BMCPR 412 Crisis Management in Communication and Public Relations Notes
The document provides an overview of crisis management. It defines different types of crises such as immediate, emerging, sustained, and spontaneous crises. It also discusses the importance of having a crisis communication team and crisis management plan in place. The plan should identify potential risks and crises and include prevention strategies, response procedures, and training to manage crises effectively.
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BMCPR 412 Crisis Management in Communication and Public Relations Notes
The document provides an overview of crisis management. It defines different types of crises such as immediate, emerging, sustained, and spontaneous crises. It also discusses the importance of having a crisis communication team and crisis management plan in place. The plan should identify potential risks and crises and include prevention strategies, response procedures, and training to manage crises effectively.
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WEEK 1: DEFINITIONS AND TYPES
No company is safe from crisis. Unwanted incidents can strike at
any time, often with little or no warning. Proper preparation is essential, because it can help to lessen the damage caused. Every organization should have a crisis communication team in place, composed of key members of the company, who use the four phases of crisis management to create a plan to combat and manage crises, working to get operations back to normal in a quick and efficient manner. Crisis Prevention Many unfavorable situations can be prevented with forward thinking. The crisis communications team should brainstorm a comprehensive list of all possible crises that could impact the organization. This includes taking past incidents into consideration and ensuring that proper resources are in place to avoid repeat situations. Reviewing this list can help to identify situations that are preventable by modifying existing processes and procedures. TYPES 1. Immediate: Natural disasters and other type emergencies, these crises can’t be predicted. You can have plans in place to handle them, but you won’t be able to prevent them. Often of the natural disaster or major emergency type (earthquakes, etc.) 2. Emerging: These events can be anticipated and, therefore, minimized at early stages 3. Sustained: The most dangerous of all, sustained crises can linger on and continually drain the organization of its reputational assets. Involves situations that may linger for years. 4. Spontaneous: brought about by an unplanned event such as a strike or a serious accident WEEK 2: CRISIS MANAGEMENT CRISIS MANAGEMENT TOOLS A crisis is any event that can seriously harm the people, reputation or financial conditions of an organization. Large-scale terrorism and natural disasters are unusual, but any business is at risk of suffering significant disruptions from various crises, such as workplace violence, severe weather and public relations problems. Examples include the ex-employee or employee’s spouse who shows up with a gun, or a top executive arrested for drunken driving. Every company should be aware of worst-case scenarios and have the crisis management tools to deal with them. Crisis Management Consultants Experienced crisis management consultants provide resources during unexpected crisis events, training for key personnel and security staff and assistance with risk management planning. Consultants coordinate with law enforcement in the case of large-scale criminal activity, train executive staff to recognize and how to act on red flags before a crisis, and help key staff develop an effective risk management plan. Identifying Risks and Threats A thorough security audit that involves key staff from across the company identifies risks and threats. Questions and answers about all security issues, possible crisis scenarios and safety threats help define your company’s security status and highlight what areas need reinforcement. Ask groups of key and non-key staff what would affect and interrupt their ability to do their jobs and the company's ability to do business. Interview customers and vendors to get input on outside perspectives of what would damage your business operations and reputation. A good way to quickly ascertain risks is to meet with your business insurance broker and get a briefing on what is and is not covered in your business insurance plan. Get your management team together with a cross-sampling of employees to analyze the risks further, raising awareness and gathering ideas to reduce and eliminate them. Risk Management Plan Once risks are identified and well-defined, they should be used to develop a risk management plan. The risk management plan should be well-documented and regularly evaluated and updated. It should be an evolving document that is familiar to everyone in the company, not just security staff. Crisis drills such as fire and tornado drills should be incorporated into the plan and practiced regularly. IT department staff should conduct drills with a power outage crisis checklist to use to efficiently get systems onto emergency backup and get technical services activated in the event of electrical outages or cyber attacks. Customer service teams should conduct service- overwhelm drills during low service times to simulate and prepare for high call volumes due to product