The most important thing to understand about a crisis is that it can happen at any given time. There is no possible way of preventing a crisis, but there is a way to be prepared for a crisis. This all starts out by understanding what is going on in the media, news, and society. In today’s world, it is almost impossible not hurt someone’s feelings or have an effect on someone. This is why crisis’s can be so deadly. A crisis can create lawsuits, damaged reputations, recalls, and many other things. All of these things can lead to huge financial losses. Especially when investors and stakeholders lose money, which makes you lose them or even have more reputation damage. There is nothing but negative outcomes when it comes to crisis’s and that’s why you have to prepare for it.
This is where the three state approach to crisis management begins. The first stage of approaching a crisis is called pre crisis. This team is created to find out any warning signs of a crisis. They find this out by identifying sources and then collecting and analyzing the information. Once they do this, they review they’re issues and risks with the reputation management team. This is when they begin their crisis management preparation. This includes identifying the crisis’ vulnerabilities, generate and prepare a crisis team, select valuable spokespeople, begin writing the crisis management plan and make sure the crisis communication system is intact. The second stage is very critical because it is between the stakeholders and the organization. Not only do they have to do this, but they have to find out what type of crisis this is and label it. They should know the importance of their initial response, communication, and reputation management, and ext. The last stage is very important. The last stage is basically evaluating how your organization did with the crisis. Understanding the flaws and how you can prepare for it better. Also, reassuring the stakeholders that everything will be fine and make sure they leave happy.
Stakeholder activists are as high as they’ve ever been and its only increasing. The reason behind this is because of the technology advances that allows stakeholders to express themselves on a world stage. One blog post could easily lead to a crisis because the internet allows millions of people to see it. It only takes a couple of people to share a blog for it to go viral. There needs to be people constantly looking up their organization online if they want to avoid a crisis. This happened to Dominoes and it severely hurt their organization.
Negligent failure to plan for potential crisis is most likely the worst possible thing that you could do. If you don’t plan for it, it will happen, and it will severely hurt your organization. Due diligence focuses on the harm that could be brought on to the organization and the people inside it. This is a form of crisis management and it basically helps people from lawsuits and liabilities.
Chapter 2 & 8
Since social media is such a popular thing now, Public relations professionals must be fully aware of everything that is going on social media that involves their organization. Stakeholders have a lot more power now because they can tweet, write Facebook posts, and post blogs that can end up going viral. If it goes viral, it could lead to a crisis. This doesn’t always happen, but sometimes it does occur. Organizations are starting to use the technology advances to help them find these sort of things faster and putting it to an end. If they don’t put it to an end, they have time to prepare for the crisis or apology that they must post. Hopefully, the organization is prepared and are able to respond quickly and efficiently. Things will only get worse as time goes on and you haven’t responded with a statement or an apology on your website.
Refutation, repression, reform, and repentance are the four strategies used to respond to a villain challenge. A villain challenge is when your organization and a specific group such as activists are in an argument. The refutation is when the organization claims they did nothing wrong. Repression is when the organization stops a stakeholder from speaking about the topic with a lawsuit or something else. Reform is when they admit to what they did wrong and promise they are going to fix it. Repentance is when they basically do the same thing by admitting wrong and that they’re going to fix it. These are all good unless something goes wrong while doing this. The cons of refutation are if they are caught lying about something they said they didn’t do. This could lead to a huge crisis. Repression has a lot of cons because of the censoring. If it gets out that they are making a stakeholder be quit it will look like they’re hiding something. Reform doesn’t have a lot of cons because it is admitting that they did something wrong and they are doing everything to fix it.
Dominoes was a successful crisis management because they chose the reform strategy. They admitted they were wrong and they are doing everything to fix it. They improved security and they also hired an organization to always search what is being posted about dominoes. They also blamed it on the management of that specific Dominoes.
There are many things that happens during a signal detection stage of proactive crisis management. You scan threats that could possibly occur. You do this by looking at both the internal and external factors. This is all a part of signal protection signs. Then there is an issue management which is very important as well. An issue is a trend or condition, that it, continued, would have a significant effect on how a company is operated. (Moore, 1979, P.43)
Corporate Social responsibility is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. Reputation management is all about the relationship within the stakeholders. Reputations are made by direct and indirect interactions. Indirect interactions are usually the most used by stakeholders. This just shows how media release and news is how they gain a view of the organization. This is very important because it decreases the chance of having crisis.
