1. STAMFORD COLLEGE DMC 115 PRINCIPLES OF PUBLIC RELATIONS
CRISIS MANAGEMENT IN PR PREPARED BY : MS GOMALA SUKUMARAN
2. DEFINITION Crisis Management is the systematic attempt to
avoid organizational crisis, or to manage those crises events that
do occur. PREPARED BY : MS GOMALA SUKUMARAN
3. WHAT IS CRISIS ? Crisis is major, unpredictable event that
threatens to harm an operation, staff, customers, reputation or the
legal and financial status of an organization. Crisis can strike
any time and during this Situation it tends to be - Confusion,
Uncertainty, fear. PREPARED BY : MS GOMALA SUKUMARAN
4. CONTINUED A crisis is an abnormal situation, or even
perception, which is beyond the scope of everyday business and
which threats the operation of an organization. Crisis is an
unpredictable events but it is unexpected. PREPARED BY : MS GOMALA
SUKUMARAN
5. THREE COMMON ELEMENTS OF CRISIS A threat to organization The
A element short the of surprises decision time PREPARED BY : MS
GOMALA SUKUMARAN
6. Types of crisis : PREPARED BY : MS GOMALA SUKUMARAN
7. ACCIDENTS AND NATURAL EVENTS An accident or natural event of
catastrophic magnitude can strike unexpectedly whether its an
earthquake, typhoon, tornado, hurric ane, blizzard, flood, fire, or
some other disaster. The impact of accidents and natural events can
also be felt indirectly such as a break in supply chain linkages.
PREPARED BY : MS GOMALA SUKUMARAN
8. HEALTH AND ENVIRONMENTAL DISASTERS Some health and
environmental related disasters though not necessarily caused by a
company, are directly related to it. The company is responsible or
is perceived to be responsible to deal with it. Some catastrophic
accidents such as in the Bhopal Gas Tragedy in 1984, are expensive
to fix and cause real damage to the people. PREPARED BY : MS GOMALA
SUKUMARAN
9. TECHNOLOGICAL BREAKDOWNS A break down in technology could
put a halt in the functioning of an organization. The crisis
potential of technological breakdowns grows as businesses become
more dependent on computers to communicate, store information,
conduct research, buy and sell. PREPARED BY : MS GOMALA
SUKUMARAN
10. ECONOMIC AND MARKET FORCES The fortunes of all businesses
are to some extent bound to the ups and downs of the economic
cycle. Down phases are particularly dangerous for companies with
fixed high costs, such as heavy investments in plants and
equipment. PREPARED BY : MS GOMALA SUKUMARAN
11. EMPLOYEES All companies depend on people to get things
done. With a greater need for speed and flexibility, employees are
being given greater discretion over decisions. An employee acting
without close supervision or consultation may throw the
organization into crisis PREPARED BY : MS GOMALA SUKUMARAN
12. THREE MAINSTAGES PHASES Pre crisis Crisis response PREPARED
BY : MS GOMALA SUKUMARAN Postcrisis.
13. STAGES IN CRISIS MANAGEMENT PRE-CRISIS PHASE The pre-crisis
phase is concerned with prevention and preparation. Prevention
involves seeking to reduce known risks that could lead to a crisis.
This is part of an Organizations risk management program.
Preparation involves creating the crisis management Plan, selecting
and training the crisis management team, and conducting exercises
to test the Crisis management plan and crisis management team.
PREPARED BY : MS GOMALA SUKUMARAN
14. CRISIS RESPONSE The crisis response is what management does
and says after the crisis hits. Public relations plays a critical
role in the crisis response by helping to develop the messages that
are sent to various publics. A great deal of research has examined
the crisis response. That research has been divided into two
sections: (1) the initial crisis response and (2) Reputation repair
and behavioral intentions PREPARED BY : MS GOMALA SUKUMARAN
15. POST-CRISIS PHASE In the post-crisis phase, the
organization is returning to business as usual. The crisis is no
longer the focal point of managements attention but still requires
some attention. PREPARED BY : MS GOMALA SUKUMARAN
16. THE WORMY CONTROVERSY 16
17. RISE OF THE CONTROVERSY State FDA Commissioner Uttam
Khobragade said a group of people approached him with chocolates
that had worms in them. Sebastian Fernandez had purchased Cadbury
Dairy Milk chocolate from a shop at Pick and Pay, Vile Parle.
