Crisis Management Rachel Anderson Madeline Kilburn Jieun Lee - - PowerPoint PPT Presentation

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Crisis Management Rachel Anderson Madeline Kilburn Jieun Lee - - PowerPoint PPT Presentation

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


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SLIDE 1 Rachel Anderson Madeline Kilburn Jieun Lee Alexa Lewis Erica Nash-Wood

Crisis Management

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WHAT IS A CRISIS?

Personnel Crisis Systemic Crisis Contextual Crisis

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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 Workplace sabotage & violence Financial irregularities Ethical transgressions Data hacking Malicious attacks
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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
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What Works Virgin Galactic

Step 1: Timely and Empathetic Response Step 2: Media Transparency Step 3: Continued Communication
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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
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What Doesn’t United Airlines

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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.
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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
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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
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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
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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)
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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 Tier 2: Personal Injury Tier 3: Fatality
  • Orientation Training
  • Stick to the Script!
  • Chain of Command
  • Incident reports
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S.O.P.

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Incident Reports

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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
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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
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Interview 7 Regional State University

Types of crises: anything that loses students, financial aid, or accreditation for the 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 ○ Responded immediately ○ Implemented across-the-board plan to require passing practice accreditation exams as part of curriculum
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Ohio State University

  • Sorority and Fraternity Crisis Management Plan
  • Types of Crisis:
○ Death ○ Hazing ○ Fire ○ Injury/Incident
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Golden Rules of Crisis Management

  • NEVER say “No

comment.”

  • Be transparent.
  • Get ahead of the story.
  • Apologize first, then take

action.

CRISIS YOU
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50%

Of businesses interviewed had defined crisis management procedures.
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QUESTIONS?

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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
  • wered-flights.html
  • Leslie Smith, VP, Marketing and Merchandising, University Co-op
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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