2 Summary Crisis Management in Hospitality Industry Signal Detection ModelAdvantage and Disadvantage of Signal Detection ModelRecommendation
3 IntroductionCrisis is defined “as an adverse incident or a series of events that has the potential to seriously damage an organisation’s employees, operation, business and reputation”, Paraskevas et al (2013:35)Crisis Management is set of factors designed to combat crises and to lessen the actual damaged inflicted. (Coombos, 2011)There are elements that are common to most definitions of crisis:a threat to the organization,the element of surprise,a short decision timea need for change
4 Crisis Management in Hospitality industry “The Hospitality industry is prone to crises as it is highly fragmented and complex with many interdependencies among its sectors”. (Paraskevas, 2012)Hospitality industry is incorporated with other industries, meaning that a wide range of potential crisis within hotels can affect and impact others business.The exposure of Hospitality business to a wide range of crises, indicates a significant challenges’ that hospitality organisation, face it in the operation.
5 Crisis in UK IndustryParaskevas (2009), 60% of organisational crises normally emit warning signals early enough to be prevented.43% of companies experiencing a disaster never recover40% of companies that have CM plans do not have a team dedicated to disaster recovery43% of companies that have a business continuity plan do not test it annually80% of companies have not developed CM to provide IT coverage for business continuityOf those who have had a crisis, 42% STILL do not have a plan!yet…97% felt confident that they could respond well to a crisisOnly 23% of businesses have no early warning of some kind; about 75% of crises result from inappropriate action or inaction by top management (UK Statistics, 2012).
6 People Internal External Technical Types of Crisis Signals Gossip / RumorsCommunitiesPersonalSpecial InterestsNetworksMediaThe CultureConsumersInternalExternalPersonal DataRemoteBasesSensingPCsGovernmentITMonitoringIndustrySource: Mitroff (1988)Technical
7 Crisis Categorization Crises categorised by the types of risks in terms of their impact and probabilityCrisis CategorizationLow ImpactHigh ImpactLow ProbabilityHigh ProbabilityAmber ZoneRed ZoneI I I I I I I I I I I II I I I I I I I I I I IHazard LikelihoodGreen ZoneGray ZoneHazard SeveritySource:Mitroff (1988)
8 Stages of Crisis Management Crises can be described in terms of stages, or relatively identifiable sequences of events and reactions. Stages enable planners to monitor risks, progress, target stakeholders, and take strategic action appropriate to the stage. There are many models; below are two prominent ones:Fink’s Crisis LifecycleProdromalRisk cues that potential crisis can emergeCrisis breakoutTriggering event with resulting damageResolutionCrisis no longer a concern to stakeholdersChronicLingering effects of crisisMitroff’s Five Stages of Crisis ManagementSignal detectionWarning signs & efforts to preventProbing & preventionSearch risk factors & reduce potential for damageDamage containmentKeep from spreading to uncontaminated areasRecoveryReturn to normal operations asapLearningReview & critique CM efforts for improvements
9 Signals WarningMitroff (1988:18) observed that “long before its actual occurrence, a crisis sends off a repeated and persistent trail of early warning signals”“Signal Detection is a first line of defence in Crisis Management” (Paraskevas & Altiney, 2013)
10 Crisis Signal Detection Model Source: Paraskevas et al (2013)
11 Scanning for Signalsinternal; the organisation’s structure, culture, and resource variables,Task; industry force variableseconomic, technological, socio-cultural, and political-legal variablesCapture of Signalscore detectors (employees, guests, suppliers, industry organisation;ad hock (competitors)and experts or consultants,Signal Transmissioncommunication platform; Paraskevas et.al (2013)
12 Advantage and Disadvantage With clearly defined roles, organisation is better prepared to react and prevent a wide range of crisis signalsappropriate signal detection framework may change its dynamic and path of crisisStrengthen organisation’s competitive position and reputation.it is easier for organisation to train employee and collect background information’s in timely and effective manner.Effective communications potentially enhancing public perception of the companyCrisis signals could be dynamic and complex and is not possible to plan and prepare for every situationThe high number of employees who participate in the process of crisis signal detection plan may affect smoothly and efficient coordination in information exchangeCrisis management planning could be expensive.Excessive focus on potential threats can divert management focus on how to capitalize on growth opportunities
13 ConclusionHospitality organisation operates in complex external and internal business environment.It is crucial that Hospitality organisation engages in defining and establishing, crisis plan and crisis management team.Importance of focusing on communication issues framework.Organisations that anticipate the possibility of a crisis and prepare properly will be better equipped to manage different situations.
14 RecommendationOrganizations should redefine the role of crisis management plans and crisis management teams.An effective crisis response should be viewed as a living (co-evolving) system within the organization.By adopting complexity principles the organization can make this system far more effective.
15 BibliographyCoombos W.T (2011), Ongoing Crisis Communication: Planning, Managing, and Responding, USA: SAGE Publications, IncMitroff, I. (2004). Crisis Management leadership, US: John Wiley and Sons.Mitroff I and Anagnos G (2001) Managing Crises Before They Happen, New York: AMACOM.Mitroff I (1988), Smart Thinking for Crazy Times: The Art of Solving the Right Problems, USA: Berrett-Koehler Publishers, Inc.,Paraskevas, A. and Altinay, L. (2013),Signal Detection as the First Line of Defence in Tourism Crisis Management, Tourism Management, 34(1), ppParaskevas, A. (2012) “Aligning Strategy to Threat: A Baseline Anti-terrorism Strategy for Hotels”, International Journal of Contemporary Hospitality Management, vol. 27, 7, pp. 140.Paraskevas, A., Altinay, L., McLean, J. and Cooper, C. P. (2013) “Crisis Knowledge in Tourism: Types, Flows and Governance” Annals of Tourism Research, vol. 41, pp