Role of Communication in Crises
"In crisis management, the threat is the potential damage a crisis can inflict on an organization, its stakeholders, and an industry. A crisis can create three related threats: a) public safety; b) financial loss; and c) reputation loss" (Coombs, 2007).
Good quality communication is among the most vital components of any good organization -- at any moment, in good or bad times. But during a crisis, good communication becomes even more pivotal to helping solve urgent problems. Without a well-thought-out, professional understanding of the media and how its coverage of the crisis will unfold, the company is at the mercy of a potentially harmful and very negative image. This paper delves into the importance of good communication management in times of crisis and offers an analysis that any company should pay attention to well before any crisis happens.
The Literature on Communication in Times of Crisis
A majority of corporations -- even though they know they are more vulnerable to "crises than they were in the past" -- still are "reluctant to adopt integrated crisis-management plans" (Gonzalez-Herrero, 1995). The authors of this article present a classic case of how a corporation did not handle the media response to a crisis. The incident happened in 1992, when an 81-year-old McDonald's customer suffered third-degree burns after spilling a cup of very hot McDonald's coffee. She was awarded $2.9 million by a jury albeit a judge later reduced that amount to $640,000.
Why did McDonald's not take steps earlier to avoid this embarrassing and expensive bit of publicity. In fact, the authors report, in the previous ten years prior to the third-degree burn incident (which also burned the woman's groin area) there had been "700 complaints of coffee burns ranging from mile to third degree" -- and in fact McDonald's had already settled claims from customers that had been scalded (Gonzalez-Herrero, 25). One has to wonder, why didn't McDonald's, much earlier on, turn down the temperature of the coffee?
"McDonald's knew that its coffee was among the hottest -- if not the hottest -- in the industry," Gonzalez-Herrero explains on page 26. And McDonald's also was fully aware that the extraordinarily hot temperature of its coffee "…sometimes caused serious burns" but even knowing that, the corporation did not "consult experts about the issue," Gonzalez-Herrero continues (26).
Given that crises like the one that hit McDonald's could happen to any corporation, the authors have developed a "Four-Phase Model" that breaks down exactly what the crisis management process should look like. Under the first phase, "issues management," the company must: a) scan the environment "for public trends" that may affect the crisis and the media coverage of it; b) "collect data on potentially troublesome issues and evaluate them"; and c) develop a "communications strategy and concentrate its efforts" on the prevention of further crises (Gonzalez-Herrero, 26-27).
The second phase, "planning and prevention" (which actually seems like it might be better served as the first phase), includes these bullet points: a) be proactive on the issue; b) "reanalyze" links with its constituencies; c) have a contingency plan; d) assign members of the company to a "crisis-management team"; e) identify the person to handle public relations and "determine the message, target, and media outlets" to be used; f) understand the dimensions of the issue and how much control the company has in this matter; g) develop a crisis plan of action (Gonzalez-Herrero, 28).
The third phase involves the actual crisis, and the authors recommend: a) the company should evaluate its response; b) try to "pre-empt negative publicity"; c) target the message to "appropriate audiences" (Gonzalez-Herrero, 29). The fourth phase ("post crisis") includes: a) paying attention to "multiple publics"; b) inform the media on a continuing basis and evaluate how well the crisis plan worked; c) use feedback to upgrade crisis plan; and d) develop a "long-term communications strategy to reduce the damages caused by the crisis" (Gonzalez-Herrero, 29). These phases, while important, are not in the order they should be, given the corporate realities and a media hungry for controversy of 2011. The second phase should actually be the first, and companies should be planning well ahead for potential crises, and have their plans well established and staff trained to manage the crisis before it happens.
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