shortages or shipping disruptions. The best risk management plans include every aspect of the business with itemized and categorized risks that have been well-researched and well-defined. Planning and Training for Prevention The best way to handle a crisis is to prevent it. A company that has planned for security and trained staff to recognize security and crisis warning signs and red flags is in a good position to avert disaster before it happens or minimize it when it starts. Security and crisis management experts recommend regular review of security plans and systems and continuing professional training for security staff. Additionally, training all staff on emergency preparedness, business security awareness and risk mitigation supports overall business security and reduces vulnerability. P.R in crisis management •There have been countless public relations crises in the past and there are five steps that should be executed in order to properly manage a crisis. First, the corporation in crisis should be prompt, addressing the public immediately following the discovery of the crisis. Second, the corporation in question should maintain honesty because the public is more willing to forgive an honest mistake than a calculated lie. Third, it is important to be informative because the media as well as the public will create their own rumors if no information is given to them by the corporation in crisis. Rumors can cause significantly more damage to the corporation than the truth. • Next, it is important to be concerned and show the public you care because people will be more forgiving if it is clear that the corporation cares about the victims of the crisis. Finally, maintain two-way relationships. This is important because the corporation can learn a lot about the status of public opinion by listening. These five steps are necessary in order to manage any crisis public relations situation. •With that having been said, each crisis situation is unique and, therefore, requires a tailored response. There are six types of responses and they range on a continuum from defensive to accommodative. First, corporations can attack the accuser attempting to eliminate the attacker’s credibility. Second, corporations can use denial claiming that no crisis exists. The third response is justification where the corporation claims no serious damage was done or that the victim was at fault. Fourth, the corporation can use ingratiation to appease the publics, such as giving away coupons. Next, corporations can use corrective action to right their wrongs. Finally, the corporation can give a full apology asking for forgiveness for their mistake. All six responses have been used in the past with varying results. If chosen properly, one of the six responses can help mitigate damage. WEEK 3: CAUSES & PREPARATION FOR CRISES • Crisis can come from nowhere at any time; natural disasters, human error, and industrial accidents can all cause crisis. Sometimes the cause of a crisis is management itself; managers may insist that they face no crisis, and they fall into the brink of lying and rejection of its existence. Then, when the time of the deadline comes their answer to why the job is not finished will be: "We faced trouble and stopped the operation." Some managers fall into the crises fallacies, and they overdo their denial of its existence. With time, the problems accumulate, causing absolute failure. •We can categorize crises according to the cause of their existence, or in another way based on the warning time. Crises, like any business activity, have life cycles. The length of each phase depends on the efficiency of the management in dealing with the crisis. • It is the management responsibility to try to solve the crisis using everything it can, beginning with self confidence, going through using all the skills, and ending by having the ability to absorb the public’s anger or fear without harming the firm’s income or reputation. Types of crisis Crises are divided into nine categories, based on their causes, which are : natural disasters, industrial accidents, product failure, public perception of a crisis situation, industrial relations, business management, management turnover, hostile takeover, and criminal events. 1. Natural Disaster Crisis: The most relevant type of crises is the one that happens because of a natural disaster. This natural disaster happens in the environment and the human beings have nothing to do with it, such as: earthquakes, volcanoes, floods, and fire. 2. Industrial Accidents Crisis: The industrial accidents may vary from fires to machine dysfunction to electrical short-circuit. These crises lead to full-scale emergency. Other crises lead to a limited local response. The danger in the industrial accidents is because they are termed as: "Media Magnet.";because these accidents cause serious casualties. • . Product Failure Crisis: This type of crises is a potential crisis for the company, because the product may fail even if appropriate research and development techniques are followed. The magnitude of this crisis depends on the speed of decision making in the company, and their resistance to any kind of escalation for the problem. 