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Crisis Management Jack Gottschalk ■Fast track route to understanding crisis management ■Covers the key areas of crisis management from crisis planning and handling a global business cris

Crisis

Management

Jack Gottschalk

■Fast track route to understanding crisis management

■Covers the key areas of crisis management from crisis planning

and handling a global business crisis to crisis plan execution

■Examples and lessons from some of the world’s most successful

businesses, including Parsons Corporation, Pepsi Cola, Johnson

and Johnson and General Motors, and ideas from the smartest

thinkers, including Douglas Hearle, James E Lukaszewski and

Fraser P Seitel

■Includes a glossary of key concepts and a comprehensive

resources guide

Crisis

Management

■Fast track route to understanding crisis management

■Covers the key areas of crisis management from crisis

planning and handling a global business crisis to crisis

plan execution

■Examples and lessons from some of the world’s most

successful businesses, including Parsons Corporation, Pepsi Cola, Johnson and Johnson and General Motors, and ideas

from the smartest thinkers, including Douglas Hearle, James

E Lukaszewski and Fraser P Seitel

■Includes a glossary of key concepts and a comprehensive

resources guide

Jack Gottschalk

Copyright  Capstone Publishing 2002

The right of Jack Gottschalk to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 First published 2002 by

Capstone Publishing (a Wiley company)

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or faxed to (+44) 1243 770571.

CIP catalogue records for this book are available from the British Library and the US Library of Congress

ISBN 1-84112-283-1

This title is also available in print as ISBN 1-84112-215-7

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Contents

To Mom and ‘‘Misty.’’

Introduction

A description of the need for crisis management in the public and private sectors, and in both the for-profit and not-for-profit areas

‘‘Great crises produce great men and great deeds of courage.’’

John F Kennedy

Why is crisis management important? Simply put, without it, and without a plan to accomplish necessary goals, crises grow and rela-tionships are damaged in the long term, short term, or both And

no organization is immune Private sector for-profit companies can lose customers, while not-for-profit groups can lose credibility and members Governments, too, can suffer Agencies can have trouble getting funding having once lost the confidence of the executive or the legislative branches Elected officials can lose their jobs the next time that the voters go to the polls

In short, when something goes wrong, no matter who is at fault and regardless of the reason, someone must tell the story as quickly

as possible Will there be a ‘‘spin’’ on that story that will make the organization look good? Probably But that’s not necessarily bad as long

as there aren’t lies and deliberate distortions that will come back to haunt the organization later

If an organization has just had a disaster that killed and injured a lot

of people or poisoned the environment, there will be no question that the incident happened When any organization talks about its plans for taking care of victims and to help make things right, that’s a good thing

If that’s considered to be putting a ‘‘spin’’ on a story, so be it Ducking the issue or letting the media or the government tell the public about

a crisis or its underlying causes is never a good idea

The future is, of course, here We live more, every day, in a global society that is increasingly held together by a complex system of linked and rapid communications When the oil tanker goes onto the rocks in Alaska, or when a plant explodes in India, or when an airliner crashes into Long Island Sound, the world media knows about it with lightning speed The world learns about the incident only minutes later And both the media and the public will be impatiently waiting for accurate information, including explanations for the event, immediately The task of meeting that challenge falls to the people who plan, and are responsible for carrying out, effective crisis management operations Particularly in the US, the media and the general public take the ‘‘right

to know’’ as an article of faith It can safely be assumed that this

desire will be increasingly observed around the world as capitalism and associated democratic government inexorably spread Thus, the need to be ready to communicate when things go wrong, to engage

in crisis management, will continue to be an ever-increasing part of management’s responsibility during the twenty-first century

What is Crisis

Management?

What the terms used really mean and how to understand the differences between them