A Guide to Crisis Prevention

and Preparation for

SkinProtect


Content Page



Introduction/Summary...........1

The Need for Crisis Management..1

Crisis Prevention.....................1

Identify sources to scan
Collect information
Analyse information
Take preventive action
Evaluate effectiveness of threat reduction

Crisis Preparation...................2

Diagnosing vulnerabilities
Assess crisis types
Selecting and training a crisis team.3
Selecting and training a spokesperson
Developing a crisis management plan
Reviewing the crisis communication system...6

Conclusion..7

Appendix....8

References..9



1 Introduction/Summary

This paper examines SkinProtects need for crisis prevention and preparation, and provides step-by-
step processes to coordinate the companys crisis management efforts.


2 The Need for Crisis Management

Crises can inflict significant losses on money, property, reputation and even lives, and these effects
have a long-lasting impact. If the company does not implement certain protocols on crisis
management, it will be unable to shape the context in which it will be portrayed, and loses the
ability to match external stakeholders first impressions with its corporate values. However,
Odwallas case shows how good crisis management can actually benefit the company. (refer to
Appendix 6.1)
After the recent crisis in Indonesia, it is pertinent that SkinProtect develop crisis management
policies in the organisation to better prepare for and prevent crises.


3 Crisis Prevention

By engaging in proactive crisis prevention, the company may be able to avert disaster altogether.
Coombs (2015) has developed a 5-step crisis prevention process encompassing signal detection and
correction:

3.1 Identify sources to scan
Environmental scanning helps to track warning signs of emerging crises, or red flags.
External scanning of traditional print and online sources should be carried out. The use of social
analytics software can collate social media content from various sites into a dashboard for an
overarching view on mentions of the company. SkinProtect must closely monitor reports of product
harm, especially after the crisis in Indonesia. It would also be useful to learn about crises in similar
organisations that sell skincare products, such as SKII and Clarins.

3.2 Collect information
Information is most frequently gathered through content analysis, surveys, interviews and focus
groups.

3.3 Analyse information
Threat assessment analysis determines if information contains crisis risks or warning signs that
impacts the company significantly, and is based on two major factors: likelihood of occurrence and
impact of crisis.
For example, if there are increasing negative opinions of Skinprotect products, the company should
assess the likelihood and impact of a possible boycott. Ahava Dead Sea products for example have
faced boycotts in the recent years from anti-Israeli activists.

3.4 Take preventive action
Preventive action reduces the likelihood of the situation developing into a crisis. With regard to the
aforementioned example, the company could target dissatisfied customers by offering more
comprehensive after-sales services and obtaining feedback on improvements.




3.5 Evaluate effectiveness of threat reduction

Crisis managers should evaluate the actual resolution of the issue and compare it to the desired one
to determine whether it is successful. Changes, if needed, can be made to the existing protocols.


4 Crisis Preparation

Crisis prevention is important, but in case a crisis ensues the company has to be prepared. To
prepare for future crises, the company has to equip itself adequately through the six-step process by
Coombs (2015):

4.1 Diagnosing vulnerabilities
Various valid scenarios should be created to practice and rehearse with. The companys
vulnerabilities are assessed by identifying all possible crises and rating them according to the
likelihood that the crisis will occur and its impact on SkinProtect and its stakeholders. Crisis
managers should broaden their scope when assessing potential events by including less than worst-
case scenarios because worst-case scenarios are usually less likely to occur than those of moderate
intensity. This ensures that the company will be prepared for at least the most plausible crises.
Potential crises that the company may face are listed in Table 4.2 below.

4.2 Assess crisis types
The primary types of crises that the company is most vulnerable to can be further classified into the
following crisis typologies:

Crisis Typology Specific Crisis
Rumours Circulation of false/misleading information on
products
Challenges Discontented stakeholders claiming that the
company is not operating appropriately

Offensive post on social media
Technical-error/Human-error product harm Presence of harmful ingredients in product that
affects people adversely

Poor quality components from supplier causing
defects
Operational disruptions Events (strikes, disasters, political unrest)
occurring in suppliers host countries
Malevolence Product tampering by external actors

(Table 4.2)

Crisis portfolios should then comprise variations of crisis management plans that address these
crises.