4. Public Perception Crisis :During a crisis, a company may fall into another crisis because of failure in dealing with the crisis in a public way. This may lead to confusion, along with financial and personal losses due to poor public image. This crisis is a kind of consequence or a satellite crisis for an emergency crisis. Dealing with this crisis reflects the quality of the organization response to a crisis, and the efficiency of their decision making process. 5. Industrial relations Crisis: Poor industrial relations between the workers and the administration may lead to a major crisis. This crisis may lead to serious disorder in the operations. Sometimes business is forced to react aggressively. Sometimes the labor force may force the industry to stop. Therefore, the relationship between the labor and the management should never reach the level of animosity. 6. Business Management Crisis: The real danger in this crisis is that it is subtle and non-predictable. The real cause is hidden within a plan followed by the organization, that is proved to be erroneous later on. This happens due to a sudden market shift that the management did not plan for. However, management is responsible for this crisis because they did not foresee the potential market threat. There are other causes, such as: the consequences of other crises, failure to adjustment to the market regulations, or international events that have indirect impact on the business. 7. Criminal Events Crisis: These events are currently becoming more frequent. They consider a major threat for some industries, such as: tourism, banking, and airlines' industry. Common examples are hostage taking, terrorism, hijacking, and theft. This crisis requires a very precise response because this type of crises is "Media Magnet." 8. Management Turnover Crisis: Sometimes change in the organization management is considered as a type of crisis. Some companies think about their CEOs as indispensable, or as a figurehead. Thus his leaving is a real crisis. Some companies follow succession plans to ensure that such a crisis will never happen. 9. Hostile Takeover Crisis: This type is becoming more frequent nowadays, because of tough competition between companies. Some companies that monopolize the market may lead other companies into hostile takeover crises, that direct them to losses, and cost the management its name and reputation.
WEEK 4: PREPARATION FOR CRISES ANTICIPATING A CRISIS If you’re being proactive and preparing for crises, gather your Crisis Communications Team for intensive brainstorming sessions on all the potential crises that could occur at your organization. There are at least two immediate benefits to this exercise: •You may realize that some of the situations are preventable by simply modifying existing methods of operation. •You can begin to think about possible responses, about best- case/worst-case scenarios, etc. Better now than when under the pressure of an actual crisis. In some cases, you know a crisis will occur because you’re planning to create it — e.g., to lay off employees, or to make a major acquisition. There is a more formal method of gathering called “vulnerability audit.” This assessment process should lead to creating a Crisis Response Plan that is an exact fit for the organization, one that includes both operational and communications components. THE ROLE OF COMMUNICATION INTERNAL COMMUNICATION •Internal communication refers to the communication within a small business and its employees. As your business grows, the more challenging internal communication becomes. As a result, effective internal communication is essential for ensuring that the right people receive the message at the right time. Effective internal communication does not need to be costly. By utilizing what is available or applying cost-effective techniques, internal communication can be effective and free. •Organizations can communicate with employees through newsletters, meetings and informational sessions where they get to address issues with superiors, and social networking pages or blogs. Using social networking sites offers a more relaxed setting for employee discussion and ensures that important information reaches the right people. THE ROLE OF COMMUNICATION STAKEHOLDER COMMUNICATION •Stakeholders are the people and organizations whose attitudes and actions have an impact on the success of your project or your company. Your stakeholders include employees, labor unions, suppliers, customers, business partners, investors and shareholders, the local community, government authorities and regulators. Different stakeholders have different interests, attitudes and priorities. Effective communication ensures that they receive information that is relevant to their needs and builds positive attitudes to your company or project. •Communication helps you to build positive relationships with people and organizations, such as the media or special interest groups, who influence other stakeholders. •Communication with stakeholders builds dialogue. By setting up forums or inviting other forms of feedback, you can gain a better understanding of your stakeholders’ interests and attitudes so that you can fine tune your communications. THE ROLE OF COMMUNICATION EXTERNAL COMMUNICATION •Many forms of external workplace communication are available, including faxes, Internet websites and advertising. Your company website promotes your business, allowing you to showcase your products and services. Faxes allow you to communicate over long distances, in writing, so there is a paper trail of the communication effort on your part. •External communication