The Crisis Management Process

The Crisis Management Process

اسلاید 1: Chapter 12 - Crisis Management1Intel’s Big CrisisIntel’s hidden crisisSpent hundreds of millions of dollars to establish its name and advertise Pentium computer chipsPublic found out that a problem existed with the Pentium chip causing the math to be inaccurateIntel’s pre-crisisCollege math professor discovered the problemIntel contacted certain users but not the general public

اسلاید 2: Chapter 12 - Crisis Management2Intel’s Big CrisisIntel’s full crisisGeneral public discovered that Intel was replacing computer chips only to certain individualsIBM halted all shipments of its highest-power Intel PCsIntel’s stock slid and trading was haltedIntel dismissed the flaw as a small problem even when customers complained

اسلاید 3: Chapter 12 - Crisis Management3Intel’s Big CrisisIntel’s post-crisisIntel reversed its position and announced it would give free replacements to Pentium-based computer ownersIntel’s major mistake was waiting so long to arrive at the appropriate responseYears later, few people remember or care about the crisisIn retrospect, Intel managed the crisis well

اسلاید 4: Chapter 12 - Crisis Management4Defining a Corporate CrisisExamples of crisis situationsResults in or has the potential to cause significant damage to employees, consumers, physical or financial operation of an organization, its image, local communities or general public White collar crimesLabor disputesGeneral mismanagementCatastrophes (death, product tampering)Environmental disputesDefects and recallsClass action lawsuits

اسلاید 5: Chapter 12 - Crisis Management5Defining a Corporate CrisisBasic crisis thesesA crisis can be anticipated - there are always signs that lead to crisis detectionA crisis can be prevented - proper measures can be taken to correct what is wrongA crisis can be controlled - organization can take steps to manage each state of the crisis and bring it to a complete endA crisis can be turned to an advantage - take the right steps for a positive end to the crisis

اسلاید 6: Chapter 12 - Crisis Management6Defining a Corporate CrisisManagement mind-sets that impede crisis management:There is only one correct approach to solving a problem.Factual data is superior to subjective opinions when making a decision.It is possible to totally separate reason and emotion.Severe change is only temporary…things will return to normal if one will just wait long enough

اسلاید 7: Chapter 12 - Crisis Management7Defining a Corporate CrisisFour stages of a crisisStage One: The Hidden CrisisPotential crises exist within every organizationCrisis can be avoided if every problem and issue that develops is correctedPotential danger may not be known until issue moves to Stage TwoStage Two: The Pre-CrisisOccurs if hidden issue is recognized but not resolvedManagers often believe problem will solve itself

اسلاید 8: Chapter 12 - Crisis Management8Defining a Corporate CrisisFour stages of a crisisStage Three: The CrisisProblems can no longer be hidden from the publicChaos, panic and stress is the norm; valuable time is wastedStage Four: The Post-CrisisThe crisis eventually endsOrganization can now discover what went wrong, how it happened, and what should have been done about it

اسلاید 9: Chapter 12 - Crisis Management9The Crisis Management ProcessStep One: Determine the crisis potentialDetermine how likely it is to suddenly encounter a crisis by asking, “What if….?”Examine organization’s internal and external environmentsPersonnelFacilitiesProductsCompetition

اسلاید 10: Chapter 12 - Crisis Management10The Crisis Management ProcessStep Two: Develop appropriate crisis teams and centersTeams preview crisis, develop strategy to prevent occurrence, and manage event should it occurSenior executive teams – two or three key executivesSupport teams – department heads, managers, specialistsField response management Crisis centersPlaces where teams can assemble to carry out their activity

اسلاید 11: Chapter 12 - Crisis Management11The Crisis Management ProcessStep Three: Write a Crisis Management PlanProcess takes place before, during, and after crisisThe following things can be managed:Anticipating a crisisDeveloping and training a crisis teamDesigning and equipping a crisis centerWorking through a plan for each potential crisisDeveloping the statements to be used in communication eventsHandling media interviews

اسلاید 12: Chapter 12 - Crisis Management12The Crisis Management ProcessCrisis Management Plan contentsMission and related itemsHistory of crises and potential crisesPreparing the crisis centerDirectories of the organization’s stakeholdersMedia awarenessMethod of evaluation

اسلاید 13: Chapter 12 - Crisis Management13The Crisis Management ProcessStep Four: Develop a communication strategyDetermine the audience that needs informationDetermine who will be the spokesperson for the organizationDetermine the appropriate communication styleDetermine the appropriate timingDetermine whether to use the proactive or reactive media approach

اسلاید 14: Chapter 12 - Crisis Management14The Crisis Management ProcessStep Five: Practice and revise the planPractice helps crisis management teams respond in a coordinated and effective mannerPlan should be revised every three years due to:RestructuringNew personnelNew goalsHuman resources and operations departments should review the plan yearly