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1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

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Issues & Crisis Development Crucial function in protecting & improving reputation Any organisation may face crisis or risk that may jeopardise the whole system of orga Crisis management plan needs to be developed to minimise the impact Tylenol crisis is one of examples

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Page 1: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8
Page 2: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

1. Introduction

2. Issues and crisis development

3. Defining Issue & crisis management

4. A significant link between issue, crisis & risk management

4. 8 Steps of communicating during crisis

5. Conclusion

Page 3: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

Issues & Crisis DevelopmentCrucial function in protecting & improving

reputationAny organisation may face crisis or risk that

may jeopardise the whole system of orgaCrisis management plan needs to be

developed to minimise the impactTylenol crisis is one of examples

Page 4: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

Defining Issue & Crisis managementIssues management is the proactive process

of anticipating, identifying, evaluating, and responding to public policy issues that affect organisations’ relationships with publics (Cutlip et al, 2000: 17).

Page 5: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

Defining Issue & Crisis managementIssues management is the management process

whose goal is to help preserve markets, reduce risk, create opportunities and manage image as an organisational asset for the benefit of both an organisation and its primary stakeholders.

This is accomplished by: anticipating, researching and prioritising issues: assessing the impact of issues on the organisation: recommending policies and strategies to minimise risk and seize opportunities, participating and implementing strategy, evaluating program impact (Cutlip et al, 2000: 18).

Page 6: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

Defining Issue & Crisis managementIssue management is the executive function

that deals with problem solving, organisational policy, long-range planning, and management strategy as well as communication strategy both internally and externally (Bowen, 2002).

Page 7: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

Defining Issue & Crisis managementLerbinger (1997 in Ihlen, 2002: 186) defined a

crisis is ‘an event that brings, or has the potential for bringing, an organisation into disrepute, which could imperil an organisation’s future profitability, growth, and possibly, its survival’

For instance, relaunching the Mercedes A-Class may restore the company’s reputation, although the company spent $167 million to conduct a series of crisis management programme

Page 8: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

A Significance Link between Issue, Crisis and Risk

Management Please refer to Figure 6: Risk., Issue &

Crisis Management (page 94)An organisation deals with critical

pressures from insiders and outsiders within internal and external environments.

Low standards of operation planning, low quality of products and services, technological imperfection, and inadequate and unqualified workforce are identified as critical pressures from an industry’s insider

Page 9: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

A Significance Link between Issue, Crisis and Risk ManagementIn contrast, customer complaints and anger,

media enquires, community chaos such public protest and demonstration, and critiques from non-government organisation are problematic factors from an industry’s outsider that need to be tackled in a strategic way

Page 10: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

A Significance Link between Issue, Crisis and Risk ManagementRisk management may benefit organisations

from gaining ‘a better approximation of the real outcome of the project’ rather than depending on the linear operational planning.

Risk managers must identify new and existing risks as well as their impacts to their organisation

Page 11: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

A Significance Link between Issue, Crisis and Risk ManagementMedia relations which requires a

structured communication plan has been used as a communication tool to restore the reputation of organisations.

An effective media relations may reach more public in the light of issues affected the organisation.

On the other hand, a structured approach to risk management which operates within the internal organisation may prevent the issue occurred.

Page 12: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

Communicating during crisis 1. All the planning that an organisation can

muster will only partially prepare it for an actual crisis.

2. Every crisis is different, which means managers must adapt these suggestions to meet their needs.

Page 13: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

8 Steps – Crisis management PlanStep 1 – Get control of the situationStep 2 – Gather as much information as

possibleStep 3 – Set up a centralised crisis

management centreStep 4 – Communicate early and often

Page 14: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

8 Steps – Crisis management Plan1. Step 5 – Understand the media’s mission in

a crisis2. Step 6 – Communicate directly with

affected constituents3. Step 7 – Remember that business must

continue4. Step 8 – Make plan to avoid another crisis

immediately

Page 15: 1.Introduction 2.Issues and crisis development 3.Defining Issue & crisis management 4. A significant link between issue, crisis & risk management 4. 8

SCL-Case Based ActivityRead thoroughly case study on “Tylenol Crisis”.

Discuss the key communication strategies that were executed in handling the crisis.

Describe the key roles of Johnson & Johnson’s communication department in planning and implementing the strategic action on the crisis to save the firm.