2. Monitor and actively fetch feedback on the brand’s current reputation: The PR team
should find out what people think about their brand. They can use surveys, listen to what people
are saying online, and use other methods to understand how the public views them.
3. Publicize the brand’s current compliant plans and actions (MEDIA AND
COMMUNICATIONS): The PR team needs to clearly communicate the specific actions being
taken to address the issues, beyond just stating that they are fulfilling promises.
Chapter 4
Different Types of Crisis:

1. Financial Crisis: When a company runs into serious money problems and might have to
declare bankruptcy.
2. Technology/Data Breach Crisis: When someone illegally accesses and takes or
exposes confidential information.
3. Labor Crisis: When conflicts with employees or unions lead to strikes.
4. Reputation Crisis: When bad news or scandals damage the company’s public image.
5. Product Recall Crisis: When a company must take back products from customers due
to safety issues.
6. Natural Disaster Crisis: When natural events like earthquakes or floods impact
business working.
7. Legal Crisis: When a company faces legal issues, such as theft, or fraud.
8. Group Crisis: When there are disagreements among the management team.

Causes and Effects of Crises:

● Causes: Unhappiness among employees, investors, or customers.


● Effects: Crises bring unpredictability and can lead to negative or positive outcomes.

Importance of Crisis Management:

● Your Role: As crisis management experts, you need to:


1. Save the company image.
2. Stop financial losses.
3. Create a business recovery plan.
4. Prevent future crises.
5. Educate the company on crisis prevention.

Key Points:

● Bad Publicity: Leads to loss of business.


● Public Relations (PR): Important in managing and solving crises.
● Crisis Management Gurus: Need to have solutions and plans to handle and prevent
crises.
Chapter 5

Crisis Management Solutions

When a company faces a crisis, they deal with several problems:

● Loss of Sales and Profits: The company earns less money.


● Loss of Customers and Suppliers: Customers and suppliers stop doing business with
the company.
● Difficulty in Borrowing More Money: The company can't get more loans.
● Hard to Predict Money Flow: It's tough to forecast future earnings.
● Important Employees Leave: Key staff members quit.
● Business Models Changing: The way the company operates might need to change.

As a Crisis Communications/Public Relations Consultant, you need to:

● Design a MACRO PLAN: Create a big plan to manage the crisis.


● Execute MICRO STEPS: Take small steps to solve the problems.

Approaches to Crisis Management

There are different models to manage a crisis:

• General three-stage Model


• Fink’s four-stage Model (1986)
• Mitroff’s five-stage Model (1994)
• Coombs macro-stage Model (1994)

1. Basic Three-Stage Model

1. Pre-crisis: Notice early warning signs and try to reduce the risk.
2. During the Crisis (Crisis Impact/Rescue Phase): When the crisis happens, provide
help.
3. After the crisis (Recovery): Work to regain trust from stakeholders.

2. Steven Fink’s Four-Stage Model (1986)

1. Prodromal: Early clues of a potential crisis start showing.


2. Acute: The crisis starts and causes damage.
3. Chronic: The crisis continues, and cleanup begins.
4. Resolution: The crisis ends without further damage to stakeholders.

Fink’s model shows that a crisis develops gradually with early signs before the main event.
3. Ian Mitroff’s Five-Stage Model (1994)

1. Signal Detection: Notice and act on new signs of a crisis to avoid it.
2. Probing and Prevention: Study the risk and work to minimize harm.
3. Damage Containment: When the crisis hits, try to keep the damage from spreading.
4. Recovery: Aim to return to normal operations.
5. Learning: Review, critique, and evaluate crisis management efforts.

4. Coombs’s Three Macro-Stages Approach

1= Micro Stage
1,2,3 (total) = Macro Stage

1. Before the crisis (Precrisis):


○ Signal Detection: Spot early signs of a crisis.
○ Prevention Micro Stages: Take small steps to prevent the crisis.
○ Preparation: Prepare for potential crises.
2. During the crisis (Crisis Event):
○ Crisis Recognition: Realize that a crisis is happening.
○ Crisis Containment: Try to control and limit the damage.
3. After the crisis (Postcrisis):
○ Performance Evaluation: Evaluate how the crisis was handled.
○ Learning: Learn from the event to improve for next time.
○ Follow-up Communication: Communicate with stakeholders after the crisis.

