Crisis management

The wise organization anticipates the potential crises and develops contingency processes that will either eliminate the threat or will create opportunities to deal with crises immediately and successfully. Crisis as a significant, suddenly occurring, disruptive event that creates uncertainty and stress, and has potentially negative results. 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. A crisis can be anticipated Organization should audit what it does and how it to determine every potential crises. They can go for regular strategic management process in a SWOT analysis. A crisis can be prevented Once the potential crisis is detected organization can take the proper measures to correct what is wrong and to ensure that a full scale crisis does not develop. A crisis can be controlled If prevention is not possible, organization can take steps to manage each stage of the crisis and to bring it to a complete end. A crisis can be turned into advantage While the presence of a crisis almost always means that some type of negative outcome will occur, the overall impact does not have to remain negative. Johnson & Johnson skillful handling of the Tylenol tampering case give an excellent example of how end result can be more positive than negative if your organization takes the right steps through the duration of the crisis. Four Stages of a crisis Stage one: The Hidden crisis Just as when a disease invades a human body and the person is not yet aware, potential crises exist within every organization. If management is wise, and seeks to correct every problem and issue that develops, it may avoid a crisis. The organization will often not know the potential danger until the issue moves to Stage Two Stage Two: The Pre-crisis If the hidden issue is recognized but not resolved, the organization will find itself in stage two.

Stage Three: The crisis Here the problems can no longer be hidden from the public. Managers operate at a high degree of stress. Rapid problem-solving attempts are made, but not enough time and resources are available to quickly bring the problem to an end. Stage Four: The post-crisis Eventually a crisis will end. It is hoped the outcome favors the organization. This stage is critical because the organization can now discover what went wrong, how it happened, and what should have been done about it in the first place. The Crisis-Management process Determine the crisis potential Studies show few organizations critically evaluate the technical, human, natural, or contingent threats they could face. Examine your organizations internal and external environments. Start with the personnel. The next category deals with the organizations facilities. Another area of concern is with products. Competition should also be considered. Develop appropriate crisis teams and centers Organization should develop teams that take responsibility for previewing each crisis, developing a strategy to prevent occurrence, and then managing the event should it occur. Senior executive teams should include two or three key executive. Support teams may involve departmental heads. Field response management is expert from inside and outside the organization. Crisis centers are places where teams can assemble and carry out their activities and it should be fully equipped to carry out the activities smoothly. Write a crisis management plan The following details are to be present in the crisis management plan ` Mission and related items ` History of crises and potential crises ` Preparing the crisis centre ` Directories of the organizations stakeholders ` Media awareness ` Actions to be taken ` Method of evaluation

Develop a communication strategy Crisis communication as`` the process of managing the strategy, message, timing, and distribution channels necessary to communicate effectively with media, employees, core constituencies, clients, customers, and stakeholders. The focus of the crisis-communication function is to facilitate the rapid de-escalation of the crisis timely and effective communication methods. To be able to accomplish the above requires that a strategy be developed and working at the timing the crisis occurs. Determine the Audience That Needs Information Not every audience member will need to receive information in every crisis. As White sell states, It is crucial to communicate only with the appropriate audiences. For instance, there is no need to alert news media to a situation occurring internally that as no impact on the general public. Determine Who Will Be the spokesperson for the Organization A single spokesperson is recommended, with a backup designated. Longtime crisis expert Barry McLouglin states: ``A good spokesperson is someone who is technically knowledgeable, in a authority, has strong professional credentials is a quick study, has a temper, a reasonable tone , an honest face, an ear for a good sound bite, and gets along well with reporters. Determine the Appropriate Communication Style Information should be communicated quickly, candidly, and in a positive way. The organization must act immediately to show that it is capable of resolving problem and take steps to ensure it doesnt occur again. It is critical that the organization tells the truth and never lies. This, of course, does not revealing confidential or competitive information. Because crisis situations are related to emotion, communication should recognize those areas and be developed and delivered with compassion. Determine the Appropriate Timing Each communication device is impacted by timely delivery. By drawing on the crisismanagement plan, some data can be accessed immediately and distributed to the necessary audiences. Policy statements must be developed. A question-and-answer sheet regarding the crisis should be prepared, especially for the media. Other written materials such as news releases, press kits, or letters must also be prepared and distributed when necessary. Determine How to Use the Internet In past crises, managers were primarily concerned with communicated to stakeholder primarily through other media. The Internet has changed all that. Companies today must both a defensive

and offensive posture with the Internet. Those with complaints can go to websites to leak the information. Wise companies monitor the Net for brand protection. Determine whether to use the proactive or reactive media approach An organization must decide whether it wants to take a proactive or reactive approach to the media. The proactive is by far most successful, yet often the most threatening. In fact, proactive companies often contact the media before the media have a chance to call them. The proactive approach is more likely perceived as a sign of honesty. Practice and Revise the crisis management plan Organization that has a plan is practiced it is like having a football team that has never practiced. The company should be proactive stance on crisis prevention. The useful life of a crisis plan is 3 or four years. Restructuring, new personnel, and new goals require its updating at the same time every three years the crisis management plan should be given a major revision.