CRISIS MANAGEMENT - PowerPoint PPT Presentation


Title: CRISIS MANAGEMENT


1
CRISIS Planning and Management CMST 420 Health
Communication
2
Crisis Management
  • Crisis management is the process by which an
    organization deals with a major unpredictable
    (but not unexpected) event that threatens to harm
    the organization, its stakeholders, or the
    general public

3
Elements of a Crisis
  • Three elements are common to most definitions of
    crisis
  • a threat to the organization,
  • the element of surprise,
  • a short decision time
  • a need for change

4
Crisis management - 1
  • Crisis management consists of
  • Methods used to respond to both the reality and
    perception of crises
  • Establishing metrics to define what scenarios
    constitute a crisis and should consequently
    trigger the necessary response mechanisms.
  • Communication that occurs within the response
    phase of emergency management scenarios

5
Crisis Management - 2
  • The credibility and reputation of organizations
    is heavily influenced by the perception of their
    responses during crisis situations

6
Crisis Management - 3
  • respond to a crisis in a timely fashion makes
    for a challenge in businesses.
  • must be open and consistent communication
    throughout the hierarchy to contribute to a
    successful crisis communication process.

7
Types of Crises
  • Natural disasters
  • Malevolence
  • Technical breakdowns
  • Human breakdowns
  • Challenges
  • Mega-damage
  • Organizational misdeeds
  • Workplace violence
  • Rumors

8
Crisis Management
  • Technological crises
  • caused by human application of science and
    technology
  • when technology becomes complex and coupled and
    something goes wrong in the system as a whole
    (Technological breakdowns)

9
Crisis Management
  • Crises of organizational misdeeds
  • - when management takes actions it knows will
    harm or place stakeholders at risk for harm
    without adequate precautions

10
Crisis Management
  • Types of crises of organizational misdeeds
  • crises of skewed management values
  • crises of deception
  • crises of management misconduct.

11
Crisis Management
  • Crisis management model - Gonzalez-Herrero and
    Pratt 95
  • Successfully diffusing a crisis requires an
    understanding of how to handle a crisis before
    it occurs
  • issues management
  • planning-prevention
  • the crisis
  • post-crisis

12
Contingency Planning
  • Plan in advance
  • Rehearse via simulation
  • Stipulate who the spokesperson is
  • Speed and efficiency in response to crisis
  • Offer accurate information or it will backfire
  • Plan offers info and guidance to help decision
    makers deal with long-term effects of decisions

13
Role of apologies in 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

14
TOYOTA CRISIS MANAGEMENT FAILURE
  • Toyotas communication strategy
  • Too little, too late
  • Beyond the quality problem
  • Toyota mismanaged the crisis

15
TOYOTABasic Rules Violated
  • For senior mgmt crises must become their 1
    priority immediately.
  • Integrity of firm threatened - immediate hands-on
    control of CEO/team
  • Sticking accelerators in 2008 - not treated as a
    serious matter

16
TOYOTABasic Rules violated
  • Find facts solutions fast
  • Toyota managers at first in denial
  • accepted a patch (remove floor mats), not
    solution
  • when crisis exploded -- engineering
    solution/stopped production
  • Even today no one outside of Toyota knows what
    the real problems are open to speculation and
    rumors

17
TOYOTA Basic rules violated
  • Communicate fully and accurately
  • to all constituents to sustain trust
  • err on side of protecting consumers maintain
    trust with a recall
  • What Toyota did
  • hushed problem and hoped it go away
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CRISIS MANAGEMENT

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Title: CRISIS MANAGEMENT


1
CRISIS Planning and Management CMST 420 Health
Communication
2
Crisis Management
  • Crisis management is the process by which an
    organization deals with a major unpredictable
    (but not unexpected) event that threatens to harm
    the organization, its stakeholders, or the
    general public

3
Elements of a Crisis
  • Three elements are common to most definitions of
    crisis
  • a threat to the organization,
  • the element of surprise,
  • a short decision time
  • a need for change

4
Crisis management - 1
  • Crisis management consists of
  • Methods used to respond to both the reality and
    perception of crises
  • Establishing metrics to define what scenarios
    constitute a crisis and should consequently
    trigger the necessary response mechanisms.
  • Communication that occurs within the response
    phase of emergency management scenarios

5
Crisis Management - 2
  • The credibility and reputation of organizations
    is heavily influenced by the perception of their
    responses during crisis situations

6
Crisis Management - 3
  • respond to a crisis in a timely fashion makes
    for a challenge in businesses.
  • must be open and consistent communication
    throughout the hierarchy to contribute to a
    successful crisis communication process.

7
Types of Crises
  • Natural disasters
  • Malevolence
  • Technical breakdowns
  • Human breakdowns
  • Challenges
  • Mega-damage
  • Organizational misdeeds
  • Workplace violence
  • Rumors

8
Crisis Management
  • Technological crises
  • caused by human application of science and
    technology
  • when technology becomes complex and coupled and
    something goes wrong in the system as a whole
    (Technological breakdowns)

9
Crisis Management
  • Crises of organizational misdeeds
  • - when management takes actions it knows will
    harm or place stakeholders at risk for harm
    without adequate precautions

10
Crisis Management
  • Types of crises of organizational misdeeds
  • crises of skewed management values
  • crises of deception
  • crises of management misconduct.

11
Crisis Management
  • Crisis management model - Gonzalez-Herrero and
    Pratt 95
  • Successfully diffusing a crisis requires an
    understanding of how to handle a crisis before
    it occurs
  • issues management
  • planning-prevention
  • the crisis
  • post-crisis

12
Contingency Planning
  • Plan in advance
  • Rehearse via simulation
  • Stipulate who the spokesperson is
  • Speed and efficiency in response to crisis
  • Offer accurate information or it will backfire
  • Plan offers info and guidance to help decision
    makers deal with long-term effects of decisions

13
Role of apologies in 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

14
TOYOTA CRISIS MANAGEMENT FAILURE
  • Toyotas communication strategy
  • Too little, too late
  • Beyond the quality problem
  • Toyota mismanaged the crisis

15
TOYOTABasic Rules Violated
  • For senior mgmt crises must become their 1
    priority immediately.
  • Integrity of firm threatened - immediate hands-on
    control of CEO/team
  • Sticking accelerators in 2008 - not treated as a
    serious matter

16
TOYOTABasic Rules violated
  • Find facts solutions fast
  • Toyota managers at first in denial
  • accepted a patch (remove floor mats), not
    solution
  • when crisis exploded -- engineering
    solution/stopped production
  • Even today no one outside of Toyota knows what
    the real problems are open to speculation and
    rumors

17
TOYOTA Basic rules violated
  • Communicate fully and accurately
  • to all constituents to sustain trust
  • err on side of protecting consumers maintain
    trust with a recall
  • What Toyota did
  • hushed problem and hoped it go away
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