The secret of crisis management is not good vs.. Bad, it’s preventing the bad from getting worse. -Andy Gillian. The key characteristics of a crisis are that you cannot control It – that’s why It Is called Crisis “management. ” You have to understand, in real time, when to yield and when to tilt. And even if you navigate to perfection the threat could be existential. Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public.
The study f crisis management originated with the large-scale industrial and environmental disasters In the sass. The unexpected, by definition, can come at any time. And no business is bulletproof. If you’re unprepared, the unexpected can be your business’s greatest vulnerability. A natural disaster such as a hurricane, flood, wildfire or earthquake could arise and destroy the compass physical assets. Or a theft, a sudden death of a key executive, a bad investment, a scandal or a social-media crisis could damage a company’s financial health.
How a company responds to a crisis or an unexpected event affects Its credibility and resilience.
Can It bounce back quickly without much intervention? Will restoring to its pre-crisis status require aggressive tactics or will the business fail to survive? Developing a crisis-communications response plan is essential for any business. Crisis management consists of different aspects including; Methods used to respond to both the reality and perception of crises. Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms.
Communication that occurs within the response phase of emergency-management scenarios.
A crisis mindset requires the ability to think of the worst-case scenario while simultaneously suggesting numerous solutions. Trial and error is an accepted discipline, as the first line of defense might not work. It is necessary to maintain a list of contingency plans and to be always on alert. Organizations and Individuals should always be prepared with a rapid response plan to emergencies which would require analysis, drills and exercises. During the crisis management process, it is important to identify types of crises in that different crises necessitate the use of different crisis management strategies.
Potential crises are enormous, but crises can be clustered. Leering O. Categorized eight types of crises Natural disaster, Technological crises, Confrontation, Malevolence, Organizational Misdeeds, Workplace Violence, Rumors, Terrorist attacks/man-made disasters etc. These are sobering statistics, but many businesses begin with very little preparation for potential problems. And when something drastic happens, business owners can make fatal mistakes by Ignoring or not taking a problem seriously, addressing the situation too late or simply not knowing what to say or how to act.
Today, Smart phones, tablets, and computers let information (both erect and otherwise) flow swiftly. Hunkering down and hoping a crawls will blow over is never a good idea. Companies that wait too long to respond will find that the news media and the online community will seek other sources for information. The end toy 2 complete transparency and honesty in all communications in the aftermath of a crisis. Don’t make the mistake of thinking you can spin the facts. Honesty is essential for rebuilding the trust of customers, employees and other stakeholders.
A well- rounded crisis-communications plan outlines how the to find solutions for the crisis. The social-media manager and other employees engage on social-media platforms to answer questions and communicate with the community members, employees and others. Some detailed crisis plans include examples of a crisis websites content, social-media posts and Q&A scripts for press interactions. An example of unsuccessful crisis management is the Opal crisis in which poor communication before, during, and after the crisis cost thousands of lives, illustrates the importance of incorporating cross-cultural communication in crisis management plans.
According to American University Trade Environmental Database Case Studies 1997), local residents were not sure how to react to warnings of potential threats from the Union Carbide plant. Operating manuals printed only in English is an extreme example of mismanagement but indicative of systemic barriers to information diffusion. The Opal incident illustrates the difficulty in consistently applying management standards to multi-national operations and the blame shifting that often results from the lack of a clear management plan.
Whereas an example of successful crisis management is the Pepsi Corporation faced a crisis in 1993 which started with claims of syringes being found in cans of diet Pepsi. Pepsi urged stores not to remove the product from shelves while it had the cans and the situation investigated. This led to an arrest, which Pepsi made public and then followed with their first video news release, showing the production process to demonstrate that such tampering was impossible within their factories. A second video news release displayed the man arrested.
A third video news release showed surveillance from a convenience store where a woman was caught replicating the tampering incident. The company simultaneously publicly worked with the FDA during the crisis. The reparation was completely open with the public throughout, and every employee of Pepsi was kept aware of the details. This made public communications effective throughout the crisis. After the crisis had been resolved, the corporation ran a series of special campaigns designed to thank the public for standing by the corporation, along with coupons for further compensation.
This case served as a design for how to handle other crisis situations. While it’s impossible to prepare a communications plan to addresses every potential crisis, advance planning can provide a guide. In a Ritter crisis-communications plan, a business should have an emergency contact sheet with names and phone numbers for the police, fire and ambulance services, as well as company managers and executives and local media representatives.
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