2. CRISIS
A crisis can be defined as any unplanned event,
occurrence or sequence of events that has undesirable
consequence.
A crisis is a change – either sudden or evolving – that
results in an urgent problem that must be addressed
immediately.
A major crisis can affect the entire organization and, in
some cases can lead to its collapse.
We must act quickly to recognize its root causes,
contain it, and eventually resolve the crisis with the least
amount of damage.
3. Understanding Crisis
Crisis can affect all segments of society – businesses,
hospitals, educational institutions, families, and are
caused by a wide range of reasons.
The definitions can vary greatly, three elements are
common to most definitions of crisis:
1. threat
2. surprise, &
3. short decision time.
4. Crisis - common features
• Time is short
• Decisions are required urgently
• Specific threats are identified
• Urgent demands for information are received
• There is sense of loss of control
• Pressures build over time
• Demands are made to identify someone to blame
• Reputation suffers
• Communications are increasingly difficult to manage
5. CRISIS MANAGENENT
Crisis Management consists of skills and techniques
required to assess, understand, and cope with any serious
situation.
With effective Crisis Management, we can minimize the
impact of potential crisis, avoid altogether – or in some
cases, even benefit from a crisis.”
6. Crisis Management
Objectives
1) Reducing tension during the incident
2) Demonstrating commitment & expertise
3) Controlling flow & accuracy of information
4) Managing resources effectively
7. TYPES OF CRISIS
Natural (cataclysmic) events –
uncontrollable natural events, health disasters, earthquakes,
floods, fire, disastrous accidents, environmental pollutions.
Technology breakdowns –
data loss, security breaches, out-of-date equipment.
Economic and market forces –
market swings, investment bubbles.
Business-related crisis – sudden death of a crucial leader,
serious breach of law, vendor fails to deliver critical supplies,
employee stealing from a client.
8. TYPES OF CRISIS
Personal Crisis - events that have special meaning to
individuals and only individual suffers – failing exams,
divorce, being unemployed, etc.
Confrontation Crisis – e.g. disputes.
Acts of Malevolence – e.g. terrorism, kidnapping
Misconduct Crisis - e.g. harassment, corruption, fraud,
false invoicing
Smoldering Crisis - problems or issues that start out
small and could be fixed if someone was paying attention or
recognized the potential for trouble.
e.g. financial crisis in an organization, strike by union etc
10. Stages of Crisis Management
Like most human events, crisis can be described in terms of stages,
or relatively identifiable sequences of events and reactions.
Stages enable planners to monitor risks, progress, target
stakeholders, and take strategic action appropriate to the stage.
Mitroff’s Stages of
Crisis Management Model
Avoiding Preparing to Recognizing Containing Resolving Learning from
crisis manage crisis crisis crisis crisis
crisis
11. 1) Avoiding Crisis
a) Make crisis planning a part of your strategic planning
b) Get together and share ideas – work with colleagues
to analyze your situation
c) Perform a SWOT analysis
d) Narrow your crisis-risk list – focus on the crisis that
would have the worst result, would be most likely to
occur.
12. 2) Preparing to Manage Crisis
Recognize the risks and costs
a) Brainstorm potential crisis. Consider the ‘what-ifs‘.
b) Once you have determined what crises you need to plan for,
consider ways to minimize these risks and the costs for each
risk.
c) Consider everything that could go wrong, in the order of
importance and its costs.
Develop A Crisis Plan
After you have selected a key what-if scenario and analyzed
possible consequences, brainstorm the kinds of decisions that will
have to be made and who should make these decisions.
Also perform a reality check to identify possible unintended &
undesirable side effects.
13. Crisis Management Team
CMT Composition: Membership should be based on
representation, knowledge, and skill.
CMT Responsibilities:
• Coordinate all crisis related activities
• Gathering and reviewing facts of crisis
• Determining crisis response activities
• Allocate resources
• Specifying internal and external communications
• Training staff
• Establishing relationships with stakeholders
• Monitor progress and continuing situation assessment
Ensure that all CMT members are trained
before the crisis occurs
14. CMT - Training
The training of the Crisis Management Team is one of the critical
success factors that must be addressed if an adequate response is to be
achieved.
Principles of Effective Training:
Training Need Assessment:
Contents:
Trainer:
Methods:
Evaluation:
15. Crisis Management
• What happened?
• Were there any deaths or injuries?
What • What is the extent of the damage?
• Is there a danger of future injuries or
media damage?
want to •
•
Why did it happen?
Who or what is responsible?
know in • What is being done about it?
• When will it be over?
a crisis? • Has it happened before?
• Were there any warning signs of the
problem?
16. Media Demands
• Accuracy and simplicity
• Statistics which are explained
• Context of information
• Comments from highest authority
• Both sides of the issue
• Speed, speed and speed
17. YOU’RE IN THE SPOTLIGHT
• In a crisis, everyone watches what you do. Whether you
like it or not, you are in the spotlight.
• The key is getting out in front of the crisis in its first
hours with clear statements, both internally and
externally.
• Accept responsibility and build confidence &
credibility.
18. The Ideal Spokesperson
• Polite & patient
• Well-informed
• Accurate & reliable
• Fluent
• Available
• Trustworthy
19. 3) Recognizing Crisis
Is it a crisis?
Has the event in question caused, or
does it has the potential to cause - Yes No
Injury to any person?
A threat to the health and safety of any person?
A threat to the environment?
A breakdown or a threat to your reputation?
A serious threat to employee’s morale and well-being?
A loss of data?
Serious financial loss?
A legal action against your organization
Interpreting your score: If you answered yes to any of the above
questions, you are probably dealing with an approaching crisis
20. 4) Containing Crisis
“One’s objective should be to get it right, get it quick, get
it out, and get it over.”
- Warren Buffet
1) When a crisis strikes, the first thing you must do is to contain
it.
2) You must make decisions quickly.
3) Be on the scene. Your physical presence is important.
4) Communicate about the crisis quickly – expect rumors and
false information, notify key people (management, general
public, or employees, vendors, government authorities and
clients), and stick to the facts (do not guess or attempt to
cover up).
21. 5) Resolving Crisis
A crisis requires fast, confident decision making. But
how do you make good decisions when events move so
quickly, when things are confusing, and when it is hard
to sort out what’s important.
Managing emotions that accompany a crisis, effective
leader’s role, and taking effective action can help.
22. 6) Learning from Crisis
When you survive a crisis, don’t just try to put it behind you. Rather
take the opportunity to learn from the experience and make changes
to avoid or prepare for another similar event.
Review how the crisis was handled .
Ask yourself the following questions:
1. Could we have prevented the crisis? If so how?
2. At what point did we realize we were in crisis? Could we have
recognized the signs earlier?
3. What warning signals went off that we may have ignored?
4. What warning signals did we pay attention to?
5. What did we do right?
6. What could we have done better?
23. Crisis Management
• Publicly promise that to the best of organization's
ability similar situations will never occur
• Go beyond community`s and victim`s expectations.
• Adverse situations managed quickly cost far less and
are controversial for much shorter periods of time.
Prepare Contingency Plans in Advance
24. CRISIS MAY BE YOUR
DEFINING MOMENT
• The crisis you are facing, or inevitably will face, may be
the defining moment in your professional life.
• Leaders who don’t take advantage of crises to make
long-term changes not only waste opportunities but sow
the seeds for a repeat experience
• Do your best and leave the rest to ALLAH
