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Similar to Chapter 2 (crisis management)
Chapter 2 (crisis management)
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- 2. Definition • A crisisis defined as an event that by its nature or its consequences: • constitutes a threat to vital national interests or to the essential needs of the organization, its stakeholders or public; • prompts rapid decision making; • demands coordination between different departments and organisms
- 3. Key features ofa Crisis • Low probability • High impact • Uncertain/ambiguous causes and effects
- 4. Common features ofa crisis • The situation materialises unexpectedly (strong element of surprise) • Decisions are required urgently • Time is short • Specific threats are identified • Urgent demands for information are received • There is sense of loss of control • Pressures build over time • Routine business become increasingly difficult • Demands are made to identify someone to blame • Outsiders take an unaccustomed interest • Reputation suffers • Communications are increasingly difficult to manage
- 5. Types of Crises •Natural disasters • Malevolence • Technical breakdowns • Human breakdowns • Challenges • Mega-damage • Organizational misdeeds • Workplace violence • Rumors
- 6. Crisis Management • preventsa crisis from becoming a catastrophe. • Crisis management can be defined as a system or methodology of solving crisis situations. We can be sure that the actual crisis situation will differ from our expectation. A crisis is like a virus, the effects can be sudden, insidious, infectious and extremely dangerous…
- 7. Problem characterizationProblem characterization Crisismanagement is a very complex and not easily predictable process. The problem can be explicated in three claims: • Nobody knows when a crisis event will happen. • The scenario of a crisis/emergency event can be expected and prepared for but the real situation will change it. • Our knowledge of a crisis/emergency event solution is developed step-by-step and hour-by-hour and its ”current version” has to be utilized continuously in the crisis event solution.
- 8. Purpose of crisismanagement: • Prevention • Survival • Successful outcomes
- 9. Three criteria ofsuccess • Has organisational capacity been restored? • Have losses been minimised? • Have lessons been learned?
- 10. Crisis Planning • Assessrisks • Produce plans • Define roles and responsibilities • Appoint crisis management team • Draw up communication plan • Produce contact and organisation chart • Promote crisis-ready culture • Publish plans and conduct training • Test, review and practise
- 11. • Plan inadvance • Rehearse via simulation • Stipulate who the spokesperson is • Crisis is no time to find yourself on a learning curve. Community measures and Emergency procedures are essential • Planning requires that crisis can occur at any time. Nine out of ten crisis occur when you are asleep, probably after a late night or at a week-end! Pre-Crisis Actions and Preparations
- 12. • Pre-crisis actionscosts are often (but not always) a tiny fraction of the losses that are typically incurred by crisis for which there has been inadequate preparation; • It is very easy to underestimate the damage a crisis can do and the costs it can have. Pre-Crisis Actions and Preparations
- 13. • Emergency Procedures •Staff awareness • Network of experts for urgent meeting/advice • Standard Decisions (safeguard clauses) ready in all official languages Pre-Crisis Actions and Preparations
- 14. Pre-crisis actions andpreparations • The crisis unfolds • After the crisis • In a Nutshell
- 15. The Crisis Unfolds •Appointment of a press contact person who is always available and ready to reply immediately • Quick reaction in taking and repealing measures • Dispatch of information in real time • Consistency of information (everyone should have the same story) • Development of a detailed chronology
- 16. The Crisis Unfolds •The services/officials concerned ought to show flexibility and may have to stay late hours, work on week-ends or report their vacations • The work-plans and tasks should be re-organized so as to allow for an effective management of the crisis and all its side effects (letters, working groups…) • Risk assessors and risk managers must work in strict co-operation!
- 17. The Crisis Unfolds •Coordination between the Units and Directorates concerned is essential, so as to ensure that all the aspects of the crisis are being tackled . • Show sympathy for those affected by the crisis.
- 18. After the Crisis •Promote positive stories in the media • Analyze the management of the crisis • Update Emergency Procedures
- 19. In a Nutshell Beprepared • Sooner or later you may also be involved in a crises, which will involve a lot of extra work • What is the most likely scenario for you/your service? Are you ready for it? • The crisis may be worse than you expected!
- 20. In a Nutshell Saythe truth • People and institutions do not like facing and managing crisis. This may lead them into half- truths, lies and evasions • What is said to the media, other bodies needs to be updated and consistent
- 21. Role of apologiesin crisis management • Controversial - for fear of legal outcomes • Evidence says that a compensation and sympathy are effective • True contrition includes sympathy for victims and offers of compensation to offset losses or suffering
- 22. In a Nutshell Bevisible • If the crisis is major, then organization needs to be at the site of the crisis quickly and to be visible • Failure to show sympathy will be punished by the media and by all members of the public and can destroy the reputation of the organization
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- 24. Communication plan: Core elementsare: • Identifying audiences (Who?) • How communication is to take place (How?) • What messages are to be communicated (What?) The core process is: • Active, two-way communication
- 25. The Top 12Crises of 2015 1.Volkswagen 2. FIFA 3. Chipotle 4. Ashley Madison 5. HSBC 6. Petrobas-Dilma Roussef (company executives accepted bribes from a cartel of 20 companies) 7. Mecca Crane Collapse 8.Starbucks (wading into the discussions around race that followed police shootings in Ferguson and elsewhere) 9.Theranos 10. Nestle India