CRISIS (Seri Management Crisis) Rachmat
Description: CRISIS (Seri Management Crisis) Rachmat Kriyantono, Ph.D (Materi ini saya tulis juga di buku PR Crisis Management, 2012, Prenada Jakarta) WHY IMPORTANT TO STUDY CRISIS....??? Every organization is likely to experience crisis Crisis
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slide1. CRISIS (Seri Management Crisis) Rachmat Kriyantono, Ph.D
(Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta)<br>
slide2. WHY IMPORTANT TO STUDY CRISIS....??? Every organization is likely to experience crisis
Crisis generally threat: the reputation & other organization resources
Crisis is starting point: good reputation or bad reputation
For PR: this is the best challenge and PR can be called “The truly PR” based on how PR deals with the crisis Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 2<br>
slide3. Specific threats to organisation: Operational viability
Reputation
Credibility
Financial stability
Legal action<br>
slide4. DEFINITION Devlin (2007, h.5):
“an unstable time for an organization, with a distinct possibility for an undesirable outcome”
Borodzics (2005): crisis is more than emergency situation.
Duke & Masland (2002) & Kouzmin (2008):
Crisis as situation that causes physical & nonphysical damages & disrupts organization system & the environment as a whole, especially for the victims. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 4<br>
slide5. Seeger, Sellow & Ulmer (1998), cited in Smudde (2001, h.34):
“a specific, unexpected, and non-routine event or series of events that create high levels of uncertainty and threaten or are perceived to threaten an organization’s high-priority goals”.
Burnet (in G. Harrison, 2005, h.7):
“composed of a continuum, beginning with an incident, followed by a conflict, and ending with a crisis, the most serious form of disruption”. 5 Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia<br>
slide6. G. Harrison (2005, h.11) :
“a crisis is a critical period following an event that might negatively affect an organization in which decisions have to be made that will affect the bottom line of an organization. It is a time of exploration requiring rapid processing of information and decisive action to attempt to minimize harm to the organization and to make the most of a potentially damaging situation”. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 6<br>
slide7. CHARACTERISTICS.... Specific event
The cause of crisis can be identified.
Organization can experience more than one crisis, such as employees demonstration & product tamper.
Unexpected & happen any time
Tends to threat organization life & cause damage.
As a part of organization process.
Unpredictable time / Low probability
Although we acknowledge that crisis may happen, but nobody knows the exact time when it comes (Coombs, 2007, h.136). Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 7<br>
slide8. Crisis produces information uncertainty.
Rumours spread out at the beginning.
Public relations must actively provide communication channel to disseminate truth and open information (crisis communication).
Causing panic
As a result of uncertainty situation.
Differential perceptions
High impact on organization activities.
Negative impact: profit decrease, public trust loss, media scrutiny, public & regulator investigation, unproductive changes.
Positive impact: new hero, new strategy, new regulation, better changes (it depends on post crisis communication.
Potential for conflicts
External & internal
Pro & contra Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 8<br>
slide9. The situation materialises unexpectedly
Decisions are required urgently
Time is short
Specific threats are identified
Urgent demands for information are received
There is sense of loss of control
Pressures build over time
Routine business become increasingly difficult
Demands are made to identify someone to blame
Outsiders take an unaccustomed interest
Reputation suffers
Communications are increasingly difficult to manage Common features of a crisis:<br>
slide10. SOURCES OF CRISIS G. Harrison (2005) & White & Mazur (1995):
Internal sources: human, managemen, & technology
External: goverment regulation, natural disaster, malevolent. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 10<br>
slide11. Types of sources Technological crisis
- Technology misconduct during organization activities (Chernobyl, Lumpur Lapindo, Bhopal, Exxon Valdez, Korean rocket).
Confrontation crisis
Bad relations between organization & public.
Crisis happens when the public express its anger (publik outrage) Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 11<br>
slide12. malevolence
- someone/group wants to harm organization: sabotage, terorism.
Management crisis
- Management fails to do its resposibility: corruption, loss of valas, change of board of directors, take over (aquitition).
Natural disaster crisis
Product crisis
Product tamper
misproduction Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 12<br>
slide13. CRISIS STAGES Coombs (2010); Devlin (2007); Smudde (2001):
Pra-krisis (pre-crisis)
Serious situation starts & the organization begins to aware.
If it is ignored, it will cause the crisis worse. Example: Union carbide Bhopal. Some staff had anticipated gas leaking without inform management in Bhopal. 2000 people dead.
Issue management is crucial, as a part of crisis plan.
Media begins to sniff at something trouble, then investigate it. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 13<br>
slide14. Krisis (acute crisis)
The situation can’t be managed by organization so the situation spread out the organization widely.
This stage = critical stages of the issue life cycle.
No crisis without public outrage.
Bad example: biscuit poisonous or employees strike.
Good example: Sukhoi Russia Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 14<br>
slide15. Pascakrisis (post-crisis)
Crisis has been accummulated
Organization tries to maintain reputation or lose it.
