Peggy Simcic Brønn 1 Crisis Communication and Crisis Management.

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Crisis Communication and

Crisis Management

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PreparationPrevention

SignalDetection

Containment/DamageLimitation

Recovery

Learning

CrisisProactive Reactive

Interactive

Pauchant & Mitroff

Proactive side of Crisis

Management

•Education•Prior experience•Position in organization

Involvementwith TMT

Existenceof a Plan

Use of research-basedinformation

StrategicApproach

ImprovedSignal Detection

More effectivepreparation/prevention

Enhanced reputation

Desired Stakeholder behavior

Improved Organizational Performance

Learning

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Broad Categories of Crises Technological

» Chernobyl, Bhopal Confrontation

» Boycott of products, Nestle Crises of Malevolence

» Terrorists, IRA bombs, Management Failure

» Kartongfabrikk, Ericcson Other - f. eks. takeover bids, Nycomed

Cell 2 Widespread environmental

destruction/industrial accidents Large-scale systems failures Natural disasters Hostile Takeovers Governmental crises International crises

Internal External

Technical/Economic

Cell 1 Product/Service Defects Plant defects/industrial

accidents Computer breakdown Defective, undisclosed

information Bankruptcy

Cell 3 Failure to adapt to change Organizational breakdown Miscommunication Sabotage On-site product tampering Counterfeiting Rumors, sick jokes,

malicious slander Illegal activities Sexual Harassment Occupational health diseases

Cell 4 Symbolic projection Sabotage Terrorism Executive kidnapping Off-site product tampering Counterfeiting False rumors, sick jobkes,

malicious slander Labor strikes Boycotts

People/Social/Organizational

Figure 2._: Types of corporate crises. From Mitroff et al. (1987).

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Examples

Fire and Explosion Emission and Environmental Scandals Layoffs Bankruptcy Strikes Accidents Sudden Resignations

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Examples

Public perception: Johnson & Johnson (Tylenol) Sudden Market Shift: Atari (computer games) Product Failure: A. H. Robins (Dalkin Shield) Management Succession: United Technologies Cash Crisis: Chrysler Corporation Industrial Relations Crisis: International Harvester Hostile Takeover: Bendix/Martin Marietta International Events: General Motors/OPEC Regulation/Deregulation: Braniff

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News Coverage of Crises Increasing

Business crisis events increased 13% first half of 1996 (worldwide)

Sexual harassment -- increased 192% -- fastest growing category

Class action suits, particularly against tobacco industry -- up 83%

Automotive industry -- most crisis prone industry -- Banking #2

Commercial airlines close behind

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What is Crisis Communication?

It is spontaneous. It is dependent on the size and nature of

crisis. It is a ‘happening’. It needs other demands from management

than ‘normal’ routines. It will normally affect many different

stakeholders than planned communications.

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When an accident, crisis or catastrophe happens, it is too late to develop a crisis

information plan.

A media plan and mental readiness must be in place before an accident, not

developed during the accident.

E. R. Sjøberg

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Two Key Words» Speed» Confidence

Two Strategies» Information -- one-way spreading of facts

and information» Communications -- two-way method of

giving out information

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Information Strategy

InternalExternalCrisis

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Crisis Information Strategy

Who is contact person, first and reserve. Who should do what?

List of everyone who has responsibility for notifying people.» Switch board, security personnel, safety

people Alternative places for press center.

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Crisis Information Strategy

Cooperation plans with company, police, fire department.

General rules on who can/can not make statements.

Information on other relationships with company, such as communications network

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Most Important Elements

Make sure responsibilities are clear and these people have full responsibility.

Make sure they are prepared mentally -- practice, drill, etc.

Make plans as simple as possible.

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Most Important Elements

Spokesperson must have ability to answer questions.

Spokesperson should not be given any other responsibilities.

Decide how to handle press.

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Which Stakeholders Need Informing?

Media (TV, radio, papers)

Employees Relatives Government

Agencies

Customers Police Suppliers Local Community Owners,

Shareholders, Board of Directors

INFORMATION PLANGroups Should Inform By Whom

No YesEmployeesFamilyCustomersSuppliersNeighborsPoliceSFTLocal MediaNat’l. MediaBoardOther

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Objectives Provide accurate, timely information to all

targeted internal and external audiences Demonstrate concern for safety of lives Safeguard organizational facilities and

assets Maintain a positive image of the

organization as a good corporate or community citizen

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Major action areas

PR HeadquartersMedia Information Center

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PR Headquarters

Responsible for notification of all internal and external emergency audiences

Preparing material for the media» Exercise principles of ‘one voice’ and full-

disclosure Establishing a public information center

to answer questions and control rumors

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Media Information Center

Away from PR headquarters Telephone that can not be shut off or

used by other personnel Assign people to escort media Room equipped with technology

needed by media Spokesperson - never PR person

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Avoid These Mistakes Before a Crisis Occurs

Define the PR Function and Recognize its Importance

Put PR in the Right Organizational Box Don’t Forget the World is a Small Place Have Clear PR Goals and Ongoing

Programs Have Crisis Planning/Be Prepared for the

Unexpected

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Avoid These Mistakes Before a Crisis Occurs

Avoid Bad Advice and Don’t Ignore Good Advice

Keep Up with Technology Don’t Forget Internal Audiences Don’t Blame the Media Don’t Kill the Messenger

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Questions

What can go wrong? Are the facilities vulnerable to fire,

explosion or other crisis? Is dangerous equipment on the

premises? What are potential trouble spots?