An example of a successful CSR is Google, “Google Green is a corporate effort to use resources efficiently and support renewable power. But recycling and turning off the lights does more for Google than lower costs. Investments in these efforts have real-world effects on the bottom line. Google has seen an overall drop in power requirements for their data centers by an average of 50 percent. These savings can then be redirected to other areas of the business or to investors.” (2017, March 03)
There are certain steps to take when identifying what sources to scan. There are the internal threats which is the Risk Management. Then there are the external threats which is reputation management and issues management.
Then there is the environmental scanning. They watch the environment for trends, changes, and events. They are also looking for emerging social, political, and health issues. You can find these by external scanning. Looking up traditional print and online sources. Also, look up similar organizations with certain problems. A stakeholder map is how you identify the mood of certain stakeholders. There is a quantitative
= a mood score text of the stakeholder. This is all done with a sentiment analysis. There are many ways on how you can view red flags but a lot of them are done with focus groups, interviews, and research. You also can just have a normal conversation with the stakeholders to see how they’re doing and how they feel about everything. This forms a good relationship between the organization and stakeholders.
The sentiment analysis is how you figure out certain things that you couldn’t tell before such as persons’ mood. This is a method used in subjectively analysis, which seeks to provide secrete emotions. This is a critical component of social media dashboards. This is about 60% to 80% accurate compared to human coding. Reputations are built around stakeholder’s expectations. Certain stakeholders will have different expectations for the organization.
The two types of gaps are called Performance and Perception gaps. Performance gaps is when the organization is not doing to meet expectations. Then the perception gaps are when stakeholders fail to perceive that the organization is meeting expectations. Stakeholders have the power because they can become a reputation threat by taking action against the organization and generating negative publicity. Listening to your audience and having people research everything about your organization that is going on the web. Also, realizing who’s the most powerful and important stakeholder. You should use surveys with stakeholders before and after to understand their expectations and if they’re being met.
Paracrisis is when crisis managers must publicly manage a crisis threat. They likely occur from rumors, challenges, and product harm.
Every organization approach crisis preparation in different ways. They are different organizations so they need to identify different threats in order to create a successful preparation plan. They need to look at the size, location, operations, personal, risk factors, and what the organization does. This all matters because they need to set specific plans for certain situations. They can use a vulnerability scale which determines the chances of it happening and how much impact it would have on the organization. Then they identify what type of crisis it is and they give it to a specific team.
Then they select a crisis team that has been trained in case a crisis does occur. The crisis team sometimes create the actual plan. Then they purse the plan after the crisis has occurred. They also do it before the crisis occurs in a simulation to see how it would go and to see if there are any flaws. Each member has a specific role that must take in order for their team to be successful.
Then they have to decide a spokesperson for their crisis management team. This is very important because this is the face and voice that everybody will see. Usually, if the crisis is very important, the CEO will usually be the spokesperson. The reason behind this is because it shows how important they are taking the crisis and the CEO is taking it into his hands. This shows that he truly cares about the crisis. The spokesperson has to be clearly spoken, dressed appropriately, be prepared for any questions, and able to keep a cool head as well. Everyone on the crisis team should be prepared as well just in case something occurs. A very successful crisis spokesperson was CEO of Lufthansa, Castern Sphor. Earlier in 2015, German wings plane crashed in the French Alps and the story was everywhere. The pilot crashed the plane on purpose because of depression. The media spotlight was cast onto the airline and people were demanding answers. The CEO was an immediate and compelling spokesperson, vowing to ensure pilots are fully check in all aspects of health and delivered his sentiments to all the families involved. (2015) This was a very sad event, but the CEO showed his compassion. (2015, Brown)
The most important part of your crisis management plan is deciding who is in charge and who is going to be the spokesperson. Then you have to make sure that all the team members are aware of their roles and what type of crisis that it falls under. Then you must have to put the plan into action. There has to be many versions of the crisis plan. The reason that there has to be many versions of the crisis plan is because you have no idea what is going to be hacked or leaked and you need be prepared for any types of situations to occur. That is why you must have a downloaded file, a backup file, a printed plan, and ext. This plan should have everything you need in case the crisis occurs. The team should be fully aware of whom to contact and who to alert if the crisis occurs.