4.3 Selecting and training a crisis team

The crisis management team (CMT) is responsible for creating the crisis management plan,
enacting it and dealing with any problems that are not covered in it. This requires specific
knowledge bases, skills, organisational power sources from which a mix of team members from
different functional positions within the company (legal, public relations, operations, human
resources) can offer. However, the composition of the team may change with each particular crisis.
In certain crises when the CEO should not be on the CMT, a representative with executive-level
decision-making power should take over.

Assessment is vital in the screening of crisis team candidates - the company should carry out a task
analysis to identify key types of knowledge, skills and traits needed to perform the job. Tasks that
are usually identified are group decision making, working as a team, enacting the crisis
management plan, listening and improvisation. These should be taken into consideration during
selection.



4.4 Selecting and training a spokesperson

It is required that the spokesperson manage the accuracy and consistency of messages from the
company. At least one spokesperson is needed for every host country, and all of them must undergo
media training beforehand.



4.5 Developing a crisis management plan

The crisis management plan (CMP) allows for quicker responses to crises. It is a tool for reference
during crises, but as crises are different CMPs should be adapted to each crisis uniquely. They
should be available in digital and hard copy, and easy to reference. Regular reviews and updates are
important, as are simulations and exercises to test the CMPs. Mitroff, Harrington, and Pearson
(1996) emphasize on training so that team members can practice making decisions in crises.




















CMPs should have three basic components:

4.5.1 Documentation

The crisis response documentation should include an incident report form, CMT communication
strategy worksheet and stakeholder contact worksheet.

4.5.1.1 Incident report form
The incident report form records details from the beginning of the incident to the result of actions
taken to resolve the issue. This helps when handling lawsuits or government investigations, and
when evaluating the companys crisis management efforts.

4.5.1.2 CMT communication strategy worksheet
By documenting all crisis actions taken, crisis managers can strategise and develop objectives for
the messages they create. This triggers them to consider what they are attempting to achieve with
the messages.
Gupta (2011) also suggests to plan the types of information sought after by stakeholders
categorically via audience segmentation, highlighting key market segments and their unique needs,
and communicating messages via an impactful medium. Appendix 6.2 shows how Luecke (2007)
segments and creates a systematic communication strategy.
While the CMT can develop audience-specific messages for individual groups of stakeholders,
there should be no more than 3 main messages for all stakeholders so as to avoid confusion.
Managers should also attach a copy of the actual message sent here.

4.5.1.3 Stakeholder contact worksheet
The stakeholder contact worksheet contains specific procedures to handle calls, emails and social
media, and lists the people that these queries and comments should be directed to.
A media log recording the date and time, source, reporter, phone number and the question should be
kept as well.

4.5.2 Contact information

It is imperative to effectively communicate to customers, the community and internally to
personnel.

4.5.2.1 CMT contact list
Names and contacts of CMT members, as well as external advisors, such as insurance agents and
emergency personnel are listed here. This helps others to identify and reach relevant people to
address a particular issue.

4.5.2.2 Secondary contact list
Stakeholders and their contact liaisons are identified here. Key publics identified for a crisis should
be classified into internal and external publics and subjected to stakeholder mapping to determine
who is likely to have the most positive or negative influence during a crisis, and who is most likely
to be affected.



Internal stakeholders External Stakeholders
Employees Customers
Shareholders Retailers/Distributors
Family and friends of those affected
Special interest groups
Media
Government


4.5.3 Reminders

CMPs should contain reminders for the following:

Confidentiality reminders emphasise that documents should not be shared with anyone else.
Technical jargon terms and explanations to communicate clearly to outside audiences.
Emphasis on need for centralised external communication - public relations, marketing and
advertising messages should be consistent with crisis efforts. Major external communication
channels should be listed along with their respective parties in charge.


4.5.4 Crisis Appendix

The crisis appendix is a crisis knowledge database that contains pre-collated information, templates,
press kits and past crisis knowledge. It should contain information and holding statements related to
crises that the company is more vulnerable to, as identified in the first step (4.1).

