Crisis Management

Crisis Management

When written in Chinese, the word crisis is composed of two characters - one represents danger, and the other represents opportunity.
wei ji

- John F. Kennedy
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What is a Crisis?

A significant, unpredictable, disruptive event that has potentially negative results The event stimulates media coverage Public scrutiny may affect the companys normal operations The event may significantly damage the companys 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 crisis detection
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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Crisis can be prevented

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

Crisis Management

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 not completely aware of
When hidden issues are not resolved The belief that the problem will solve itself over time

2. The pre-crisis

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Four Stages of a Crisis

3. The crisis

Entire system in the company is in complete chaos Outside help is not trusted or sought
The company can now discover what went wrong Companies should use this stage to reevaluate every potential crisis
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4. The post-crisis

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Determine the crisis potential Develop appropriate crisis teams and centers Write a crisis management plan Develop a communication strategy Practice and revise the plan

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Communication Strategy

Determine the audience that needs information Determine who will be the spokesperson for the company Determine the appropriate communication style, e.g. quick, candid, positive Determine the appropriate timing Determine whether to use proactive or reactive media approach, e.g. proactive contact the media before something bad occurs
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Important Lessons

Crisis is often destructive if not managed properly 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 is more successful than a reactive one

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THINK. KNOW. ACT

Key to success

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