CRISIS(Seri Management Crisis)Rachmat Kriyantono, Ph.D(Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta)

Rach

mat

Kriy

anto

no, P

h.D

-Lec

ture

r of P

ublic

Rel

ation

s, S

choo

l of C

om

mun

icati

on, U

nive

rsity

of B

raw

ijaya

, Mal

ang-

Indo

nesi

a

WHY IMPORTANT TO STUDY CRISIS....???• Every organization is likely to experience crisis• Crisis generally threat: the reputation & other organization

resources• Crisis is starting point: good reputation or bad reputation• For PR: this is the best challenge and PR can be called “The

truly PR” based on how PR deals with the crisis

2

*Specific threats to organisation:

*Operational viability

*Reputation

*Credibility

*Financial stability

*Legal action

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

4

DEFINITION

Devlin (2007, h.5): “an unstable time for an organization, with a distinct possibility for an undesirable outcome” Borodzics (2005): crisis is more than

emergency situation. Duke & Masland (2002) & Kouzmin (2008): Crisis as situation that causes physical &

nonphysical damages & disrupts organization system & the environment as a whole, especially for the victims.

5

Seeger, Sellow & Ulmer (1998), cited in Smudde (2001, h.34):

“a specific, unexpected, and non-routine event or series of events that create high levels of uncertainty and threaten or are perceived to threaten an organization’s high-priority goals”. Burnet (in G. Harrison, 2005, h.7): “composed of a continuum, beginning with an incident, followed by a conflict, and ending with a crisis, the most serious form of disruption”.

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

6

G. Harrison (2005, h.11) : “a crisis is a critical period following an event that might negatively affect an organization in which decisions have to be made that will affect the bottom line of an organization. It is a time of exploration requiring rapid processing of information and decisive action to attempt to minimize harm to the organization and to make the most of a potentially damaging situation”.

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

7

CHARACTERISTICS.... Specific event - The cause of crisis can be identified. - Organization can experience more than one

crisis, such as employees demonstration & product tamper.

Unexpected & happen any time- Tends to threat organization life & cause

damage. - As a part of organization process. Unpredictable time / Low probability- Although we acknowledge that crisis may

happen, but nobody knows the exact time when it comes (Coombs, 2007, h.136).

Rach

mat

Kriy

anto

no, P

h.D

-Lec

ture

r of P

ublic

Rel

ation

s, S

choo

l of C

om

mun

icati

on, U

nive

rsity

of B

raw

ijaya

, Mal

ang-

Indo

nesi

a

• Crisis produces information uncertainty.- Rumours spread out at the beginning. - Public relations must actively provide communication channel to

disseminate truth and open information (crisis communication). • Causing panic- As a result of uncertainty situation. - Differential perceptions• High impact on organization activities.- Negative impact: profit decrease, public trust loss, media scrutiny,

public & regulator investigation, unproductive changes. - Positive impact: new hero, new strategy, new regulation, better

changes (it depends on post crisis communication.• Potential for conflicts- External & internal- Pro & contra 8

- The situation materialises unexpectedly- 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

Common features of a crisis:

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

10

SOURCES OF CRISIS

G. Harrison (2005) & White & Mazur (1995):

a. Internal sources: human, managemen, & technology

b. External: goverment regulation, natural disaster, malevolent.

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

11

Types of sources• Technological crisis- Technology misconduct during organization activities (Chernobyl, Lumpur Lapindo, Bhopal, Exxon Valdez, Korean rocket).• Confrontation crisis- Bad relations between organization & public. - Crisis happens when the public express its

anger (publik outrage)

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

12

malevolence- someone/group wants to harm organization: sabotage, terorism. Management crisis- Management fails to do its resposibility: corruption, loss of valas, change of board of directors, take over (aquitition). Natural disaster crisis Product crisis- Product tamper- misproduction

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

13

CRISIS STAGES

Coombs (2010); Devlin (2007); Smudde (2001):- Pra-krisis (pre-crisis)- Serious situation starts & the organization

begins to aware. - If it is ignored, it will cause the crisis worse.

Example: Union carbide Bhopal. Some staff had anticipated gas leaking without inform management in Bhopal. 2000 people dead.

- Issue management is crucial, as a part of crisis plan.

- Media begins to sniff at something trouble, then investigate it.

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

14

Krisis (acute crisis) - The situation can’t be managed by

organization so the situation spread out the organization widely.

- This stage = critical stages of the issue life cycle.

- No crisis without public outrage. - Bad example: biscuit poisonous or

employees strike. - Good example: Sukhoi Russia

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

15

• Pascakrisis (post-crisis)- Crisis has been accummulated- Organization tries to maintain

reputation or lose it. - Recovery stage: detemine success or

failure - Self-Reflexion diri agar situasi yang

sama tidak terulang.

16

HAPPY STUDYING

Rachmat Kriyantono, Ph.D

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication,

University of Brawijaya, Malang-Indonesia

Happy StudyingReferences:- Kriyantono, R.

(2012). PR & Crisis Management. Jakarta: Prenada

- Regester & Larkin (2008). Risk & Issue Management. Baca yuuk...