Crisis Management
Transcript of Crisis Management
Supplementary Notes Crisis Management 1
Crisis Management Crisis Management
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When written in Chinese, the word “crisis” is composed of two characters - one represents
danger, and the other represents opportunity.
- John F. Kennedy
wei ji
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What is a Crisis?What is a Crisis? A significant, unpredictable,
disruptive event that has potentially negative results
The event stimulates media coverage Public scrutiny may affect the
company’s normal operations The event may significantly damage
the company’s reputation
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Assumptions of CrisisAssumptions 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 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 CrisisAssumptions 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 CrisesExamples 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 CrisesExamples 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 CrisisFour Stages of a Crisis
1. The hidden crisis Like a disease invading a body Serious issues the company is not
completely aware of
2. The pre-crisis When hidden issues are not resolved The belief that the problem will solve
itself over time
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Four Stages of a CrisisFour Stages of a Crisis
3. The crisis Entire system in the company is in
complete 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 Crisis Management
1. Determine the crisis potential2. Develop appropriate crisis teams
and centers3. Write a crisis management plan4. Develop a communication strategy5. Practice and revise the plan
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Communication StrategyCommunication 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 LessonsImportant 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. ACTTHINK. KNOW. ACTTHINK. KNOW. ACTTHINK. KNOW. ACT
Key to success…Key to success…
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Your HomeworkYour Homework
Think of a business leader in today’s context, who may be your role model.
Why do you admire him or her? What are the distinct leadership
styles? How has he/she contributed to the
success of his/her company?