Crisis Management in Public Relations - Bolaji Okusaga

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CRISIS MANAGEMENT IN CRISIS MANAGEMENT IN PUBLIC RELATIONS PRACTICE PUBLIC RELATIONS PRACTICE By By Bolaji Okusaga Bolaji Okusaga Managing Director, Managing Director, The Quadrant Company The Quadrant Company The Oil Industry Experience

description

Nothing tests organisational capacity as crisis. Great companies have either risen or fallen based on the way they managed crisis. The BP oil spill on the Gulf of Mexico and the Shell Ogoni Affair are classic examples.

Transcript of Crisis Management in Public Relations - Bolaji Okusaga

Page 1: Crisis Management in Public Relations - Bolaji Okusaga

CRISIS MANAGEMENT IN PUBLIC CRISIS MANAGEMENT IN PUBLIC RELATIONS PRACTICERELATIONS PRACTICE

ByByBolaji OkusagaBolaji Okusaga

Managing Director, Managing Director, The Quadrant CompanyThe Quadrant Company

ByByBolaji OkusagaBolaji Okusaga

Managing Director, Managing Director, The Quadrant CompanyThe Quadrant Company

The Oil Industry Experience

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Outline 1Outline 1PART 1: Corporate Objective and Stakeholder PART 1: Corporate Objective and Stakeholder

ManagementManagement• What is Corporate Objective?What is Corporate Objective?• Corporate Objective and Sustainability PrinciplesCorporate Objective and Sustainability Principles• Outcomes of a Sound Corporate ObjectiveOutcomes of a Sound Corporate Objective• Identifying StakeholdersIdentifying Stakeholders• Demands of Stakeholder EngagementDemands of Stakeholder Engagement• Types of StakeholderTypes of Stakeholder• Understanding Stakeholder DynamicsUnderstanding Stakeholder Dynamics• Public Relations in Organisation/Stakeholder DialoguePublic Relations in Organisation/Stakeholder Dialogue• Stakeholder ManagementStakeholder Management• Expectation from RelationshipsExpectation from Relationships

PART 2: Agitations from Oil-Producing Communities and PART 2: Agitations from Oil-Producing Communities and the Oil Industry Realitythe Oil Industry Reality

• Historical ContextHistorical Context• Background of the ProblemBackground of the Problem• Nature of the ProblemNature of the Problem• Fall-outs from the ProblemFall-outs from the Problem

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Outline 2Outline 2• PART 3: Public Relation Challenges: The PART 3: Public Relation Challenges: The

Shell/Ogoni Affair as a Case-StudyShell/Ogoni Affair as a Case-Study• PR and a Changing Business LandscapePR and a Changing Business Landscape• PR as an AdvocatePR as an Advocate• An Advocate for Good or Bad?An Advocate for Good or Bad?

• PART 4:– Crisis Management: The Shell/Ogoni PART 4:– Crisis Management: The Shell/Ogoni Affair as a Case-StudyAffair as a Case-Study

• What Constitutes a Crisis?What Constitutes a Crisis?• Dimensions of a CrisisDimensions of a Crisis• Types of CrisesTypes of Crises• What is Crisis ManagementWhat is Crisis Management• When things go wrongWhen things go wrong• Crisis PlanningCrisis Planning• PR and Crisis ManagementPR and Crisis Management• What is Crisis Communication?What is Crisis Communication?• Shells MistakeShells Mistake• What Shell Should Have DoneWhat Shell Should Have Done• Lessons LearnedLessons Learned

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PART 1: PART 1: Corporate Objective and Corporate Objective and Stakeholder ManagementStakeholder Management

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What is What is Corporate Corporate Objective?Objective?

• Corporate Objective articulates a Company’s manner Corporate Objective articulates a Company’s manner of doing business and the kind of relationships it of doing business and the kind of relationships it need to create with its Stakeholders to deliver on its need to create with its Stakeholders to deliver on its purpose.purpose.

• These objectives are summarized in the These objectives are summarized in the organisation’s mission, vision and culture and help organisation’s mission, vision and culture and help set the tone for interactions with its Stakeholders.set the tone for interactions with its Stakeholders.

