Organizational Crisis A major unpredictable event that has ...
Transcript of Organizational Crisis A major unpredictable event that has ...
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Organizational Crisis
• A major unpredictable event that has the potential to severely damage the organization’s reputation among employees, stockholders, and the general public
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Organizational Crisis
• Natural disasters• Malevolence• Technical breakdowns• Human Error• Environmental Damage• Misdeeds• Violence• Rumors
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Organizational Crisis
• More Frequent and Serious
– Globalization has created complex webs of financing, manufacturing, and distribution
– Consumer and environmental groups carefully scrutinize business and government
– 24 hour Media/Internet• Bad news travels fast!
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“Reputation is like fine china; fragile and easily broken”
- Benjamin Franklin
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“If you lose money for the firm, I will be very understanding. If you lose reputation for the company, I will be ruthless.”
- Warren Buffet
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Crisis Communication
• What the organization says to its employees, the media, the community, customers, suppliers, stockholders and creditors during and after the crisis
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Crisis Communication
• Goals
– Protect affected groups
– Restore the organization’s image
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Crisis Management and Communication
• Crisis Team
– Pre crisis planning
– Coordinates crisis management during the actual emergency
– Oversees crisis communication with various groups
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Crisis Communication Strategies
Denial
– Organization does not acknowledge wrongful act or denies that a wrongful act occurred
– Simple Denial– Shifting the Blame
Evading Responsibility
– Organization attempts to avoid or diminish responsibility for the crisis
– Provocation– Defeasibility– Accident– Good Intentions
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Crisis Communication Strategies
Reducing Offensiveness
– Organization tries to reduce degree of harm experienced by affected group.
– Bolstering– Minimization– Differentiation– Transcendence– Attack the Accuser– Compensation
Corrective Action
– Organization vows to correct the problem that created the crisis
• Restoration• Prevention
Mortification
- Organization admits responsibility for the crisis and asks for forgiveness
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Effective Crisis Communication
• Use multiple strategies in concert with one another
• Support all strategies with strong reasoning and evidence
• Exercise visible leadership from the highest executives
• Identify target audiences and select strategies accordingly
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Exxon Valdez - 1989
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Effective Crisis Communication
Control– Determine goals and
develop agenda• Who is your specific
target audience(s)?
– Assert your agenda!
Confidence– Enter as an equal and
enthusiastic participant
Credibility– Ensure audience
believes your message
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Effective Crisis Communication
Message Points– Concise thoughts, ideas, arguments and
impressions that you most want to leave with your audience
– Must be provable assertions that you can back up with facts
– Look to goals of your interview to formulate your message points
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Structuring your presentation
• Introduction• Narrative (use strategies)• Use more strategies • Conclusion
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Handling Questions
Answers should be clear and concise - free of organizational jargon- explain technical information in simple
language/use analogies
Don’t know the answers…- avoid “no comment”- don’t make things up - indicate that you will get the answers ASAP
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Handling Questions
Be prepared for difficult, complicated questions- Ask questioner to clarify or you can restate- multipart questions, answer most favorable first - “If you dread it, you will get it”
Correct and challenge questions based on erroneous information
Multiple choice questions - make sure options are fair - don’t feel constrained