Crisis Communication Lecture b_1-2_1

Crisis Communication Lecture b_1-2_1 - Crisis Planning and...

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Unformatted text preview: Crisis Planning and Communication Communication “A crisis is unpredictable but not unexpected” ­ Timothy Combs Six Stages of Crisis Management Six Norman R. Augustine 1. 2. 3. 4. 5. 6. Avoiding the crisis Preparing to manage a crisis Recognizing the onset of a crisis Containing the crisis Resolving the crisis Profiting from the crisis 1. Avoidance: 1. Risk Assessment “The condition is not desirable but it’s acceptable” Risk = Probability x Cost Risk Matrix Risk Probability / Cost Certain Likely Possible Unlikely Rare Negligible Marginal Critical Catastrophic Normal Accident Theory Normal Component Failure Accidents • “Domino effect,” highly predictable, linear sequence of failures • Interdependent elements • “Loose couplings” provide time to intervene Complex interactions Multiple independent elements “Tight couplings” limited time to intervene Sequence of failure is non­linear Hard but not impossible to predict System Accidents • • • • • Dependence, Tightness Aren’t all system components interdependent? Aren’t system components tightly coupled by their nature? NAT vs. HRT • Maybe • Unforeseeability • Redundancy • Not if we don’t see it until after the fact Examples Examples Traffic jam Airliner cockpit Aircraft carrier Organizations 2010 Rose Bowl? 9/11? • • NAT or HRT? Neither? Communication and Organizational Systems as Sources of Risk Systems Complexity: human interactions exist in communication and are: • • • always more than the sum of the parts limited predictability subject to systemic failures Identify possible types of risk • Internal communication failure • External communication failure Component vs. Systemic failure Component in a procedure Component Malfunctions • • • • A timeline is flawed leading to a missed deadline A document is misfiled A record is incomplete When is a human failure a component failure? Systemic Dysfunctions • Communication styles that lead to communication breakdowns (isolation) • Hierarchical or lateral communication failures • Self­interest Systems Accidents Systems Challenger • • • Distinguish two types of failures Decision to launch / failure of SRB What’s the communication issue? AIG (“credit default swaps”) • What was the system failure? • Communication issue? How do we prevent system accidents? Communication Interventions Communication Identify systemic elements and interactions • Theories in Use vs. Ostensive Theories of action “Hidden” threats Risky Assumptions Types of Risks Types (SWOT) Human Operational Reputation Procedural Project Technical Financial Natural Political Competitive After Optimization: After Preparing to Manage a Crisis, Planning the Response Companies with crisis management plans are better able to . . . Work effectively with • • • • Provide accurate and timely information Protect the company’s legal position Prepare for possible litigation and claims Minimize diversion of corporate executives Contain financial exposure Minimize effect on the company’s reputation emergency responders Agencies media stakeholders Four Objectives of Crisis Management Reduce tension during the incident Demonstrate corporate commitment and expertise Control flow and accuracy of information Manage resources effectively 2. Preparing to Manage a Crisis 2. Crisis Management Team (CMT) • • • • Composition Competencies Responsibilities Lines of communication Characteristics of a Good CMT Characteristics A cross­functional group designated to handle ANY crisis Works well together (conflict mgt) Manages stress Listens to others Good decision making processes Communicates proactively Selecting the CMT Selecting Typical roles • • • • • • Make time for training (63% companies do) Legal Security/safety PR Operations Top Management (CEO) Victim manager Vulnerability Audits Vulnerability Identify prodromes Take proactive action Document occurrences and responses • Identified failures in the past • Possible sources and types of failures in the future Example Vulnerabilities Example Human • • • Natural catastrophes Equipment failure Illegal or unethical conduct Departure Mistake • Destruction of premises, equipment or data Drafting the Crisis Management Plan Crisis Specific responsibilities Authority over aspects of response Internal communication Processes for incoming information Allow for agility 3. Recognizing the Onset of a Crisis: “Scanning” Crisis: Recognizing internal threats • • • • Recognizing external threats • Relevant research • Personal networks Internal controls Monitors Using established lines of communication Redundancy 4. Containing the Crisis 4. Crisis Management Team must have • • • • Clear charge Power Resources Contacts Maintain feedback processes Self assessment Agility to adjust to changing situation Communication: Communication: Some Strategic Options Defensive Attack Accuser Denial Excuse Justification Ingratiation Accommodative Corrective Action Full Apology Low Event Responsibility Rumors Natural Disasters Bad deeds of others High Event Responsibility Accidents Bad deeds Communication Communication Identify “publics” who will need to be addressed Internal and external stakeholders Spokesperson(s) and contacts Message Control • Message planning and consistency • Controllable channels, e.g., website Selecting Spokespersons Selecting Principle ­ “One voice is more important than one person” Role ­ Manage accuracy, consistency messages from organization Five C’s for effective spokespersons: • Concern, Clarity, Control, Confidence, Competence External Communication Issues: Skills of the Spokesperson Skills Pleasant on camera Not argumentative Avoid “no comment” comment (65% believe “no comment” = “guilty”) Challenge incorrect information Assess assumptions of questions before answering Present information clearly • Avoid jargon • Provide structure 5. Resolution 5. Follow­up on information requests Communicate with stakeholders Take and communicate corrective actions Assess financial implications Continue message discipline Continue tracking issues, risks, etc. Internal Investigations Internal Who is authorized to initiate investigation Who determines scope of the investigation Who is qualified to head the investigation Who has knowledge about particular crisis risks Initial schedule for the investigation Identify the information needed Who will evaluate results Provide for follow up steps 6. Profiting from Crisis: 6. Organizational Learning Following­up: What did we learn? Shaping memories • Collect crisis records, stakeholder feedback, & media coverage • Conduct interviews with key personnel • Internal audiences “organizational narrative” • External audiences “public narrative” James E. Lukaszewski “Profiles in Jell-O: Behavior Patterns that Perpetuate Trouble” Denial Victim Confusion “Testosterosis” Arrogance Search for the guilty Fear of the Media Whining James E. Lukaszewski: “Seeking Forgiveness Precedes Candor Explanation Affirmation Declaration Contrition Consultation Commitment Restitution Rebuilding Trust” Profiting: Taking Action Profiting: Assessing effectiveness Examine records Look at phases of crisis Understand the sources and processes Determine changes • • • New training opportunities New personnel Protective measures – internal controls Exemplary Crises: Exemplary Good, Bad and Ugly Exxon Valdez, oil spill in Valdez, AK Union Carbide, Bhopal India cyanide gas leak Jack­in­the­Box, e. coli burgers • Well managed, contained • Horribly managed, destroyed the corporation • Well managed, response boosted corporate image Shuttle Challenger, NASA, Morton­Thiokol Proctor & Gamble, the Satan rumor; Johnson & Johnson, poisoned Tylenol • Hideously managed, almost certain to recur • Exceptionally well managed; the Tylenol case became an industry standard “What Doesn’t Kill Us Makes Us Stronger” References References Norman R. Augustine. Harvard Business Review On Crisis Management. Boston: Harvard Business School Press, 2000. James E. Lukaszewski. “Seeking Forgiveness Precedes Rebuilding Trust.” Executive Action, 2001. James E. Lukaszewski. “Profiles in Jell­O: Behavior Patterns that Perpetuate Trouble.” Executive Action, 2004. ...
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