Understanding Crisis Management

CRISIS MANAGEMENT
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CRISIS MANAGEMENT
Introduction
A crisis in an organization is viewed as a representation of business interruption that requires comprehensive coverage of mass media communication. In order to ensure the well-being of an organization or firm, the administration of the crisis must be set up. The Public Relations department is regarded as the main lead response team towards crisis management. Crisis has various consequences in the organization. The role of the PR and how they handle crisis management is important in maintaining the reputation of the organization. Also, competence in communication reflects the manner in which the PR management handles the crisis and the engagement with the media about crisis management. The PR role in managing the crisis should be clearly elaborated as it should try and maintain a good reputation of the organization.
Lessons Learned
Consolidating effective Public relations strategies is important in redeeming an organizations’ public reputation when faced with a crisis. One of the ways in which PR may protect the organizations’ reputation is by effective communication. The PR management should incorporate and practice the 5 C’s of communication: concern, clarity, confidence, competence, and control. In Sainsbury’s case the PR applied clarity, while responding to the allegations of the crisis that had happened. They were also confident concerning the plans they had in managing the crisis. PR practitioners should be concerned about the crisis that the company is facing. The stakeholders' state and the broad fraternity associated with the organization should also be their primary concern. The PR managers ensured that a high degree of clarity was subsumed to ensure effective communication when addressing the crisis. In addition, all misunderstandings regarding the crisis should be eliminated to attain confidence when communicating about the crisis (Straubhaar, Larose and Davenport, 2018). The PR officers should ensure that they are the sole-generator of the information regarding the crisis. The PR in Sainsbury’s case were the sole-generator of the information of what really happened, the whistleblower claim of £200m loss. They also issued their plan of dealing with the crisis and trying to understand the cause of the crisis. Also, the PR management should be competent too in order to retain the stakeholders’ and other organizations’ members confidence.
Additionally, for effective crisis management, the organization must find the most effective ways to communicate with the media. The PR should put in place communication directors who will communicate effectively with the media fraternity. The PR response team in Sainsbury took important measures to account regarding effective communication with the media, such as: establishing media headquarters, coming up with a crisis communication plan, appointing a spokesperson to convey crisis information, developing clear media rules, and avoiding any form of speculation regarding the crisis information. This also enabled them to have a wide media coverage.
The PR officers should also act quickly and decisively to address the crisis clearly. Sainsbury gave their response regarding the crisis quickly and clearly. Staying focused on the organization's missions and values will aid in effective decision-making. The Sainsbury organization focused on maintaining a good reputation hence it’s response regarding the crisis was quick. Also, the PR officers engaged other employees in providing a solution regarding the crisis. This provided a platform for everyone in the organization to address their challenges. This hence creates open conversations and uncovers new experiences and ideas while this can aid in the crisis management process.
Finally, for effective communication, the Crisis management practitioners must incorporate various crisis management processes such as prevention, preparation, and provision (Reid, 2000). Prevention aims at identifying different risks which an organization faces. Preparation gives a guide for the various strategies to be subsumed while dealing with the crisis. Provision outlines the manner in which the crisis management team handles the situation and communicates with the organization’s stakeholders concerning the crisis.
What went well?
Through the department of PR, the organization successfully dealt with the crisis. By following the crisis management strategies of good media communication and consistency, the organization experienced significant benefits. Through effective crisis management strategies, the organization reduced the number of losses and was able to maintain its production levels. The PR incorporated the 5 C’s of communication which aided in addressing the crisis hence did not create suspicion. Successful engagement with the media led to wide mass media communication concerning the crisis. This led to effective crisis management; thus, the organization’s reputation was maintained.
Additionally, the reputational image of the organization was also maintained due to the financial gains. Effective crisis management also empowered the employees to respond faster during a crisis. This hence leads to evasion or prevention of a crisis. The well-being of the organization stakeholders and members was improved due to effective crisis management.
In addition to that, the risks concerning legal exposure due to the crisis were mitigated. The threat of legal exposure is a major threat to the organization and also the senior stakeholders. Effective crisis management plans provided solutions to deal with those threats. Solutions concerning the crisis were easily identified through the involvement of many organizational members. This was a strategy of bringing in various organization members that the PR officers took to solve and manage the crisis efficiently.
Future proposals
Crisis management is very crucial and is a vital element in public relations. There are various ways, however, which could propel effective crisis management in the future. One of them is ensuring that there is timely, effective, and frequent communication. This can be achieved by making sure that the information reaches the audience within the shortest time possible. The organization could try to provide information frequently and effectively about its financial state. Communicating effectively requires the information to be relevant and actionable in light of a crisis at hand.
Additionally, it is important to incorporate all types of audiences to fulfill effective communication. Communicating frequently about the changes and information about the crisis executes both timely and effective communication. This, in turn, promotes effective and efficient crisis management.
Coming up with a crisis management plan is a crucial step in crisis management in the future. Most times, the crisis is usually unexpected, and having a crisis plan that has been discussed and reviewed regularly will aid in making better decisions even under pressure. Since, financial statement fraud might occur again, coming up with a crisis plan will aid in making effective decisions in the future. Also, identifying the key audiences and finding ways to reach them in advance is still a measure that will aid in successful crisis management. Compiling key contact information of the organizations’ members and updating it frequently is important since it will be needed in case of a crisis when communication is required.
The PR officers should create an incident action plan that clearly defines strategic objectives on what should be done in case of a crisis. This action plan should also entail a situational awareness of the crisis for effective crisis management.
Plans, templates, and theories for crisis management
Various plans should be incorporated for successful crisis management. A crisis management plan must therefore be created. Additionally, for a crisis management plan to be effective, several elements should be included in the crisis management plan. Risk analysis will guide in formulating the plan as it will outline the potential occurrences that an organization may face. Formulating external communication plans to act as a guide to whom the information should be addressed and the communication objectives. The PR should also execute suitable crisis management strategies and uniquely administer crisis management plans.
Crisis management theories define more abstract concepts that the man...