4.5.4.1 Pre-drafted content
Pre-drafted select crisis management messages including content for dark sites, press releases and
templates for crisis statements should be prepared and pre-approved by the legal department. The
CMT should then fill in the blanks with details from the prevailing crisis, saving time in the
process.

4.5.4.2 Press kit
A press kit with updated background information on the company should be available as well, and
in major languages of the respective countries that the company is based in. For example, a Spanish
press kit should be prepared for Peruvian locals, and a Chinese kit available in China.

4.5.4.3 Q&A
Anticipated questions from the media should be listed with developed answers that the crisis team is
comfortable with. It should be updated as new questions are identified.

4.5.4.4 Other details
Additional details on protocols, regulations and designations can be recorded here to supplement the
core CMP.



Finally, an example of what an entire CMP would constitute are as follows:

1. Confidentiality statement
2. Rehearsal dates
3. Introduction (CEOs statement)
4. Acknowledgements (for employees to affirm that they know what their tasks and
responsibilities are during a crisis)
5. CMT contact list
6. Incident report form
7. CMT communication strategy worksheet
8. Stakeholder contact worksheet
9. Secondary contact list
10. Proprietary information
11. Technical jargon warning
12. Centralized external communication reminder
13. Crisis control centre designation
14. Crisis appendix
15. Evaluation form

To increase the companys preparedness, this is supplemented by Business Continuity Plans,
Emergency Response Plans and Enterprise Risk Management Plans.


4.6 Reviewing the crisis communication system

When preparing for crises, the CMT has to test the communication system and ensure it works
accordingly because it is crucial that the company notify both employees and stakeholders as clearly
and as soon as possible when a crisis hits.

4.6.1 Intranet
Only employees will have access to intranet sites to obtain updated information on the crisis,
communicate and clarify issues. This also enables the company to deliver a consistent message to
external stakeholders through its employees.

4.6.2 Crisis control centre
Crisis control centres should be set up in major facilities (including the US and China) for the
CMTs meetings and discussions, collection of information and briefing of the media. They are also
useful as an assembling point if communication technology breaks down.

4.6.3 Mass notification systems
Mass notification systems are designed to reach a large number of employees and other key
stakeholders in a short amount of time. Crisis managers can enter text messages, send them to select
recipients and receive verification via the response feature.



4.6.4 Separate websites (dark/live)
A separate website should be set up to allow external stakeholders to access updated information
from the company during a crisis. This can be a dark site with pre-drafted content that goes live
when a crisis hits, with links from the companys main website.
For example, during a product recall crisis, SkinProtect can identify exact products under recall,
instructions on product returns and provide reasons for recall in this website. Contact information
should be provided to enable two-way communication.

The company can also create a separate live website dedicated to providing safety information.
Johnson & Johnson for example have created a separate website
1
on its safety guarantees and
processes. In it, there are infographics on Johnson & Johnsons manufacturing processes and steps
the company has taken to eliminate safety risk.

4.6.5 Videos
Youtube is a good distribution channel for videos, but when KFC posted on the New York City rat
issue, a majority of viewers were directed from the KFC website. The key then is to use multiple
channels to release crisis information so as to reach a wider audience.


5 Conclusion

Crises can have far-reaching impacts if not managed properly. SkinProtect risks public safety,
financial loss, as well as reputation loss when facing a crisis.
Proactive crisis management in normal times enables the company to respond successfully to
emergencies, minimise the loss of various resources, protect its image, possibly boost morale
amongst employees and increase confidence amongst its publics toward its products or services. To
maximise effectiveness, it is highly recommended that the company adopts the suggested practices
and incorporates these crisis management processes into its operations.



1
Johnson & Johnson http://www.safetyandcarecommitment.com/

6 Appendix


6.1 Odwalla case study

In 1996 during the Odwalla Juice Company crisis, Odwalla was informed that its apple or carrot
juices was linked to E. coli 0157:H7 poisoning across several states.
What Odwalla did was to immediately issue a complete recall of all their products within 48 hours.
They implemented a media strategy with daily statements to the press and regular company-wide
conference calls for employees to obtain updates and ask questions. A website was set up to explain
and disseminate information, and Odwalla also made a public commitment to pay for all medical
expenses of injured consumers.
Subsequently, Odwalla made a rapid recovery was praised for its crisis management efforts. This
goes to show how important crisis management is in steering a company away from a PR disaster.


