lesson one: the nature of crises: overview & theories michael caudill western carolina...

Lesson One:Lesson One:The Nature of Crises:The Nature of Crises:Overview & TheoriesOverview & Theories

Michael CaudillMichael CaudillWestern Carolina UniversityWestern Carolina University

M. Caudill - Western Carolina UniversityM. Caudill - Western Carolina University 22

Crisis CommunicationsCrisis Communications

1. Crisis Communications: 1. Crisis Communications: Overview & TheoriesOverview & Theories

2. Classic Crisis 2. Classic Crisis Communications CasesCommunications Cases

3. The Crisis Communication 3. The Crisis Communication Plan (CCP)Plan (CCP)

4. Communicating with the 4. Communicating with the Media, Lawyers & Media, Lawyers & StakeholdersStakeholders

5. The Role of the Spokesperson 5. The Role of the Spokesperson & Creating Key Messages& Creating Key Messages

6. Communicating in Television 6. Communicating in Television & Radio Settings& Radio Settings

7. Rumors & Cybercrises7. Rumors & Cybercrises

8. Mid-term Examination8. Mid-term Examination

9. News Conferences & Public 9. News Conferences & Public HearingsHearings

10. Public Hearing Simulation10. Public Hearing Simulation

11. Natural Disasters11. Natural Disasters

12. Death & Injury 12. Death & Injury (If it Bleeds, it Leads) (If it Bleeds, it Leads)

13. Crises & Culture13. Crises & Culture

14. Crisis & the Consumer14. Crisis & the Consumer

LessonsLessons


The Nature of CrisesThe Nature of Crises

Lesson ObjectivesLesson Objectives

Recall working definitions of crisis & emergency risk Recall working definitions of crisis & emergency risk communication concepts.communication concepts.

Demonstrate an understanding of crisis Demonstrate an understanding of crisis communication theory.communication theory.

Explain how crisis communication fits into crisis Explain how crisis communication fits into crisis management.management.

Describe how the role of communication evolves from Describe how the role of communication evolves from pre-crisis through post-crisis.pre-crisis through post-crisis.



Lesson PreviewLesson Preview

What is a crisis?What is a crisis? Stages of a crisis: Detection, Prevention/Preparation, Stages of a crisis: Detection, Prevention/Preparation,

Containment, Recovery, LearningContainment, Recovery, Learning Public opinionPublic opinion

Crisis communication theoriesCrisis communication theories



A Crisis:A Crisis:

A major occurrence A major occurrence with a potentially negative with a potentially negative outcome affecting the organization, company, outcome affecting the organization, company, or industry, as well as its publics, products, or industry, as well as its publics, products, services, or good nameservices, or good name



What do you think makes an event a crisis?What do you think makes an event a crisis?

What are the characteristics of a crisis?What are the characteristics of a crisis?


Characteristics of a CrisisCharacteristics of a Crisis SurpriseSurprise that is always that is always

driven by media exposure.driven by media exposure.

Insufficient informationInsufficient information about relevant facts & public about relevant facts & public perception of the issue.perception of the issue.

Escalating flow of eventsEscalating flow of events hampers ability of hampers ability of management to understand management to understand quickly that they "own" the quickly that they "own" the problem & must respond.problem & must respond.

Loss of controlLoss of control over the way over the way the growing crisis is perceived the growing crisis is perceived & impact on the organization.& impact on the organization.

Intense scrutinyIntense scrutiny from from Outsiders/Insiders: media, Outsiders/Insiders: media, government, regulators, government, regulators, activists, stakeholders, activists, stakeholders, management.management.

Siege mentality:Siege mentality: Leadership Leadership attempts to hide rather than attempts to hide rather than confront the central issues.confront the central issues.

PanicPanic perverts &/or paralyzes perverts &/or paralyzes decision-making process.decision-making process.

Issue judged in public Issue judged in public arenaarena in a manner designed in a manner designed to satisfy the interests of to satisfy the interests of outsiders.outsiders.



