Wilmington University Strategic and Crisis Leadership Analysis Writing Requirements3 pages in length (excluding abstract, cover page, and reference list)At

Wilmington University Strategic and Crisis Leadership Analysis Writing Requirements3 pages in length (excluding abstract, cover page, and reference list)At least 3 cited sourcesPlease make sure to credit all of your sources; no plagiarism! If you fail to credit your sources, you will get no points and no chance to redoAPA format Chapter 12
Crisis Leadership
and the Learning
Organization
PowerPoint Presentation prepared by Charlie Cook, The University of West Alabama
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1. Explain why crisis leadership competence is an important
consideration when hiring new leaders.
2. Identify the benefits of pre-crisis planning.
3. Identify the key components of the pre-crisis planning
phase.
4. Describe the five-step process to crisis risk assessment.
5. Describe the role of the CEO and communication in
managing a crisis.
6. List five or more attributes that can be used to describe
the learning organization.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–2
7. Distinguish between the traditional organization and
the learning organization.
8. Describe the role of leadership in creating a learning
organization.
9. Define the key terms listed at the end of the chapter.
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12–3
Crisis Leadership
• Crisis
? Is a low-probability, high-impact event that threatens
the viability of the organization and is characterized
by ambiguity of cause, effect, and means of
resolution, as well as by a belief that decisions must
be made swiftly
• While a pre-crisis response will not prevent a
crisis, it can minimize financial loss and longterm damage to a firm’s reputation
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12–4
Crisis Leadership (cont’d)
• Strategic crisis leadership requires three things:
1. Using environmental monitoring techniques to
identify events that could trigger crises in the future
2. Integrating crisis management into the strategic
management process so it remains a regular part of
the overall strategy-evaluation process
3. Establishing a culture that embraces crisis
awareness and preparation as a way of life
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12–5
Crisis Leadership (cont’d)
• Crises come in many forms:
? Natural disasters
? Terrorist attacks
? Product failures
? Human error disasters
? Unexpected death of key individual(s)
? System failures
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–6
Crises Leadership Training
• Why Crisis Leadership Training Is Important:
? How an organization comes out is highly dependent
on the quality of leaders it had going into the crisis.
? Strong and effective leadership is imperative to
organizational survival.
• Crisis Leadership Behaviors
? Aware of the types of power he or she possesses and
the best way to apply each type in resolving a crisis.
? Prepared to adapt quickly to change and deal with
higher levels of uncertainty and complexity
? Admitting mistakes or offering positive feedback to
calm follower anxieties during difficult times
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12–7
Crises Leadership Training (cont’d)
• Crisis Leadership Training
? Exposure to various learning approaches such as
modeling, simulations, or learning from others
(mentorship) who have experienced crises or
narrowly avoided failure
? Use of Acceptance and Commitment Therapy (ACT)
cognitive behavior therapy approach to develop a
repertoire of crisis resiliency skills
? Training and development programs that emphasize
traits of effective crises leaders such as decisiveness,
self-confidence, communication, and problem solving
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12–8
The Impact of Environmental Factors
• The importance of crisis leadership is intensified
due to technological advances
? The Internet and communication networks allow
millions to analyze and critique virtually every aspect
of an organization’s response to a crisis
• A company today may have only minutes, not
hours, to contain a crisis
• A crisis can present the opportunity for an
organization to learn and adapt when the next
crisis hits.
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–9
Crisis Management Plan
• An effective crisis management plan:
? Is comprehensive, with clear leadership, team, and
individual assignments in the form of roles and
responsibilities
? Is upgraded frequently and supported by training and
periodic drill sessions
? Is coordinated and controlled across levels and units
of the organization
? Should address what happens before, during, and
after a crisis
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–10
Assessing Organizational Readiness
to Respond to a Crisis
• Readiness to respond to a crisis is a function of:
? Knowing and accepting one’s assigned role in the
crisis management plan
? Sufficient training specific to the assigned role to
enable one to perform his or her responsibilities
competently
? Complementary and integrated roles and
responsibilities at all levels of the organization, so the
crisis management response is controlled and
coordinated.
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–11
Exhibit
12.1
Three-Stage Crisis Management Model
Precrisis Planning
• Designate Crisis Leader
• Form Crisis Response Team
• Develop Risk Assessment Model
Managing During a Crisis
• The Role of Senior Leaders
• Effective Crisis Communication
• Actions of Crisis leader and Team
• Crisis Resolution
Managing After a Crisis
• Evaluation of Crisis Response
• Lessons Learned
• Preventing a Future Crisis
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12–12
Pre-Crisis Planning
• A Precrisis plan
? Is the best way to mitigate the negative
consequences of any crisis
• Precrisis Planning Components
? Appointing a crisis leader
? Creating a crisis response team
? Assessing risk
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–13
Pre-Crisis Planning (cont’d)
• Crisis Leader
? Scans and monitors internal and external environments for
potential threats or warning signs of a crisis
? Requires individuals or departments to keep logs of complaints
or incidents
? Monitors customer and employee complaints and behavior
? Identifies emerging patterns or trends in the regulatory
environment, competitive landscape, and social environment
? Coordinates the activities of the crisis management team to
ensure that the members work well together
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–14
Pre-Crisis Planning (cont’d)
• Crisis Response Team Members
? Should be comprised of a diverse mix of the
representatives from all sectors and levels of the
organization
? Must be calm, self-confident, assertive, and
dependable during a crisis
? Should receive comprehensive crisis response
training and engage in frequent drills that simulate
an actual crisis situation
? Must be trained to function as one unit with one
voice under a single unit command
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–15
Pre-Crisis Planning (cont’d)
• Crisis Risk Assessment
? Crisis teams set out to identify potential incidents that
could hit the organization and then determine the
degree of preparedness necessary
? The crisis leader and crisis team members begin the
risk assessment process by engaging in “what-if”
scenario analysis that focuses on creating realistic
incidents under each crisis category
?