• Corporate Objective asks the questions: What is the Corporate Objective asks the questions: What is the purpose of our organisation? What value do we purpose of our organisation? What value do we intend to create? What kind of ideals bind our intend to create? What kind of ideals bind our stakeholders together?stakeholders together?

• By answering these questions, Corporate By answering these questions, Corporate organisations are able to differentiate, plan, execute organisations are able to differentiate, plan, execute and deliver exceptional performance.and deliver exceptional performance.

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Corporate Objective &Corporate Objective &Sustainability PrinciplesSustainability Principles

Principles Principles Components Components

Technology Technology The creation, production and delivery of products and The creation, production and delivery of products and services...based on innovative technology and services...based on innovative technology and organization that use financial, natural and social organization that use financial, natural and social resources in an efficient, effective and economic manner resources in an efficient, effective and economic manner over the long-term over the long-term

Governance Governance Companies should operate based on the highest standards Companies should operate based on the highest standards of corporate governance including management of corporate governance including management responsibility, organizational capacity, corporate culture responsibility, organizational capacity, corporate culture and stakeholder relations and stakeholder relations

Shareholders Shareholders Shareholders' demands should be met by sound financial Shareholders' demands should be met by sound financial returns, long-term economic growth, long-term returns, long-term economic growth, long-term productivity increases, sharpened global competitiveness productivity increases, sharpened global competitiveness and contributions to intellectual capital and contributions to intellectual capital

Industry Industry Companies should lead their industry's shift towards Companies should lead their industry's shift towards sustainability by demonstrating their commitment and sustainability by demonstrating their commitment and publicizing their superior performance publicizing their superior performance

Society Society Companies should encourage lasting social well being by Companies should encourage lasting social well being by their appropriate and timely responses to rapid social their appropriate and timely responses to rapid social change, evolving demographics, migratory flows. Shifting change, evolving demographics, migratory flows. Shifting cultural patterns and the need for life-long learning and cultural patterns and the need for life-long learning and continuing education continuing education Source: Source: World Commission

on Environment and Development

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Outcomes of a Outcomes of a Sound Corporate Sound Corporate ObjectiveObjective

• Growth in Market Share Growth in Market Share

• Market LeadershipMarket Leadership

• Impressive Turn-overImpressive Turn-over

• Good Operating MarginGood Operating Margin

• Huge Gross ProfitHuge Gross Profit

• Increase in Market Capitalisation Increase in Market Capitalisation

• Stock Price Commands PremiumStock Price Commands Premium

• Absence of Crisis borne out of a healthy Operating Absence of Crisis borne out of a healthy Operating Environment Environment --

*** *** (This is the most important role of PR in (This is the most important role of PR in furtherance of a Company’s Corporate furtherance of a Company’s Corporate Objective)Objective)

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Identifying Identifying StakeholdersStakeholders

Anyone on the StreetAnyone on the Street

InfluencersInfluencers

Core TargetCore Target

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Demands of Demands of Stakeholder Stakeholder EngagementEngagement

• Every organisation relates with different publics - Every organisation relates with different publics - from the Shareholders, Staff, Customers, Industrial from the Shareholders, Staff, Customers, Industrial Unions, Government and Regulatory Bodies, Unions, Government and Regulatory Bodies, Counter-parties, the Press to the local community. Counter-parties, the Press to the local community.

• These stakeholders are different in terms of their These stakeholders are different in terms of their interests and expectations.interests and expectations.

• Organisation therefore need a deep-seated Organisation therefore need a deep-seated understanding of these interests and expectations understanding of these interests and expectations to maintain a dialogue, enhance relationships and to maintain a dialogue, enhance relationships and retain its goodwill among its stakeholders.retain its goodwill among its stakeholders.

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Types StakeholdersTypes Stakeholders• Advocate stakeholdersAdvocate stakeholders - - active and supportive. active and supportive.

should be approached with action-oriented messages should be approached with action-oriented messages and engaged in third-party endorsements.and engaged in third-party endorsements.

