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Crisis ManagementCrisis Management
September 27September 27
TodayToday
Introduction and Introduction and adminadmin
Quick look at Quick look at traditional PRtraditional PR
Recognise the Recognise the difference between difference between pro active PR and pro active PR and Crisis Management Crisis Management
Discuss Crisis Discuss Crisis Management Management exercisesexercises
QuestionsQuestions Task for next week Task for next week
The official definition of the The official definition of the Institute of Public Relations -Institute of Public Relations -
Public relations...Public relations...
is about reputation: the result of is about reputation: the result of what you do, what you say and what what you do, what you say and what others say about youothers say about you
Public relations practicePublic relations practice
is the discipline which looks after is the discipline which looks after reputation – with the aim of earningreputation – with the aim of earning
understanding and support, and understanding and support, and influencing opinion and behaviour.influencing opinion and behaviour.
It is the planned and sustained effort It is the planned and sustained effort to establish and maintain goodwill andto establish and maintain goodwill and
understanding between an understanding between an organisation and its publicsorganisation and its publics
Peter Hutton of research Peter Hutton of research organisation MORI organisation MORI
The planned attempt/effort to The planned attempt/effort to influence what people know and influence what people know and think about, andthink about, and
how they behave towards, a how they behave towards, a company, organisation, product, company, organisation, product, service or causeservice or cause
The basic elements of a PR The basic elements of a PR strategy are: strategy are:
Aim: Aim: “What do we want to achieve?”“What do we want to achieve?” Research: Research: “What do people think of us/our “What do people think of us/our
product?product? What do we What do we want want them to think?”them to think?” Objective(s): Objective(s): “What are the measurable “What are the measurable
steps we can take to achieve the aim?steps we can take to achieve the aim? Messages: Messages: “What do we need to tell “What do we need to tell
them?”them?” Audiences: Audiences: “Who do we need to tell it to?”“Who do we need to tell it to?”
Basic aims of a PR strategyBasic aims of a PR strategy
Channels: Channels: “How do they receive their “How do they receive their information? How are their opinions andinformation? How are their opinions and
attitudes formed?”attitudes formed?” Methods: Methods: “How do we do it?”“How do we do it?” Resources: Resources: “What are the budget, “What are the budget,
people and facilities?”people and facilities?” Timescale: Timescale: “When do we do what?”“When do we do what?” Evaluation: Evaluation: “Is it working?”“Is it working?”
Typical PR devices include:Typical PR devices include:
Announcing new products and Announcing new products and servicesservices
EventsEvents SurveysSurveys Media relationsMedia relations Press releasesPress releases Press conferencesPress conferences SponsorshipsSponsorships
Typical PR devices include: Typical PR devices include:
AwardsAwards Conferences and seminarsConferences and seminars SpeechesSpeeches Open daysOpen days Employee activitiesEmployee activities LobbyingLobbying Case historiesCase histories
Typical PR devices include Typical PR devices include
Community activityCommunity activity ExhibitionsExhibitions SpokespeopleSpokespeople Investor RelationsInvestor Relations Internet: web sites; streaming; Internet: web sites; streaming;
forums…forums…
So what makes a crisis?So what makes a crisis?
A simple definition from Michael A simple definition from Michael Bland author of When It Hits The Fan Bland author of When It Hits The Fan
What is a crisisWhat is a crisis
A serious incident that affects, for A serious incident that affects, for example, human safety, the example, human safety, the environment,and/or product or environment,and/or product or corporate reputation – and that has corporate reputation – and that has attracted or could attract adverse attracted or could attract adverse publicity publicity
What would you do?What would you do?Test your crisis skillsTest your crisis skills
A A crisiscrisis or major or major issue strikes issue strikes youryour organisation and organisation and its reputationits reputation
is on the line – is on the line – maybe its very maybe its very existence existence
How well would How well would you cope?you cope?
The following are The following are all real-life all real-life examples. How examples. How would you handle would you handle themthem
1 You sell baby care products nationwide and a lone 1 You sell baby care products nationwide and a lone scientistscientist
claims to have discovered that a chemical in cot claims to have discovered that a chemical in cot mattresses ismattresses is
the cause of mystery cot deaths. A national the cause of mystery cot deaths. A national consumerconsumer
television programme tells you that they are going television programme tells you that they are going toto
broadcast a documentary profiling the scientist’s broadcast a documentary profiling the scientist’s claims andclaims and
your mattresses. You are certain that the scientist’s your mattresses. You are certain that the scientist’s research isresearch is
flawed and that your mattresses are safe – but it flawed and that your mattresses are safe – but it could takecould take
months to prove it. Youmonths to prove it. You
a) robustly argue against the scientist’s claims on the a) robustly argue against the scientist’s claims on the programmeprogramme
and elsewhere – and run a customer reassurance and elsewhere – and run a customer reassurance programme.programme.
