Peggy Simcic Brønn 1 Crisis Communication and Crisis Management

Peggy Simcic Brønn 2 Pauchant & Mitroff

Proactive side of Crisis Management Education Prior experience Position in organization Involvement with TMT Existence of a Plan Use of research-based information Strategic Approach Improved Signal Detection More effective preparation/ prevention Enhanced reputation Desired Stakeholder behavior Improved Organizational Performance Learning

Peggy Simcic Brønn 4 Broad Categories of Crises l Technological »Chernobyl, Bhopal l Confrontation »Boycott of products, Nestle l Crises of Malevolence »Terrorists, IRA bombs, l Management Failure »Kartongfabrikk, Ericcson l Other - f. eks. takeover bids, Nycomed

Peggy Simcic Brønn 6 Examples l Fire and Explosion l Emission and Environmental Scandals l Layoffs l Bankruptcy l Strikes l Accidents l Sudden Resignations

Peggy Simcic Brønn 7 Examples l Public perception: Johnson & Johnson (Tylenol) l Sudden Market Shift: Atari (computer games) l Product Failure: A. H. Robins (Dalkin Shield) l Management Succession: United Technologies l Cash Crisis: Chrysler Corporation l Industrial Relations Crisis: International Harvester l Hostile Takeover: Bendix/Martin Marietta l International Events: General Motors/OPEC l Regulation/Deregulation: Braniff

Peggy Simcic Brønn 8 News Coverage of Crises Increasing l Business crisis events increased 13% first half of 1996 (worldwide) l Sexual harassment -- increased 192% - - fastest growing category l Class action suits, particularly against tobacco industry -- up 83% l Automotive industry -- most crisis prone industry -- Banking #2 l Commercial airlines close behind

Peggy Simcic Brønn 9 What is Crisis Communication? l It is spontaneous. l It is dependent on the size and nature of crisis. l It is a ‘happening’. l It needs other demands from management than ‘normal’ routines. l It will normally affect many different stakeholders than planned communications.

Peggy Simcic Brønn 10 When an accident, crisis or catastrophe happens, it is too late to develop a crisis information plan. A media plan and mental readiness must be in place before an accident, not developed during the accident. E. R. Sjøberg

Peggy Simcic Brønn 11 l Two Key Words »Speed »Confidence l Two Strategies »Information -- one-way spreading of facts and information »Communications -- two-way method of giving out information

Peggy Simcic Brønn 12 Information Strategy l Internal l External l Crisis

Peggy Simcic Brønn 13 Crisis Information Strategy l Who is contact person, first and reserve. Who should do what? l List of everyone who has responsibility for notifying people. »Switch board, security personnel, safety people l Alternative places for press center.

Peggy Simcic Brønn 14 Crisis Information Strategy l Cooperation plans with company, police, fire department. l General rules on who can/can not make statements. l Information on other relationships with company, such as communications network

Peggy Simcic Brønn 15 Most Important Elements l Make sure responsibilities are clear and these people have full responsibility. l Make sure they are prepared mentally -- practice, drill, etc. l Make plans as simple as possible.

Peggy Simcic Brønn 16 Most Important Elements l Spokesperson must have ability to answer questions. l Spokesperson should not be given any other responsibilities. l Decide how to handle press.

Peggy Simcic Brønn 17 Which Stakeholders Need Informing? l Media (TV, radio, papers) l Employees l Relatives l Government Agencies l Customers l Police l Suppliers l Local Community l Owners, Shareholders, Board of Directors

INFORMATION PLAN Groups Should InformBy Whom No Yes Employees Family Customers Suppliers Neighbors Police SFT Local Media Nat’l. Media Board Other

Peggy Simcic Brønn 19 Objectives l Provide accurate, timely information to all targeted internal and external audiences l Demonstrate concern for safety of lives l Safeguard organizational facilities and assets l Maintain a positive image of the organization as a good corporate or community citizen

Peggy Simcic Brønn 20 Major action areas l PR Headquarters l Media Information Center

Peggy Simcic Brønn 21 PR Headquarters l Responsible for notification of all internal and external emergency audiences l Preparing material for the media »Exercise principles of ‘one voice’ and full- disclosure l Establishing a public information center to answer questions and control rumors

Peggy Simcic Brønn 22 Media Information Center l Away from PR headquarters l Telephone that can not be shut off or used by other personnel l Assign people to escort media l Room equipped with technology needed by media l Spokesperson - never PR person

Peggy Simcic Brønn 23 Avoid These Mistakes Before a Crisis Occurs l Define the PR Function and Recognize its Importance l Put PR in the Right Organizational Box l Don’t Forget the World is a Small Place l Have Clear PR Goals and Ongoing Programs l Have Crisis Planning/Be Prepared for the Unexpected

Peggy Simcic Brønn 24 Avoid These Mistakes Before a Crisis Occurs l Avoid Bad Advice and Don’t Ignore Good Advice l Keep Up with Technology l Don’t Forget Internal Audiences l Don’t Blame the Media l Don’t Kill the Messenger

Peggy Simcic Brønn 25 Questions l What can go wrong? l Are the facilities vulnerable to fire, explosion or other crisis? l Is dangerous equipment on the premises? l What are potential trouble spots?