• Dormant stakeholdersDormant stakeholders - ready to be involved. - ready to be involved. Messages should focus on creating awareness and Messages should focus on creating awareness and understanding of issues, or on reducing barriers to understanding of issues, or on reducing barriers to action and increasing emotional attachment to the action and increasing emotional attachment to the issue. issue.

• Adversarial stakeholdersAdversarial stakeholders - don't respond to - don't respond to defensive messages, which actually can cause these defensive messages, which actually can cause these opponents to dig in deeper. Conflict resolution opponents to dig in deeper. Conflict resolution strategies that seek win-win solutions work better. strategies that seek win-win solutions work better.

• Apathetic stakeholdersApathetic stakeholders – should not be ignored, – should not be ignored, even though that is often management's style. A even though that is often management's style. A better strategy is to increase awareness of the issue better strategy is to increase awareness of the issue with an invitation to collaborate before the issue with an invitation to collaborate before the issue morphs into a crisis. morphs into a crisis. Source: Source: Brad Rawlins, Brad Rawlins,

Brigham Young Brigham Young UniversityUniversity

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Understanding Understanding Stakeholder DynamicsStakeholder Dynamics

Dormant Dormant

StakeholdersStakeholders Apathetic Apathetic

StakeholdersStakeholders

Advocate Advocate

StakeholdersStakeholdersAdversarial Adversarial StakeholdersStakeholders

INACTIVEINACTIVE

ACTIVEACTIVE

NON-SUPPORTIVENON-SUPPORTIVE SUPPORTIVESUPPORTIVE

Source: Source: Brad Rawlins, Brad Rawlins, Brigham Young Brigham Young UniversityUniversity

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Public Relations in Public Relations in Organisation/Stakeholder Organisation/Stakeholder DialogueDialogue

• Public Relations is the art and science of building relationships.Public Relations is the art and science of building relationships.

• Public Relations engenders purposeful communications Public Relations engenders purposeful communications between an organisation and its publics, it is proactive and between an organisation and its publics, it is proactive and future orientated, and has the goal of building and maintaining future orientated, and has the goal of building and maintaining a positive perception of an organisation in the mind of its a positive perception of an organisation in the mind of its publics. publics.

• In the dialogue between Organisations and their stakeholders, In the dialogue between Organisations and their stakeholders, the following branches of Public Relations suffice:the following branches of Public Relations suffice:

• Employee / Labour RelationsEmployee / Labour Relations• Customer RelationsCustomer Relations• Investor RelationsInvestor Relations• Media RelationsMedia Relations• Government RelationsGovernment Relations• Community RelationsCommunity Relations• Reputation ManagementReputation Management• Issues ManagementIssues Management• Crisis ManagementCrisis Management

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POTENTIALPOTENTIAL EMPLOYEESEMPLOYEES

EMPLOYEESEMPLOYEES

DISTRIBUTION / CHANNEL DISTRIBUTION / CHANNEL PARTNERSPARTNERS

MAJOR MAJOR CUSTOMERSCUSTOMERS

REGULATORSREGULATORS

FINANCIAL ANALYST / BUSINESS PRESSFINANCIAL ANALYST / BUSINESS PRESS

BUSINESS LEADERSBUSINESS LEADERS

COMMUNITIES / PRESSURE GROUPSCOMMUNITIES / PRESSURE GROUPS

PORTFOLIO MANAGERS / INVESTORSPORTFOLIO MANAGERS / INVESTORS

CONSUMERSCONSUMERS

PATH

OF

REF

EREN

CE

PATH

OF

REF

EREN

CE

PA

TH O

F INFLU

EN

CE

PA

TH O

F INFLU

EN

CE

Stakeholder ManagementStakeholder Management

Source: Regis McKennaSource: Regis McKenna

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Expectation from Expectation from RelationshipsRelationships

• EMPLOYEES / POTENTIAL EMPLOYEES / POTENTIAL EMPLOYEESEMPLOYEES

• CUSTOMERSCUSTOMERS

• DISTRIBUTION / CHANNEL DISTRIBUTION / CHANNEL PARTNERSPARTNERS

• REGULATORSREGULATORS

• COMMUNITIESCOMMUNITIES

Career Opportunities,Career Opportunities,CompetitiveCompetitiveRemuneration, Remuneration, Good ManagementGood Management

