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Crisis Management 1

Crisis Management

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Crisis Management 2

When written in Chinese, the word

“crisis” is composed of twocharacters - one represents

danger , and the other represents

opportunity.

- John F. Kennedy

wei ji 

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Crisis Management 3

What is a Crisis?

A significant, unpredictable,disruptive event that has potentiallynegative results

The event stimulates media coverage Public scrutiny may affect the

company’s normal operations 

The event may significantly damagethe company’s reputation 

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Crisis Management 4

Assumptions of Crisis

Crisis can be anticipated Companies should audit their internal

processes to check for potential crisis

Tell-tale signs can lead to crisisdetection

Crisis can be prevented Once potential crisis is detected, the

company can take proper measures Correcting it at an early stage will

prevent a major one from developing

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Crisis Management 5

Assumptions of Crisis

Crisis can be controlled Even if prevention is not possible, the

company can manage the crisis one

step at a time till completion Crisis can be turned to an

advantage If the company takes the right steps,

the end results may be positive A crisis will run its course if left

untreated

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Crisis Management 6

Examples of Crises

Natural disasters, e.g. Katrina

Public health and safety, e.g. SARS

Labor relations, e.g. employee strikes Product failure, e.g. Intel pentium

computer chip

Corporate mismanagement, e.g.sexual harassment

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Crisis Management 7

Examples of Crises

Financial calamities, e.g. bankruptcy

Individual actions, e.g.

embezzlement Convention events, e.g. hotel fire,

speaker collapse

National security, e.g. Singapore

Airlines hijack

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Crisis Management 8

Four Stages of a Crisis

1. The hidden crisis

Like a disease invading a body

Serious issues the company is notcompletely aware of 

2. The pre-crisis

When hidden issues are not resolved

The belief that the problem will solveitself over time

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Crisis Management 9

Four Stages of a Crisis

3. The crisis

Entire system in the company is incomplete chaos

Outside help is not trusted or sought

4. The post-crisis

The company can now discover what

went wrong Companies should use this stage to

reevaluate every potential crisis

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Crisis Management 10

Crisis Management 

1. Determine the crisis potential

2. Develop appropriate crisis teams

and centers3. Write a crisis management plan

4. Develop a communication strategy

5. Practice and revise the plan

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Crisis Management 11

Communication Strategy

Determine the audience that needsinformation

Determine who will be the spokespersonfor the company

Determine the appropriatecommunication style, e.g. quick, candid,positive

Determine the appropriate timing 

Determine whether to use proactive orreactive media approach, e.g. proactive – contact the media before something badoccurs

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Crisis Management 12

Important Lessons

Crisis is often destructive if not managedproperly

Communication needs are at the heart of 

all organizational crises

Crises can be anticipated, prevented,controlled and turned to an advantage

A proactive approach to media relations ismore successful than a reactive one

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Crisis Management 13

THINK. KNOW. ACT

 Key to success…