Fernandez discovered that the chocolate (Batch No28F3I10703) had
worms in it. Fernandez complained to the shopkeeper Jitendra Shah
who later informed Pravin Marve, vice-president, Andheri Vyapar
Manch. Marve then contacted the FDA and gave them the sample. FDA
Joint Commissioner Hindurao Salunkhe said Cadbury's Talegaon plant
will also be inspected. PREPARED BY : MS GOMALA SUKUMARAN
18. EFFECTS OF THE CONTROVERSY ON CADBURY The state Food and
Drug Administration has ordered abduction of Cadbury's Dairy Milk
chocolates from all over Maharashtra after worms were found in two
of them in Mumbai. bad storage practices by retailers and
distributors that had led to the worms. Festival season sales
(Cadbury sells almost 1,000 tones of chocolates during Diwali)
plummeted 30 per cent. PREPARED BY : MS GOMALA SUKUMARAN
19. ROLE OF THE PUBLIC RELATIONS NOT DENYING THE FACT
Maharashtra Food and Drug Administration had given a clean chit to
the company's two plants in the state. tell consumers about
improper storage Bharat Puri, Cadbury's mild-mannered MD, went to
media offices around the country PREPARED BY : MS GOMALA
SUKUMARAN
20. ROLE OF THE PUBLIC RELATIONS (cont) TAKING PRECAUTIONS
company launched Project Vishwas, a retail education
programme.(generating awareness and providing assistance in
improving storage quality.) Steps to ensure quality & regain
the confidence new double packaging even for the smallest offering
wrapped in aluminium foil and enclosed in a poly flow pack, which
was sealed on all sides. company also carried out quality checks
PREPARED BY : MS GOMALA SUKUMARAN
21. ROLE OF THE PUBLIC RELATIONS (cont) GAINING BACK TRUST AB
played a pivotal role in all communication relating to Cadbury's
products and brands created a campaign which aimed for both
rational and emotional appeal. PREPARED BY : MS GOMALA
SUKUMARAN
22. 22
23. ROLE OF THE PUBLIC RELATIONS BENEFITS OF A GOOD CAMPAIGN
The company bounced back soon after the campaign hit the screens.
Between October 2003 and January 2004, Cadbury's value share melted
from 73 per cent in to 69.4 per cent. The recovery began in May
2004 when Cadbury's value share went up to 71 per cent. PREPARED BY
: MS GOMALA SUKUMARAN
24. CRISIS MANAGEMENT PROGRAMS Although no two Crisis
Management Programs are exactly alike, there are critical aspects
of any Crisis Management Program. The need for an effective Crisis
Management Program cannot be underestimated. Such a program
provides for: Effective coordination of activities among the
organizations having a management/response role; Early warning and
clear instructions to all concerned if a crisis occurs; Continued
assessment of actual and potential consequences of the crisis.
Continuity of business operations during and immediately after the
crisis. PREPARED BY : MS GOMALA SUKUMARAN
25. FOUR STAGES OF CRISIS MANAGEMENT Compliance Preparedness
Training & Resource Development Information Management PREPARED
BY : MS GOMALA SUKUMARAN
26. COMPLIANCE An effective system for compliance can be
developed only if there is adequate awareness of what laws and
regulations pertain to the organizations operation. In order to
accomplish this task, a survey of all operations should be
undertaken to identify areas in need of attention, establishing a
list of potential crisis situations and documenting current
efforts. Once the survey program has been developed and
implemented, it must be evaluated and kept up-to-date. PREPARED BY
: MS GOMALA SUKUMARAN
27. CONTINUED The survey program is the initial step, toward
reducing vulnerability. Next, the operation must be organized. All
levels of management must become part of the program. This can be
achieved by : Assigning a senior manager to a position like that of
a Crisis Management Program, Director who is directly responsible
to top management & the board of directors. Preparing an agenda
for senior staff and board of director meetings that includes a
discussion of crisis management preparedness as a mandatory item.
Making crisis management planning issues part of the strategic
planning process. Communicating compliance through all levels of
the organization through company policy and procedures. PREPARED BY
: MS GOMALA SUKUMARAN
28. PREPAREDNESS Preparedness used in the broadest context
means any and all measures taken to prevent, prepare for, respond,
mitigate and recover from a crisis. Preparedness consists of four
critical aspects: Preparation and Prevention: These refer to any
set of activities that prevent a crisis, reduce the chance of a
crisis happening, or reduce the damaging effects of a crisis.
Detection and Incident Classification: These include actions taken
to identify, assess and classify the severity of a crisis. Response
and Mitigation: These include actions taken to save lives, prevent
further damage and reduce the effects of the crisis. Reentry and
Recovery: These include actions taken to return to a normal or an
even safer situation following the crisis. PREPARED BY : MS GOMALA
SUKUMARAN
29. TRAINING AND RETRAINING The training of the Crisis
Management/Response Organization is one of the critical success
factors that must be addressed if an adequate response is to be
achieved. An approach to preparing effective training programs
should consist of : PREPARED BY : MS GOMALA SUKUMARAN
30. TASK ANALYSIS When designing an integrated training
program, the skills, knowledge and procedures required for
satisfactory performance of each task must be determined. PREPARED
BY : MS GOMALA SUKUMARAN
31. LESSON DEVELOPMENT Learning objectives are defined from the
skills, knowledge and procedures developed during task analysis.
