Uki

Crisis Public Relations:How to deal with?

Universitas Kristen Indonesia,

November 16, 2011

Firsan NovaPR Strategist,

Bostonprice Asia & In-Line Performa Asia Consulting

Crisis

• Your rector wake up in the morning, read news paper and news paper head line said that someone killed/injured/broke the law in University Area. What he/her can do?– Act quickly and take punishment

Crisis Facts• Corporate spokespersons beware: many Americans don't believe

everything you say in the heat of a crisis--even if you are telling the truth.

• In fact, corporate spokespersons are perceived by the public as the "least believable" sources of information about corporate crises, a recent survey found.

• Most companies don't effectively communicate their side of the story when a crisis strikes. Many Americans, the survey found, are upset about how companies respond to crises. (Porter/Novelli)

• Consumers have a keen memory of past crises and often don't trust what they hear from companies about negative events.“ (Bob Druckenmiller)

Crisis factsThe survey asked 1,000 people to recall recent crises and probed their feelings and reactions

on how companies and the media handled these situations.• 75% respondents say companies refuse to take responsibility for crises. • Only 19% feel companies are totally truthful in a crisis situation. • More than half (57%) believe companies either withhold negative information, or worse

yet, lie. • 95% said they are more offended about a company lying about a crisis than about the

actual crisis itself. • 65% of respondents feel that declining to comment always implies guilt. • The public finds journalists more trustworthy than business executives, but finds neither

to be believable. Only 23% trust journalists in a crisis; only 9% trust company executives. • Corporate crises have a lasting impact on consumers and affect their intent to purchase a

company's products.• The public is critical of the media's handling of corporate crises. • Almost nine out of 10 (89%) Americans say the media blow crisis events out of

proportion. • When asked to describe how the media react to a crisis, 57% said "like vultures circling for

the kill;" 24% said "like a pack of wild dogs;" 16% said "as neutral observers reporting the facts;" and 2% said "like cavalry to the rescue."

• TV is the most believable source of information, said 34% of the respondents. TV was followed by newspapers (29%), magazines (22%), and radio (12%).

Understanding crisisa

What is a crisis?

• Crisis is any event that jeopardizes or harms your image, reputation, or financial stability.

• The key here is potential impact. How badly can you or your institution be hurt?

• The more serious the potential harm, the greater the crisis

The nature of Crisis

• Crisis is cost of life• Most small businesses think that “Crisis ” is the

concern of only Fortune 500 companies, but a crisis can strike any organizations at any time.

• If u think that your tiny business, out of public eye, is invulnerable to a crisis, you’re wrong. Smaller businesses, which often rely on one or two key customer, can lose that business at the drop of a hat. For this seasons, you should plan for any possible crisis that could occur.

In business there are three main types of crisis :

1. Financial crisis – short term liquidity or cash flow problems; and long term bankruptcy problems.

2. Public relations crisis – More commonly called “crisis communications”, negative publicity that could adversely affect the success of the company.

3. Strategic crisis – changes in the business environment that call the viability of the company into question.

Potential crisis situations– Public health (for example, a cancer causing products– Safety and security issues– Financial and business issues– Environmental issues– Disasters (product tampering, service outages)– Business practices and ethics– Worker misconduct– Legal issues Accident and disaster (driver accidents,

crashes, fires, building collapses) – False advertising – Customer complaints – Out of stock products

1.Pre-Crisis Stage2.Warning3.Acute Crisis4.Clean-Up5.Post-Crisis

Crisis Life Cycles

Crisis Managementa

The goals of crisis management

1. Terminate the crisis quickly2. Limit the damage3. Restore credibility

What we can do?A PR’s guide

a

Crisis Rules for leader#1 Your chief communications leader – the person

responsible for managing the chaos should it occur – the president, agency head or nonprofit CEO must have full confidence in your crisis abilities, and you must have 24/7 direct access to the boss.

#2 As the chief media/PR/marketing team leader in higher education, an independent school, government agency, or nonprofit association, your job is to build, strengthen, nurture, and protect the institution’s image and reputation.

#3 In time of crisis, you have a moral obligation to communicate quickly and effectively with key audiences.

• A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives

• Communication strategic begin on know your public (stakeholder) and prepare your communication method after then

• Every public is unique and require difference communicartion method

Understanding the public

Considering the wide range of crisis situations that may occur in an organization, there consequently needs to be separate responses from different groups of people. These groups are primarily:

1. The operational people, who are responsible for keeping the disruption under control.

2. The top management people, who are responsible for allocating resources and for making critical decisions needed to resolve the situation.

3. The communications people, who are responsible for making sure that those who need to know are informed initially and are kept informed until the crisis is resolved.

Who are responsible?

1. The corporation in crisis should be prompt, addressing the public immediately following the discovery of the crisis

2. The corporation in question should maintain honesty because the public is more willing to forgive an honest mistake than a calculated lie.

3. It is important to be informative because the media as well as the public will create their own rumors if no information given to them.

4. It is important to be concerned and show the public you care, because people will be more forgiving if it is clear that the corporation cares about the victims of the crisis.

5. Maintain two-way relationship. Corporation can learn a lot about the status of public opinion.

How to manage crisis properly

1. School can attack the accuser attempting to eliminate the attacker’s credibility.

2. School can use denial claiming that no crisis exists.3. The third response is justification where the school

claims no serious damage was done or that the victim was at fault.

4. The school can use ingratiation to appease the publics, such as giving away coupons.

5. School can use corrective action to right their wrongs.

6. School can give a full apology asking for forgiveness for their mistake

6 responses to crisis

Communicating in a crisisa

• School spokes person job is to make sure that: – The company responds promptly to unflattering

media report or controversies– Gets its side of the story

• The basic tools communication officer include:– News releases, news letter, press conference, tours

of plants & other company facilities, articles in trade or professional journals, company publication & brochures, TV & radio talk show appearances by company personnel, special events & the internet

The function of communication officer?

When crisis hits, the organization must assess its communications –particularly in evaluating media requests-- by answering the following questions:

1. What do we gain by participating?2. What are the risk?3. Can we get our message across?4. Is this audience worth it?5. How will management react?6. Is there a better way?

Growth of risk communication• Models of risk communication have been developed based on

the position that “perception is reality”.• Risk communication deals with a high level of emotion. Fear,

confusion, frustration, and anger are common feelings in dealing with environmental issues

• Therefore, frequent and forceful communication is necessary to inform, educate, and even dampen emotion.

• The first rule in responding to a perceived public risk is to take the matter seriously.

The key communications in dealing with a crisis (cont’d)

• In saying nothing, an organization leader is perceived as already having made a decision.

• When most people –upward of 65% -hear the words “no comment” they perceive the no commenter as guilty

• Silence anger the public and media and then compounds the problem

• On the other hand, inexperienced spokespersons, speculating nervously or using emotionally charged language, are even worse

• Most public relations professional consider the cardinal rule for communications during a crisis to be: TELL IT ALL AND TELL IT FAST!

• As a general rule, when information gets out quickly, rumors are stopped and nerves are calmed

A shorthand approach to communicating in crisis would include the following 10 general principles1. Speak first and often2. Don’t speculate3. Go off the record at your own peril4. Stay with the facts5. Be open, concerned, not defensive6. Make your point and repeat it7. Don’t war with the media8. Establish yourself as the most authoritative source9. Stay calm, be truthful and cooperative10. Never lie