Trustworthy, Good/SuccessfulTrustworthy, Good/SuccessfulProductsProducts

Attract Customers, Make SalesAttract Customers, Make Sales

Ethical, CompliantEthical, Compliant

Philanthropy, Good CorporatePhilanthropy, Good CorporateCitizenshipCitizenship

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PART 2: PART 2: Agitations from Oil-Producing Agitations from Oil-Producing Communities and the Oil Industry Communities and the Oil Industry RealityReality

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Historical ContextHistorical Context• Oil was first discovered in Nigeria in 1958 at Oloibiri in the Oil was first discovered in Nigeria in 1958 at Oloibiri in the

present day Bayelsa State.present day Bayelsa State.

• Nigeria gained Independence in 1960 and with Nigeria gained Independence in 1960 and with Independence came the active rivalry of the Regions and Independence came the active rivalry of the Regions and political actors leading to political turmoil and political actors leading to political turmoil and subsequently, a Coup’dtat.subsequently, a Coup’dtat.

• With the Coup came Military rule followed by the With the Coup came Military rule followed by the declaration of a Civil war.declaration of a Civil war.

• At the end of the war, an era of active prospecting began At the end of the war, an era of active prospecting began leading to the Oil boom of the 1970’s. leading to the Oil boom of the 1970’s.

• With the Oil boom came prosperity and the development With the Oil boom came prosperity and the development of mega-cities such as Lagos, Port-Harcourt and Abuja.of mega-cities such as Lagos, Port-Harcourt and Abuja.

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Background of Background of the Problemthe Problem

• With the discovery of Oil, came the licensing of Multi-With the discovery of Oil, came the licensing of Multi-National Oil Corporations, the allocation of On and Off-National Oil Corporations, the allocation of On and Off-Shore Oil Blocks and a Joint Venture Partnership Shore Oil Blocks and a Joint Venture Partnership Agreement which spells out a revenue sharing ratio Agreement which spells out a revenue sharing ratio without a sound legislative platform which looks at without a sound legislative platform which looks at environmental pollution, community relations and environmental pollution, community relations and business continuity.business continuity.

• Oil was dubbed the Oil was dubbed the Black-GoldBlack-Gold and with this gold came and with this gold came the Udoji Salary award which created a bogus the Udoji Salary award which created a bogus bureaucracy and led to an era of crass-materialism and bureaucracy and led to an era of crass-materialism and corruption.corruption.

• While all these were going on, trouble was brewing in the While all these were going on, trouble was brewing in the Niger-Delta… Niger-Delta…

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Nature of the Nature of the ProblemProblem

Environmental Environmental Pollution Pollution

Community RelationsCommunity Relations

Business ContinuityBusiness Continuity

OilOil exploration activities led to the flaring exploration activities led to the flaring of dangerous gases unchecked and Oil of dangerous gases unchecked and Oil spills which led to the pollution of farm-spills which led to the pollution of farm-lands and water-ways, which affected lands and water-ways, which affected the People’s source of livelihood.the People’s source of livelihood.

There There was a dearth of Community was a dearth of Community Relations in the local community where Relations in the local community where these Oil Companies operated as they these Oil Companies operated as they restricted their activities to mega cities restricted their activities to mega cities such as Lagos and Port-Harcourt where such as Lagos and Port-Harcourt where they had Corporate Offices and carried they had Corporate Offices and carried on purely technical services in their on purely technical services in their host communities while honouring their host communities while honouring their joint venture agreements and paying joint venture agreements and paying their taxes to the authorities as at their taxes to the authorities as at when duewhen due

GovernmentGovernment, more or less, abandoned , more or less, abandoned the oil producing communities as Oil the oil producing communities as Oil was placed on the Exclusive legislative was placed on the Exclusive legislative list with very little allocation made in list with very little allocation made in honour of the principle of derivation. honour of the principle of derivation. The down-stream sector was The down-stream sector was undeveloped as Government paid lip-undeveloped as Government paid lip-service to private-sector led service to private-sector led development of refineries and petro-development of refineries and petro-chemical plants which would have chemical plants which would have generated more employment and help generated more employment and help reduce tension.reduce tension.

