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MBA - Reputation, Crisis and Issue Management

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David Scane

on 21 August 2014

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Transcript of MBA - Reputation, Crisis and Issue Management

Reputation, Crisis and Issues Management

Tom Curtin

Warren Buffet
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
A crisis is an issue badly managed
In catastrophes:
Those with good reputations will be less scarred; recover more quickly
Therefore they must handle issues well; Tone of voice, honesty, generosity, etc
Rather like earthquake prediction
Many indicators but unreliable
Often a huge number of divergent factors
What makes a crisis?
The Crisis Curve
If you think you have a problem
Then you probably have one

If someone else thinks you have a problem
Then you definitely have one
Perceptions are powerful
Things always get worse before/if they get better - a snowball effect
BP – oil spill
Murphy’s Law rules
No one is ever in the right place at the right time
Everyone has a different agenda
Lessons to be Learned
The Roles of Some Key Players
Crisis Management
The media watches the media
Website comment posted fast
Agenda setting rather than opinion influencing
Under fierce competitive pressure
Journalist is the 'first rough cut of history
Truth is always an early casualty
Speed is of the essence
1. The Media - Old and New
Politicians have strong drivers
Ego and altruism
Make sure they have a special (not public) hotline number for crises
Get to them before they get to you
Have telephone numbers (office,home, mobile, addresses, emails etc)
One/two Directors to contact top politicians
Senior managers handle local, communes etc
2. The Politicians
Handling a Crisis
You only have one reputation…
… lose it once and you may never get it back

I - The
Intensity of
the Crisis
T - Time Elapsing
A. Crisis in Gestation
B. Pre-tremor warning
C. Crisis Escalation
-point of no return
D. Plateau
E. Secondary
F. Plateau
G. Resolution
H. Damage
to reputation
3. The Pressure Groups (NGOs)
Competition between green groups
Speculate with strong and inaccurate views
They are symbiotic friends of the media
The environment is fashionable
They are underdogs - like the journalist
They are 'independent' - no financial gain
Get middle managers to handle them
Same consistent messages
Do not be side-tracked onto other issues
The Boy Scout Rule:
Always be Prepared
Internally and Externally
Your Crisis Team
Call centre/
sales manager
One Co-Ordinator/Director leading a team
All senior roles must be duplicated
Easy to assemble - get on the ground early
Crisis Management Handbook
Easy to read and use, checklists templates etc
Train well and often - exercises, briefings
Get the messages right
Only the truth - don't be afraid of 'don't know'
Have a lifebelt statement ready
Empower the team to handle the crisis
Full transcript