6.2 Segmented systematic communication strategy


Segment

Key
considerations
Employees Investors Customers Suppliers Community
leaders
Regulators,
government
agencies
Key messages Jobs in new
place;
Retraining
program
Full disclosure
of the change
Making
changes to
serve you
better;
Changes will
make company
stronger
Changes will
make company
stronger
Full disclosure
of the change
Full disclosure
of the change
Media Companywide
meeting;
Letter to each
employee
Letter to
shareholders;
Webcast
Letter to all
purchasing
managers;
Industry trade
magazine
Letter to all;
Personal calls
to suppliers
Meeting with
community
leaders
Registered
letter
Timing Prior to press
conference;
Frequent
follow-up
Immediately Concurrent
with press
release
Immediately Prior to press
conference
Prior to press
conference
Spokesperson CEO CEO; Investor
relations
VP of
Marketing
Corporate
supply-chain
manager
CEO CEO; Legal
counsel

(Luecke, 2007; Valackiene, 2010)











References

A Guide to Developing Crisis Management Plans. (2000, March 1). Retrieved October 2, 2014.

Baker, M. (n.d.). CSR case studies in crisis management - Odwalla. Retrieved October 2, 2014.

Bremer, A. (2013, April 8). Crisis communication - a critical tool in emergency planning and
response. Enterprise/Salt Lake City, pp. 19-21.

Brooks, W. (n.d.). Odwalla lesson: Crisis planning is key to survival. Retrieved October 2, 2014.

Coombs, W. (2006). Code red in the boardroom crisis management as organizational DNA.
Westport, Conn.: Praeger.

Coombs, T. (2011, January 6). Crisis Communication and Social Media - Institute for Public
Relations. Retrieved October 2, 2014.

Coombs, W. (2015). Ongoing crisis communication planning, managing, and responding (Fourth
ed.). Thousand Oaks, California: Sage Publications.

Crandall, W., & Parnell, J. (2010). A framework for crisis management. In Crisis management in
the new strategy landscape. Los Angeles: SAGE.

Gupta, R. (2011). Corporate Communication: A Strategic Tool for Crisis Management. Journal of
Economic Development, Management, IT, Finance and Marketing, 3(2), 55-67. Retrieved October
2, 2014, from EBSCO Information Services.

Hart, S. (2008, June 1). Effective crisis management: Plan your work and work your plan. Public
Relations Tactics.

Hoffman, J. (2001). Keeping cool on the hot seat: Dealing effectively with the media in times of
crisis. Highland Mills, N.Y.: Four C's Pub.

Jaques, T. (n.d.). A case study approach to issue and crisis management: Schadenfreude or an
opportunity to learn? Journal of Communication Management, 12(3), 192-203. Retrieved October
2, 2014, from Emerald Insight.

Mitroff, I., Pearson, C., & Harrington, K. (1996). The Essential Guide to Managing Corporate
Crises: A Step-by-Step Handbook for Surviving Major Catastrophes.

Rabinowitz, P. (n.d.). Section 8. Identifying and Analyzing Stakeholders and Their Interests.
Retrieved October 2, 2014, from http://ctb.ku.edu/en/table-of-contents/participation/encouraging-
involvement/identify-stakeholders/main


















It is difficult to overstate the value of having an effective Crisis Communications Plan. The time
you and your management team spend putting this together will be repaid many times over when
you are called upon to use it. Time is something that is in very short supply when a crisis breaks.
Being able to refer to this plan and start doing the right things immediately will save you a
tremendous amount of pain and aggravation down the road. Without such a plan, you can quickly
lose control while you decide who needs to be called, look up their phone numbers, and try to figure
out what to do when the person you want doesn't answer the phone.

Those who are looking to see how you respond to this crisis will not be impressed if you are
stumbling all over yourself. Such incompetence will leave them wondering if they should trust you
to run the organization. Conversely, an organization that quickly implements a well thought-out
crisis communications plan has a chance to take advantage of a limited window of opportunity.

-
Judith C. Hoffman