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Crisis management (Externally generated crises (Fake news (Crises can also…

- - - - Sometimes, when other organisations are impacted by spillover effect the original organisation may benefit from the dilution of damage to its reputation because the public perceive the matter to be widespread among other companies
- - - - Assess the incident
        Adopt the customers’ point of view rather than the management perspective
      - Acknowledge the problem
        Avoid premature statements related to the cause, focus
        on the process of investigation, and prevent further harm
      - Formulate the response
        Evaluate the benefits and costs of the response in terms of customer relationships over the long run
      - Implement the response
        Align scandal communications with customers’ perceptions of the brand’s functions
    - - It advocates focusing on investigating the event and preventing
        further harm
      - Avoiding making rash statements at any early stage - particularly given the speed at which news travels
      - The importance of being prepared for a crisis, having a plan in place for dealing with one, monitoring social media channels to alert them to potential scandals and being able to take timely action
  - - - Seniority is not sufficient: leaders must be trained and be aware of their own strengths and weaknesses as leaders
    - - The manuals process and structure should be easy to understand and readily available for use at all times
    - - Staff need to feel empowered, but also know the boundaries of their authority to make decisions in a crisis
    - - Staff’s competence in crisis management should be developed to give them confidence when they are called upon in a crisis
    - - Teams should know each other and have prepared together as this will improve their response when called upon in a crisis
    - - Those tasked with pubic handling of a crisis need to understand how it will be perceived and reported in the media, and be able to communication as best as possible in the organisations behalf
    - - Internal communication should be used to inform, lead and, if necessary, counsel staff, who also potentially have a role as advocates of the organisation
    - - The organisation or brand should focus on the most important stakeholders and develop constructive relationships with the rest.
    - - Regular preparation is vital
    - - The organisation should demonstrate through actions rather than merely words that it cares.
  - - - Because it is a matter of culture rather than process
      - Organisations sometimes struggle to recognise issues that can
        escalate and damage reputation
      - Important that they nurture a corporate culture that enables issues to be raised
        
        Although few organisations have systems in place to manage them once raised.
      - Advises that the systems for managing issues should not involve
        
        Over engineered processes
        
        Act as either ‘a security blanket or straightjacket’
      - Issues management systems should be ‘there to assist, not instruct; to make things easier, not more complex; to encourage excellence, not stifle initiative’
- - - - Preconditions
        
        A set of interacting, smaller events
      - Trigger event
        
        Causes escalation
      - Crisis
        
        Once the peak has passed
      - Post crisis
        
        Reflection and learning
    - - A crisis rarely happens with no prior warning
  - - - Special and distinct (externally generated) events
      - Intense scrutiny, high pressure and a short time span (although the damage may be long-lasting if handled badly)
    - - Solely about the organisation (internally generated)
      - Risk to reputation but might not necessarily attract external attention
      - Issues should be addressed before that have the potential of turning into a crisis
  - - - Can lead to ridicule on social media and highlights the importance of ensuring harmony between marketing, operations, human
        resources and financial considerations
- - - - It involves a conscious and intentional action – a ‘deliberate act’ – which is not impulsive.
      - The action is actually undertaken, rather than just prepared for but not carried through.
      - The sabotage may be performed by either customers or non-customers
      - The objective is to harm the brand
      - Harming the brand is attempted by trying to impair other consumers’ associations relating to that brand.
    - - Poor word of mouth
      - Consumer brand saboteur
      - Customer retaliation
      - Consumer boycott
    - - Involves planning and considerable effort
      - The perpetrator may not even be a customer, and has no interest in having a relationship with the brand or in receiving compensation or an apology
    - - Sabotage may be triggered by the brands formulation
      - Behaviour conflicting with the saboteur’s values in some way
      - Performance-based brand issues more typically result in instrumental aggression however can turn into brand sabotage
        
        Particularly if the aggressor is not satisfied by the brand’s or organisation’s response to their instrumental aggression
    - - How consumers respond to a product failure is determined by
        what they infer the cause to have been
      - Negative emotions and cognitions are more likely to be provoked if the brand is perceived to be responsible for and have control over the negative stimulus
      - If individuals perceive there to be little likelihood of the brand changing for the better, they are more likely to engage in consumer brand sabotage than seek compensation or an apology
      - The intent to harm the brand in consumer brand sabotage is
        consistent with aggression theory
        
        ‘human aggression is any behaviour directed toward another individual that is carried out with proximate (immediate) intent to cause harm’
    - - A consumer having an aggressive personality.
      - A consumer having a poor relationship with the brand (although a good relationship may be flipped if a consumer has high expectations they feel have been betrayed)
      - The brand’s personality focusing on a single dimension, as this can heighten conflict with some consumers’ values.
    - - A company could offer some type of redress to attempt to reduce a consumer’s stress level and de-escalate the situation
        
        This is expected to be more likely to succeed in cases of performance-based brand stimuli.
      - A company could try to dissuade a consumer from engaging in brand sabotage by signalling their intention to take legal action
        
        but this risks increasing a potential saboteur’s aggression
    - - To reduce the risk of potential consumer brand sabotage arising in the first place, Kähr et al. (2016) suggest adopting a defensive strategy
      - They recommend that a company agrees how its managers may communicate publicly about the brand’s specific values, monitors social media, and puts in place a strategy for dealing with any occurrences of consumer brand sabotage
  - - - Anti-company behaviour
        
        This may be deliberate or vindictive
      - Under performance
        
        This is consistent behaviour that includes lateness, absenteeism, lack of care and not carrying out their job properly.
      - Service recovery failure
        
        Unintentional negative behavior such as failing to recognize a service problem or fear of logging complaints that sabotage service recovery
      - Not all of the behaviors are deliberate however they warrant attention because they might go unnoticed by managers yet affect day-to-day performance
        
        Such behaviours were attributed to
        
        (i) fear of litigation, making employees reluctant to take
        ownership of customer service problems or report them
        
        (ii) lack of commitment to their roles, owing to factors such as attitude, but also work related factors, including job inertia, overwork and inadequate support from management
        
        Environmental factors also played a part in employees’
        behaviour
        
        Contextual factors
        
        General busyness of life wearing employees down and the effects of the economy
        
        Employee-customer dyad
        
        Recognising that customers sometimes had unreasonable expectations, which could impact on employees
    - - Individual
      - Organisational
      - External
    - - Recruitment, staff appraisals and on-the-job training with long-term contribution in mind
      - Management development programmes to improve supervision,communication, conflict resolution and the use of staff skills and expertise
      - Putting in place measures to protect employees and provide management support to enable staff to serve customers without fear of personal liability
      - Ensuring that promises made in brand communications are realistic and consistent with the customer service offered by staff
      - Empowerment, where possible, and support for employees to relieve stress