An introduction to the new crisis communications

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CRISIS

A brief introduction

COMMUNICATIONS

Charlie Pownall | CPC & Associates

Hang Seng Management College | November 11, 2015


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Types of negative situations

CRISIS

PROBLEM

ISSUE

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SEVERITY

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INCIDENT

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LONGEVITY

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Crisis definition

“A significant negative event that contains actual or potential risk to
life, health, environment, business continuity, reputation or those
relationships a company requires to operate its business.”

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Is this situation a precursor that risks escalating in intensity?
Does it risk coming under close scrutiny?
Will it interfere with normal business operations?
Will it jeopardise our public image or bottom line?

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Source: Steven Fink

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INTERNAL

EXTERNAL

Traditional threats

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Political pressure
Regulatory changes
Religious/cultural/political controversies
Societal outrage

Corporate/strategic failure
Corporate governance failure
Fraud/malpractice
Poor employee behaviour

ISSUE-LED
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Cyber attacks

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CEO dismissal

Health scares
Hostile takeover bids
Natural disasters
Political unrest
Sabotage & extortion

Employee injuries/death
Industrial disputes
IT system failures
Product quality recalls

INCIDENT-LED
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Institutions are not trusted

Source: Edelman Trust Barometer 2014
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Some industries more exposed than others

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Source: Edelman Trust Barometer 2014
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Some new threats…

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IT security/confidentiality

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Hacking

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Privacy

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Activism

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Traditionally: campaign groups, local communities, investors

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Now also customers and employees

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Expectations of good behavior, transparency & openness

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Greater accountability to more stakeholders

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Improved stakeholder rights

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Consumers

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Whistleblowers

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The role of social media
The internet and social media

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Triggers

INCIDENT

CRISIS

PROBLEM

ISSUE

Amplifies
Sustains

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The reality of crises today

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Can strike from anywhere

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More complex issues
More short, sharp shocks
More total unknowns

Harder to manage

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News, information & commentary move faster and further
Immediate expectation of responsiveness and dialogue
Everyone has a voice, but who is credible and trusted?
Fickleness and volatility of opinion

More rumours, misinformation, disinformation
Harder to conceal smoking guns

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Crisis management framework

Mitigate

Recover

Prepare

Respond

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Three key crisis response principles

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2.
3.

Control the agenda
Fix the problem
Adopt the lessons

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Three key crisis communications principles

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2.
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Quickly acknowledge the problem
Be as honest as possible
Be sincere

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Tech/data provide opportunities to:

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Listen
Move fast
Communicate what we know
Connect emotionally
Tell our story convincingly
Bypass the mainstream media
Respond to many people simultaneously
Rebut rumours, mis and disinformation
Rebuild confidence and trust

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Easier said than done!

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You don’t know what’s happening
Information is partial and inaccurate
Rumour and speculation are spreading fast online
The media is calling
Legal is telling you to say nothing
Management has gone missing
Panic is taking over

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Two recent crises

I.
II.

Malaysia Airlines
MTR Corporation

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I
MALAYSIA AIRLINES

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MH370 crisis timeline – March 2014

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02.40

MAS loses contact with MH370

07.24

First public confirmation of loss

08.13

MAS social media profiles updated

09.00

MAS starts contacting next-of-kin

12.00

MAS CEO press conference

13.46

VN media reports crash nr Tho Chu Island

14.00

Passenger manifest released

14.30

MY Transport Min denies VN crash

16.20

VN confirms loss of plane in airspace

19.00

VN navy confirms no wreckage found

22.00

Rumours circulate of passengers with stolen passports

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Key first response messages

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Acknowledge the issue
Recognise the urgency of the situation
Demonstrate it is being taken seriously

Express empathy for those affected

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Classic holding statement phrases

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‘It is reported’ …
‘We are aware of’ …
‘It is understood that’ …
‘Our thoughts are with’ ….
‘We are fully committed to’ …
‘Details will be made available’ …

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