Crisis is something that everyone can relate to their personal life; it might be the death of a close relative or even a broken heart. Organizations also face crisis where huge damages are caused either due to natural disaster or human inducement. A more specific definition for crisis would be as follows ‘A crisis is a major catastrophe that may occur either naturally or as a result of human error, intervention or even malicious intent. It can include tangible devastation, such as the destruction of lives or assets, or intangible devastation, such as the loss of an organization’s credibility or other reputational damage. The latter outcome may be the result of management’s response to tangible devastation or the result of human error.’
Ray O’Rourke, the managing director for Global Corporate Affairs has characterized crisis as
- The element of surprise
- Insufficient information
- The quick pace of events
- Intense scrutiny.
Crisis that are associated with major corporations stick in the public’s mind because many large organizations lack credibility and people tend to remember negative news more then positive news. With personal computers and the internet now integral parts of the fabric of business, organizations face new challenges and the potential for crisis that they have not dealt with before.
Preparing for the crisis is the most important thing for any organization. Some of the steps involved in preparing for crisis are: 1.Assess the risk for your organization. 2. Plan for crisis. 3. Determine the effects on constituencies. 4. Set communication objectives for potential crisis. 5. Analyze the channel choice. 6. Assign a different team to each crisis.7.Plan for centralization. 8. A description of the plan.
While communicating during the crisis the organization should follow these steps:
Get control of the situation. 2. Gather as much information as possible. 3. Set up a centralized crisis management center. 4. Communicate early and often. 5. Understand the media’s mission in a crisis. 6. Communicate directly with affected constituents. 7. Remember that business must continue. 8. Make plans to avoid another crisis immediately.
Today we know crisis as pivotal times of instability where leadership and decision making can determine the ultimate outcome of the situation for better or worse. Companies can emerge even more respected in the wake of a well-handled crisis.
REFERENCES:
http://www.colorado.edu/conflict/peace/problem/crisiscom.htm
http://en.wikipedia.org/wiki/Crisis_communications
EXAMPLES:
Listed below are some of the examples of major crisis that organizations have faced in the past 20years.
Credit processing firm Card system
was hacked in June 2005.
Boeing Company’s BOD forces out CEO over a consensual extramarital affair with an employee.
Merck &Co. recalled pain medication Vioxx in September 2004 in response to a study revealing that the risk of heart attacks in individuals taking the drug.
Ford motor company recalled 6.5 million Firestone tiers in 2000 following a number of deaths.
Coca-cola issued a recall of its soft drinks in Belgium, France in 1999 after more then 200 people reported illnesses.
Procter & Gamble’s logo is linked to Satan in widespread rumors in1986.
EXPERIENCE:
The best way for a company to prepare there selves for a crisis is to have a plan set up with the proper chain of command set into place. This will help ease the situation smoothly.
Ray O’Rourke, the managing director for Global Corporate Affairs has characterized crisis as
- The element of surprise
- Insufficient information
- The quick pace of events
- Intense scrutiny.
Crisis that are associated with major corporations stick in the public’s mind because many large organizations lack credibility and people tend to remember negative news more then positive news. With personal computers and the internet now integral parts of the fabric of business, organizations face new challenges and the potential for crisis that they have not dealt with before.
Preparing for the crisis is the most important thing for any organization. Some of the steps involved in preparing for crisis are: 1.Assess the risk for your organization. 2. Plan for crisis. 3. Determine the effects on constituencies. 4. Set communication objectives for potential crisis. 5. Analyze the channel choice. 6. Assign a different team to each crisis.7.Plan for centralization. 8. A description of the plan.
While communicating during the crisis the organization should follow these steps:
Get control of the situation. 2. Gather as much information as possible. 3. Set up a centralized crisis management center. 4. Communicate early and often. 5. Understand the media’s mission in a crisis. 6. Communicate directly with affected constituents. 7. Remember that business must continue. 8. Make plans to avoid another crisis immediately.
Today we know crisis as pivotal times of instability where leadership and decision making can determine the ultimate outcome of the situation for better or worse. Companies can emerge even more respected in the wake of a well-handled crisis.
REFERENCES:
http://www.colorado.edu/conflict/peace/problem/crisiscom.htm
http://en.wikipedia.org/wiki/Crisis_communications
EXAMPLES:
Listed below are some of the examples of major crisis that organizations have faced in the past 20years.
Credit processing firm Card system
was hacked in June 2005.Boeing Company’s BOD forces out CEO over a consensual extramarital affair with an employee.
Merck &Co. recalled pain medication Vioxx in September 2004 in response to a study revealing that the risk of heart attacks in individuals taking the drug.
Ford motor company recalled 6.5 million Firestone tiers in 2000 following a number of deaths.
Coca-cola issued a recall of its soft drinks in Belgium, France in 1999 after more then 200 people reported illnesses.
Procter & Gamble’s logo is linked to Satan in widespread rumors in1986.
EXPERIENCE:
The best way for a company to prepare there selves for a crisis is to have a plan set up with the proper chain of command set into place. This will help ease the situation smoothly.
References:-
No comments:
Post a Comment