not only serves customers but also can be used to place inventory orders with vendors, check out the competition and plan for the future. A phone call to a competitor gives you pricing information. An email to potential customers alerts them to upcoming deals and bargains. WEEK 5: CRISIS MANAGEMENT TEAM Sequence of sudden unwanted events leading to major disturbances at the workplace is called crisis. Crisis arises on an extremely short notice and triggers a feeling of fear and uncertainty in the employees. It is essential for the superiors to sense the early signs of crisis and warn the employees against the same. Once a crisis is being detected, employees must quickly jump into action and take quick decisions. What is a Crisis Management Team ? A Crisis Management Team is formed to protect an organization against the adverse effects of crisis. Crisis Management team prepares an organization for inevitable threats. Organizations form crisis management team to decide on future course of action and devise strategies to help organization come out of difficult times as soon as possible. Crisis Management Team is formed to respond immediately to warning signals of crisis and execute relevant plans to overcome emergency situations. CRISIS MANAGEMENT TEAM Role of Crisis Management Team •Crisis Management team primarily focuses on: •Detecting the early signs of crisis. •Identifying the problem areas •Sit with employees face to face and discuss on the identified areas of concern •Prepare crisis management plan which works best during emergency situations •Encourage the employees to face problems with courage, determination and smile. Motivate them not to lose hope and deliver their level best. •Help the organization come out of tough times and also prepare it for the future. Crisis Management Team includes: •Head of departments Chief executive officer and people closely associated with him Board of directors Media Advisors Human Resource Representatives •Public relations manager •Line manager-a person with direct managerial responsibility for a particular employee. •General workers •Union representatives •The spokesperson-the person who represents the workers during an internal crisis How does Crisis Management Team function ? •A Team Leader is appointed to take charge of the situation immediately and encourage the employees to work as a single unit. •The first step is to understand the main areas of concern during emergency situations. •Crisis Management Team then works on the various problems and shortcomings which led to crisis at the workplace. The team members must understand where things went wrong and how current processes can be improved and made better for smooth functioning of the organization. •It is important to prioritize the issues. Rank the problems as per their effect on the employees as well as the organization. Know which problems must be resolved immediately and which all can be attended a little later. •A single brain cannot take all decisions alone. Crisis Management Team should sit with rest of the employees on a common platform, discuss prevailing issues, take each other’s suggestions and reach to plans acceptable to all. •One of the major roles of the Crisis management team is to stay in touch with external clients as well as media. The team must handle critical situations well. •Develop alternate plans and strategies for the tough times. Make sure you have accurate information. Double check your information before finalizing the plan. •Implement the plans immediately for results. Proper feedback must be taken from time to time. •Crisis Management team helps the organization to take the right step at the right time and help the organization overcome critical situations. WEEK 7: CRISIS MANAGEMENT AWARENESS PROGRAMS DRILLS Drills and exercises are designed to evaluate an organization’s risk profile through a practiced review of response plans, procedures, and level of training with a goal of developing a highly impactful Spill Management Team (SMT) and Incident Management Team (IMT). Contingency planning and crisis management are not conflicting concepts but instead work in tandem. CONTINGENCY PLANNING • Contingency planning is the process of preparing for potential emergencies, while crisis management is the overall management of emergencies when they do occur. Smart and diligent contingency planning is an important aspect of crisis management because it ensures that individuals and organizations make the necessary preparations to be ready when trouble strikes. Predicting the Possibilities • Contingency planning is all about preparing before an emergency arises. A major element to that preparation is envisioning all of the potential emergencies that could occur. If a scenario would be dire if it occurred, it is worth the time and resources to prepare for its realization. Businesses, governments and other organizations that employ contingency planning consider a range of scenarios that could affect their operations, aiming to be comprehensive in the scope of emergencies that they examine. Overlooking a possible category of emergency in the contingency planning phase can leave an organization poorly prepared when a crisis hits. CRISIS MANAGEMENT AWARENESS PROGRAMS Setting the Plans • Once the scenarios have been identified, contingency planning involves setting the policies and procedures that will guide an organization through its