crisis management 1
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Crisis Management 1
Crisis Management
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Crisis Management 2
When written in Chinese, the word
“crisis” is composed of twocharacters - one represents
danger , and the other represents
opportunity.
- John F. Kennedy
wei ji
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Crisis Management 3
What is a Crisis?
A significant, unpredictable,disruptive event that has potentiallynegative results
The event stimulates media coverage Public scrutiny may affect the
company’s normal operations
The event may significantly damagethe company’s reputation
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Assumptions of Crisis
Crisis can be anticipated Companies should audit their internal
processes to check for potential crisis
Tell-tale signs can lead to crisisdetection
Crisis can be prevented Once potential crisis is detected, the
company can take proper measures Correcting it at an early stage will
prevent a major one from developing
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Assumptions of Crisis
Crisis can be controlled Even if prevention is not possible, the
company can manage the crisis one
step at a time till completion Crisis can be turned to an
advantage If the company takes the right steps,
the end results may be positive A crisis will run its course if left
untreated
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Examples of Crises
Natural disasters, e.g. Katrina
Public health and safety, e.g. SARS
Labor relations, e.g. employee strikes Product failure, e.g. Intel pentium
computer chip
Corporate mismanagement, e.g.sexual harassment
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Examples of Crises
Financial calamities, e.g. bankruptcy
Individual actions, e.g.
embezzlement Convention events, e.g. hotel fire,
speaker collapse
National security, e.g. Singapore
Airlines hijack
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Four Stages of a Crisis
1. The hidden crisis
Like a disease invading a body
Serious issues the company is notcompletely aware of
2. The pre-crisis
When hidden issues are not resolved
The belief that the problem will solveitself over time
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Four Stages of a Crisis
3. The crisis
Entire system in the company is incomplete chaos
Outside help is not trusted or sought
4. The post-crisis
The company can now discover what
went wrong Companies should use this stage to
reevaluate every potential crisis
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Crisis Management
1. Determine the crisis potential
2. Develop appropriate crisis teams
and centers3. Write a crisis management plan
4. Develop a communication strategy
5. Practice and revise the plan
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Communication Strategy
Determine the audience that needsinformation
Determine who will be the spokespersonfor the company
Determine the appropriatecommunication style, e.g. quick, candid,positive
Determine the appropriate timing
Determine whether to use proactive orreactive media approach, e.g. proactive – contact the media before something badoccurs
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Important Lessons
Crisis is often destructive if not managedproperly
Communication needs are at the heart of
all organizational crises
Crises can be anticipated, prevented,controlled and turned to an advantage
A proactive approach to media relations ismore successful than a reactive one
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Crisis Management 13
THINK. KNOW. ACT
Key to success…