Transcript Public Relation Crisis Management in Global Markets

Public Relationship
Crisis Management in
Global Markets
Alexander Consulting Enterprise
4/4/2016
Public Relationship Crisis
“There can’t be a crisis next week. My schedule
is already full”
Henry Kissinger
Alexander Consulting Enterprise
4/4/2016
Public Relationship Crisis
1. What does it mean?
Luxury Car Segment U.S.
220
170
BMW Sales
Mercedes Sales
Audi
Cadillac
120
70
19
81
19
82
19
83
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84
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85
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86
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87
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90
20
Alexander Consulting Enterprise
4/4/2016
Public Relationship Crisis
2. Where does it come from?
- Accidents
- Revealed Illegal Activity
- Public Perception of Wrongdoing
Crisis might spill over to different Products and
Regions
Alexander Consulting Enterprise
4/4/2016
Public Relationship Crisis
3. Can You Prevent It?
Accidents can not be predicted. What can be predicted
is public reaction to accident.
Alexander Consulting Enterprise
4/4/2016
Public Relationship Crisis
„It is instructive here to recall that Noah
started building the ark before it began
to rain“
Norman Augustine
Ex-CEO of Lookheed Martin
Alexander Consulting Enterprise
4/4/2016
Recognizing the Crisis Early
Stakeholder
Interest
Customer
Product safety, quality, Purchasing decision,
service
negative WOM
Employee
Salary, security, job
satisfaction
Performance, resign,
negative publicity
Supplier
Payment, ongoing
business
Switch to competitor,
lower quality
Shareholder
Shareholder Value
Voting rights
Government
Taxes, Employment
Legislation,
Media
Headlines,
Bad Publicity
NGO
Social, environmental
issues
Publicizing issues,
influencing Government
and consumers
Alexander Consulting Enterprise
4/4/2016
Potential Threat
Recognizing the Crisis Early
Stakeholder Matrix
Potential for Threat
High
Low
But:
Low Potential for Cooperation
High
- Changing Agendas
- Changing Influence of Stakeholder
- Changing Exposure of Company
- Interdependencies of Stakeholder
Alexander Consulting Enterprise
4/4/2016
Recognizing the Crisis Early
Interdependencies of Stakeholder
NGOs
Legislation Media Customer
Company
Alexander Consulting Enterprise
4/4/2016
Recognizing the Crisis Early
Dynamic Issue Matrix
Importance for Company
High
Immediate Action
Monitor Closely
Do Nothing
Give In
Low
Low
Alexander Consulting Enterprise
Importance for NGO
4/4/2016
High
Recognizing the Crisis Early
“What is relevant is what the public feel and believe. It does
not matter if a crisis follows scientific guidelines, logical
structures or rational thinking, emotions are empirically
evident and one will have to deal with them”
Ulrich Steger
Alexander Consulting Enterprise
4/4/2016
Recognizing the Crisis Early
Issues Company Perspective
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10.
What is at stake?
Who are our enemies (influence, power)?
What does it take to resolve issue? (easy solution?)
What are the consequences of giving in?
Are arguments against issue plausible?
Does issue evoke emotions?
Is issue Media friendly?
Are we isolated?
Connections to other issues?
How far has issue advanced?
Alexander Consulting Enterprise
4/4/2016
Recognizing the Crisis Early
Issues NGO Perspective
1.
2.
3.
4.
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6.
7.
Does campaign have a clear goal?
Is target well known and powerful? (no underdog effect)
Is target’s image vulnerable?
Does issue allow to draw public attention? (easily
understood, evokes emotions)
Can public get involved?
Does issue have symbolic value?
Is there dramatic element to get media attention?
Alexander Consulting Enterprise
4/4/2016
Managing the Crisis
“One’s objective should be to get it right, get it quick, get
it out, and get it over. You see, your problem won’t
improve with age“
Warren Buffet
Alexander Consulting Enterprise
4/4/2016