Summary of Crisis Management Models:

● General Three-Stage Model: Pre-crisis, Crisis Impact, Recovery.


● Steven Fink's Four-Stage Model: Prodromal, Acute, Chronic, Resolution.
● Ian Mitroff's Five-Stage Model: Signal Detection, Probing and Prevention, Damage
Containment, Recovery, Learning.
● Timothy Coombs's Three Macro-Stages: Precrisis, Crisis Event, Postcrisis.

Chapter 6

Definition and Purpose

● Press Conference: A media event where journalists are invited to hear newsmakers
speak and ask questions. It's often used to communicate important news connected to
an organization or company.
● Purpose:
○ Provides a platform for interactive communication with journalists.
○ Allows for detailed information sharing beyond a press release.
○ Facilitates clarification and emphasis on key points.
○ Addresses negative publicity and sets the record straight.
○ Enhances public relations and can boost the morale of the organization.

Reasons to Hold a Press Conference

● Information Dissemination: Offers more detailed information than a press release.


● Interactivity: Enables direct questions from the press.
● Significant Announcements: Important developments can be explained with local and
wider implications.
● Correcting Misconceptions: Rectify negative publicity or misinformation.
● Generating Publicity: Attracts media attention and can make the news seem more
important.
● Boosting Morale: Successful press conferences can improve group pride.

Timing for a Press Conference

● Prominent Individuals: When media access to significant people is needed.


● Major Announcements: Starting campaigns, lobbying victories, or responding to crises.
● Emergency Situations: Handling crises, rumors, or fast-developing events.
● Group Actions: When multiple groups participate, emphasizing the importance of the
event.
● Reactions to Events: Responding to national reports or related events.

Holding a Press Conference During a Crisis

● Public Image: Demonstrates organization, effectiveness, and responsibility.


● Public Accountability: Going public with facts and plans to rectify situations.
● Expressing Concern: Conveying concern and regret credibly.
● Clarification: Setting facts straight and ensuring proper understanding.
● Control Information: Seizing initiative and controlling information flow.
● Scheduled Updates: Regular updates during a crisis to keep the press informed.

Preparation for a Press Conference

● Timing and Location: Ensure it’s big enough to accommodate media.


● Panel and Chairperson: Select appropriate members and prepare statements.
● Engagement and Management: Control the event, introduce panel members, manage
questions, and set a defined end time.

Practical Tips

● Understand the Issue: Proper briefing on the overall issue.


● Right Spokesperson: Ensure the spokesperson can handle the media effectively.
● Crisis SOP: Have a Standard Operating Procedure for crisis management.
● Avoid Media Traps: Train or rehearse to avoid getting baited by the media.
● Written Statements: Use written updates if not comfortable with live press conferences.
Chapter 7

What is Reputation Management?

● Reputation in Public Relations: How everyone sees your company, yourself, and the
people you represent. It can be good, bad, or okay.
● Corporate Reputation: This refers to what people remember about a company's past
actions and its ability to make stakeholders happy. Essentially, it's how people remember
your company's actions.

Desired Mindset for Reputation:

● What People Think and Say: It's important to know what people think and say about
your organization.
● Response to Negative Information: How people handle false claims, harmful rumors,
and bad reviews.
● Loyalty: People's loyalty to your company.

FOUNDATIONS OF REPUTATION MANAGEMENT:

● Reputation is the biggest factor in what customers buy.


● Tell stakeholders which products or services to buy.
● EMPLOYMENT
● INVESTMENT
● Reduce the company running costs.
● Create a good image and get ahead of competitors.
The Press Release:

● Role in Reputation Management: A press release is a key tool used by the public
relations team to build or improve a company’s reputation.
● Control the Narrative: It makes the company control the story around its brand by
sharing correct and positive information.
● Shape Perception: Press releases shape how people see the business, especially
important for investors.

Learning Outcomes:

1. Understanding Reputation: Knowing what reputation means in communications and


PR.
2. Foundations of Reputation Management: Understanding how to manage a company's
reputation effectively.
3. Importance of Reputation Management: Recognizing why managing reputation is
important.
4. Writing a Press Release: Learning how to write a press release to fix or enhance a
company's
Chapter 8

What is a Crisis Communication Plan?

● A Crisis Communication Plan is a manual that helps employees know what to do


during an emergency or crisis.