During a Crisis:During a Crisis:

emotions are on edgeemotions are on edge

brains are not fully functioningbrains are not fully functioning

events occur too rapidly to draft a planevents occur too rapidly to draft a plan

- - simply simply followingfollowing one is a challenge one is a challenge

Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p.2Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p.2



Crisis Management:Crisis Management:

A process of strategic planning for a crisisA process of strategic planning for a crisis

Planning removes some of the risk & uncertainty & Planning removes some of the risk & uncertainty & allows an organization greater controlallows an organization greater control




Crisis communicationsCrisis communications is concerned with is concerned with the transferring of information to significant the transferring of information to significant persons (publics) to either:persons (publics) to either:

help help avoidavoid or or preventprevent a crisis (or negative a crisis (or negative occurrence)occurrence)

recoverrecover from a crisis from a crisis maintainmaintain or or enhanceenhance reputation reputation

Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (3 ed.), p.2Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (3 ed.), p.2



Crisis Communications:Crisis Communications:

Dialog between the organizationDialog between the organization& its publics:& its publics:

► ► prior to,prior to,► ► during,during,► ► & after event& after event

Effective crisis communications can not only minimize Effective crisis communications can not only minimize or eliminate the crisis…or eliminate the crisis………but sometimes can bring the organization a but sometimes can bring the organization a more positive reputation than before the crisismore positive reputation than before the crisis



The Role of The Role of CCrisis & risis & EEmergency mergency RRisk isk CCommunicationommunication

((CERCCERC):):

Communication during a crisis cannot be managed Communication during a crisis cannot be managed just by mobilizing more people & material – just by mobilizing more people & material – thethe communication itself must changecommunication itself must change

In a crisis, established frames of reference & ways of In a crisis, established frames of reference & ways of understanding may breakdownunderstanding may breakdown

Reynolds, B., Crisis & Emergency Risk Communication, p. 11Reynolds, B., Crisis & Emergency Risk Communication, p. 11



Poor Communication Practices Poor Communication Practices Poor Public Response:Poor Public Response:

Mixed messagesMixed messages from multiple experts from multiple experts Information released Information released too latetoo late Messages that are Messages that are over-reassuringover-reassuring Public recommendations without a Public recommendations without a “reality check”“reality check” Leaving myths, rumors, & doomsayers Leaving myths, rumors, & doomsayers unchallengedunchallenged Poorly preparedPoorly prepared spokespersons spokespersons Public Public power strugglespower struggles & confusion & confusion



The Nature of Crises

Decision making in aDecision making in a

Crisis Is Different:Crisis Is Different:

People simplifyPeople simplify Cling to current beliefsCling to current beliefs We remember what we see or previously experienced - We remember what we see or previously experienced -

first messages carry more weightfirst messages carry more weight People limit intake of new informationPeople limit intake of new information

CDC, CERC: By Leaders for Leaders



CERC Basics:CERC Basics:

Don’t over-reassure:Don’t over-reassure: Don’t placate; display calm concernDon’t placate; display calm concern

Acknowledge uncertainty:Acknowledge uncertainty: Offer only what you know & acknowledge distressOffer only what you know & acknowledge distress

Emphasize that a process is in place:Emphasize that a process is in place: Describe the process in simple termsDescribe the process in simple terms

CDC, CERC: By Leaders for LeadersCDC, CERC: By Leaders for Leaders



CERC Basics:CERC Basics:

Give anticipatory guidance:Give anticipatory guidance: Let people know what to expectLet people know what to expect

Be regretful, not defensive:Be regretful, not defensive: Say, Say, “We are sorry”“We are sorry” or or “We feel terrible ”“We feel terrible ” when when acknowledging misdeeds or failuresacknowledging misdeeds or failures

Express wishes:Express wishes:Say, Say, “I wish we knew more”“I wish we knew more”




In a Public Crisis:In a Public Crisis:

