Crisis Management and Communication Jeremiah Maxel Jeremiah.maxel851@myci.csuci.edu 4/19/2014

Crisis And Communication Crisis (noun; krī-səs)- an unstable or crucial time or state of affairs in which a decisive change is impending especially one with the distinct possibility of a highly undesirably outcome Communication (noun, kə-ˌmyü-nə-ˈkā-shən)- the act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feeling, etc. to someone else

Three Components of a Crisis Truth- Is the crisis caused by something true/real? Severity- To what degree is the crisis an issue? Customers- How close are the customers with your product?

Flowchart

The Lethal Tylenol Crisis Fall of 1982 Consumption of Extra Strength Tylenol capsules resulted in 7 deaths Tylenol capsules had contained lethal doses of cyanide

Johnson and Johnson’s Response Immediate warning to all customers via mass media Production of Tylenol halted Tylenol recalled until source could be identified

How Their Response Differed Full Truth Customer interests first Did not attempt to deny or duck responsibilities

Result Tylenol, instead of dying, continued going strong Improved public image Consumer loyalty increased

Reference Rhode, David, Tylenol for users and a lesson for Ebbers, Network World, August 1999 Centennial Journal: 100 Years in Business === Chicago’s Poisoned Tylenol Scare, 1982, Wall Street Journal, November 1989 Gita V. Johar, Matthias M. Birk, Sabine A. Einwiller, How to Save your Brand in the Face of Crisis, MITSlogan Management Review, June 2010

Two Multiple Choice Questions What is NOT a quality you have to consider when assessing a crisis? Accountability Truth Severity Customer Loyalty What did Johnson and Johnson do in response to the Tylenol Scare? Polishing the Halo Yes but… Customers Safety First No, Not I