lecture #9 crisis management. in class assignment #5 name 5 crises that you can think of that have...
TRANSCRIPT
In Class Assignment #5
Name 5 crises that you can think of that have taken place in the fashion industry?
What Classifies a “Crisis”
Can range from: Natural Disaster Misrepresentation Fraudulent Accusations Rumors Lies Unpreparedness Language In adequate or harmful release of products/services Even how you handle a customer complaint can
result in a crisis
The Speed of Crisis
Today, the internet can help even the smallest crisis reach thousands of individuals within minutes.
With that said, individuals and organizations are even closer to creating a crisis.
In the 21st century our society is filled with issues that affect us daily and even hourly.
Issues Management
The ability to understand, mobilize, and direct strategic and policy planning functions, and public relations skills. Toward achieving one objective: meaningful participation in creation of public policy that affects personal and organizational destiny.
5 Steps to Issues Management
Identifies issues which the organization must be concerned.
Analyzes and Delimits each issue with respect to impact on its publics.
Displays various strategic options. Implements an action program to
communicate the organization’s views and influence perception of an issue.
Evaluates its program in terms of reaching organizational goals.
Issues Management
Anticipated Emerging Issues Identifies Issues Selectivity Deals With Opportunities and
Vulnerabilities Plans From Outside In Bottom-Line Orientation Action Timetable Dealing With The Top- must operate with
the support of the chief executives
Risk Communication
Risk Communication- an outgrowth of issues management. It began as a process of taking scientific data related to health and environmental hazards and presenting them to an audience in a manner that is understandable and meaningful.
Risk Communication
Helps individuals understand messages when they are in high-stress situations. To help with this communicators have developed a message mapping process Identify Stakeholders Determine stakeholders concerns Analyze specific concerns to fit general concerns Construct Brainstorming Put together supporting facts and proof for each
message Ask outside experts to test messages Plan delivery of resulting messages and supporting
materials
Risk Communication
Depends basically on the organization’s actions.
In the long-run actions speak louder than words in communicating risk
Message Maps Three Key Messages Seven to 12 words per message Three supporting facts for each key
message
Managing in a Crisis
Accidents and Disasters, known as crises, are often the biggest test of an organization or individual
Crisis- a situation that has reached a critical phase for which dramatic and extraordinary intervention is necessary to avoid or repair major damage.
How an organization handles itself during a crisis can influence its reputation for many years.
Managing in a Crisis
It can also cripple its reputation and suffer a large monetary loss.
If you think logically, be thoughtful, and act quickly you can help create a positive reputation.
When Crisis Takes Place
When a crisis takes place there are usually many signs that appear shortly after.
Surprise- when crisis breaks out, its usually unexpected.
Insufficient Information- things happen at once, rumors come out, blogs report false stories
Escalating Events- the crisis expands, CrisisInjury Death
When Crisis Takes Place
Increased Outside Scrutiny- Bloggers, the media, stock brokers, talk-shows, and the public feed the rumors
Siege Mentality- The organization feels surrounded Lawyers advise to say no comment because
anything said could be used against the organization.
Panic- with all the walls caving in, panic sinks in.
Planning in a Crisis
The key to crisis management is making sure your organization is prepared.
All accidents make great headlines and wonderful reporting.
Planning in a Crisis
For each potentially impacted audience, define the risk. The dies in the garment have resulted in skin
irritation For each risk, define the actions that
mitigate the risk. The product has been recalled
Identify the Cause of the Risk If the public is aware that you know what took
place, they are more likely to accept that you will fix it quickly.
Planning in a Crisis
Demonstrate Responsible Management Action Acting to Correct the Issue
Create a Consistent Message Agree on a spokesperson who can be the
voice of the organization The more serious the incident, the higher
up in the organization you will want that individual to be.
Be honest, don’t cover up a lie.
