1. MANAGING CRISIS FOR
BUSINESS SUSTAINABILITY

2. CRISIS
 CRISIS is defined as
situation that is
unpredictable but it
is not unexpected.

3. Crisis Management
• The art of dealing with sudden and unexpected
events which disturbs the citizens, employees,
organization as well as external clients refers to
Crisis Management.
Crisis Management is..

4. Types of crisis
• Natural disaster
• Technological crises
• Confrontation
• Malevolence
• Crisis of deception
• Crisis of
management
misconduct

5. Common features of a crisis
 The situation materialises unexpectedly
 Decisions are required urgently
 Time is short
 Specific threats are identified
 Communications are increasingly difficult to manage
 Urgent demands for information are received
 There is sense of loss of control
 Pressures build over time
 Routine business become increasingly difficult
 Demands are made to identify someone to blame
 Outsiders take an unaccustomed interest
 Reputation suffers

6. Three Main Stages
6
PHASES
Pre crisis Crisis
response
Post-
crisis.

7. 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 Organization’s 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.

8. 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

9. 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 management’s
attention but still requires some attention.

13. • On the night of April 13, two Domino’s
employees engaged in an act of food
violation posted their acts on YouTube
(putting cheese in their nose, blowing
mucous on a sandwich etc). The videos
went viral online, viewed by millions of
people until blocked.

15. Toyota's recall fiasco (2010)
Toyota recalled a total of 8.8 million vehicles for safety
defects, including a problem where the car's accelerator
would jam, which caused multiple deaths

18. Key points to remember in preparing
for crisis management plans
• Complete threat analysis
• Review possible contingencies and follow
scenario planning
• Identify critical preparations
• Select crisis management team
• Inform and instruct everyone
• Support practice and continuous planning
improvements

19. contd
 Develop crisis
management team
Assign one leader for
meeting communication
crisis.
other members gather
information and meet
voulanteers and staff.
primary and secondary
spokesman deal with media

20. After the crisis
 Declare an end to crisis
 Follow up
 Perform an act of
goodwill
 Have a formal
debriefing

21. Communicating in a crisis is different
• In a serious crisis, all affected people . . .
– Take in information differently
– Process information differently
– Act on information differently
• In a catastrophic event: communication is
different
• Be first, be right, be credible

22. What Do People Feel Inside When
a Disaster Looms or Occurs?
Psychological barriers:
1. Denial
2. Fear, anxiety, confusion, dread
3. Hopelessness or helplessness
4. Seldom panic

23. What the Public Will Ask First
• Are my family and I safe?
• What have you found that may affect me?
• What can I do to protect myself and my
family?
• Who caused this?
• Can you fix it?

24. What the Media Will Ask First
• What happened?
• Who is in charge?
• Has this been contained?
• Are victims being helped?
• What can we expect?
• What should we do?
• Why did this happen?
• Did you have forewarning?

25. Individuals at risk—the cost?
• Demands for unneeded treatment
• Dependence on special relationships (bribery)
• MUPS—Multiple Unexplained Physical
Symptoms
• Self-destructive behaviors
• Stigmatization

26. Community at risk—the cost?
• Disorganized group behavior (unreasonable
demands, stealing)
• Rumors, hoaxes, fraud, stigmatization
• Trade/industry liabilities/losses
• Diplomacy
• Civil actions

27. Communicating in
a Crisis Is Different
• Public must feel empowered – reduce fear and
victimization
• Mental preparation reduces anxiety
• Taking action reduces anxiety
• Uncertainty must be addressed

28. Five Keys to Effective
Communication in a Crisis
• Clarity
• Repetition
• Honesty
• Empathy
• Efficacy (Give them something
to do)

29. How Do We Communicate About Risk
in an Emergency?
All risks are not accepted equally
• Voluntary vs. involuntary
• Controlled personally vs. controlled by others
• Familiar vs. exotic
• Natural vs. manmade
• Reversible vs. permanent
• Statistical vs. anecdotal
• Fairly vs. unfairly distributed
• Affecting adults vs. affecting children

30. THANK YOU