Scenario analysis and planning is a tool that helps leaders
prevent or respond to crises through decision-making skills
based on possible outcomes of crises
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–16
Risk Assessment Model
Criteria
1
Risk
Identification
(Risk Chart)
2
Risk Assessment and Ranking
3
Risk Reduction Strategies
4
Crisis Prevention Simulations
5
Crisis Management
S
W
O
T
Source: Based on Lawrence Barton, Crisis in Organizations, 2nd ed., South-Western/Thomson Learning, 2000, p. 19.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–17
Exhibit
12.2
Risk Assessment Model
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–18
Pre-Crisis Planning (cont’d)
• The best gauge of an organization’s readiness
to respond to a crisis is how it rates according
to:
1. Quality of strategic crisis plan
2. Awareness and access to crisis management
information
3. Readiness for a quick response
4. Effective communication plan in place
5. Effective crisis leadership
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12–19
Pre-Crisis Planning (cont’d)
• A comprehensive crisis response plan based on
risk analysis indicates:
? Who is in charge of making key decisions
? Who is on the team and what their roles and
responsibilities are
? Who is to respond to media inquiries
? How the plan will be executed
? What other employees are required or not required to
do or say
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12–20
Pre-Crisis Planning (cont’d)
• Benefits of a pre-crisis response plan include:
? Faster response time
? Better judgments
? Ready and available resources
? Fewer costly mistakes
? Less panic
? Quicker resolution of the crisis
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–21
Managing during a Crisis
• An effective response in the event of a crisis is
critical to an organization’s survival
• An organization should make itself accessible as
quickly and openly as possible
• Such quick action can help to preserve the
credibility and reputation of the organization and
its leaders during the crisis
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–22
Managing during a Crisis (cont’d)
• The Role of Senior Leaders
? Employees will seek guidance from company senior
leaders in terms of:
?
How business operations will continue
?
Ways to cope with the situation
? It is the senior leader’s responsibility to:
?
Stay engaged and lead from the front
?
Focus on the big picture and communicate the vision
?
Work with the crisis management team
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12–23
Managing during a Crisis (cont’d)
• The role of senior managers (cont’d)
? Effective leaders:
?
Remain focused on the vision and mission of the organization
despite dealing with the reality of the present
?
Rely on the values and principles found in their mission
statements to guide company decision making during a crisis
?
View crisis management as a team effort
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–24
Discussion Question
• Describe why a senior leader’s physical
presence is critical during a crisis.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–25
Crisis Communication
• Effective Crisis Communication
? Can make or break a firm’s reputation in a crisis
? Requires that the firm pre-designate who will speak
for the organization in the event of a crisis
? Is more believable when the firm’s representative or
spokesperson is a senior-level manager than
someone at a lower level of responsibility
? Must provide honest and accurate answers to be
regarded as effective
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–26
Benefits of an Effective Crisis
Communication System
• Short-term Benefits:
? Well-informed employees will assist the organization
in presenting the facts to the outside world
? Employees may have excellent insight on the incident
and valuable suggestions on solution alternatives
• Long-term Benefits:
? The organization will have won over the confidence,
loyalty, and commitment of the employees
? Employees’ appreciation, sense of belonging, and
self-worth is enhanced
? A culture of teamwork and cohesion is created
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–27
Discussion Question
• How important to an organization is internal
(employee) communication during a crisis?
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–28
Principles of Effective Crisis
Communication
• The first 24 hours of a crisis are crucial because
of the media’s need to know what happened so
they can tell their audiences
• There is an information vacuum that, if left
unfilled by the organization(s) involved, will be
filled for them by others
• Telling the truth up front is the simplest and most
effective way of defusing public hostility
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12–29
Principles of Effective Crisis
Communication (cont’d)
• Tools that an organization can use to tell its side
of the story in a crisis include:
? A press release
?
Is a printed statement that describes how an organization is
responding to a crisis and who is in charge
? A press kit
?
Is a package of information about a firm, including names and
pictures of its executives, a fact sheet, and key milestones in
the firm’s history
? A news conference
? A one-on-one interview with senior management
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12–30
Principles of Effective Crisis
Communication (cont’d)
• Be present
• Don’t “spin”
• Communicate plan of action
• Be sensitive with affected parties
• Avoid conflicting messages
• Show a plan for how you will avoid a repeat in
the future
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12–31
Principles of Effective Crisis
Communication (cont’d)
• Don’t make excuses for the leader
• Go the extra mile
? Go beyond the requirements of the situation
• When things are going good, take credit for it
without being se…
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