Planning in a Crisis
Letting people know that the organization has a plan and is implementing it helps convince them that the organization is in control. Be prepared Be available Be credible Act Appropriately
Communicating in a Crisis
Lawyers traditionally have advised clients to do one of the following Say nothing Say as little as possible and release it
quietly as possible Say as little as possible citing privacy laws,
company policy, and sensitivity Deny guilt and act angry that such charges
could possibly have been made Shift blame or share blame with others
Communicating in Crisis
The best crisis communicators are those who respond promptly, honestly, and provide full information to the media during the crisis.
Executives often want to wait to communicate until all facts are in.
Communicating in a Crisis
By saying nothing, an organization is perceived as already making a decision
“No comment” makes the organization seem guilty.
Silence angers the media and makes the problem worse
Inexperienced spokespeople speculating nervously or using emotionally charged language are even worse.
Cardinal rule of public relations during times of crises is to tell it all and tell it fast.
Communicating in a Crisis
The goals, when communicating in crisis should be: Terminate the crisis quickly Limit the damage Restore Credibility
Engaging the Media
When crisis strikes, the media becomes hungry for information.
There are a series of things an organization should do to make themselves available to the media.
Engaging the Media
Set up a media headquarters- all authorized communication must flow through
Establish Media Rules- the media are sneaky during crises. Determines which parts of the organization are off limits, what executives will be unavailable.
Media live for the “box score”- Crisis specifics make news. How many were fired? How many were missing? How many died?
Engaging the Media
Do not speculate- if you don’t know the numbers do not make them up or pretend you do
Feed the Beast- provide answers to the media 24/7 Strive to keep the media updated on new
information about the crisis. Speed Triumphs- the media is often about speed
first and accuracy later. Must monitor media to address what is inaccurately being reported
Cable Rules- 24/7 news channels make attending to a crisis an around the clock ordeal.
Speaking to the Media
Speak first and speak often Don’t speculate Go off the record at your own peril Stay with the facts Be open and concerned, not defensive Make your point, repeat your point Don’t argue with the media Establish yourself as the most authoritative source Stay calm and cooperative Never lie
Crisis Response Strategies
Preemptive Action Strategy An organization tries to be the first to tell
the story and set the tone before others have the chance to tell their own.
Crisis Response Strategies
Offensive Strategies An organization may attempt to attack the
accuser when its logic or facts are faulty or if the accuser is negligent or malicious
The organization may try to embarrass the accuser through shame or humiliation
Crisis Response Strategies
Diversionary Response Strategies Concession: the organization gives the
public something it wants which is valued by both groups
Ingratiation: actions are taken to appease the publics involved
Disassociation: distances the organization from the wrongdoer
Relabeling: devising a new name for a product or service, or even the organization
Crisis Response Strategies
Vocal Commiseration Strategies Concern: organization does not admit guilt, but
expresses concern Condolence: a more formal vocal response,
recognizes the sorrow of the personal loss or misfortune, but does not admit guilt.
Regret: admitting sorrow and remorse for a situation– the organization may or may not admit fault for the situation.
Apology- the organization takes responsibility and asks forgiveness– sometimes included compensation, aid, or money.
Crisis Response Strategies
Rectifying Behavior Strategies Investigation: short-term strategy to
examine the facts that led to the situations Corrective Action- steps are take to repair
the damage from the crisis and to prevent it from happening again
Restitution: the organization offers to provide the public with ways to compensate victims and restore the situation.
Repentance: fully accepts responsibility for its actions and offers to change its practices.
Crisis Response Strategies
Strategic Inaction Silence: may choose to remain silent when
it is under fire. Used to protect victims privacy Sometimes providing a short statement of
why the organization is not speaking is beneficial
Not the same as “no comment”
Final Thoughts
Crises can range from natural disasters to crises brought on by carelessness.
Internet and social media cause a crisis to travel extremely quickly.
When faced with a crisis your organization should be the first to communicate with the media and you should communicated with them frequently.