An Introduction to The New Crisis Communications

Hang Seng Management College | November 2015
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CRISIS An introduction
COMMUNICATIONS

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© CPC & Associates 2015. All rights reserved 2

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Types of negative situations
INCIDENT CRISIS
PROBLEM ISSUE
-SEVERITY+
- LONGEVITY +
© CPC & Associates 2015. All rights reserved

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INCIDENT CRISIS
PROBLEM ISSUE
Corruption @ FIFA

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INCIDENT CRISIS
PROBLEM ISSUE
HKU Vice Chancellor elections

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EU immigration
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“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.”
• 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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Crisis definition
Source: Steven Fink© CPC & Associates 2015. All rights reserved

• Political pressure
• Regulatory changes
• Religious/cultural/political
controversies
• Societal outrage
• Cyber attacks
• Health scares
• Hostile takeover bids
• Natural disasters
• Political unrest
• Sabotage & extortion
• Corporate/strategic failure
• Corporate governance failure
• Fraud/malpractice
• Poor employee behaviour
• CEO dismissal
• Employee injuries/death
• Industrial disputes
• IT system failures
• Product quality recalls
EXTERNALINTERNAL
ISSUE-LED INCIDENT-LED
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Traditional threats

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Institutions are not trusted
Source: Edelman Trust Barometer 2014

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

• IT security/confidentiality
– Hacking
• Privacy
• Activism
– Traditionally: campaign groups, local communities, investors
– Now also customers and employees
• Expectations of good behavior, transparency & openness
• Greater accountability to more stakeholders
• Improved stakeholder rights
– Consumers
– Whistleblowers
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Some new threats…

The role of social media
The internet and social media
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• Triggers
• Amplifies
• Sustains
INCIDENT CRISIS
PROBLEM ISSUE

• Can strike from anywhere
– More complex issues
– More short, sharp shocks
– More total unknowns
• Harder to manage
– 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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The reality of crises today

Mitigate
Prepare
Respond
Recover
14© CPC & Associates 2015. All rights reserved
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Crisis management framework

1. Control the agenda
2. Fix the problem
3. Adopt the lessons
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Three key crisis response principles

1. Quickly acknowledge the problem
2. Be as honest as possible
3. Be sincere
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Three key crisis communications principles

• 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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Tech/data provide opportunities to:

• 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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Easier said than done!

I. Malaysia Airlines MH370
II. MTR Corporation stray dog
Two recent crises
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I
MALAYSIA AIRLINES
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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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MH370 crisis timeline – March 2014

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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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Key first response messages

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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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Classic holding statement phrases

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CONCERN
For those affected
COMMITMENT
To help however
possible
CONTROL
At the most
senior level
CONFIDENCE
But not arrogance
COMPETENCE
In how to handle the
crisis
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5Cs of crisis messaging

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The press conference

II
MTR stray dog
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1. Quickly acknowledge the problem
2. Control the agenda
3. Be as honest as possible
4. Be sincere
5. Fix the problem
6. Adopt the lessons
6 tips for responding to crises
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Questions
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An Introduction to The New Crisis Communications

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