1. Crisis Management – Signal detection

2. Summary Crisis Management in Hospitality Industry
Signal Detection Model
Advantage and Disadvantage of Signal Detection Model
Recommendation

3. Introduction
Crisis is defined “as an adverse incident or a series of events that has the potential to seriously damage an organisation’s employees, operation, business and reputation”, Paraskevas et al (2013:35)
Crisis Management is set of factors designed to combat crises and to lessen the actual damaged inflicted. (Coombos, 2011)
There are elements that are common to most definitions of crisis:
a threat to the organization,
the element of surprise,
a short decision time
a need for change

4. Crisis Management in Hospitality industry
“The Hospitality industry is prone to crises as it is highly fragmented and complex with many interdependencies among its sectors”. (Paraskevas, 2012)
Hospitality industry is incorporated with other industries, meaning that a wide range of potential crisis within hotels can affect and impact others business.
The exposure of Hospitality business to a wide range of crises, indicates a significant challenges’ that hospitality organisation, face it in the operation.

5. Crisis in UK Industry
Paraskevas (2009), 60% of organisational crises normally emit warning signals early enough to be prevented.
43% of companies experiencing a disaster never recover
40% of companies that have CM plans do not have a team dedicated to disaster recovery
43% of companies that have a business continuity plan do not test it annually
80% of companies have not developed CM to provide IT coverage for business continuity
Of those who have had a crisis, 42% STILL do not have a plan!
yet…97% felt confident that they could respond well to a crisis
Only 23% of businesses have no early warning of some kind; about 75% of crises result from inappropriate action or inaction by top management (UK Statistics, 2012).

6. People Internal External Technical Types of Crisis Signals
Gossip / Rumors
Communities
Personal
Special Interests
Networks
Media
The Culture
Consumers
Internal
External
Personal Data
Remote
Bases
Sensing
PCs
Government IT
Monitoring
Industry
Source: Mitroff (1988)
Technical

7. Crisis Categorization
Crises categorised by the types of risks in terms of their impact and probability
Crisis Categorization
Low Impact
High Impact
Low Probability
High Probability
Amber Zone
Red Zone
I I I I I I I I I I I I
I I I I I I I I I I I I
Hazard Likelihood
Green Zone
Gray Zone
Hazard Severity
Source:Mitroff (1988)

8. Stages of Crisis Management
Crises can be described in terms of stages, or relatively identifiable sequences of events and reactions. Stages enable planners to monitor risks, progress, target stakeholders, and take strategic action appropriate to the stage. There are many models; below are two prominent ones:
Fink’s Crisis Lifecycle
Prodromal
Risk cues that potential crisis can emerge
Crisis breakout
Triggering event with resulting damage
Resolution
Crisis no longer a concern to stakeholders
Chronic
Lingering effects of crisis
Mitroff’s Five Stages of Crisis Management
Signal detection
Warning signs & efforts to prevent
Probing & prevention
Search risk factors & reduce potential for damage
Damage containment
Keep from spreading to uncontaminated areas
Recovery
Return to normal operations asap
Learning
Review & critique CM efforts for improvements

9. Signals Warning
Mitroff (1988:18) observed that “long before its actual occurrence, a crisis sends off a repeated and persistent trail of early warning signals”
“Signal Detection is a first line of defence in Crisis Management” (Paraskevas & Altiney, 2013)

10. Crisis Signal Detection Model
Source: Paraskevas et al (2013)

11. Scanning for Signals
internal; the organisation’s structure, culture, and resource variables,
Task; industry force variables
economic, technological, socio-cultural, and political-legal variables
Capture of Signals
core detectors (employees, guests, suppliers, industry organisation;
ad hock (competitors)
and experts or consultants,
Signal Transmission
communication platform; Paraskevas et.al (2013)

12. Advantage and Disadvantage
With clearly defined roles, organisation is better prepared to react and prevent a wide range of crisis signals
appropriate signal detection framework may change its dynamic and path of crisis
Strengthen organisation’s competitive position and reputation.
it is easier for organisation to train employee and collect background information’s in timely and effective manner.
Effective communications potentially enhancing public perception of the company
Crisis signals could be dynamic and complex and is not possible to plan and prepare for every situation
The high number of employees who participate in the process of crisis signal detection plan may affect smoothly and efficient coordination in information exchange
Crisis management planning could be expensive.
Excessive focus on potential threats can divert management focus on how to capitalize on growth opportunities

13. Conclusion
Hospitality organisation operates in complex external and internal business environment.
It is crucial that Hospitality organisation engages in defining and establishing, crisis plan and crisis management team.
Importance of focusing on communication issues framework.
Organisations that anticipate the possibility of a crisis and prepare properly will be better equipped to manage different situations.

14. Recommendation
Organizations should redefine the role of crisis management plans and crisis management teams.
An effective crisis response should be viewed as a living (co-evolving) system within the organization.
By adopting complexity principles the organization can make this system far more effective.

15. Bibliography
Coombos W.T (2011), Ongoing Crisis Communication: Planning, Managing, and Responding, USA: SAGE Publications, Inc
Mitroff, I. (2004). Crisis Management leadership, US: John Wiley and Sons.
Mitroff I and Anagnos G (2001) Managing Crises Before They Happen, New York: AMACOM.
Mitroff I (1988), Smart Thinking for Crazy Times: The Art of Solving the Right Problems, USA: Berrett-Koehler Publishers, Inc.,
Paraskevas, A. and Altinay, L. (2013),Signal Detection as the First Line of Defence in Tourism Crisis Management, Tourism Management, 34(1), pp
Paraskevas, A. (2012) “Aligning Strategy to Threat: A Baseline Anti-terrorism Strategy for Hotels”, International Journal of Contemporary Hospitality Management, vol. 27, 7, pp. 140.
Paraskevas, A., Altinay, L., McLean, J. and Cooper, C. P. (2013) “Crisis Knowledge in Tourism: Types, Flows and Governance” Annals of Tourism Research, vol. 41, pp