Risis Anagement: Compile by Bulan APRIL 2018

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CRISIS

MANAGEMENT
COMPILE BY BULAN
APRIL 2018
RELATED VIDEO FOR CRISIS MANAGEMENT

 Videos for Lesson 3\4P² for Crisis Management by THE LAB


h.mp4
 3\4P² for Crisis Management by THE LAB
 https://www.youtube.com/watch?v=Rmt6HtSSNBs
 Crisis Management Strategies: Ian Mitroff on Successfully
Managing Crises
 https://www.youtube.com/watch?v=WzzLKQ3_lAI&t=197s
 Case Study- Toyota Crisis 2010
 https://www.youtube.com/watch?v=i528aWdEjoQ
3.5 CRISIS MANAGEMENT
 A crisis is defined as an  Definition of crisis:
event that by its nature or  By Faulkner (2001):
its consequences:  A triggering event, which is so
significant that it challenges
the existing structure, routine
• constitutes a threat to vital operations or survival of the
national interests or to the organization.
essential needs of the  High threat, short decision
population; time and an element of
• prompts rapid decision surprise and urgency.
making;
• demands coordination  A perception of an inability to
between different cope.
departments and
organisations
T YPES OF CRISIS
 During the crisis management process, it is  Organizational Misdeeds
important to identify types of crises in that
different crises necessitate the use of  Workplace Violence
different crisis management
strategies.[9] Potential crises are enormous,  Rumours
but crises can be clustered.[9]
 Terrorist attacks/man-made disasters
 Lerbinger[10] categorized eight types of crises

 Natural disaster

 Technological crises

 Confrontation

 Malevolence
https://en.wikipedia.org/wiki/Crisis_management
https://www.slideshar
e.net/nupsb/crisis-
management-types-
and-
examples?from_action
=save
https://www.slideshar
e.net/nupsb/crisis-
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and-
examples?from_action
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https://www.slideshar
e.net/nupsb/crisis-
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examples?from_action
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COMMON FEATURES OF A CRISIS
1. The situation materialises 7. Pressures build over time
unexpectedly
8. Routine business become
2. Decisions are required increasingly difficult
urgently
9. Demands are made to
3. Time is short identify someone to blame
4. Specific threats are 10. Outsiders take an
identified unaccustomed interest
5. Urgent demands for 11. Reputation suffers
information are received
12. Communications are
6. There is sense of loss of increasingly difficult to
control manage
CRISIS MANAGEMENT

Crisis Management: Prevents a Purpose of crisis management:


crisis from becoming a  Prevention
catastrophe.
 Survival
Crisis management can be  Successful outcomes
defined as a system or
methodology of solving crisis
situations. We can be sure that
the actual crisis situation will
differ from our expectation.
CRISIS PLANNING

1. Assess risks organisation chart


2. Produce plans 7. Promote crisis-ready culture
3. Define roles and 8. Publish plans and conduct
responsibilities training
4. Appoint crisis management 9. Test, review and practise
team
5. Draw up communication plan
6. Produce contact and
3.6 CONFLICT PROBLEMS Conflict problems may be solved in three ways:
 Frequently relates to
problems with a choice
between two conflicting Hard choice: you have to
bite the bullet and make Easy choice: One is obviously
moral values, each of the best choice possible more significant than the other
which seems to be with the information and easy choice
correct available at the time

 You must rely on “gut


feelings” for which part is
the correct one
 Example of conflicts: Creative
Middle way:
 Corruption Compromise
that will work
 Bribery for everyone
 Conflict of interest
 Whistleblowing
 Plagiarism
FIVE CRUCIAL STEPS THAT WILL HELP YOU BUILD A
RELIABLE CRISIS MANAGEMENT STRATEGY.

1. Internal communications. Identify your key revenue and overall brand reputation.
spokesperson and brief them on what’s happening as
well as how your brand is going to move forward. Then 3. Position yourself. Now that you have a thorough
move quickly to respond internally with those messages understanding of the impact a crisis can have on your
to your employees. The point here is to quickly alleviate company, you should have a clearer idea of how to
any internal fears or concerns in the workforce. position your corporate stance accordingly. Begin
drafting your messaging and ensure you get buy-in from
2. Understand the potential impact. In Volkswagen’s case, the executive team and key decision makers. Be
the crisis had a major impact on the company’s brand prepared for a bit of back and forth (naturally), but rest
reputation in addition to an impact on its shares as they assured, your research in understanding any potential
took a major hit on the stock market. As a decision impact will help ensure alignment during this process.
maker, you’ll always want to understand what the Alignment, especially from a PR perspective, is necessary
immediate impact could be on your business. As you in order to avoid inconsistences within your corporate
begin to think about key messages and your overall response that could further damage your reputation or
corporate communications strategy, which should appear dishonest. As aforementioned, all public
include message delivery on social media, you’ll want to outreach should remain honest, consistent and focused
determine how your decisions will impact business, on addressing the crisis as it relates to your strategy.
https://www.kcdpr.com/a-five-step-crisis-management-strategy-in-todays-
digital-age/
FIVE CRUCIAL STEPS THAT WILL HELP YOU BUILD A
RELIABLE CRISIS MANAGEMENT STRATEGY.

