Crisis Management 2.0 - MEPI Alumni Chapter Algeria

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Information about Crisis Management 2.0 - MEPI Alumni Chapter Algeria

Published on March 15, 2016

Author: themagnifico



2. INTRO As a company in a the local market, whether you’re a startup, a large company, a group of companies or even a multinational business, you are always facing threats of crises. It is certainly not something you can avoid, yet it most certainly is something you have to deal with. A crisis is not something in your hand that you can control or predict, it depends on totally independent and external factors. Dealing with a crisis is called « Crisis Management »

3. DEFINITION A crisis can be defined as: “A state of affairs in a business wherein the leadership (owner, CEO, or Board of Directors) must take urgent and unprecedented action to try to save the business from failure—with the distinct possibility of a highly undesirable outcome.” In a time of crisis, conventional management practices are inadequate and ways of responding usually insufficient. FACT: A CRISIS ISN’T ONLY A NEGATIVE STATE, SOMETIMES WHEN THINGS ARE TOO POSITIVE, THEY CAN CAUSE A CRISIS.

4. EXAMPLES OF CRISES Johnson&Johnson’s • 1982 • 31 Million bottles recalled • $1M worth • $100.000 offered as reward Bridgestone • 1998/2000 • 200 deaths • $6,5M worth of tires recalled JetBlue • 2007 • 1000 blocked passengers for 11 hours

5. EXAMPLES OF CRISES Djezzy • 2009 • Many destroyed outlets • General boycott • ??? Toyota • 2010 • 8,8 million cars recalled • 19 deaths • 1,2 billion dollars fee

6. RECENT CRISES (ALGERIAN BRANDS) •The “Meuh” Contest Loya •The “Divorce” Commercial N’Gous

7. TYPES OF CRISES Flash Fire  Minor crisis  Easy to manage  Short  Does not need crisis cell  Does not need high leadership interventions Rolling Disaster  Major crisis  May ruin the company’s reputation  May cause financial losses  Hard to manage  May last for years  Needs dedicated crisis management cell  Needs highest leadership interventions, strategic level

8. TYPES OF CRISES THE ALLAH GHALEB CRISIS  Does not depend on you  Caused by lack of awareness  Almost impossible to manage  Happens only in 3rd World countries  You pay someone else’s due  You pray that it will end up alright

9. MANAGING THE CRISIS Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. Crisis management is a whole process, a plan, a strategy even. Whether it’s a Flash Fire or a Rolling Disaster, an angry #hashtag or Ddos hack, it has to go through a chain of actions to be monitored, managed and eventually overcome. Crisis management is a 3 phases cycle, no matter how big is the company, it’s always the same: Pre-crisis • Preparation Crisis • Reaction Post-Crisis • Analysis

10. PHASE I: PRE-CRISIS  Be prepared for the crisis  It can happen to anyone, you can not predict it  Create an emergency cell  Only deployed when needed (internal, not recruits)  Create a team ready for response  People who can react fast, social media ninjas  Train the emergency team  Crisis simulations, trainings  Create an internal communication plan  Eveyone is potential spokesperson, employees must be aware  Create response templates  Quickly editable templates that can work for most cases  Set the emergency calls priority  Who to call when a management/leadership decision or statement is needed  Have an eye on what’s happening  Follow your brand e-reputation and make reports  Prevent crises from happening  Expect what may happen, communicate to stop it

11. PHASE II: CRISIS  Be aware of what is happening  Do not react until you understand  React as fast as you can  The longer you take, the worse it becomes  Deploy the crisis cell  Ninjas with Katanas (A team with fast fingers)  Respond on the network where it started  Go to the source  Communicate on all other social media  Cover as much ground as you can, do not neglect any of the social network  Put everything on hold  Postpone your editorial calendar  Issue an official statement (or press release)  Acknowledge your awareness and explain your position regarding the crisis  IF YOU ARE WRONG: APOLOGIZE  Blame only yourself, the customer is your master, especially in a crisis time  Make sure you spell your words right  Every single letter is important, if your statement doesn’t your company, it will burn it to ashes  Communicate only enough, do not overreact  A simple effective response is better than a

12. PHASE III: POST-CRISIS  Collect DATA, it’s IMPERATIVE  Go beyond the crisis, get all the details  Analyze DATA  The only way to prevent it from happening again is to understand how it really happened  Use the analysis outcome to change/reverse/eliminate what caused the crisis  You don’t want it to happen again, because if it does it’s your end !  Keep communicating  The crisis is never over until another trend comes up  Keep following your brand  The crisis can come back anytime, an angry customer can bring it back to life  Give your team some time to relax  People are … You guessed it … “HUMANS”, give them a day off to chill and forget about the stress

13. APPLICATION: LET’S TRY IT ! General manager Communication Manager Community Manager Public relations Manager  General Manager  Manages Everything  Responsible for everything  Public Relations Manager  Manages external relations with Media  Communication Manager  Manages cross-channels communication  Community Manager  Manages social media

14. CASE STUDY: GOOD FOOD CO.  TIMELINE OF EVENTS  Distribution sends out 2,000,000 Bags of Chips into the market (Produced on March 8th 2016) and expire 3 months later (Net worth: 20,000,000 DZD)  A mother buys 5 bags of chips for her children on March 14th, and finds insects in two of them,  The mother goes and complains to the retail store about them, and keeps the open bags,  The mother’s brother is a social media addict, web influencer, takes a picture and tweets it  « @GoodFoodCo are you sure about the « #Good » part of your name ? #Insects #InfestedFood #Algeria »  The brother has 3856 Followers on twitter, 30% are daily active users  Tweet gets retweeted 29 times,  1,2,3 Viva l’Algérie facebook page screenshoots it and posts it,  Your Twitter and Facebook pages are now officially a comments dumpster,  The general manager is on a vacation, and he leaves the Marketing Manager as Acting General Manager  LADIES AND GENTLEMEN: WE HAVE A CRISIS !


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