Saturday, June 12, 2010

WHAT WE CAN LEARN FROM TOYOTA AND BP CRISIS!

Toyota, Coca-Cola, Audi, Ford, Firestone, Diet Pepsi and numerous politicians - these are just some of the brands that have gone through crises due to real or supposedproblems with the product or service.
A crisis is not the same as a problem. Crises have the potential to harm your reputation and your organization. Crises often has harmed customers or has the potential to do so.
A crisis is any situation that may:  
  • Cause harm
  • Escalate in intensity
  • Fall under scrutiny
  • Interfere with your  operations
  • Damage the organization.
Managers who have experienced a brand crisis say it is like a fire storm, It often happens suddenly and is stunning.
During a crisis, the normal rules and procedures of the orginazation are disrupted - thus the need to prepare for it.
To prepare for a crisis, there are four steps you should follow:
  1. Make clear that crisis response is your organization priority.
  2. Organize a crisis team and have a crisis center prepared.
  3. Set up information systems.
  4. Develop stand - by plans foor crisis, including crisis communication strategy.
In a crisis preparation is to acknowledge that a crisis might occur. That requires scenario thinking.You should assemble a crisis team that include:
  • Senior Management
  • Marketing or Product experts
  • Operation experts
  • Other experts
  • Legal experts
  • Outsiders
Outsiders should be on the team to provide perspetive.
  • A spokesperson.
The crisis plan should be tested by having the team to go through crisis simulations where they can experience their roles and practice their responses.
Brands can be destroyed by crises if they are not managed.Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Time. Of much importance, people can be harmed if a crisis is not dealt with quickly. Throughout, communications with the public should be maintained.Plans need to be ready in case a crisis occurs. Consider it good fortune if the plans never need to be used.
COMMUNICATING INTERNALY AND EXTERNALLY IS THE KEY TO MANAGING A BRAND CRISIS.
Once the crisis is over, keep in mind that you need to continue to communicate to your customers and others that the situation is again normal and, perharps, improved.

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