1. CRISIS (Seri Management Crisis) Rachmat Kriyantono, Ph.D (Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta)

2. WHY IMPORTANT TO STUDY CRISIS....??? Every organization is likely to experience crisis Crisis generally threat: the reputation & other organization resources Crisis is starting point: good reputation or bad reputation For PR: this is the best challenge and PR can be called “The truly PR” based on how PR deals with the crisis Rachmat Kriyantono, Ph.D - Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 2

3. * Operational viability * Reputation * Credibility * Financial stability * Legal action

4.  Devlin (2007, h.5): “an unstable time for an organization, with a distinct possibility for an undesirable outcome”  Borodzics (2005): crisis is more than emergency situation.  Duke & Masland (2002) & Kouzmin (2008):  Crisis as situation that causes physical & nonphysical damages & disrupts organization system & the environment as a whole, especially for the victims. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 4

5. Seeger, Sellow & Ulmer (1998), cited in Smudde (2001, h.34): “ a specific, unexpected, and non-routine event or series of events that create high levels of uncertainty and threaten or are perceived to threaten an organization’s high-priority goals ”. Burnet (in G. Harrison, 2005, h.7): “ composed of a continuum, beginning with an incident, followed by a conflict, and ending with a crisis, the most serious form of disruption ”. 5 Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia

6.  G. Harrison (2005, h.11) : “a crisis is a critical period following an event that might negatively affect an organization in which decisions have to be made that will affect the bottom line of an organization. It is a time of exploration requiring rapid processing of information and decisive action to attempt to minimize harm to the organization and to make the most of a potentially damaging situation”. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 6

7.  Specific event - The cause of crisis can be identified. - Organization can experience more than one crisis, such as employees demonstration & product tamper.  Unexpected & happen any time - Tends to threat organization life & cause damage. - As a part of organization process.  Unpredictable time / Low probability - Although we acknowledge that crisis may happen, but nobody knows the exact time when it comes (Coombs, 2007, h.136). Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 7

8. Crisis produces information uncertainty. -Rumours spread out at the beginning. -Public relations must actively provide communication channel to disseminate truth and open information (crisis communication). Causing panic -As a result of uncertainty situation. -Differential perceptions High impact on organization activities. -Negative impact: profit decrease, public trust loss, media scrutiny, public & regulator investigation, unproductive changes. -Positive impact: new hero, new strategy, new regulation, better changes (it depends on post crisis communication. Potential for conflicts -External & internal -Pro & contra Rachmat Kriyantono, Ph.D - Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 8

9.  The situation materialises unexpectedly  Decisions are required urgently  Time is short  Specific threats are identified  Urgent demands for information are received  There is sense of loss of control  Pressures build over time  Routine business become increasingly difficult  Demands are made to identify someone to blame  Outsiders take an unaccustomed interest  Reputation suffers  Communications are increasingly difficult to manage Common features of a crisis:

10.  G. Harrison (2005) & White & Mazur (1995): a. Internal sources: human, managemen, & technology b. External: goverment regulation, natural disaster, malevolent. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 10

11. Types of sources Technological crisis - Technology misconduct during organization activities (Chernobyl, Lumpur Lapindo, Bhopal, Exxon Valdez, Korean rocket). Confrontation crisis -Bad relations between organization & public. -Crisis happens when the public express its anger (publik outrage) Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 11

12.  malevolence - someone/group wants to harm organization: sabotage, terorism.  Management crisis - Management fails to do its resposibility: corruption, loss of valas, change of board of directors, take over (aquitition).  Natural disaster crisis  Product crisis - Product tamper - misproduction Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 12

13. Coombs (2010); Devlin (2007); Smudde (2001):  Pra-krisis (pre-crisis) - Serious situation starts & the organization begins to aware. - If it is ignored, it will cause the crisis worse. Example: Union carbide Bhopal. Some staff had anticipated gas leaking without inform management in Bhopal. 2000 people dead. - Issue management is crucial, as a part of crisis plan. - Media begins to sniff at something trouble, then investigate it. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 13

14.  Krisis (acute crisis) - The situation can’t be managed by organization so the situation spread out the organization widely. - This stage = critical stages of the issue life cycle. - No crisis without public outrage. - Bad example: biscuit poisonous or employees strike. - Good example: Sukhoi Russia Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 14

15. Pascakrisis (post-crisis) -Crisis has been accummulated -Organization tries to maintain reputation or lose it. -Recovery stage: detemine success or failure -Self-Reflexion diri agar situasi yang sama tidak terula ng. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 15

16.  Rachmat Kriyantono, Ph.D Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia 16

17. References: - Kriyantono, R. (2012). PR & Crisis Management. Jakarta: Prenada - Regester & Larkin (2008). Risk & Issue Management.