There are many ways on how to review a crisis communication system. The point of the review is to see how well you handled the crisis. There should be contact with the employees and meetings on how you believed that you handled the situation. There should also always be a link on the organizations website on the crisis. There should never be social media outlets talking about the crisis. That is nothing but bad press because there is a chance that they haven’t heard of the crisis. There should be a link though that contains all the information on the crisis that is only accessible to the organization.
There are many ways to view crisis as information processing and knowledge management. This information shows on how and why the crisis was handle so poorly. You find out why the board of management chose actions so poorly and if there was anything that they could’ve done to respond in a better way. “Depending on whether a crisis originates in the more immediate or relevant environment of a firm or in its more remote environment and whether it involves technical failure or sociopolitical failure, the information-processing requirements confronting a firm will vary. The model attempts to fit appropriate information-processing mechanisms to different categories of crises. To facilitate future research and empirical testing of the model, specific propositions are deduced from the conceptual framework.” (1992)
The best way to respond to a crisis is being prepared. Once you’re prepared, you know all the information about the crisis and you’re willing to respond. Also, it is very important to be completely honest. You’re only digging a deeper hole if you are caught lying about certain things about the crisis. You also need to respond quickly because when you wait too long things could get worse.
An example of a successful crisis response was Under Armour in the 2014 winter Olympics. The Under Armour sponsor were touted as giving a performance edge to the U.S speed skating team. Things were going well until the U.S team fell short and they blamed the apparel. The decision that had to be made was if they were going to argue with the team or if they were going to admit that the apparel wasn’t good. They came out publicly and said they supported the team’s decision to revert to older suits. The older suits were also made by Under Armour. They ended up skating out of the controversy and a team player said that they would continue sponsorship for eight more years. This showed that sometimes its good to just go with the flow instead of arguing. (2014, Nov 26)
There needs to be a voice that keeps everyone on the same page. “A message map is a framework used to create compelling, relevant messages for various audience segments and for organizational alignment. Whether you are launching your company, introducing the next big product/service, or preparing for other major marketing campaigns, messaging mapping is an important step in communicating effectively.” (Covey, Wendy) This helps out on reaching various of audiences but with one voice.
Responsibility attribution can be used for many crisis types. This basically says that they are responsible for the actions of their employees and they’re going to do everything in their power to change it. This shows the public that they are willing to accept what they did was wrong but without taking full blame as well.
Apologizing is very important in my opinion but only if you need to. It also depends on what your crisis management plan is as well. There is no need to apologize if you are stating that you are or have done something wrong. I believe if you apologize and then go on and say that you didn’t do that its very contradicting. The pros are that you are accepting that you didn’t something and people see that you are willing to accept your actions. Also, that you are doing everything you can to change it.
You need to evaluate your crisis management plan after it occurs for many reasons. You need to see how well you responded, how quickly, and how your stakeholders feel about your organization still. You also need to see how much of a financial loss that you took. These will all determine if your crisis management plan was successful or not. You will find out how your stakeholders feel by conducting surveys and focus groups. Then they need to start up the impact evaluation stage. This will show the financial losses and what part of the company was severely impacted. They will look at the stakeholder impact and media impact that they took.
Post Crisis actions are very important to take. These are very important because it either makes or breaks relationships with the stakeholders. They are either going build a stronger relationship or its going to get worse. Hopefully, they can show the stakeholders that its only up from here and it won’t happen again.
%. A. (2017, March 03). 3 Excellent Examples of Corporate Social Responsibility. Retrieved May 08, 2017, from https://redshift.autodesk.com/doing-their-part-3-excellent-examples-of-corporate-social-responsibility/
Brown, G. (2015). RDPR Blog. Retrieved May 08, 2017, from http://blog.rdpr.co.uk/the-best-and-worst-crisis-communications-case-studies
Covey, Wendy.( 2016) “Introduction To Message Mapping For Effective Communication”. Web. 8 May 2017. Trewmarketing.com.
(n.d.). ( 2014, Nov 26) Well Handled Four Cases of succseful Pr Crisis Retrieved (May 08, 2017) From http://mengonline.com/blog/2014/11/26/well-handled-four-cases-of-successful-pr-crisis-management/