crisis management function. This planning can involve simply producing documents and other materials that spell out the guidelines for responding to a crisis. It also can involve activities, such as a simulated exercise that puts the crisis management team in a real-world scenario and pushes them to make decisions. These exercises can help identify weaknesses in crisis management procedures and prompt changes to better tackle a crisis. Crisis Hits • When an emergency occurs and an organization's crisis management function activates and moves to the forefront of operations, the importance of the contingency plan also flashes into relief. The organization's key members should be able to address the crisis using the protocols and lessons that they picked up through contingency planning. Systems should allow a business to fashion an organized response to a crisis, with members of the team understanding their roles. Successful crisis management involves all members of an organization working to limit an emergency's impact and damage and to restore operations back to normal as soon as possible. WEEK 8: CRISIS MANAGEMENT AWARENESS PROGRAMS WORKSHOPS/TRAINING • One of the duties of a business manager is to prevent and resolve adverse behavior. Crisis management behavior training is designed to give leaders the tools they need to recognize and address situations that could escalate into workplace violence. While most organizations should implement some degree of crisis management prevention, certain types of organizations are more vulnerable. Businesses that deal with underprivileged and diverse populations typically need to avert potentially harmful behaviors more frequently than other types of businesses. Awareness • Crisis management behavior training educates managers about the types of feelings that can lead to violence in the workplace. Some of the contributing factors behind aggressive behavior include stress, anxiety, mistrust and feelings of powerlessness. Miscommunication and misunderstandings might also cause an employee to act inappropriately. Managers can't do much about some characteristics, such as an easily agitated personality. But crisis management training can show them how to eliminate as many factors as possible. WEEK 8: HANDLING THE MEDIA PLANNING FOR AND ATTENDING TO MEDIA • Stories that appear in newspapers or on television often provide free publicity and promotion for a small business. But getting your company's name in mass media requires strategy because, without one, media exposure could hurt your company's reputation. • Effective media strategies involve a mix of approaches, including media outreach and media relations. While these two functions are connected, they don't necessarily foster the same type, quality and length of company exposure. • A media mix is the combination of communication channels your business can use to meet its marketing objectives. Typically, these include newspapers, radio, television, billboards, websites, email, direct mail, the Internet and social media, such as Facebook or Twitter. Combining these channels in a media mix enables you to communicate in the most effective way with different types of customers and prospects at different stages of the purchase decision, according to Entrepreneur. • An effective media mix delivers the right marketing message to your customers and prospects at the lowest cost and with minimal waste. If you want to reach a consumer audience across the country, you might use a media mix that includes national newspapers, radio or television. If you wanted to reach a specific group of business decision-makers, such as technical directors, your mix might include specialist business magazines or exhibitions aimed at those directors. To reach a small number of key executives who influence a major purchasing decision, you might include personalized direct mail or an executive briefing session in your mix. POST-CRISIS PRESS BRIEFING • The test of your proactive media relations comes in the wake of a crisis. Every business will experience one, whether large or small. It could be an employee involved in an illegal activity, or a natural disaster at a satellite office. By having your media list ready, building your media relationships, and establishing your credibility, you are poised to minimize possible damage because you already have a positive reputation that you have spent time building. DAMAGE CONTROL • Damage control is one duty of a public relations department and it involves minimizing the negative effect caused by an event or series of events. • While many duties of a public relations department involve building the reputation of the employer, with damage control it is primarily about minimizing the negative perception caused by a crisis-situation. A crisis is sometimes the result of an unexpected event. It might also be about something that the public relations department hoped to conceal from the public or hoped would not happen. Those involved in damage control are typically on call 24 hours a day, ready to minimize negative public perception. WEEK 9: POST-CRISIS EVALUATION • It is important that every public relations agency, or department, has a variety of monitoring tactics in place to ensure that they are able to measure the success of their public relations strategy. Media Content Evaluation • Media content analysis measures the volume of press coverage you