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Fall-Outs from Fall-Outs from the Problemthe Problem

Isaac Adaka Boro’s Isaac Adaka Boro’s Peoples Liberation Peoples Liberation ArmyArmy

Ken Saro-Wiwa’s Ken Saro-Wiwa’s Movement for the Movement for the Survival of Ogoni Survival of Ogoni PeoplePeople

Ansari Dokubo’s Niger Ansari Dokubo’s Niger Delta Liberation FrontDelta Liberation Front

A failed cessationA failed cessation bid bid in the in the late sixties. This was an early late sixties. This was an early warning signalwarning signal

An Anti-Environmental An Anti-Environmental Degradation movementDegradation movement which got to the attention of which got to the attention of the world, led to the the world, led to the withdrawal of Shell from withdrawal of Shell from Ogoni Land in 1993 and Ogoni Land in 1993 and eventually caused the death eventually caused the death of the protagonist of the protagonist

A militant Resource Control A militant Resource Control MovementMovement which started which started after Government’s after Government’s bombardment of Odi and has bombardment of Odi and has crystallized into an organised crystallized into an organised movement which regularly movement which regularly captures and holds expatriate captures and holds expatriate oil workers hostageoil workers hostage

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PART 3:PART 3: Public Relations Challenges:Public Relations Challenges: The Shell/Ogoni Affair The Shell/Ogoni Affair as a Case-Studyas a Case-Study

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PR and a Changing PR and a Changing Business Landscape Business Landscape

• One of the most fascinating crisis management case One of the most fascinating crisis management case studies is the Shell-Ogoni affair.studies is the Shell-Ogoni affair.

• This affair led to the emergence of "PR ploy," "PR This affair led to the emergence of "PR ploy," "PR maneuver" and "PR effort" - the demeaning labels used to maneuver" and "PR effort" - the demeaning labels used to describe the way the situation was handled, as it tested the describe the way the situation was handled, as it tested the Crisis Management frame-work of a big Trans-national Crisis Management frame-work of a big Trans-national Corporation like Shell.Corporation like Shell.

• In order to ride the challenges occasioned by the rapidly In order to ride the challenges occasioned by the rapidly changing operating environment,changing operating environment, Shell initially had Shell initially had uncoordinated approaches to dealing with issues arising uncoordinated approaches to dealing with issues arising from the activities of Human Rights / Green Movements from the activities of Human Rights / Green Movements around the world.around the world.

• This was largely due to the fact that the operating This was largely due to the fact that the operating environment was unexpectedly distorted by the Ogoni affair environment was unexpectedly distorted by the Ogoni affair and in the absence of a structure to deal with it, Shell’s and in the absence of a structure to deal with it, Shell’s image continued to dip with the unrelenting degeneration image continued to dip with the unrelenting degeneration of relations with its host communities and the boycott of its of relations with its host communities and the boycott of its products and services across the globe. products and services across the globe.

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PR as an AdvocatePR as an Advocate

• At the height of the Crisis, the PR professionals At the height of the Crisis, the PR professionals working for Shell became Propagandists, taking working for Shell became Propagandists, taking controversial positions on issues of Human Rights, controversial positions on issues of Human Rights, Environmental Pollution and Resource Control, Environmental Pollution and Resource Control, which were essentially the factors responsible for which were essentially the factors responsible for the Crisis.the Crisis.

• But you know what? They had every right to do so. But you know what? They had every right to do so. After-all, Public Relations is an advocacy After-all, Public Relations is an advocacy profession. profession.

• The objective of every PR activity is to influence The objective of every PR activity is to influence public opinion. public opinion.

• The ultimate goal is to get people to take positive The ultimate goal is to get people to take positive action on behalf of client, organization or cause. action on behalf of client, organization or cause. And that in itself is controversial.And that in itself is controversial.

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An Advocate for An Advocate for Good or Bad?Good or Bad?

