Crisis Management Imperatives
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- Do the right thing (even if it costs money; short-term loss = long-term
gain)
- Link communication to action (truth)
- Know and respond to stakeholder expectations (survey)
- Assume all information will become public
- Communicate early and often
- Be prepared
- Beware the false of premature recovery
Trajectory of a Crisis
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, FLASHPOINT: event occurs, receives social & mainstream media attention
PHASE 1: (first 12-48 hrs)
- Incident itself and immediate response
- Company statement
- Social media coverage
PHASE 2:
- Company judged by handling
- Media analysis, increasing questions and speculations (when and how did
XYZ happen?)
- Victims speak
- Employees speak out
- Lawmakers involved/investigations
- Infinite possibilities (late-night talk show coms, say CEO should resign,
consumer boycotts)
TURNING POINT:
- New evidence (another flashpoint event)
- Resignations
- Incriminating emails, previous incidents, faulty policies
PHASE 3:
- Tangible, business related effects apparent
- Company announced financial impact
- Analysts reaction
- Government hearings
- Media interest declines, occasional media interest continues
LONG TERM PERCEPTION CHANGE
4 Sources of Organizational Decision Making
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, Scientific findings, practitioner experience, organizational information, and
stakeholder concerns
Known and Unknown Risks
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KNOWN KNOWNS: risks that orgs are aware of and plan for in some way
KNOWN UNKNOWNS: risks you know are there but don't know much abt
UNKNOWN KNOWNS: risks you know about but choose to ignore by not
managing them; "gray rhinos"; ex: COVID-19
UNKNOWN UNKNOWNS: risks we don't know exist = most dangerous
- "Black swans": massive rare events that ppl have trouble conceptualizing
(ex: nuclear plant crisis)
- "Condition black": ppl in blind panic, unable to react well
Risks
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- Vulnerabilities that can turn into crises
- Duality of threat and opportunity
- Foundation of crisis management
- Assessed by risk managers
- Different company risks based on industry, location, personnel, etc.
- Can vary over time, regularly conduct risk/crisis assessments
- Risk assessment occurs in all department operations
Domino's Product Tampering Crisis
Give this one a try later!
- Do the right thing (even if it costs money; short-term loss = long-term
gain)
- Link communication to action (truth)
- Know and respond to stakeholder expectations (survey)
- Assume all information will become public
- Communicate early and often
- Be prepared
- Beware the false of premature recovery
Trajectory of a Crisis
Give this one a try later!
, FLASHPOINT: event occurs, receives social & mainstream media attention
PHASE 1: (first 12-48 hrs)
- Incident itself and immediate response
- Company statement
- Social media coverage
PHASE 2:
- Company judged by handling
- Media analysis, increasing questions and speculations (when and how did
XYZ happen?)
- Victims speak
- Employees speak out
- Lawmakers involved/investigations
- Infinite possibilities (late-night talk show coms, say CEO should resign,
consumer boycotts)
TURNING POINT:
- New evidence (another flashpoint event)
- Resignations
- Incriminating emails, previous incidents, faulty policies
PHASE 3:
- Tangible, business related effects apparent
- Company announced financial impact
- Analysts reaction
- Government hearings
- Media interest declines, occasional media interest continues
LONG TERM PERCEPTION CHANGE
4 Sources of Organizational Decision Making
Give this one a try later!
, Scientific findings, practitioner experience, organizational information, and
stakeholder concerns
Known and Unknown Risks
Give this one a try later!
KNOWN KNOWNS: risks that orgs are aware of and plan for in some way
KNOWN UNKNOWNS: risks you know are there but don't know much abt
UNKNOWN KNOWNS: risks you know about but choose to ignore by not
managing them; "gray rhinos"; ex: COVID-19
UNKNOWN UNKNOWNS: risks we don't know exist = most dangerous
- "Black swans": massive rare events that ppl have trouble conceptualizing
(ex: nuclear plant crisis)
- "Condition black": ppl in blind panic, unable to react well
Risks
Give this one a try later!
- Vulnerabilities that can turn into crises
- Duality of threat and opportunity
- Foundation of crisis management
- Assessed by risk managers
- Different company risks based on industry, location, personnel, etc.
- Can vary over time, regularly conduct risk/crisis assessments
- Risk assessment occurs in all department operations
Domino's Product Tampering Crisis