received, covering print, broadcast and online media outlets. You should count the number of mentions of key issues about your industry and mentions of your competitors. You want to see how you stack up against overall industry messages. Count how many of your key messages -- those messages that you purposely incorporated into your PR activities so people would remember them -- made it into the press coverage. Finally, use circulation numbers to calculate how many opportunities people had to read or view your coverage, and then the actual number of readers or viewers. Get these numbers from the media outlets. Post-evaluation: Expectations • Analyze what happened at the end of your PR program compared with your objectives and expectations and those of company executives. Point to concrete numbers, such as how many people can recall your company slogan compared to before your campaign started, and an uptick in requests for information you received through your website. Determine whether your planning objectives were too ambitious or not ambitious enough. COST EVALUATION Sales • To determine the increase in sales due to the sales promotion, the company must establish the level of sales that would have taken place without the promotion. Such a base level must avoid the effects of any variation in sales volume during the evaluation period. The best estimate is usually the average level of sales of the months prior to the evaluation period, adjusted for seasonal factors obtained from previous years. The company must compare this estimated level of sales to the actual sales that took place over the evaluation period to get the increase resulting from the sales promotion. Profits • Sales promotions can generate increased profits. The volume of additional sales must be large enough to generate profits greater than the cost of the sales promotion. This cost has several components. There are the costs of producing the promotional signs, coupons and publicity. There are additional costs for processing the coupons, discounts or other incentives. Finally, there are the costs of the promotion itself, such as a discount or rebate. The company must subtract these costs from the additional profits generated by the extra sales to get the true net additional profit that can be attributed to the sales promotion. PUBLIC EVALUATION • Use surveys to gauge awareness and perceptions of your company and public attitudes about it. It’s important that surveys be done prior to your PR program so you have a baseline measurement -- that is, what awareness, perceptions and attitudes existed prior to your program, and then conduct a post-program survey. Also use survey results to measure important program messages. WEEK 10: LEGAL ISSUES IN CRISIS MANAGEMENT Providing Truthful and Reliable Information • Public relations practitioners constantly confront pressures to bend or twist the truth. For example, if a warehouse burns down, it could be tempting to make it seem like a minor incident, when in fact the company has lost a significant amount of inventory. • Being honest prevents the public and industry peers from coming back later and claiming you tried to cover up the seriousness of the loss. Instead, the PR practitioner can state the truth and emphasize the owner's determination to bounce back and not only replace the inventory, but build a safer warehouse. In this way, the truth can be inspirational and instill confidence in the business. WEEK 12 Offering Authentic Context • An ethical public relations communication offers more than mere facts; it offers context for a story. This means explaining to readers why an event has importance or why company leaders take the stance they take. • For example, simply announcing that a business has recalled a product due to safety concerns could be accurate. However, if this recall were the result of a government agency raising the concerns, that information would have to be included by an ethical CONTRACTS • A written contract documents an agreement between two parties under which both must perform. To form a contract, one party must make an offer to another party. If the second party accepts the offer, both will need to exchange consideration to make the contract legally binding. The legal implications stemming from entering a contract depend on the terms of the contract. Breach of Contract • Each party to a contract has a duty to perform. If one party performs, and the other party doesn't, the nonperforming party could face legal consequences. Failure to perform under the contract amounts to a breach of the contract. The non-breaching party can file a lawsuit against the other party to recover damages. "Expectation damages" usually put the non-breaching party in the position she would have been in had the other party performed. Level of Breach • If someone entered a contract with you and breached the contract, you must determine the type of breach that occurred. If it's a material breach, you don't have to perform on your end of the contract. A material breach happens when you don't receive the substantial benefit of your bargain. For example, you enter a contract with a construction company to build a restaurant. • The construction company leaves a defect in the patio you requested. This example represents a minor breach. You received the substantial benefit of your bargain, the restaurant with a patio. Therefore, you must pay the construction