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Crisis Management. Introduction to Public Relations School of Communication Studies James Madison University Dr. Michael Smilowitz. What to expect?. Define the term “crisis.” Identify the possible consequences of mismanaging a crisis.
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CrisisManagement Introduction to Public Relations School of Communication Studies James Madison University Dr. Michael Smilowitz
What to expect? • Define the term “crisis.” • Identify the possible consequences of mismanaging a crisis. • Distinguish reactive from proactive crisis management strategies. • Discuss the elements of a good crisis plan.
No comment! In a recent survey, 65% of the respondents thought declining to comment almost always means the company is guilty of wrong doing.
Even worse: • 75% of respondents felt that companies in general fail to take their due responsibility for crises. • Only one in five felt that companies are generally completely truthful during a crisis.
Crisis response Responses to crises affect perceptions of the organization’s: • Credibility • Whether the organization’s words can be believed now, or in the future. • Character • Whether the organization is regarded a good neighbor and a fair player. • Competence • Whether the organization can continue to perform as expected and be successful.
What is a crisis? According to Steven Fink: Crises are forewarning situations that run the risk of escalating in intensity, falling under close media or government scrutiny, interfering with normal operations, jeopardizing organizational image, and damaging a company’s bottom line.
Potential Crisis Situations Wilcox, Ault and Agee list: • Disasters • Civil litigation • Public allegations of impropriety • Criminal charges filed against employees. • Product failures • Labor strikes
Management Strategies Crisis management strategies can be grouped into two categories: Reactive versus Proactive Reactive strategies are inherently flawed: 1. Depend on the unrealistic assumption that crises only happen to the “other guy.” 2. Ignore the simple fact that it is even harder to think well during a crisis.
Management Strategies Crisis management strategies can be grouped into two categories: Reactive versus Proactive Proactive strategies benefit the organization’s response by: 1. Preparing for a variety of contingencies. 2. Identifying the responsible spokespersons. 3. Providing guidance in times of high stress.
3 Proactive Components • Prepare a crisis plan. • Train spokepersons. • Maintain a history of integrity.
Proactive Components 1. The crisis plan: • Identifies spokespersons and backups. • Provides guidelines for initial responses for a variety of situations. • Contains all phone numbers of relevant personnel. • Includes prepared releases and the fax numbers of media contacts.
Proactive Components 2. Training spokespersons • Prepare for the hard questions. • Why didn’t your company take precautions to prevent this from happening? • Are you going to make compensations? • How dangerous is this problem? • Media Training. • Practice talking to “reporters.” • Practice being in front of the camera. • Develop familiarity with legal constraints.
Proactive Components • Maintain a history of integrity. Publics that are ignored or uninformed may choose to force minor issues into major crises. Community relations can provide supporters when they are most needed.