4. Create a means for monitoring. Once reflect into any events that caused this
you’ve determined the channel of crisis to occur. By considering how
distribution for your message, certain events affected your
monitoring your publics’ responses is organization, you will be better
equally critical. The one question you prepared to have an appropriate and
should ask, “Is our PR crisis still a timely response should another conflict
crisis?” Know that this type of fire arise. Additionally, we recommend
doesn’t diminish over night; sometimes developing a standard protocol or
it can take a business months before training guide to better help employees
customer inquiries and questions have efficiently manage a future crisis.
diminished.
5. Learn the lessons. Mitigating the
negative connotations of your brand is
only one aspect of a PR crisis strategy.
You’ll need to take a deep-dive and
https://www.rockd
ovesolutions.com/
blog/3-crisis-
management-case-
studies-we-can-
learn-from
CASE STUDY’- CRISIS MANAGEMENT
 Malaysia Airlines Flight MH370  banjir kelantan 2014

 Malaysia Airlines Flight MH17  Samsung's exploding phones

 Honda recall air bag

 Jerebu
CASE STUDY- CRISIS MANAGEMENT
 The Volkswagen emissions scandal seemed to be handling the crisis in a dishonest way by not
fully “owning” its role in the scandal.
 In September 2015, the Environmental Protection Agency
accused Volkswagen of manipulating its engine controls to  The brand likely would have fared better through this
be able to pass laboratory emissions tests. Not only was crisis if it had taken a few key steps:
the company violating the Clean Air Act by selling vehicles
that didn’t meet environmental requirements, but it was  Been up front and honest as soon as the story broke
also violating its customers’ trust by making its cars seem
more environmentally friendly.
 Kept its response consistent, with an empathetic and
apologetic tone
 Unfortunately, the way the company handled the scandal
made things even worse. As the story continued to evolve,
the company’s response was seen as inconsistent and, at  Reimbursed all affected customers the same amount
times, contradictory to previous statements. Executives
claimed they didn’t know about the cheating, only to  Demonstrated a commitment to change in some way (e.g.,
reveal they did just a few days later. Meanwhile, the by setting new emissions goals or partnering with an
company’s PR and social media teams struggled to keep environmental organization to help combat air pollution)
up. As the company set out to recall millions of vehicles,
officials promised to reimburse some, but not all,
customers for their troubles.
 All the while, consumers reported that the company
https://www.rockdovesolutions.com/blog/3-crisis-management-case-
studies-we-can-learn-from
CASE STUDY- CRISIS MANAGEMENT
 Southwest Airlines’ social media response  Unfortunately, the onslaught of customer-
service requests and complaints seemed to
 Right in the middle of the busy 2016 summer overwhelm the company’s social media team.
travel season, Southwest Airlines was suddenly Not long after the IT outage began, complaints
struck by a wide-reaching technology failure. Its on Twitter began going unanswered for hours—
website and other key systems were down for and, in the case of Facebook, days. Ideally, the
more than 12 hours, prompting the airline to company would have answered each customer
cancel thousands of flights. Over the course of in a more timely manner.
four days, the company worked to respond to
customer complaints quickly and effectively, in  Finally, Southwest seemed to forget that such a
large part by leveraging social media. Its crisis is bound to impact all of its social media
approach offers some key lessons. channels—even Instagram. The company failed
to post an apology or acknowledgement of the
 Southwest did several things right in its social situation on its Instagram account, instead
media response: It apologized profusely for the choosing to feature its typical content. As a
inconvenience, admitted fault, and continually result, the account received hundreds of angry
posted updates as the crisis unfolded. comments—and all of them went unanswered,
Southwest’s team even made use of photos and surely leaving a bad taste in the mouths of
videos posted to Facebook and Twitter to many followers.
personalize the response.
https://www.rockdovesolutions.com/blog/3-crisis-management-case-
studies-we-can-learn-from
CASE STUDY- CRISIS MANAGEMENT
 Samsung's exploding phones

 In September, less than a month after launching its new Galaxy Note 7
smartphone, Samsung announced plans to recall all of the more than 3
million devices it had sold to that point, after reports that the phone was
prone to overheating and spontaneous combustion. Eventually, it halted
production and scrapped the product entirely at a cost of at least $6 billion.

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