Chapters 17, 18, 19

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Miami Dade College, Miami *

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3714

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Management

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Apr 3, 2024

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Chapters 17,18,19 Chapter 17 Senior Management: Your Own Worst Enemy? This chapter talks about the struggle managers often face in convincing senior management to proactively address crisis management. Through anecdotes and examples, such as the Exxon Valdez oil spill, the author illustrates the critical role of communication and decision-making in crisis situations. The chapter recounts efforts by companies to seek external expertise for crisis preparedness, emphasizing the importance of being ready before a crisis hits. Despite these examples, some CEOs remain overconfident, underestimating the value of crisis planning, which can leave the company vulnerable. For managers facing resistance, the chapter advises documenting concerns and, if necessary, considering moving to a company that values crisis preparedness. Yet, it also highlights a silver lining: when managers successfully make the case for crisis preparedness, they often gain significant responsibilities and opportunities for leadership. This reflects the dual nature of crisis management as both a challenge and an opportunity. Key Takeaways: Convincing Senior Management is Challenging: Managers often struggle to get senior management to acknowledge and act on the need for crisis preparedness. Effective Crisis Management is Crucial: Successful crisis management is not just about showing up; it requires effective communication, swift decision-making, and the ability to control the narrative. Proactive Crisis Management is Recognized by Some: While some companies understand and act on the need for crisis preparedness, others, blinded by overconfidence, do not. Documentation and Consideration of Alternatives: Managers unable to persuade their senior management to prepare for crises should document their efforts and consider working elsewhere if necessary. Opportunities Arise from Crisis Management: Managers who push for and implement crisis preparedness can find themselves in positions of increased responsibility and leadership potential within their organizations. Chapter 18 Take Your Own Pulse-or, What Were They Thinking? Chapter 18, "Take Your Own Pulse-or, What Were They Thinking?" emphasizes the importance of consulting crisis communicators before implementing major decisions, especially those that could impact public perception and provoke backlash. It provides several examples of companies, including Coca-Cola, Instagram, Netflix, Bank of America, Verizon, Ralph Lauren/Polo, Susan G. Komen for the Cure, and Chick-fil-A, which faced crises due to poorly thought-out strategies or statements. These cases illustrate the significance of considering the potential consequences of actions and statements on customers, stakeholders, and the broader public. Key Takeaways:
Consult Crisis Communicators: Before implementing significant changes or making public statements, it's crucial to consult crisis communicators to assess potential repercussions and mitigate risks. Consider Public Perception: Companies should consider how their decisions might be perceived by customers, stakeholders, and the general public to avoid backlash and maintain goodwill. Avoid Political Entanglements: Businesses should steer clear of engaging in political controversies or taking sides on contentious issues unless it directly relates to their core mission or values. Take Responsibility: In times of crisis, company leaders should take responsibility, offer sincere apologies, and communicate transparently with stakeholders to rebuild trust. Learn from Mistakes: Organizations should learn from past mistakes and adapt their strategies to prevent similar crises in the future. Understand Consumer Reactions: Companies should put themselves in the shoes of their customers and consider how they would react to decisions or statements, ensuring alignment with company values and interests. Chapter 19 Internal Crisis Communications The chapter discusses the importance of internal crisis communications, emphasizing the value of treating employees as key allies during a crisis. It recounts an experience with a multinational consumer products company where the authors were hired to develop a comprehensive crisis management and communications program. Initial resistance from senior management about interviewing employees was overcome, revealing critical insights about potential crises and employee sentiments. These insights included employees' unique awareness of industry dynamics and competitor actions, which senior management was unaware of. The chapter stresses the importance of open communication with employees, ensuring they are among the first to know important company news to prevent rumors and misinformation. It advocates for equipping employees with facts and clear information to help them communicate accurately about the company's situation. The chapter also highlights a case with Avery Dennison, where proactive communication with employees played a crucial role in managing the fallout from a case of economic espionage. Overall, the chapter argues for the inclusion of employees in crisis communication strategies, highlighting the benefits of keeping employees informed and engaged as a proactive measure against potential crises. Key Takeaways: Employees as Critical Observers: Employees often have unique insights into potential crises and competitor actions that senior management might not be aware of, making their perspective invaluable in crisis prevention and management. Importance of Open Communication: Keeping employees in the loop with honest and timely information is crucial. They should learn about significant developments directly from the company, not through external sources.
Employees as Allies: Engaging employees as part of the crisis communication strategy can turn them into allies. This involves equipping them with accurate information and clear facts to counter rumors and misinformation effectively. Preemptive Communication Strategy: In the case of Avery Dennison, a well-coordinated communication effort ensured that employees worldwide were informed about a significant crisis (economic espionage) simultaneously with the public release of information, demonstrating the effectiveness of a proactive and inclusive communication approach. Rallying Employee Support: Proactively embracing employees as visible and vocal allies before any crisis ensures their support when it matters most. This approach not only helps in managing the crisis more effectively but also in maintaining the company's reputation.
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