Effective Crises Management - Learn How to Handle a Crisis Using PR

 Effective Crises Management - Learn How to Handle a Crisis Using PR 

Friends, Thank you very much for taking out time from your very busy schedule to read my blog(s). Sharing PR knowledge with you with finesse has become my passion now and I really feel encouraged after reading your feedback in the comments column. I’m happy to present my 76th blog “Effective Crises Management - Learn How to Handle a Crisis Using PR” today.

The International Rescue Committee (IRC) had released its Emergency Watch-list 2021, (https://www.rescue.org/report/2021-emergency-watchlist) which is a global list of humanitarian crises that are expected to deteriorate the most over the current year. The triple threat of conflict, climate change and COVID-19 is driving the crises in nearly all Emergency Watch-list countries, threatening famine in several in 2021. Displaced families, and in particular women and girls, are disproportionately affected by humanitarian crises and the COVID-19 pandemic is no exception.

“2020 will go down as one of the most turbulent years in history, but the year 2021 will be remembered for how we either helped or turned away from those suffering the most,” says IRC president and CEO David Miliband. “Watch-list 2021 should serve as a wake-up call for policymakers, government leaders, and concerned citizens around the world about the cost of neglecting humanitarian crises and how they urgently need international attention.”

Friends, an Issue, if not properly handled and timely resolved, can turn into a Crises and become an Emergency. Let’s first differentiate among an issue, a crisis, and an emergency.

Issue:

An issue is a matter in dispute or a subject of controversy. An emerging issue is a matter that shows signs of developing into a dispute or controversy. Dispute generally involves different point of views between adversaries, about what should be or should not be done or how a matter of mutual concern should be handled.

Crisis:

A crisis is a stage at which all future events affecting person or an organisation are determined. It is a major turning point resulting in permanent drastic change. It is far more crucial than most issues or emergencies. Crises are of great importance but they are rare.

Emergency:

An emergency is a sudden, usually unexpected, occurrence that requires prompt action. While demanding serious and prompt attention, emergencies do not indicate a major turning point in the person’s or organisation existence. Issues become emergencies when they develop into challenges that require urgent decisive action.

Friends, crises are major unpredictable events that threaten to harm the organizations, its stakeholders or general public. Although crisis is unpredictable but is not unexpected. Crisis can affect all segments of society i.e. businesses, educational institutions, families, non-profit organisations and the government and are caused by a wide range of reasons. Although the definitions of crises can vary greatly, four elements are common to most definitions of crisis:

(a)   Threat to the organization,

(b)   Element of surprise,

(c)    Short decision

(d)   Process of transformation

A crisis in an organisation is ‘any emotionally charged situation that, once it becomes public, invites negative stakeholder reaction and thereby has the potential to threaten the financial well-being, reputation, or survival of the organisation or some portion thereof’.

Types of Crises

1. Natural Crisis

2. Product Failure

3. Technological Crises

4. Confrontation Crisis

5. Crisis of Malevolence

6. Crisis of Organizational Misdeeds 

Natural Crisis

Natural crises, typically natural disasters considered as acts of God, are such environmental phenomena as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tsunamis, storms, and droughts that threaten life, property, and the environment itself.

Product Failure

Failure of a product can be a major disaster for a Company, since the present and future of the company depends entirely on the acceptability and reputation of their products.

Technological Crises

Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole such as Technological breakdowns e.g. software failures, industrial accidents, and oil spills

Confrontation Crises

Confrontation crises occur when discontented individuals or groups fight businesses, government, and various interest groups to win acceptance of their demands and expectations. The common type of confrontation crises is boycotts, and other types are picketing, sit-ins, ultimatums to those in authority, blockade or occupation of buildings, and resisting or disobeying police.

Crisis of Malevolence

An organization faces a crisis of malevolence when opponents or miscreant individuals use criminal means or other extreme tactics for the purpose of expressing hostility or anger towards, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying it. Sample crises include product tampering, kidnapping, malicious rumors, terrorism, and espionage.

Crisis of Organizational Misdeeds

Crises occur when management takes actions it knows will harm or place stake-holders at risk for harm without adequate precautions. Lerbinger specified three different types of crises of organizational misdeeds: 1. Crises of Skewed Management Values, 2. Crises of Deception, and 3. Crises of Management Misconduct.

1.      Crises of Skewed Management Values

Crises of skewed management values are caused when managers favour short-term economic gain and neglect broader social values and stakeholders other than investors. This state of lopsided values is rooted in the classical business creed that focuses on the interests of stock-holders and tends to view the interests of its other stake-holders such as customers, employees, and the community.

2.      Crisis of Deception

Crisis of deception occur when management conceals or misrepresents information about itself and its products in its dealing with consumers and others.

3.      Crisis of Management Misconduct

Some crises are caused not only by skewed values and deception but deliberate amorality and illegality e.g.: 

(a)  Workplace Violence

 

Crises occur when an employee or former employee commits violence against other employees on organizational grounds. 