company. However, you can sue the construction company for damages to recover the money it would cost you to have another company fix the patio. ETHICAL ISSUES IN CRISIS MANAGEMENT IMPARTIALITY When dealing with a crisis-especially an internal one, the manager cannot be seen to be favoring one colleague over another, or favoring people in seniority at the expense of junior employees. Matters arising must be dealt with as objectively as possible, and due process must be followed, regardless of who commits the crime. CUSTOMER SERVICE Any business benefits from good customer relations, whether a large corporation or a mom and pop shop. Customer relations, or customer service, refers to the way a business communicates and interacts with the public to gain and retain customers. It is necessary for a business to cultivate good customer relations to attract and keep a loyal base of customers. Some companies hire consultants to advise them how to develop stellar customer relations. Importance Customer relations is key to understanding consumer motivation. Without assessing customer relations, it's difficult for a company to know how visible it is in terms of its client base. It's also hard to figure out how to grow the company without understanding the relationships it has with current customers. Relationships Maintaining a loyal base involves building relationships with customers by acknowledging them. It is difficult to attract customers, and a key aspect of customer relations is retaining a loyal base of customers who keep coming back to the company. Retaining Customers Often, companies use direct print and online marketing to keep in touch with their clients. Customers want to feel involved with a business, as if they're part of the firm. MANAGING EMPLOYEES A thorough security audit that involves key staff from across the company identifies risks and threats. Questions and answers about all security issues, possible crisis scenarios and safety threats help define your company’s security status and highlight what areas need reinforcement. Ask groups of key and nonkey staff what would affect and interrupt their ability to do their jobs and the company's ability to do business. Interview customers and vendors to get input on outside perspectives of what would damage your business operations and reputation. A good way to quickly ascertain risks is to meet with your business insurance broker and get a briefing on what is and is not covered in your business insurance plan. Get your management team together with a cross-sampling of employees to analyze the risks further, raising awareness and gathering ideas to reduce and eliminate them. WEEK 13: CRISIS MANAGEMENT PLAN • A crisis is any event that threatens your company. This can range from a natural disaster to the loss of a major client or a scandal among your executives. When a crisis hits, you may feel like giving up. • But if you have a plan for continuing your operation, you can regain your footing. Create your crisis plan when times are calm so you'll have definite actions you can take if events work against you. Chain of Command • During any crisis, someone must lead. Whether that person is you or a trusted manager, the leader must have absolute authority to tell people what to do and when to do it. • You will need one or more alternates who can take command in the event the person who is your first choice is one of the people rendered ineffective by the crisis. • Your plan should explain the crisis leader's priorities, including ensuring the safety of employees, getting the company back to operational status and dealing with the press. WEEK 14: CRISIS MANAGEMENT PLAN Crisis Team • The crisis leader can't work alone. Your crisis plan should designate a crisis team who will relay the leader's directives to the other employees. This team can also participate in the decision-making process and inform the leader of issues that need to be resolved. You could choose team members based on their problem-solving abilities and rapport with employees. Essential Contacts • You must maintain a list of phone numbers and email addresses for employees, vendors, office rental companies, the media and even customers if possible. Your crisis leader would have to designate several people to make phone calls to coordinate on-going work, ensure receipt of shipments, contact the press and deliver goods and services to customers. Your essential contact list will make those processes possible. After a crisis hits is not the time to gather phone numbers. So create and maintain this list in advance. CRISIS MANAGEMENT PLAN Evaluation Procedures • During a crisis, you may have a tendency to focus on preventing further damage, but you also need to understand what caused the crisis. Your plan should assign this task to trusted people who can investigate the extent of the damage and what caused it. This can help you make decisions about how to move forward and avoid making the crisis worse. Alternate Resources • Depending on the nature of the crisis, you may need new business premises, replacement computer with software, alternate suppliers and a delivery or courier service, to name a few examples. Your business infrastructure may be disrupted. So investigate alternatives that could help see your company through a crisis. List all contact information for these alternative resources so that a designated person will know who to call.