Panic is less common than imaginedPanic is less common than imaginedPanic comes from mixed messagesPanic comes from mixed messages

Acknowledge people’s fearsAcknowledge people’s fearsDon’t tell people they shouldn’t be afraid Don’t tell people they shouldn’t be afraid They They areare afraid & have a right to their fearsafraid & have a right to their fears

Be willing to address the “what if” questionsBe willing to address the “what if” questions If you don’t, someone else will If you don’t, someone else will

Sandman, Peter, Ph.D. in Reynolds, B., Crisis & Emergency Risk Communication, p. 112Sandman, Peter, Ph.D. in Reynolds, B., Crisis & Emergency Risk Communication, p. 112



In a Public Crisis:In a Public Crisis:

Give people things to doGive people things to doSimple actions give people a sense of control & Simple actions give people a sense of control & motivate them to take action when directedmotivate them to take action when directed

Ask Ask moremore of people of peopleAsk people to bear the risk & work toward solutions Ask people to bear the risk & work toward solutions with youwith you



Research shows:Research shows:

Companies with Companies with ongoing two-way ongoing two-way communicationscommunications often avoid crises or have often avoid crises or have crises of shorter duration or lesser magnitudecrises of shorter duration or lesser magnitude

Companies with a crisis management plan Companies with a crisis management plan come out of a crisis with a more positive come out of a crisis with a more positive image than companies without oneimage than companies without one




In a crisis,In a crisis,when when everyone elseeveryone else is losing it, is losing it,YOUYOU must be the calm center must be the calm center

(yes, (yes, YOUYOU!!))

"This is not as bad as it seems“"This is not as bad as it seems“

"This could be worse. We can’t turn a crisis into a "This could be worse. We can’t turn a crisis into a catastrophe”catastrophe”

"This is what we can do...""This is what we can do..."




The 5 Stages of a Crisis:The 5 Stages of a Crisis:

1. Detection1. Detection

2. Prevention/Preparation2. Prevention/Preparation

3. Containment3. Containment

4. Recovery4. Recovery

5. Learning5. Learning




Detection:Detection: Constantly scan horizon for warning signs (prodromes)Constantly scan horizon for warning signs (prodromes)

Prevention/Preparation:Prevention/Preparation: Ongoing public relations programs with key publicsOngoing public relations programs with key publics

The CCP is the primary tool of preparedness – The CCP is the primary tool of preparedness – a “collective brain”a “collective brain”

Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 9-11Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 9-11



Containment:Containment: Limiting the duration of the crisis or to keep it from Limiting the duration of the crisis or to keep it from

spreadingspreading

Recovery:Recovery: Returning the company to business as usualReturning the company to business as usual

Learning:Learning: Examining the crisis & determining what was lost or Examining the crisis & determining what was lost or

gained, & how the organization performed gained, & how the organization performed Make the crisis a prodrome that helps prevent future Make the crisis a prodrome that helps prevent future

crisescrisesFearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 9-11Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 9-11



Public OpinionPublic Opinion

In a U.S. court of law a person is In a U.S. court of law a person is innocent until proven guiltyinnocent until proven guilty

In the U.S. court of public opinion you are In the U.S. court of public opinion you are guilty until guilty until proven innocentproven innocent

YouYou influence public opinion by establishing & influence public opinion by establishing & communicating proof that the prevailing "truth" is not the communicating proof that the prevailing "truth" is not the “whole truth”“whole truth”

Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 13Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 13



Crisis Communication:Crisis Communication: Theories, Terms & DefinitionsTheories, Terms & Definitions

Strategy:Strategy: How one handles a problem How one handles a problem

Stakeholders:Stakeholders: People linked to an organization & affected People linked to an organization & affected by it’s decisions (employees, stockholders, communities, & by it’s decisions (employees, stockholders, communities, & government officials)government officials)

Strategic publics:Strategic publics: Stakeholders crucial to an organization Stakeholders crucial to an organization (boards of directors, investors, & unions)(boards of directors, investors, & unions)

Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (2 ed.), p 17-18Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (2 ed.), p 17-18



Crisis Communication:Crisis Communication:

Theories, Terms & DefinitionsTheories, Terms & Definitions

Strategically managed public relations:Strategically managed public relations: Communications programs designed to build relationships Communications programs designed to build relationships with strategic publicswith strategic publics

Segmentation:Segmentation: The division of groups by mutual The division of groups by mutual interests, concerns, & characteristicsinterests, concerns, & characteristics

Risk communications:Risk communications: An ongoing program of informing An ongoing program of informing & educating various publics& educating various publics



Crisis Communication:Crisis Communication:

Theories, Terms & DefinitionsTheories, Terms & Definitions

Organizational ideology:Organizational ideology: An organization's philosophy, An organization's philosophy, working climate, corporate cultureworking climate, corporate culture

Communications ideology:Communications ideology: The organization's philosophy The organization's philosophy & attitudes of behavior in communicating with publics& attitudes of behavior in communicating with publics



The Nature of CrisesThe Nature of CrisesCrisis Communication Theories:Crisis Communication Theories:

Apologia Theory: Apologia Theory: Defend reputation & protect imageDefend reputation & protect image Not necessarily an apology - effort may deny, Not necessarily an apology - effort may deny,

explain, or apologize through discourseexplain, or apologize through discourse ““Conciliation”:Conciliation”: "We are guilty. We are sorry. Please "We are guilty. We are sorry. Please

forgive us."forgive us." ““Redefinition”:Redefinition”: Org. says that it did not Org. says that it did not "intend""intend" to to

commit misdeedcommit misdeed ““Dissociation”:Dissociation”: Informing publics that org. Informing publics that org. mightmight

seemseem to have committed misdeed, but to have committed misdeed, but actuallyactually didn’tdidn’t




Image Restoration Theory:Image Restoration Theory: Org. must know which publics have negative Org. must know which publics have negative

impressions & extent of their knowledgeimpressions & extent of their knowledge

Org. must know where publics stand Org. must know where publics stand beforebefore being being targeted for communicationtargeted for communication

Org. must also determine if publics know anything that Org. must also determine if publics know anything that might damage reputation - Sometimes better to remain might damage reputation - Sometimes better to remain silent; other times best to tell your own bad newssilent; other times best to tell your own bad news




Decision Theory:Decision Theory: Decisions made under various conditions - outcome Decisions made under various conditions - outcome

may be certain, vague, ambiguous, or riskymay be certain, vague, ambiguous, or risky

Theory suggests that the decision maker consider the Theory suggests that the decision maker consider the possible benefit of each alternative - possible benefit of each alternative - “maximizing”“maximizing”

When decision makers sometimes settle for decision When decision makers sometimes settle for decision that satisfy minimum requirements - that satisfy minimum requirements - “satisficing”“satisficing”




Diffusion Theory:Diffusion Theory: Examines how new procedures, practices, & objects Examines how new procedures, practices, & objects

adopted/acceptedadopted/accepted 5-step process:5-step process:

AAwarenesswareness (body is exposed to idea) (body is exposed to idea)

InterestInterest (body develops interest in idea) (body develops interest in idea)

EvaluationEvaluation (pros/cons determined & considered) (pros/cons determined & considered)

TrialTrial (idea implemented for analysis) (idea implemented for analysis)

Adoption or Failure to adoptAdoption or Failure to adopt (acceptance or rejection) (acceptance or rejection)Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 53Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 53



Diffusion Theory: Diffusion Theory: adopted depends on -adopted depends on - The Past:The Past: What has happened previously? You must What has happened previously? You must

know where you are before you decide to go know where you are before you decide to go forwardforward

The Decision Makers:The Decision Makers: Are they open or closed to Are they open or closed to change? Is the body “all leaders & no followers”?change? Is the body “all leaders & no followers”?