Recovery stage: detemine success or failure
Self-Reflexion diri agar situasi yang sama tidak terulang. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 15<br>
slide16. HAPPY STUDYING Rachmat Kriyantono, Ph.D Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 16<br>
slide17. Happy Studying References:
Kriyantono, R. (2012). PR & Crisis Management. Jakarta: Prenada
Regester & Larkin (2008). Risk & Issue Management. Baca yuuk...<br>
(Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta)<br>
slide2. WHY IMPORTANT TO STUDY CRISIS....??? Every organization is likely to experience crisis
Crisis generally threat: the reputation & other organization resources
Crisis is starting point: good reputation or bad reputation
For PR: this is the best challenge and PR can be called “The truly PR” based on how PR deals with the crisis Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 2<br>
slide3. Specific threats to organisation: Operational viability
Reputation
Credibility
Financial stability
Legal action<br>
slide4. DEFINITION Devlin (2007, h.5):
“an unstable time for an organization, with a distinct possibility for an undesirable outcome”
Borodzics (2005): crisis is more than emergency situation.
Duke & Masland (2002) & Kouzmin (2008):
Crisis as situation that causes physical & nonphysical damages & disrupts organization system & the environment as a whole, especially for the victims. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 4<br>
slide5. Seeger, Sellow & Ulmer (1998), cited in Smudde (2001, h.34):
“a specific, unexpected, and non-routine event or series of events that create high levels of uncertainty and threaten or are perceived to threaten an organization’s high-priority goals”.
Burnet (in G. Harrison, 2005, h.7):
“composed of a continuum, beginning with an incident, followed by a conflict, and ending with a crisis, the most serious form of disruption”. 5 Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia<br>
slide6. G. Harrison (2005, h.11) :
“a crisis is a critical period following an event that might negatively affect an organization in which decisions have to be made that will affect the bottom line of an organization. It is a time of exploration requiring rapid processing of information and decisive action to attempt to minimize harm to the organization and to make the most of a potentially damaging situation”. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 6<br>
slide7. CHARACTERISTICS.... Specific event
The cause of crisis can be identified.
Organization can experience more than one crisis, such as employees demonstration & product tamper.
Unexpected & happen any time
Tends to threat organization life & cause damage.
As a part of organization process.
Unpredictable time / Low probability
Although we acknowledge that crisis may happen, but nobody knows the exact time when it comes (Coombs, 2007, h.136). Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 7<br>
slide8. Crisis produces information uncertainty.
Rumours spread out at the beginning.
Public relations must actively provide communication channel to disseminate truth and open information (crisis communication).
Causing panic
As a result of uncertainty situation.
Differential perceptions
High impact on organization activities.
Negative impact: profit decrease, public trust loss, media scrutiny, public & regulator investigation, unproductive changes.
Positive impact: new hero, new strategy, new regulation, better changes (it depends on post crisis communication.
Potential for conflicts
External & internal
Pro & contra Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 8<br>
slide9. The situation materialises unexpectedly
Decisions are required urgently
Time is short
Specific threats are identified
Urgent demands for information are received
There is sense of loss of control
Pressures build over time
Routine business become increasingly difficult
Demands are made to identify someone to blame
Outsiders take an unaccustomed interest
Reputation suffers
Communications are increasingly difficult to manage Common features of a crisis:<br>
slide10. SOURCES OF CRISIS G. Harrison (2005) & White & Mazur (1995):
Internal sources: human, managemen, & technology
External: goverment regulation, natural disaster, malevolent. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 10<br>
slide11. Types of sources Technological crisis
- Technology misconduct during organization activities (Chernobyl, Lumpur Lapindo, Bhopal, Exxon Valdez, Korean rocket).
Confrontation crisis
Bad relations between organization & public.
Crisis happens when the public express its anger (publik outrage) Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 11<br>
slide12. malevolence
- someone/group wants to harm organization: sabotage, terorism.
Management crisis
- Management fails to do its resposibility: corruption, loss of valas, change of board of directors, take over (aquitition).
Natural disaster crisis
Product crisis
Product tamper
misproduction Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 12<br>
slide13. CRISIS STAGES Coombs (2010); Devlin (2007); Smudde (2001):
Pra-krisis (pre-crisis)
Serious situation starts & the organization begins to aware.
If it is ignored, it will cause the crisis worse. Example: Union carbide Bhopal. Some staff had anticipated gas leaking without inform management in Bhopal. 2000 people dead.
Issue management is crucial, as a part of crisis plan.
Media begins to sniff at something trouble, then investigate it. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 13<br>
slide14. Krisis (acute crisis)
The situation can’t be managed by organization so the situation spread out the organization widely.
This stage = critical stages of the issue life cycle.
No crisis without public outrage.
Bad example: biscuit poisonous or employees strike.
Good example: Sukhoi Russia Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 14<br>
slide15. Pascakrisis (post-crisis)
Crisis has been accummulated
Organization tries to maintain reputation or lose it.
Recovery stage: detemine success or failure
Self-Reflexion diri agar situasi yang sama tidak terulang. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 15<br>
slide16. HAPPY STUDYING Rachmat Kriyantono, Ph.D Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 16<br>
slide17. Happy Studying References:
Kriyantono, R. (2012). PR & Crisis Management. Jakarta: Prenada
Regester & Larkin (2008). Risk & Issue Management. Baca yuuk...<br>