Managing Crises With an Example
The process of recognizing, evaluating, comprehending, and responding to a dangerous situation is known as crisis management.
External circumstances might trigger a crisis, including a natural disaster, a security breach, or untrue rumours that damage an organization’s brand.
Whatever the source, businesses should create a thorough crisis management plan to handle these situations. Both the company’s reputation and its personnel will benefit from this.
An excellent example of how a business can handle a crisis well is Johnson & Johnson’s response to the Tylenol crisis in 1982. Seven people were poisoned after swallowing Tylenol capsules laced with cyanide; at the time, Tylenol was the company’s most well-liked product.
In contrast to many other businesses at the time, J&J prioritized the safety of its clients before its bottom line. The company offered a reward for any information leading to the arrest of the criminals and cooperated with police in their efforts to solve the mystery.
The crisis was also advantageous for the corporation by increasing consumer trust in the product. Customers who had previously doubted the safety of over-the-counter medications suddenly began utilizing them again, and Tylenol’s market share soared.
Every second that passes as you wait in line for a cab or bus to take you to your destination matters. Because of this, the mobile application Uber came up with the concept of a “uber” service that would eliminate the burden of waiting in lines and simplify transportation.
But, the firm has come up against stiff criticism from taxi firms and government regulators over its contentious business model, which increases the price drivers are charged for rides during busy periods. Also, it encourages fare increases during periods of high demand, such as New Year’s Eve, which has enraged customers.
Employees have also accused the business of sexual harassment. Moreover, CEO Travis Kalanick was seen on camera yelling at a driver.
Once the video of security personnel removing a passenger under duress surfaced in April 2017, United Airlines experienced a severe public relations catastrophe. Dr David Dao, 69, who was involved in the event, was dragged from his seat and injured by security personnel.
The airline tweeted and made announcements in the hours that followed the tragedy. Instead of expressing regret, they reiterated their earlier accusation and called the passenger “disruptive and confrontational.” This is a prime illustration of poor crisis management.
Historically, P&G has used its IWS culture to withstand challenges. It played a significant role in the company’s ability to traverse COVID-19, effectively influencing every plant worldwide.
For instance, in Egypt, the business had to decide how to manage political unrest and violence while maintaining the safety of its personnel and operating its facilities.
The organization’s reaction was a model case of crisis management. It took prompt, responsible action while employing humour to win over the public.
When teens were caught on camera eating Tide Pods as part of an odd internet challenge, Procter & Gamble knew they had to take swift action to preserve their reputation. In addition, they made sure to state clearly the facts and their complete innocence. Other businesses could benefit from this lesson because it’s crucial to remember that unanticipated catastrophes can happen for no fault of your own.
