Lecture #9

Crisis Management

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

Defensive Response Strategies Denial Excuse Justification

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.

References

Seitel, F.P. (2011). The Practice of Public Relations. Prentice Hall: Boston.