Benefits of a Crisis Communication Plan:

1. Provides Knowledge and Skills: Helps employees make the right decisions during a
crisis.
2. Mitigates Disruption: Reduces the impact of the crisis.
3. Tangible Proof: Useful for showing your skills in job or industry interviews.
4. Shows Preparation Skills: Shows your ability to write documents and create
presentations.
5. Assesses Understanding: Shows that you understand crisis communication.

Chapter 10

Fundamentals of Crisis Management

5 W’s and a H: Who, What, When, Where, Why, and How

1. Who:
○ Identifies important people in the crisis, including those affected and in charge of
the response.
○ Example: Who are the stakeholders? Who needs to be informed? Who will
manage the crisis?
2. What:
○ Describes what exactly happened or what the crisis is about.
○ Example: What type of crisis is it (financial, reputational, legal, etc.)? What are
the immediate impacts?
3. When:
○ Specifies the timing of the crisis, including when it started and any critical
timelines for response.
○ Example: When did the crisis occur? When should we act?
4. Where:
○ Shows where the crisis is happening or who is affected.
○ Example: Where did the crisis happen? Where is the impact the most?
5. Why:
○ Explains why the crisis happened.
○ Example: Why did the crisis happen? Why are we handling this way?
6. How:
○ Details how the crisis processing and how it is being managed.
○ Example: How did the crisis start? How are we handling it?
Determine who is responsible in a crisis situation and who does the work.

Responsibility: Giving specific roles and responsibilities to team members for handling different
parts of the crisis.

● Example: The CEO might handle public statements, while the HR Director manages
internal communications.

Accountability: Make sure everyone knows their role and follows through.

● Example: Regular check-ins and updates can help maintain accountability.

Understand how quickly a company should respond to a crisis. Reputation Management:

Importance of Quick Response: Immediate response can stop the crisis from a worse
situation and can maintain trust with stakeholders.

● Example: Respond within hours, if not minutes, to show control and prevent
misinformation.

Guidelines for Response Time:

● Immediate Action: Respond within a few hours.


● Short-Term Response: Give initial updates within the first day.
● Long-Term Response: Keep communicating clearly as things develop.

Learn how to manage and protect the company's reputation during a crisis.

Reputation Management

Protecting Reputation: Manage and protect the company's reputation by being clear, honest,
and active in communications.

● Example: Consistent messaging and engaging with stakeholders are important.

Strategies:

● Consistent Messaging: All communications should align.


● Engage with Stakeholders: Keep stakeholders informed and engaged throughout the
crisis.
● Monitor Media and Social Media: Watch public reactions and correct any wrong
information.

Crisis Management Academics


Fink’s Four-Stage Model:

1. Prodromal Stage: Look for early warning signs.


○ Example: Monitoring for signs of trouble before they become more serious.
2. Acute Stage: The crisis starts, and immediate action is needed.
○ Example: Quickly start your crisis communication plan.
3. Chronic Stage: The crisis is ongoing, and efforts are needed to handle it.
○ Example: Long-term strategies to deal with the situation.
4. Resolution Stage: The crisis is over, and things go back to normal.
○ Example: Reviewing and learning from the crisis to avoid future crises.

Coombs’s Three-Stage Model:

1. Precrisis:
○ Signal Detection: Recognizing early signs of potential crises.
○ Prevention: Act to stop the crisis before it starts.
○ Preparation: PGet ready with plans and resources for any crisis.
2. Crisis Event:
○ Crisis Recognition: Realize and admit that a crisis is happening.
○ Crisis Containment: Work to control and limit the crisis.
3. Postcrisis:
○ Performance Evaluation: Look at how well the crisis was managed.
○ Learning: Learn from the experience to improve future responses.
○ Follow-up Communication: Talk about what was done and how things have
improved.

Mitroff’s Five-Stage Model:

1. Signal Detection: Read early warning signs.


○ Example: Actively monitoring for potential issues.
2. Probing and Prevention: Study risks and try to prevent crises.
○ Example: Do risk assessments and put in place measures to stop crises.
3. Damage Containment: Keep the crisis from spreading.
○ Example: Start your crisis teams and plans to limit damage.
4. Recovery: Get back to regular operations and recover from the crisis.
○ Example: Restore company operations and rebuild trust with stakeholders.
5. Learning: Review what was done during the crisis and learn from it.
○ Example: Write down lessons learned and update crisis plans.

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