• PR holds a powerful position and because of this power, PR PR holds a powerful position and because of this power, PR activities are often called to question by the public, the activities are often called to question by the public, the Shell/Ogoni Affair tested PR’s power on the following issues: Shell/Ogoni Affair tested PR’s power on the following issues:

– Misleading InformationMisleading Information:: There were allegations by MOSOP, There were allegations by MOSOP, Amnesty International and a host of Green movements that Shell Amnesty International and a host of Green movements that Shell was peddling false or incorrect information designed to lead policy-was peddling false or incorrect information designed to lead policy-makers, consumers and interested Public astray. makers, consumers and interested Public astray.

– Influence of Policies and Government’s ActionInfluence of Policies and Government’s Action:: Where Where Shell had the ear of Policy-makers, how Shell exerted its PR power Shell had the ear of Policy-makers, how Shell exerted its PR power became a cause for concern.became a cause for concern.

– DiscriminationDiscrimination:: It was alleged that Shell had discriminated It was alleged that Shell had discriminated against their host Communities in their employment policy.against their host Communities in their employment policy.

– DestructionDestruction:: It was also claimed that Shell deployed PR to soften It was also claimed that Shell deployed PR to soften its destruction of the Environment and aquatic life in the its destruction of the Environment and aquatic life in the Communities where they operate. Communities where they operate.

– Casualisation and Pay InequitiesCasualisation and Pay Inequities:: Casualisation and Pay Casualisation and Pay inequalities between Expatriates and Nigerians became an issue.inequalities between Expatriates and Nigerians became an issue.

– Gain at Expense of OthersGain at Expense of Others:: It was claimed that Shell was It was claimed that Shell was making money at the expense of the ill-fortunes of their host making money at the expense of the ill-fortunes of their host communities.communities.

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PART 4:PART 4: Crisis Management:Crisis Management: The Shell/Ogoni The Shell/Ogoni Affair Affair as a Case-Study as a Case-Study

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What Constitutes What Constitutes a Crisis?a Crisis?

• A Crisis is a situation that is threatening or could A Crisis is a situation that is threatening or could threaten to harm People or Property, seriously threaten to harm People or Property, seriously interrupt business, damage reputation and / or interrupt business, damage reputation and / or negatively impact organisational value.negatively impact organisational value.

• Crisis create conditions that make it difficult for Crisis create conditions that make it difficult for Managers to make good decisions and Managers to make good decisions and communicate well.communicate well.

• Crises place Organisations experiencing them Crises place Organisations experiencing them in public spotlight and calls management in public spotlight and calls management competence into question.competence into question.

• Crisis impose a need for organisations to Crisis impose a need for organisations to communicate quickly, accurately and skillfully communicate quickly, accurately and skillfully with a number of important groups.with a number of important groups.

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Dimensions of a Dimensions of a CrisisCrisis

• A Crisis usually has several critical dimensions A Crisis usually has several critical dimensions which if poorly handled can disrupt or destroy which if poorly handled can disrupt or destroy best efforts at managing them.best efforts at managing them.

• Failure to respond and communicate in ways Failure to respond and communicate in ways that meet community standards and expectation that meet community standards and expectation will result in a series of negative consequences. will result in a series of negative consequences.

• The following are some of the critical dimensions The following are some of the critical dimensions of a crisis:of a crisis:

- Operations- Operations- Victims- Victims- Trust / Credibility- Trust / Credibility- Behaviour- Behaviour- Professional Expectations- Professional Expectations- Ethics- Ethics- Lessons Learned - Lessons Learned

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Types of CrisesTypes of Crises Financial CrisisFinancial Crisis Short term liquidity or cash flow problems; and Short term liquidity or cash flow problems; and

long long term bankruptcy problems. term bankruptcy problems.

Public Relations CrisisPublic Relations Crisis Negative publicity that could adversely affect the Negative publicity that could adversely affect the

success of a company. success of a company.

Strategic CrisisStrategic Crisis Changes in the business environment that call Changes in the business environment that call

the the viability of the company into question.viability of the company into question.

