💼Business Fundamentals for PR Professionals Unit 9 – Crisis Management in PR

What's Crisis Management?

• Involves proactively identifying potential crises and developing plans to mitigate their impact on an organization's reputation and bottom line
• Encompasses a wide range of activities including risk assessment, crisis communication planning, media training, and post-crisis evaluation
• Requires a cross-functional approach involving multiple departments such as public relations, legal, human resources, and operations
• Aims to protect an organization's reputation, maintain stakeholder trust, and ensure business continuity during and after a crisis
• Includes both proactive measures to prevent crises from occurring and reactive strategies to manage crises when they do occur
• Requires a deep understanding of an organization's vulnerabilities, stakeholder expectations, and media landscape
• Involves ongoing monitoring of potential risks and regular testing and updating of crisis management plans

Key Players in Crisis Management

• Crisis Management Team (CMT) is responsible for developing and implementing crisis management plans and coordinating the organization's response during a crisis
  • Typically includes representatives from senior management, public relations, legal, human resources, and operations
• Public Relations (PR) professionals play a critical role in managing an organization's reputation and communicating with stakeholders during a crisis
  • Develop crisis communication plans, draft press releases and statements, and serve as spokespeople for the organization
• Legal department provides guidance on legal implications of a crisis and helps ensure compliance with relevant laws and regulations
• Human Resources (HR) department manages employee communication and support during a crisis
  • Ensures that employees are informed and supported throughout the crisis
• Operations department is responsible for maintaining business continuity during a crisis and implementing any necessary changes to processes or procedures
• External stakeholders such as customers, suppliers, and regulators also play important roles in crisis management
  • Need to be kept informed and engaged throughout the crisis to maintain trust and minimize negative impacts

Types of PR Crises

• Natural disasters (earthquakes, hurricanes) can disrupt business operations and require a coordinated response to ensure employee safety and business continuity
• Product recalls due to safety concerns or manufacturing defects can damage a company's reputation and require swift action to remove the product from the market and communicate with affected customers
• Cybersecurity breaches involving the theft or exposure of sensitive data can erode customer trust and require significant resources to investigate and remediate
• Executive misconduct such as fraud, harassment, or discrimination can lead to legal action, negative media coverage, and damage to an organization's reputation
• Workplace accidents resulting in employee injuries or fatalities can attract regulatory scrutiny and require a compassionate response to support affected employees and their families
• Activist protests or boycotts targeting an organization's products, practices, or affiliations can generate negative publicity and require a thoughtful response to address concerns and maintain stakeholder trust
• Social media controversies involving inappropriate content posted by employees or on official company accounts can quickly escalate and require swift action to remove the content and issue an apology

Crisis Prevention Strategies

• Conduct regular risk assessments to identify potential vulnerabilities and develop mitigation strategies
  • Includes assessing physical security, cybersecurity, supply chain risks, and other potential threats
• Develop and regularly test crisis management plans to ensure that the organization is prepared to respond quickly and effectively in the event of a crisis
• Provide media training for key spokespersons to ensure that they are prepared to communicate effectively with journalists and other stakeholders during a crisis
• Foster a culture of transparency and accountability to build trust with stakeholders and reduce the likelihood of crises occurring
  • Includes regular communication with employees, customers, and other stakeholders about the organization's values, practices, and performance
• Monitor social media and other online channels for potential issues or concerns that could escalate into a crisis
• Develop and maintain strong relationships with key stakeholders (customers, suppliers, regulators) to build goodwill and trust that can be leveraged during a crisis
• Implement robust cybersecurity measures to protect against data breaches and other cyber threats

Crisis Response Planning

• Establish a clear chain of command and decision-making process for crisis situations
  • Identifies who is responsible for making key decisions and how information will be communicated internally and externally
• Develop a crisis communication plan that outlines key messages, spokespersons, and communication channels for different types of crises
• Identify and train a crisis management team responsible for implementing the crisis response plan and coordinating the organization's response
• Establish relationships with key media contacts and influencers who can help shape public perception during a crisis
• Develop templates for press releases, social media posts, and other communication materials that can be quickly adapted for different crisis scenarios
• Identify and prepare alternate work locations and communication systems in case primary systems are disrupted during a crisis
• Conduct regular crisis simulation exercises to test the organization's crisis response plans and identify areas for improvement

Communication During a Crisis

• Respond quickly and transparently to acknowledge the crisis and provide available information
  • Delays or attempts to downplay the crisis can erode trust and credibility
• Appoint a single spokesperson to ensure consistent messaging and avoid confusion
• Provide regular updates to keep stakeholders informed of developments and the organization's response
  • Includes employees, customers, suppliers, regulators, and the media
• Use multiple communication channels (website, social media, email, press conferences) to reach different stakeholder groups
• Show empathy and concern for those affected by the crisis
  • Includes expressing condolences for any injuries or losses and offering support and resources
• Be honest about what is known and unknown and avoid speculating or making promises that cannot be kept
• Monitor media coverage and social media sentiment to gauge public perception and adapt messaging as needed

Post-Crisis Recovery and Learning

• Conduct a thorough post-crisis evaluation to identify strengths and weaknesses in the organization's response
  • Includes gathering feedback from stakeholders and analyzing media coverage and social media sentiment
• Develop a plan to address any identified weaknesses and improve the organization's crisis preparedness
• Communicate with stakeholders about the lessons learned and steps being taken to prevent similar crises in the future
• Provide ongoing support and resources for employees, customers, and other stakeholders affected by the crisis
• Monitor for any lingering negative impacts on the organization's reputation or operations and take proactive steps to address them
• Update crisis management plans and communication materials based on lessons learned from the crisis
• Recognize and celebrate the efforts of employees and other stakeholders who contributed to the crisis response and recovery

Real-World Case Studies

• Johnson & Johnson's response to the Tylenol poisoning crisis in 1982 is often cited as a model of effective crisis management
  • The company quickly recalled all Tylenol products, established a hotline for concerned customers, and worked closely with law enforcement to investigate the tampering
• BP's handling of the Deepwater Horizon oil spill in 2010 is an example of poor crisis management
  • The company was slow to acknowledge the severity of the spill, made insensitive comments about the impact on local communities, and faced criticism for its lack of transparency and accountability
• United Airlines faced backlash in 2017 after a video of a passenger being forcibly removed from an overbooked flight went viral on social media
  • The company's initial response was seen as tone-deaf and insensitive, leading to further criticism and calls for a boycott
• Pepsi's 2017 ad featuring Kendall Jenner was widely criticized for trivializing social justice movements and co-opting protest imagery for commercial gain
  • The company quickly pulled the ad and issued an apology, but faced ongoing criticism and damage to its reputation
• KFC's response to a chicken shortage in the UK in 2018 was praised for its humor and transparency
  • The company took out full-page ads in newspapers featuring an empty bucket with the letters "FCK" and apologized for the inconvenience to customers
• Mattel's handling of multiple product recalls in 2007 due to safety concerns was criticized for being slow and inadequate
  • The company faced lawsuits, regulatory scrutiny, and damage to its reputation as a trusted toy maker
• Starbucks' response to the arrest of two black men at a Philadelphia store in 2018 included a public apology, a company-wide closure for racial bias training, and a commitment to diversity and inclusion efforts
  • The company's swift and comprehensive response helped mitigate the negative impact on its reputation