(b) Rumors

False information about an organization or its products creates crises hurting the organization’s reputation. Sample is linking the organization to radical groups or stories that their products are contaminated.

Crisis Management consists of…..

(a)   Methods used to respond to both the reality and perception of crisis.

(b)   Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms.

(c)    Communication that occurs within the response phase of emergency management scenarios.

Crisis management is occasionally referred to as incident management also. The credibility and reputation of organizations is heavily influenced by the perception of their responses during crisis situations. The organization and communication involved in responding to a crisis in a timely fashion makes for a challenge in businesses. There must be open and consistent communication throughout the hierarchy to contribute to a successful crisis communication process.

During the crisis management process, it is important to identify types of crises, in that different crisis necessitate the use of different crisis management strategies. Potential crises are enormous, but crisis can be clustered. Successfully defusing a crisis requires an understanding of how to handle a crisis before they occur. There are different phases of Crisis Management…..

1.      Anticipating the Crisis / Preventing Crisis or the diagnosis of the impending trouble or the danger signals.

2.      Action during a Crisis / Resolving Crisis or choosing appropriate Turnaround Strategy.

3.      Action Post Crisis / the Aftermath or Implementation of the change process and its monitoring.

Crisis is also a facet of risk management. The primary aims or benefits of crisis management would normally include:

(a)   Ability to assess the situation from inside and outside the organisation as all stakeholders might perceive it.

(b)   Techniques to direct action(s) to contain the likely or perceived damage spread.

(c)    A more effective way to rapidly trigger that part or parts of business continuity management.

(d)   Better organizational resilience for all stakeholders.

(e)   Compliance with regulatory and ethical requirements, e.g. corporate social responsibility.

(f)     Much better management of serious incidents or any incident that could become serious.

(g)   Improved staff awareness of their roles and expectations within the organisation.

(h)   Increased ability, confidence and morale within the organisation.

(i)     Enhanced risk management insofar that obvious risks will be identified, mitigated (where possible) and through crisis and business continuity management - as prepared for.

(j)     Protected and often enhanced reputation a much reduced risk of post event litigation.

Role of PR in Crisis Situation

There are five PR steps that should be executed in order to properly manage a crisis.

Ø  First, the corporate in crisis should be prompt, addressing the public immediately following the discovery of the crisis.

Ø  Second, the corporate in question should maintain honesty because the public is more willing to forgive an honest mistake than a calculated lie.

Ø  Third, it is important to be informative because the media as well as the public will create their own rumors if no information is given to them by the corporate in crisis. Rumors can cause significantly more damage to the corporate than the truth.

Ø  Fourth, it is important to be concerned and show the public you care because people will be more forgiving if it is clear that the corporate cares about the victims of the crisis.

Ø  Fifth, maintain two-way relationships. This is important because the corporate can learn a lot about the status of public opinion by listening.

The above mentioned five PR steps are necessary in order to manage any crisis situation.

Key PR Skills desired in the person handling Crises situation;

ü  Drawing distinctions: Crisis management v/s Crisis Communication;

ü  Forecasting Crises: Conducting audits and vulnerability assessments;

ü  Pinpointing Crisis: Spokespersons, communication team and drafting of key messages;

ü  Executing pre crisis training, drills and tests;

ü  Creating Crisis communication materials,

ü  Creation of full proof crisis management plans;

ü  Managing Media and Publics; (key communication channels to consider)

ü  Responding to crisis; (analysing typical crisis sequences & how to react)

ü  Studying best practices in handling crises; ( lessons learnt from recent crises)

ü  Applying new media tools; (tips for using Internet & social media during the crisis)

ü  Post crisis management; (how to follow through after crisis erupts)

ü  Ensuring good decision making under stress and coping with headstrong management.

However, each crisis situation is unique and, therefore, sometime requires a tailored response. There are six types of responses and they range on a scale from defensive to accommodative.

v  First, corporate can attack the accuser attempting to eliminate the attacker’s credibility.

v  Second, corporate can use denial claiming that no crisis exists.

v  Third, justification where the corporate claims no serious damage was done or that the victim was at fault.

v  Fourth, the corporate can use ingratiation to appease the public, such as giving away coupons.

v  Fifth, corporate can use corrective action to right their wrongs.

v  Sixth, the corporate can give a full apology asking for forgiveness for their mistake.

To conclude;

Whenever any crisis occurs in an organisation, the team responsible for managing crises must draw a full proof crises management plan and communication strategy to handle the crises. The Team must follow the plan and stick to its strategy until the crisis is over. It is important that the team must not change its stand in-between and as far as possible the team, while applying practical solutions, must work on to address the issue or the crises sincerely in the best interest of the organisation and the concerned public.

 

Thank you for reading the blog.