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What is Crisis What is Crisis Management?Management?

• Crisis Management basically refers to the Crisis Management basically refers to the management of the reality of a crisis.management of the reality of a crisis.

• It involves identifying a crisis, planning a It involves identifying a crisis, planning a response to the crisis and confronting and response to the crisis and confronting and resolving the crisis.resolving the crisis.

• Crisis Management is applicable to any field of Crisis Management is applicable to any field of endeavour. endeavour.

• The theory of crisis management can be divided The theory of crisis management can be divided into into crisis bargainingcrisis bargaining and and negotiation, crisis negotiation, crisis decision makingdecision making, and , and crisis dynamicscrisis dynamics. .

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When Thing Go Wrong When Thing Go Wrong

• At the height of the Crisis generated by the At the height of the Crisis generated by the Shell/Ogoni affair, the following went wrong:Shell/Ogoni affair, the following went wrong:

– Operational response broke down.Operational response broke down.– There were huge losses to Shell based on There were huge losses to Shell based on

reduction in daily production of Crude Oil and reduction in daily production of Crude Oil and colossal damage to Oil wells by the aggrieved colossal damage to Oil wells by the aggrieved Community.Community.

– Stakeholders (both internal and external) did not Stakeholders (both internal and external) did not initially know what was happening and were angry initially know what was happening and were angry and negatively reactive.and negatively reactive.

– Rumours thrived as to the activities of Shell and Rumours thrived as to the activities of Shell and real intensions of the leaders of MOSOP.real intensions of the leaders of MOSOP.

– Shell was perceived as inept and criminally Shell was perceived as inept and criminally negligent. negligent.

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Crisis PlanningCrisis Planning • Crisis Management is usually neglected Crisis Management is usually neglected

by many organisations untill a crisis by many organisations untill a crisis reveals the lack of planning.reveals the lack of planning.

• Crisis Planning thinks of situations that Crisis Planning thinks of situations that might arise to create difficulty for an might arise to create difficulty for an organisation.organisation.

• It involves the rehearsal of various It involves the rehearsal of various scenarios and the mapping of ways in scenarios and the mapping of ways in which to mitigate them rather than which to mitigate them rather than reacting after a Crisis has happened.reacting after a Crisis has happened.

• Public Relations is crucial in Crisis Public Relations is crucial in Crisis Planning.Planning.

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PR and Crisis PR and Crisis ManagementManagement

• Public Relations is an anticipatory practice which Public Relations is an anticipatory practice which attempt to foresee events, trends and issues which attempt to foresee events, trends and issues which may develop to disrupt important relationships.may develop to disrupt important relationships.

• Crisis precipitate a break-down in relationship Crisis precipitate a break-down in relationship because it disrupts the normal flow of interaction because it disrupts the normal flow of interaction between an institution and its stakeholders.between an institution and its stakeholders.

• Since Public Relations manages the expectations of Since Public Relations manages the expectations of the crucial stakeholders of an institution, it is thus the crucial stakeholders of an institution, it is thus a veritable tool in Crisis Management.a veritable tool in Crisis Management.

• The special area in Public Relations which deals The special area in Public Relations which deals with the management of Crisis is with the management of Crisis is Crisis Crisis Communication.Communication.

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What is Crisis What is Crisis CommunicationCommunication?? • Crisis Communication is a methodic process Crisis Communication is a methodic process

through which perception is shaped and through which perception is shaped and positive reactions obtained from crucial positive reactions obtained from crucial parties in an emergency or disaster situation.parties in an emergency or disaster situation.

• Crisis communication can take various forms:Crisis communication can take various forms:

- - Media RelationsMedia Relations- Shareholder Relations- Shareholder Relations- Employee Relations- Employee Relations- Community Relations- Community Relations

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Shell’s Mistakes Shell’s Mistakes 1.1.Shell initially pretended as if nothing was Shell initially pretended as if nothing was

happeninghappening2.2.They reacted to the crisis situation after it had They reacted to the crisis situation after it had

gone public.gone public.3.3.They relied on the goodwill they had built with They relied on the goodwill they had built with

the Government and local Chiefs.the Government and local Chiefs.4.4.They distance themselves from the media.They distance themselves from the media.5.5.They were reactive to the information MOSOP They were reactive to the information MOSOP

was releasing and not proactive.was releasing and not proactive.6.6.Shell spoke above their audience by speaking Shell spoke above their audience by speaking

only with the Policy makers and not the only with the Policy makers and not the aggrieved Community.aggrieved Community.

