Crisis Management Rachel Anderson Madeline Kilburn Jieun Lee Alexa Lewis Erica Nash-Wood
WHAT IS A CRISIS ? Personnel Crisis Systemic Crisis Contextual Crisis
Why companies need crisis management plans 1. To plan strategic procedures quickly and decide on next actions 2. To minimize downtime and prevent tarnishing reputation 3. To feel the early signs of crisis & take precaution in the future After crisis, you can face Cyber-terrorism Ethical transgressions Workplace sabotage & violence Data hacking Financial irregularities Malicious attacks
Common Crisis Management Procedures Gather facts ● Be prepared ● ● Designate a spokesperson ● Communicate quickly and accurately Develop policies to minimize crisis ● Assemble and organize resources ● ● Create a crisis management team
What Works Virgin Galactic Step 1: Timely and Empathetic Response Step 2: Media Transparency Step 3: Continued Communication
What Doesn’t United Airlines Mistake 1: Eighteen hours of silence Mistake 2: Response was not empathetic to victim Mistake 3: Underestimated the power of social media Mistake 4: Let the story get away from them
What Doesn’t United Airlines
Interview 1 University Co-op Types of Crises: being asked to comment on university policy changes, change of official university color. No hired PR firm, but have a couple firms to call if they need to Not officially part of the university, so they choose whether it’s important their voice is heard or not for different issues.
University Co-op Process: 1. Marketing VP gets request for statement 2. Upper management gets together to create statement, draft PR 3. Statement distributed to managers at all branches a. Asked to say no comment, read statement word for word, or direct to upper management
Interview 2 McDonald's Korea x Edelman Crisis : ● 4-year old girl having HUS (Hemolytic Uremic Syndrome) aka ‘Hamburger disease’ / Sue From her mom What they faced : Harsh Cyber Terrorism ● ● Criticism on the brand’s quality
Interview 2 McDonald's Korea x Edelman Good : ● Follow their crisis management process Tried not to make hasty decision ● Bad : Vague response to publics ● McDonald’s headquarters’ late ● permission & lack of cultural knowledge in Korea
Interview 3 Law Firm What procedures do you have in place for a crisis situation? -”Oh, our Kansas City office has all the procedures.” (Reception) Have you ever experienced or had to work through a crisis at your company? - “No, I work with computers, not people”. (Records Management) Who handles media relations in the office? -“Not me! That’s over my head.” (Office Admin)
Interview 4 Property Management What constitutes as a crisis at your company? -”Flood, Blood, and Death. In that order.” (General Manager) Tier 1: Property damage Orientation Training ● Stick to the Script! ● Tier 2: Personal Injury ● Chain of Command Tier 3: Fatality ● Incident reports
S.O.P.
Incident Reports
Interview 5 [Film] No formal procedure, but there are standard ● practices & precautions Crises usually originate with: ● Talent ○ ■ Not showing up, showing up drunk When it comes to erratic human behavior, you have ■ to anticipate & plan for the worst Keep close relationships with publicists & agents ■ ○ Scheduling Too many people for a venue ■ ○ Press Access Press badge applicants are heavily researched & ■ screened
Interview 6 Local Realty Company Mistake 1: They don’t have a plan Mistake 2: They would prefer not to comment Mistake 3: They aren’t sure what constitutes a crisis
Interview 7 Regional State University Crisis preparation ● No formal procedure, but there is a significant ○ focus on trust and open communication Frequent meetings & friendly culture help them ○ stay on top of potential crises Empowering individuals to step beyond regular ○ boundaries Example: Recent threat that their college of ● education would lose accreditation Types of crises: anything that loses ○ Responded immediately students, financial aid, or accreditation Implemented across-the-board plan to require ○ for the university passing practice accreditation exams as part of curriculum
Ohio State University Sorority and Fraternity Crisis Management Plan ● Types of Crisis: ● ○ Death Hazing ○ ○ Fire Injury/Incident ○
Golden Rules of Crisis Management ● NEVER say “No ● Get ahead of the story. comment.” ● Apologize first, then take ● Be transparent. action. CRISIS YOU
50% Of businesses interviewed had defined crisis management procedures.
QUESTIONS?
Sources https://www.forbes.com/sites/forbesagencycouncil/2017/06/20/13-golden-rules-of ● -pr-crisis-management/#212368e91bcf ● https://www.fastcompany.com/3062710/the-three-kinds-of-crisis-companies-face-a nd-how-to-pull-through http://managementstudyguide.com/crisis-management.htm ● ● http://rmi-solutions.com/blog/the-importance-of-business-crisis-management-plan/ https://ohiounion.osu.edu/posts/documents/CrisisManagementProcedures.pdf ● http://www.businessinsider.com/richard-branson-virgin-galactic-crisis-management-2 ● 014-11 https://www.cnbc.com/2017/09/07/virgin-galactic-ceo-company-is-returning-to-p ● owered-flights.html Leslie Smith, VP, Marketing and Merchandising, University Co-op ●
Sources http://www.netimperative.com/2017/05/crisis-management-case-study-uni ● ted-airlines/ ● https://www.youtube.com/watch?v=Lk2eJVnJJdw (melissa agnes- crisis management specialist) https://hub.united.com/united-express-3411-statement-oscar-munoz-23559 ● 68629.html?utm_source=t.co&utm_medium=referral ● https://www.youtube.com/watch?v=mklZR2Ooo68
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