Saturday, 11 February 2012

Cobra & Python case

Crisis can have a cobra or a python face. 

Cobra will take the company by surprise leaving it in a deep crisis situation. Python on the other hand crawls into the organization gradually as a number of issues, that slowly crush the company's very existence.

This metaphor drawn by authors of the book titled 'Effective crisis management' is a very accurate description of the types of situation the companies might find themselves in.
Although different in nature both, cobra and python, can be mitigated using an effective communication with stakeholders (especially media) and by having a crisis plan in place before the crisis happens. Each company operates in an environment comprising of numerous stakeholders. The interaction of their contradicting interests can often lead to rise of issue and the crisis. Therefore it is extremely important that the companies engage in boundary spanning as an introduction to issues management, which will prevent or at least mitigate negative effects of crisis. There is a 5C effective communication model presenting the priorities for the person acting as the spokesperson in the crisis. The first priority is the Concern which relates to the human aspect of the case. Importance has been also placed on the communication with Clarity, Control of disseminated messages, Confidence and Competence of the spokesperson representing the company.  It is important to recognize the danger of ‘no comment’ method. If the organization in crisis will decide to avoid contact with interested media, they will find other information sources, which in many cases can be even more precarious.
An example of one of the best managed Cobra like crises in the history is the 30 years old case of Johnson & Johnson's product called Tylenol. The product was deliberately contaminated with the cyanide by a member of public which led to death of 7 people. Johnson & Johnson response was prompt and effective both from the operational and communication point of view. It has recalled the product in from the pharmacies in the entire US (although deaths were linked to Chicago district only). In the same time the company was consequently informing the media, employees about all its actions. Its next response was an introduction of 'temper-evident packaging'. The efficiently and swiftly managed crisis has actually positively contributed to the reputation of Johnson & Johnson.  In the aftermath of the crisis an article in Washington Post Newspaper acknowledged that saying:, "Johnson & Johnson has effectively demonstrated how a major business ought to handle a disaster."

There are also numerous cases of badly managed crises with BP oil spillToyota’s break-safety and and Canterbury’s salmonella being one of the most notable. Learning from others mistakes is a good and safe school.

No comments:

Post a Comment