7.7.They assume that truth always conquer lies.They assume that truth always conquer lies.8.8.They ignore the feelings of their host Community They ignore the feelings of their host Community

and address issues only.and address issues only.9.9.They avoided the crowd and use third parties and They avoided the crowd and use third parties and

written statements only.written statements only.10.10.Shell did the same things again and again and Shell did the same things again and again and

expected positive results. expected positive results.

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What Shell What Shell Should Have DoneShould Have Done

1.1. Build a Crisis Build a Crisis Communication Team.Communication Team.

2.2. Identify Spokespersons.Identify Spokespersons.3.3. Train Spokesperson.Train Spokesperson.4.4. Establish Establish

Communications Communications Protocol.Protocol.

5.5. Identify the most crucial Identify the most crucial Stakeholders.Stakeholders.

6.6. Decide on Decide on Communication methods.Communication methods.

7.7. Anticipate issues likely to Anticipate issues likely to arise from Crisis. arise from Crisis.

8.8. Assess the Crisis situationAssess the Crisis situation9.9. Develop holding Develop holding

statements. statements.

10.10. Identify key messagesIdentify key messages11.11. Deploy strategyDeploy strategy 12.12. Obtain feed-backObtain feed-back13.13. Be open to criticismBe open to criticism14.14. Fine-tune strategy based Fine-tune strategy based

on feed-back and criticismon feed-back and criticism 15.15. Empathise with victims, Empathise with victims,

don’t just focus on the don’t just focus on the issuesissues

16. 16. Where crisis emanated Where crisis emanated from a dispute, be ready to from a dispute, be ready to negotiatenegotiate

17.17. Act to resolve the issues Act to resolve the issues18. 18. Give information on steps Give information on steps

taken to resolve the issuestaken to resolve the issues

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Lessons LearnedLessons LearnedDON’TSDON’TS1.1. Don’t make the media the Don’t make the media the

only means of only means of communicating with your communicating with your crucial publics.crucial publics.

2.2. Don’t direct all your efforts Don’t direct all your efforts at the external targets only.at the external targets only.

3.3. Don’t operate in ignorance of Don’t operate in ignorance of the Law.the Law.

4.4. Don’t say “no comments” if Don’t say “no comments” if you haven’t had a chance to you haven’t had a chance to review the case. review the case.

5.5. Don’t threaten to sue the Don’t threaten to sue the media, it may escalate the media, it may escalate the crisis because most media crisis because most media organisations enjoy being organisations enjoy being sued. It may result in a sued. It may result in a sensational hit for them.sensational hit for them.

6.6. Don’t assume you know how Don’t assume you know how to talk to the media.to talk to the media.

7.7. Don’t depend on others to Don’t depend on others to tell your story.tell your story.

DOSDOS1.1. Communicate directly with Communicate directly with

your most important audience.your most important audience.2.2. Remember that your Remember that your

employees are a critical employees are a critical audience.audience.

3.3. Do integrate Legal and PR Do integrate Legal and PR strategiesstrategies

4.4. Say “I’ll very much like to Say “I’ll very much like to comment but I don’t have the comment but I don’t have the facts yet.” You may also facts yet.” You may also request the inquirer to fax or e-request the inquirer to fax or e-mail the details to you.mail the details to you.

5.5. Seek the understanding of the Seek the understanding of the media by showing empathy media by showing empathy and a willingness to reverse and a willingness to reverse the situation.the situation.

6.6. Get media trained.Get media trained.7.7. Consider becoming you own Consider becoming you own

publisher by posting messages publisher by posting messages on the crisis on your web-site.on the crisis on your web-site.

Page 36: Crisis Management in Public Relations - Bolaji Okusaga

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