Crisis Communication and Crisis Management

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Crisis Communication and Crisis Management
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Pauchant Mitroff
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Proactive side of Crisis Management

• Education
• Prior experience
• Position in organization

Involvement with TMT
Existence of a Plan
Strategic Approach
Improved Signal Detection
More effective preparation/ prevention
Use of research-based information
Learning
Enhanced reputation
Desired Stakeholder behavior
Improved Organizational Performance
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Broad Categories of Crises

• Technological
• Chernobyl, Bhopal
• Confrontation
• Boycott of products, Nestle
• Crises of Malevolence
• Terrorists, IRA bombs,
• Management Failure
• Kartongfabrikk, Ericcson
• Other - f. eks. takeover bids, Nycomed

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Examples

• Fire and Explosion
• Emission and Environmental Scandals
• Layoffs
• Bankruptcy
• Strikes
• Accidents
• Sudden Resignations

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Examples

• Public perception Johnson Johnson (Tylenol)
• Sudden Market Shift Atari (computer games)
• Product Failure A. H. Robins (Dalkin Shield)
• Management Succession United Technologies
• Cash Crisis Chrysler Corporation
• Industrial Relations Crisis International
  Harvester
• Hostile Takeover Bendix/Martin Marietta
• International Events General Motors/OPEC
• Regulation/Deregulation Braniff

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News Coverage of Crises Increasing

• Business crisis events increased 13 first half
  of 1996 (worldwide)
• Sexual harassment -- increased 192 -- fastest
  growing category
• Class action suits, particularly against tobacco
  industry -- up 83
• Automotive industry -- most crisis prone industry
  -- Banking 2
• Commercial airlines close behind

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What is Crisis Communication?

• It is spontaneous.
• It is dependent on the size and nature of crisis.
• It is a happening.
• It needs other demands from management than
  normal routines.
• It will normally affect many different
  stakeholders than planned communications.

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• When an accident, crisis or catastrophe happens,
  it is too late to develop a crisis information
  plan.
• A media plan and mental readiness must be in
  place before an accident, not developed during
  the accident.

E. R. Sjøberg
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• Two Key Words
• Speed
• Confidence
• Two Strategies
• Information -- one-way spreading of facts and
  information
• Communications -- two-way method of giving out
  information

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Information Strategy

• Internal
• External
• Crisis

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Crisis Information Strategy

• Who is contact person, first and reserve. Who
  should do what?
• List of everyone who has responsibility for
  notifying people.
• Switch board, security personnel, safety people
• Alternative places for press center.

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Crisis Information Strategy

• Cooperation plans with company, police, fire
  department.
• General rules on who can/can not make statements.
• Information on other relationships with company,
  such as communications network

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Most Important Elements

• Make sure responsibilities are clear and these
  people have full responsibility.
• Make sure they are prepared mentally -- practice,
  drill, etc.
• Make plans as simple as possible.

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Most Important Elements

• Spokesperson must have ability to answer
  questions.
• Spokesperson should not be given any other
  responsibilities.
• Decide how to handle press.

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Which Stakeholders Need Informing?

• Media (TV, radio, papers)
• Employees
• Relatives
• Government Agencies

• Customers
• Police
• Suppliers
• Local Community
• Owners, Shareholders, Board of Directors

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INFORMATION PLAN
Groups Should Inform By Whom No
Yes Employees Family Customers Suppliers Neig
hbors Police SFT Local Media Natl.
Media Board Other
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Objectives

• Provide accurate, timely information to all
  targeted internal and external audiences
• Demonstrate concern for safety of lives
• Safeguard organizational facilities and assets
• Maintain a positive image of the organization as
  a good corporate or community citizen

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Major action areas

• PR Headquarters
• Media Information Center

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PR Headquarters

• Responsible for notification of all internal and
  external emergency audiences
• Preparing material for the media
• Exercise principles of one voice and
  full-disclosure
• Establishing a public information center to
  answer questions and control rumors

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Media Information Center

• Away from PR headquarters
• Telephone that can not be shut off or used by
  other personnel
• Assign people to escort media
• Room equipped with technology needed by media
• Spokesperson - never PR person

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Avoid These Mistakes Before a Crisis Occurs

• Define the PR Function and Recognize its
  Importance
• Put PR in the Right Organizational Box
• Dont Forget the World is a Small Place
• Have Clear PR Goals and Ongoing Programs
• Have Crisis Planning/Be Prepared for the
  Unexpected

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Avoid These Mistakes Before a Crisis Occurs

• Avoid Bad Advice and Dont Ignore Good Advice
• Keep Up with Technology
• Dont Forget Internal Audiences
• Dont Blame the Media
• Dont Kill the Messenger

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Questions

• What can go wrong?
• Are the facilities vulnerable to fire, explosion
  or other crisis?
• Is dangerous equipment on the premises?
• What are potential trouble spots?