The Innovation/Change:The Innovation/Change: Does the new idea show Does the new idea show more advantages/fewer disadvantages over more advantages/fewer disadvantages over present practice? Will drastic or gradual change be present practice? Will drastic or gradual change be required?required?




Crisis Communication Theories:Crisis Communication Theories:

Grunig & Hunt (1984):Grunig & Hunt (1984): PR Excellence TheoryPR Excellence Theory

Press Agency/Publicity ModelPress Agency/Publicity Model

Public Information ModelPublic Information Model

Two-Way Asymmetric ModelTwo-Way Asymmetric Model

Two-Way Symmetric ModelTwo-Way Symmetric Model





Press Agency/Publicity Model:Press Agency/Publicity Model: Least DesirableLeast Desirable "All "All publicity is good publicity“ - most PR practitioners still publicity is good publicity“ - most PR practitioners still follow this strategy Grunig & Grunig (1992)follow this strategy Grunig & Grunig (1992)

Public Information Model:Public Information Model:

Report information “journalistically” - truth is essentialReport information “journalistically” - truth is essentialFearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 54-55Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 54-55




Two-Way Asymmetric ModelTwo-Way Asymmetric Model

(aka “scientific persuasion”)(aka “scientific persuasion”)

Use surveys & polls to persuade publicsUse surveys & polls to persuade publics

Two-Way Symmetric ModelTwo-Way Symmetric Model

(aka “mutual understanding”) (aka “mutual understanding”) Most DesirableMost Desirable

PR as intermediary between organization & publicsPR as intermediary between organization & publics





Grunig & Repper (1992):Grunig & Repper (1992): Strategic mgt., publics, & Strategic mgt., publics, & issues have two primary propositions:issues have two primary propositions:

PR is most likely to be excellent when an integral part of PR is most likely to be excellent when an integral part of an organization's strategic management processan organization's strategic management process

PR is managed strategically when it identifies stakeholders PR is managed strategically when it identifies stakeholders & resolves issues through symmetrical communications & resolves issues through symmetrical communications programsprograms




Crisis Communication Theories:Crisis Communication Theories:Marra (1992):Marra (1992): Identifies adjustable variables that make an Identifies adjustable variables that make an org. succeed or fail in a crisisorg. succeed or fail in a crisis

Orgs. with strong ties with its key publics prior to a crisis will Orgs. with strong ties with its key publics prior to a crisis will suffer less damage than those with asymmetrical practicessuffer less damage than those with asymmetrical practices

Orgs. with CCP’s prior to crises will have stronger public Orgs. with CCP’s prior to crises will have stronger public relationships & less damagerelationships & less damage

Orgs. that encourage crisis mgt. preparations & two-way Orgs. that encourage crisis mgt. preparations & two-way communications practices will suffer less damagecommunications practices will suffer less damage





Fearn-Banks (1996):Fearn-Banks (1996): Adds two characteristics:Adds two characteristics: Organization that anticipate, through crisis Organization that anticipate, through crisis

inventory, the precise type of crisis will suffer less inventory, the precise type of crisis will suffer less financial, emotional, & perceptual damage than the financial, emotional, & perceptual damage than the organization that does notorganization that does not

An organization that maintains the reputation of An organization that maintains the reputation of having an overall "open & honest" policy with having an overall "open & honest" policy with stakeholders & the news media will have less stakeholders & the news media will have less financial, emotional, & perceptual damagefinancial, emotional, & perceptual damage




Lesson ReviewLesson Review

What is a crisis?What is a crisis? What is a prodrome?What is a prodrome? Distinguish between a crisis management plan & a Distinguish between a crisis management plan & a

crisis communication plancrisis communication plan What are the five stages of a crisis? What happens in What are the five stages of a crisis? What happens in

each of them?each of them? Name & briefly describe each of the crisis Name & briefly describe each of the crisis

communication theoriescommunication theories in this lessonin this lesson

lesson one: the nature of crises: overview & theories michael caudill western carolina...

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