Crisis Management

Definition

• A crisis is defined as an event that by its nature or its consequences:• constitutes a threat to vital national interests

or to the essential needs of the organization, its stakeholders or public;• prompts rapid decision making;• demands coordination between different

departments and organisms

Key features of a Crisis

• Low probability•High impact•Uncertain/ambiguous causes and

effects

Common features of a crisis

• The situation materialises unexpectedly (strong element of surprise)• Decisions are required urgently• Time is short• Specific threats are identified• 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• Communications are increasingly difficult to manage

Types of Crises

• Natural disasters• Malevolence• Technical breakdowns• Human breakdowns• Challenges• Mega-damage• Organizational misdeeds• Workplace violence• Rumors

Crisis Management

• prevents a crisis from becoming a catastrophe.• Crisis management can be defined as a system or

methodology of solving crisis situations. We can be sure that the actual crisis situation will differ from our expectation.

A crisis is like a virus, the effects can be sudden, insidious, infectious and extremely dangerous…

Problem characterizationProblem characterization

Crisis management is a very complex and not easily predictable process. The problem can be explicated in three claims:• Nobody knows when a crisis event will happen.• The scenario of a crisis/emergency event can be

expected and prepared for but the real situation will change it.• Our knowledge of a crisis/emergency event solution

is developed step-by-step and hour-by-hour and its ”current version” has to be utilized continuously in the crisis event solution.

Purpose of crisis management:

• Prevention• Survival• Successful outcomes

Three criteria of success

• Has organisational capacity been restored?• Have losses been minimised?• Have lessons been learned?

Crisis Planning

• Assess risks• Produce plans• Define roles and responsibilities• Appoint crisis management team• Draw up communication plan• Produce contact and organisation chart • Promote crisis-ready culture• Publish plans and conduct training• Test, review and practise

• Plan in advance• Rehearse via simulation• Stipulate who the spokesperson is• Crisis is no time to find yourself on a learning curve.

Community measures and Emergency procedures are essential• Planning requires that crisis can occur at any time. Nine out

of ten crisis occur when you are asleep, probably after a late night or at a week-end!

Pre-Crisis Actions and Preparations

• Pre-crisis actions costs are often (but not always) a tiny fraction of the losses that are typically incurred by crisis for which there has been inadequate preparation;• It is very easy to underestimate the damage a crisis can do and

the costs it can have.

Pre-Crisis Actions and Preparations

• Emergency Procedures• Staff awareness• Network of experts for urgent meeting/advice• Standard Decisions (safeguard clauses) ready in all official

languages

Pre-Crisis Actions and Preparations

Pre-crisis actions and preparations

• The crisis unfolds• After the crisis• In a Nutshell

The Crisis Unfolds

• Appointment of a press contact person who is always available and ready to reply immediately

• Quick reaction in taking and repealing measures

• Dispatch of information in real time

• Consistency of information (everyone should have the same story)

• Development of a detailed chronology

The Crisis Unfolds

• The services/officials concerned ought to show flexibility and may have to stay late hours, work on week-ends or report their vacations• The work-plans and tasks should be re-organized so

as to allow for an effective management of the crisis and all its side effects (letters, working groups…)• Risk assessors and risk managers must work in strict

co-operation!

The Crisis Unfolds

• Coordination between the Units and Directorates concerned is essential, so as to ensure that all the aspects of the crisis are being tackled .• Show sympathy for those affected by the crisis.

After the Crisis

• Promote positive stories in the media• Analyze the management of the crisis• Update Emergency Procedures

In a Nutshell

Be prepared• Sooner or later you may also be involved in a crises,

which will involve a lot of extra work• What is the most likely scenario for you/your

service? Are you ready for it?• The crisis may be worse than you expected!

In a Nutshell

Say the truth• People and institutions do not like facing and

managing crisis. This may lead them into half-truths, lies and evasions• What is said to the media, other bodies needs to be

updated and consistent

Role of apologies in crisis management

• Controversial - for fear of legal outcomes• Evidence says that a compensation and sympathy are effective • True contrition includes sympathy for victims and offers of

compensation to offset losses or suffering

In a Nutshell

Be visible• If the crisis is major, then organization needs to be at the site of

the crisis quickly and to be visible• Failure to show sympathy will be punished by the media and by

all members of the public and can destroy the reputation of the organization

Crisis Communications

Communication plan:

Core elements are:• Identifying audiences (Who?)• How communication is to take place (How?)• What messages are to be communicated (What?)

The core process is:• Active, two-way communication

The Top 12 Crises of 2015

1.Volkswagen2. FIFA3. Chipotle4. Ashley Madison5. HSBC6. Petrobas-Dilma Roussef (company executives accepted bribes from a

cartel of 20 companies)7. Mecca Crane Collapse8.Starbucks (wading into the discussions around race that followed

police shootings in Ferguson and elsewhere)9.Theranos10. Nestle India