Session 5 Crisis Management

Crisis Management I

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Session 5 Crisis Management

Crisis Management
To manage a crisis one first must
understand that crises:
Occur abruptly
Cannot always be anticipated or forecast
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Session 5 Crisis Management

The Nature of a Crisis

Crisis Definitions
A major, unpredictable event that has
potentially negative results that can
significantly damage a social system
A low-probability, high-impact event that
threatens the viability of the social system
that has an ambiguous cause, effect and
resolution
Construct a typology of High-Low Impact/Predictability & illustrate with examples5-3

Session 5 Crisis Management

The Nature of a Crisis

Types of Crises

Economic
Social
Political
Technological
Psychological
Natural

Illustrate three examples of each type and justify their crisis nature

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Session 5 Crisis Management

Crisis Management: 4 Stages

Prodromal
ProdromalCrisis
CrisisStage
Stage

Acute
AcuteCrisis
CrisisStage
Stage

Warningprecursor
Warningprecursor
Symptom
Symptomprecrisis
precrisis

Point
Pointof
ofno
noreturn
return
Crisis
has
Crisis hasoccurred
occurred

Learning
Chronic
ChronicCrisis
CrisisStage
Stage

Crisis
CrisisResolution
ResolutionStage
Stage

Lingering
Lingeringonperhaps
onperhaps
indefinitely;
indefinitely;period
periodofofdoubt
doubt
debate
debateand
andanalysis
analysis

System
Systemisisstable
stableagain
again

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Role of learning! To decipher signals. Illustrate via Tsunami

Session 5 Crisis Management

The 7Cs of Crisis Management

Contingency
Planning

Rituals and
Myths

Symbols
Culture

Communications
Routines
Coupling and
Complexity

The recipe
for Crisis
Management

Power
Structures
Control

Control
Systems

Social
Structures

Configurations

Exercise: What do 7Cs mean in a given crisis situation?

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Session 5 Crisis Management

Crisis Management II

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Session 5 Crisis Management

Managing Business Crises

Finks Three-Stage Model
Identifying the crisis
Isolating the crisis
Managing the crisis

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Managing Business Crises

Business Weeks Steps in Managing Crises

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Session 5 Crisis Management

Managing Business Crises

Augustines Stages of Crisis Management
Avoiding the crisis
Preparing to manage the crisis
Recognizing the crisis
Containing the crisis
Resolving the crisis
Profiting from the crisis
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Session 5 Crisis Management

A Community-based Approach to Reduce

Vulnerability due to Natural Hazards
Altering the hazard (seeding clouds during a
drought).

Averting the hazard (building dams to control

floodwaters).

Avoiding the hazard (moving parts of

communities out of floodplains).

Adapting to the hazard (constructing

earthquake-proof buildings).
Exercise: Take one natural & one man-made crisis situation and illustrate the
application of 4As

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Session 5 Crisis Management

Preventive Action Families (Mitroff, 1988)

Technical/ Economic
External
Legal/Financial Audits
Legislation
Internal Repair/ Design
Reduction of Inventories
Improved Safety
Environmental Impact
Plant Design
Audits
External Info/ Communication
Product Packaging
Issues Management
Inspection
Warning Systems
Chain of Command
Government relationships
Internal
Share Plans
Internal Emotional
Media Training
Preparation
Behavioral profiling
Whistleblowers
Emotional Preparation
Training
Behavioral Profiling

Human/ Social/ Organizational

External

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Overlap Between Phases

Failure recycling of Turnaround Options

Defensive Phase

Period of Intense Threat, Surprise

Session 5 Crisis Management

Crisis Event

Contingency
Planning

Crisis Decision Units

Scapegoating

Communications

Constrained Decision Horizons, Control of Media

Coupling and
Complexity

Systems Design
Divestment

Consolidation Phase
Cost

Compensating Victims, Financial Sourcing

Investment Planning

Control

Calming the Population, Information management

Controlling Disinformation

Offensive Phase
Configuration

Reorganizing for a Responsive Structure

Review of Crisis Management Style

Culture

Change of Beliefs, Assumptions and Artifacts

Change of Actors, Information Sources, Linkages

Post-Crisis Turnaround Phases

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Session 5 Crisis Management

Crisis Communications
Identify crisis
communication
team
Identify key
spokespersons
Train your
spokesperson
Establish
communications
protocols
Identify and know
the audience

Anticipate crises
Assess the crisis
situation
Identify key
messages to
communicate
Determine
communication
methods
Prepare to ride out
the storm
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