b) say and do nothing, as the scientist is a lone wolf and theb) say and do nothing, as the scientist is a lone wolf and the programme is only a one-off – so the fuss will all die downprogramme is only a one-off – so the fuss will all die down soon.soon. c) withdraw all c) withdraw all youryour cot mattresses from sale at a huge cot mattresses from sale at a huge
cost tocost to yourselves, announcing that you are certain they are safe yourselves, announcing that you are certain they are safe
butbut will leave absolutely nothing to chance will leave absolutely nothing to chance
2 You run a food chain and a Sunday 2 You run a food chain and a Sunday tabloid newspaper callstabloid newspaper calls
you late on a Friday to say that your you late on a Friday to say that your burgers have beenburgers have been
When it hits the fan • 5When it hits the fan • 5 Page 4identified as ‘Worst in the Page 4identified as ‘Worst in the
Country’ in a survey of fast foodCountry’ in a survey of fast food outlets. They will run the story on outlets. They will run the story on
Sunday’s front page andSunday’s front page and ask if you would like to comment. Youask if you would like to comment. You
Q2:Q2:
a:1 b:5 (the brilliantly successful a:1 b:5 (the brilliantly successful choice of Happy Eaterchoice of Happy Eater
against the Sunday People) c:0against the Sunday People) c:0
a) call in a) call in youryour lawyers and seek an injunction to stop the lawyers and seek an injunction to stop the newspaper publishing.newspaper publishing. b) offer the newspaper a deal offering a free burger to b) offer the newspaper a deal offering a free burger to
anyone whoanyone who visits one of visits one of youryour outlets on Sunday morning carrying a outlets on Sunday morning carrying a
copycopy of their newspaper.of their newspaper. c) provide the newspaper with a written statement c) provide the newspaper with a written statement
defendingdefending youryour burgers and warn them that you will sue them out of burgers and warn them that you will sue them out of existence if they unfairly harm the reputation of existence if they unfairly harm the reputation of youryour
product.product. 33
4 A former employee says that unless he is 4 A former employee says that unless he is reinstated and paidreinstated and paid
compensation for what he claims to be unfair compensation for what he claims to be unfair dismissal hedismissal he
IntroductionIntroduction 6 • When it hits the fan6 • When it hits the fan Page 5will go to the press with a big dossier of Page 5will go to the press with a big dossier of
alleged corruption,alleged corruption, including large scale customer rip-offs. Some of theincluding large scale customer rip-offs. Some of the allegations could be true but you don’t have time toallegations could be true but you don’t have time to investigate before his deadline. Youinvestigate before his deadline. You
Q 4:Q 4:
: : a: 5 b: 0 c: 2 (in real life the a: 5 b: 0 c: 2 (in real life the company concerned chosecompany concerned chose
option c and it worked. Option a option c and it worked. Option a assumed a high likelihoodassumed a high likelihood
of the story getting out and created of the story getting out and created an opportunity toan opportunity to
demonstrate integrity to customers demonstrate integrity to customers
) pre-empt him by going to the press yourself, ) pre-empt him by going to the press yourself, showingshowing
concern at the allegations and demonstrating to concern at the allegations and demonstrating to youryour
customers that you are launching an independentcustomers that you are launching an independent investigation, and will compensate them if any investigation, and will compensate them if any
actualactual malpractice is discovered.malpractice is discovered. b) give in to his demands and keep it all quiet.b) give in to his demands and keep it all quiet. c) call his bluff and tell him you’re not giving in.c) call his bluff and tell him you’re not giving in.
6 You operate a large chemical plant which 6 You operate a large chemical plant which has leaked a smallhas leaked a small
volume of toxin into a major river, killing volume of toxin into a major river, killing hundreds ofhundreds of
thousands of fish which are floating for thousands of fish which are floating for miles downstream.miles downstream.
The local community and the media are The local community and the media are incensed, but youincensed, but you
have quickly identified the source of the have quickly identified the source of the leak, repaired it andleak, repaired it and
all is now safe and well. Youall is now safe and well. You
a) close the plant – even though you don’t a) close the plant – even though you don’t actually need to – whileactually need to – while
you are seen to conduct an independent you are seen to conduct an independent investigation into theinvestigation into the
leak.leak. b) apologise and offer compensation – but b) apologise and offer compensation – but
keep the plantkeep the plant running.running. c) close the plant, apologise and c) close the plant, apologise and
compensate compensate
What did you score?What did you score?
Before you add up your score, there are seldom any ‘right’ Before you add up your score, there are seldom any ‘right’ oror
‘‘wrong’ answers in crisis management. Sometimes you can wrong’ answers in crisis management. Sometimes you can do thedo the
‘‘wrong’ thing and get away with it, and sometimes you can wrong’ thing and get away with it, and sometimes you can dodo
everything ‘right’ and still be deep in it. Crisis is about a everything ‘right’ and still be deep in it. Crisis is about a balance ofbalance of
judgement, so all the answers here are potentially valid judgement, so all the answers here are potentially valid solutions.solutions.
But higher marks are given for the ones which will probably But higher marks are given for the ones which will probably dodo
most to help you come out smelling of rosesmost to help you come out smelling of roses
Q1:Q1:
a:3 b:1 c:5 (the real life action by a:3 b:1 c:5 (the real life action by Boots the Chemist Boots the Chemist
Q 6:Q 6:
a: 3 b: 3 c: 5 (all choices are ‘correct’ a: 3 b: 3 c: 5 (all choices are ‘correct’ but c. would be the textbut c. would be the text
book answer. In real life, the book answer. In real life, the company concerned only chosecompany concerned only chose
option b and still came out of it option b and still came out of it pretty well pretty well
Many of the real-life examples Many of the real-life examples in happened in the UKin happened in the UK
but the country is irrelevant but the country is irrelevant the lessons from one country applythe lessons from one country apply with equal validity to all. But much of with equal validity to all. But much of
crisiscrisis management best management best practice is derived from the UK because it practice is derived from the UK because it
has probably the world’shas probably the world’s most cynical public attitudes and the most most cynical public attitudes and the most
sensationalist andsensationalist and hostile media. If you can handle an issue hostile media. If you can handle an issue
or or crisiscrisis in Britain, you in Britain, you can handle one anywhere.can handle one anywhere.
