150814_LSPR-CC02-s29

Master of Arts in Communication : Corporate Communication Studies

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Course : Crisis Communication (1508CC02)

Session Topic : Crisis Communication

Course: Crisis Communication

By Syafiq B. Assegaff, MA, MD, CBM, IAPR

LSPR eLearning Program

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• Part 1 Overview

• Part 2 Real Source of Crisis

• Part 3 The Differences

Content

Part1: Overview


Crisis: Definition

Q: What is Crisis ?

A: Crisis = Opportunity ?

Wei Chi

Crisis = Danger + Opportunity

Critical event or point of decision which,

• if not handled in an appropriate & timely manner (or if not

handled at all),

• may turn into a disaster or catastrophe.


Crisis ManagementDefn: • The preparation & application of strategies & • tactics that can prevent or modify the impact of major

events on the company or organization.

Crisis Management begins with the answers to 2 important questions:1. What is a crisis ?2. When did the crisis start ?

Crisis: Crisis Management


5 Minutes Audit

• To determine if an event is a crisis. • Silva & Mc Gann define a crisis as a violation of your vision, &• then ask 4 Questions:a. To what degree will this event affect your ability to meet your

mission ?What,b. …is the intensity & the urgency of the crisis ?

How big can it get ?c. …relationships are threatened ?

d. Which of your values are affected & what is the long-term potential for damage ?

Crisis: Audit


a. Crisis Management,• crosses all organizational boundaries to have an impact on

every stakeholder, either1) as direct result of the problem, or as 2) a potential supporter of the solution.

b. Think:• Strikes or plant closings. investor, local car dealers.• Product defect stock price, brand equity.

c. Remember: A crisis affects people first, then organizations. d. employees, customers, & shareholders are,

• the early losers in a crisis, • especially one that is out of control.

Crisis: Impact


1. Changes in corporate & community climates: • Many corporations now emphasize the importance of quality, ethics &

respect for employees.• Communities look beyond economics at the environment, crime, & child care.2. Evolution of the approach to handling a crisis: • Decades a go (1960’s) the approach merely towards legal formal, • these days companies see crisis as potential marketing issue, • with long impacts, & not just a separated issue.3. Trials by media: • lawyers, for instance, using media to ‘prepare the jury’:• use the press to tell the story & nurture public opinion. (e.g. Malpractice

cases).4. Sue the media: The alleged one will sue back.5. Give something back:• Such as dinner coupons, • free lunch for apology.

Crisis: Trends


Crisis Management has 3 sequential objectives

1. To prevent a crisis when possible.

2. If a crisis should occur Modify the negative effect on the company or its products.

3. Through its behavior is,to provide a platform for the company’s future.

Crisis: 3 Sequential Objectives


The Key is Planning

Q: What is the key to Crisis Management ?A: PLANNING• knowing what can happen to you or your industry, & • what can you do about it.

Most crisis,• can be anticipated & preparations can be made, • even though the timing & magnitude remain in doubt.

The stated objective,• must be to prevent the crisis, although, • in most cases, what happens is out of the company’s hands.

But, all crisis can be at least partially anticipated.

Planning & Crisis: The Key


Consider the Examples

1) In Indonesia: a. Ariel & Luna Maya case (2010) cases immoralb. Air Asia disaster (2014) QZ8501- Flight Surabaya

Singapore casec. Ajinomoto (2001) Sinful product

2) Should Intel have suspected that its chips had a flaw (an error) ?3) Why Levis survive from its Crisis ?

Planning & Crisis: Examples


4) Learn text book cases:a) Tylenol (1982) Death caused by painkiller caseb) Exxon Valdez (1989) Oil spills from tanker case

5) Should NASA have been prepared for a failure in one of its missions – The Challenger ?

6) Did you watch Domino’s Pizza case in Youtube ?

Planning & Crisis: Examples (Cont.)


Q: Why wasn’t anyone prepared ?A: 1. A feeling that it is impossible to plan for everything,

therefore plan for nothing. 2. An inherent arrogance, an assumption that we can handle

anything that happens.

Planning & Crisis: Organization

Why Organizations Overlooked the Crises ?


4 Most Important Questions in formulating a crisis planWhat,a. …are the potential threats to your company ?b. …is your plan trying to protect ?

c. Can you plan for every eventuality ?d. Do you need a plan, or just good preparation ?

The Risks of Crisis1. High Risk2. Medium Risk3. Why there is no ‘Low Risk’ ?

Planning & Crisis: 4 Important Questions & Risks

Part2: Real Source of Crisis


Real Source: Several Sources of Crisis

Several Sources of Crisis, such as:1. Erroneous ethics.2. Addiction to repetition.

• Compare with current crises which happens in the Cyberspace (via Internet).