Instructional plans are then prepared to support the learning
objectives. PREPARED BY : MS GOMALA SUKUMARAN
32. INSTRUCTION Lessons are systematically presented using
appropriate instructional methods. Instruction may include lecture,
self-paced or group-paced mediated instruction, simulation and team
training. PREPARED BY : MS GOMALA SUKUMARAN
33. EVALUATION Performance standards and evaluation criteria
are developed from the learning objectives. Each trainee's
performance is evaluated during the course and during field
performance testing. PREPARED BY : MS GOMALA SUKUMARAN
34. Information management The crisis management process
doesn't end just because you finished the crisis management plan,
are in compliance, have involved management and trained the staff.
In order to facilitate planning requirements, a record of all
initiatives should be retained. These records serve to document the
accomplishments, requirements, commitments and reports relating to
various program requirements. The identification of commitments in
the areas of compliance, emergency preparedness and training is
vital. The establishment of a defined information management system
structure will ensure that documentation will be available when
needed. PREPARED BY : MS GOMALA SUKUMARAN
35. COMMON WEAKNESSES IN CRISIS MANAGEMENT PLANNING No
systematic collection of planning information. No systematic
dissemination of planning information. Failure to identify and
establish an incident command structure. No, or minimal,
coordination with effected entities. Poor communications with the
community, neighboring industries, identified support entities can
lead to confusion and chaos during an emergency. PREPARED BY : MS
GOMALA SUKUMARAN
36. CONTINUED Lack of, or poorly defined, organizational
responsibilities. Once developed the program is not maintained or
is, at best, poorly maintained. The program lacks simple,
easy-to-use supplemental materials that can be used as a quick
reference guide during an emergency. Failure in the dissemination
of the plan to the proper authorities. PREPARED BY : MS GOMALA
SUKUMARAN
37. How to deal with a crisis ? Never lie or claim ignorance on
a particular matter. The media are extremely good at recognizing
and uncovering lies, and the resulting story about a companys
deceit is often more newsworthy than the original issue.
Immediately gather your senior management and fully describe to
them the problem and how you intend to address it. Contact your
attorneys and make them aware of exactly what is going on. Do not
try to "sugar coat" the circumstances. They must know the full
extent of the problem. PREPARED BY : MS GOMALA SUKUMARAN
38. CONTINUED Decide how you will communicate the problem to
the public, your customers, suppliers, shareholders, and others. It
is essential that you be proactive and communicate with all
constituencies. Contact other interested parties such as lenders,
regulators, and organizations/associations that represent your
industry. Again, be as clear and accurate as you possibly can be
with the details. PREPARED BY : MS GOMALA SUKUMARAN
39. 10 CRISIS MISTAKES 1. Don't fall apart. Unraveling is no
way to hold things together. If you become a basket case, everyone
else will, too. 2. Don't freeze or become immobilized. CM requires
action, not paralysis. 3. Don't run away -- physically, mentally or
emotionally. The first keys to recovery from mishap are presence
and visibility. 4. Don't ignore the problem. Pretending bad things
didn't happen won't make them go away. It will only make you look
like a fool on top of everything else. PREPARED BY : MS GOMALA
SUKUMARAN
40. CONTINUED 5. Don't deny the obvious. Denial is a form of
lying. 6. Don't attempt a cover-up. It usually makes things worse.
7. Avoid blaming and finger-pointing. These are excuses, not
solutions. 8. Don't procrastinate. Delaying action only adds to the
problem. PREPARED BY : MS GOMALA SUKUMARAN
41. CONTINUED 9. Don't just keep on doing what you've been
doing. When something goes wrong, more of the same is not an
antidote. 10. Don't give up. Once you surrender, there is no
possibility for triumph. During the dark hours, avoiding costly
mistakes can give you a leg up on out-lasting disaster. PREPARED BY
: MS GOMALA SUKUMARAN
42. CONCLUSION Crisis management deals with incidents of major
impact. Failing to plan for incidents may result in casualties and
poor safety procedures, with many potential losses including money,
equipment, reputation, staff morale, market share and ultimately
loss of the business itself. So, it is the one that saves lives,
property and other assets. PREPARED BY : MS GOMALA SUKUMARAN
43. CONCLUSION A crisis management plan generates order out of
chaos. It needs strong leadership by welltrained and rehearsed
individuals. Everyone within an organization should know what his
or her role is in a crisis and should be prepare to deal with one.
PREPARED BY : MS GOMALA SUKUMARAN