This week's post will not focus on the theoretical steps to take in crisis management, but rather the spirit behind issues and crisis management.
To start off, one must first have a clear understanding of the difference between an issue and a crisis.
Crisis are unpredictable events that can impact an organisation's viability, credibility and reputation; and which causes and effects are unknown. Issues are the result of a gap between what a company does and the key public or audience expectations of the company's behavior.
In the textbook, it states that 27 per cent of oranizations are identified to not be able to recover from a crisis, and majority remains unprepared. Let us look at some case studies to see how crisis is managed appropriately by PR practitioners.
News of the World Scandal
The News of the World is a national tabloid magazine published in the United States. It's phone tapping scandal started in 2004 and received another legal lawsuit in 2006. It hit the peak this year, forcing the organization to make a public apology to all victims involved.One question: WHAT TOOK THEM SO LONG TO APOLOGIZE?
If this issue was nipped in the bud earlier, they might not be in the current mess where some victims reject the apology and are persistent in filing a law suit e.g. Sienna Miller.
Coca-Cola's Belgium "mass hysteria" case
Crisis hit the Coca-Cola company (CCC) when there were consumer complaints about an irregular taste and smell in the bottled soft drinks following reports that more than 100 consumers had become ill.
The company took immediate steps to remedy the situation after identifying specific production and distribution problems such as the recalling of products. A week after the reported illnesses, CCC responded with its first public statement to assure consumers of their commitment to ensure safety and quality of their soft drinks. CCC spokesperson also express sincere apologies to consumers.
The Coca-Cola Company’s highest priority isthe quality of our products. For 113 years our
success has been based on the trust that
consumers have in that quality. That trust is
sacred to us. I want to reassure our consumers,
customers, and government officials in Europe
that The Coca-Cola Company is taking all
necessary steps to ensure that all our products
meet the highest quality standards. Nothing less
is acceptable to us and we will not rest until we
ensure that this job is complete. We deeply
regret any problems encountered by our
European consumers in the past few days (KO
Now, 1999a)[1].
We respect the Ministry’s obligation to the
people in these times of deep sensitivity to public
health issues. Nothing is more important than
protecting the public’s health, and we have
worked very closely and intensively with the
Ministry, providing significant amounts of
information confirming complete confidence in
the safety of our products and packages.
Other than admitting their mistakes and taking steps to remedy their products, CCC launched and aggressive marketing campaign in an effort to regain consumer trust, confidence and market share.
I guess the difference between the first case and the second is that CCC is proactive in trying to solve the crisis, whereas News of the World seeks to cover up their mistakes, worsening the situation.
Hey Joane,
ReplyDeleteYes, I completely agree that the best way to handle a crisis is to prevent it from happening in the first place. The ability to foresee if an existing issue will eventually evolve into a crisis is a crucial skill that a PR practitioner should have.
I don't think that this skill is something that can be taught though. Rather, I believe it is acquired through experience and dealings with previous crises. Also, identifying and preventing a potential crisis in its early stages is something that is much easier said than done.
There is also the issue of “over-preparation” and this can be a pain, particularly to the company's finances and budget. For instance, the PR practitioner might deem that there is a 5% chance that “Issue A” will become a crisis if unresolved. What are the chances that the company's management will invest in a protection scheme that will protect them from a crisis that only has a 5% chance of happening?
Oh, by the way, thanks for not using the way-too-overused BP case study to illustrate poor crisis management. That example is getting a little boring. :)
- Syaz
Yes, I would agree that this skill of crisis management might not be necessarily a lesson-based skill. But come to think of it, which skill of a PR practitioner is entirely textbook-based?
ReplyDeleteThat is why learning from more experienced PR practitioners is so important. New PR practitioners will not be pushed to the front lines or be made the spokesperson of the company the moment he gets his first job. I'm actually pretty excited to experience about getting employed now. :D
You have my agreement that identifying and preventing a potential crisis in its early stages is easier said than done, however, VERY IMPORTANT. That is why internal communication is of much concern as discussed in one of the previous chapter. Lateral communication can help in identifying any issues that might eventually grow into a crisis.