Real Source: Types of Crisis

8. Facilities issue 9. Natural disaster 10.Mistake 11.Accident 12.Injury or death 13.Protest 14.Coordinated external

campaign (e.g. online)

1. Product issue 2. Service issue 3. Financial issue 4. HR issue

• Discrimination • Harassment

5. Employee misconduct 6. Executive misconduct 7. Board misconduct

Q: What does a “crisis” look like to your organization ?A:


Crisis Types: Attribution of Crisis Responsibility

Crisis Types by,• Attribution of Crisis Responsibility – as described by Coombs.What does a “crisis” look like to youra. Victim Crises: Minimal Crisis Responsibility.b. Natural disasters: acts of nature such as tornadoes or earthquakes.c. Rumors: false & damaging information being circulated about you

organization.d. Workplace violence: attack by former or current employee on current

employees on-site.e. Product Tampering/Malevolence: external agent causes damage to

the organization.f. Accident Crises: Low Crisis Responsibility.g. Challenges: stakeholder claim that the organization is operating in

an inappropriate manner.h. Technical-error accidents: equipment or technology failure that cause

an industrial accident.


Crisis Types: Attribution of Crisis Responsibility (Cont.)

i. Technical-error product harm: equipment or technology failure that cause a product to be defective or potentially harmful.

j. Preventable Crises: Strong Crisis Responsibility.

k. Human-error accidents: industrial accident caused by human error.

l. Human-error product harm: product is defective or potentially harmful because of human error.

m. Organizational misdeed: management actions that put stakeholders at risk and/or violate the law.

W. Timothy Coombs Ph.D

Professor Advertising-

Public Relations at the Univ.

of Central Florida

Source: Coombs (2014) Crisis Management & Communications. Web: instituteforpr.org.


Crisis: Strains

Strains during a crisis

a. In crisis,• much fewer vital resources (reputation, leadership, integrity as

well as customer and employee loyalty)• than previously believed.

b. During a crisis, all of these factors are put under enormous strain.

c. Thus the survival of an organization’s reputation during a crisis depends on:1. Its internal culture, 2. Strength of its communications & 3. Integrity of its leadership.


Crisis: Strains (Cont.)

d. So before we can examine,• how to measure the effectiveness of communications in a crisis,• we need to set down some basic foundations for what

constitutes crisis communications.

e. Of course, the best type of crisis communications is that which avoids the crisis all together.


Q: What happens to people in crisis ?A: A flood of,• epinephrine, nor-epinephrine & other hormones...• …cause changes in the body:

1. Heart rate & blood pressure increase 2. Pupils dilate 3. Veins in skin constrict 4. Blood-glucose level increases 5. Muscles tense up, energized by adrenaline and glucose 6. Smooth muscle relaxes so more oxygen gets to the lungs 7. Nonessential systems (digestion, immune system) shut down 8. Trouble focusing on small tasks (brain is directed to focus only

on big picture to determine where threat is coming from)

Crisis: What Happen to Human Being in Crisis ?

Part3: The Differences


Crisis: The Differences

1. Issue • A topic of discussion, a matter in dispute or…• …a sensitive subject within an organization, industry or society2. Accident• An unexpected & undesirable event, • usually one resulting in damage or injury 3. Emergency• A serious situation or unexpected occurrence that…• …demands immediate action & communication 4. Crisis • A critical or decisive point at which an organization’s response to an

issue, • accident or emergency threatens the reputation and/or future standing

of the organization5. GoalPrevent issues, accidents & emergencies from becoming crises


Crisis: Tactical Approach

A Tactical Approach – The Crisis Plan

1. Start with an Approach.2. Build a Strong Reputation.3. Create a Crisis Team who will be in it ?4. Establish a Crisis Center what needs to be inside ?5. The Network Alert System.6. Prepare Materials in Advance.


Crisis: Organization Experience Problems

Many organizations experience problems,• such as conflicts, disaster, tragedies, but they are not

necessarily in crisis. e.g.1. Indonesian Red Cross (PMI), 2. Fire departments, 3. police (POLRI), 4. Child Abuse agencies. • Their ordinary tasks is helping other people’s crises.

Cases in PR books written in formats of PR campaign plans, such as:RACE: a. Research, b. Action (or Adoption), c. Communication, d. Evaluation.

ROPE: a. Research, b. Objectives, c. Program, d. Evaluation.


Crisis: MBO

The formulas are a process of MBO (Management By Objectives)• a system that focuses on desired results rather than

performance activities.

Process of MBO focuses on desired results (NOT activities):1. RACE: Research, Action (or Adoption), Communication,

Evaluation.2. ROPE: Research, Objectives, Program, Evaluation.

In as crisis, • an organization is frequently forced to perform the third step,

which is:a. Communication (in RACE) or b. Program (in ROPE); • Without having gone through the other steps.


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Course : Crisis Communication (1508CC02)

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