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A) Predict: It's a pre-crisis phase concerning of prevention and preparation of any potential threats to the organization.
B) Position: carrying out individual task and responsibility accordingly
C) Prevent: ensuring crisis can be managed well and prevent the same crisis from happening
D) Plan: Having a back up or alternative plan in case the initial/primary plan doesn'twork.
E) Persevere: to hold the situation or position and manage to recover and adopt new measures
F) Evaluate: To review the results once the CMP is activated. Eg., What went good or what went wrong? What are the key lessons learned?  What are the other changes/ adjustments do we have to make?

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Based on the attached case study paper “Successful Crisis Management in the Airline Industry” summarise what is meant by the “Response Phase” and “Recovery Phase”.  What are the critical requirements during these two phases?

Response phase: it is during the crisis itself. The team must swing into action and turn full attention to the matter at hand. The actions to deal with the needs and consequences and to tackle in a calm way.

-Comprises of decision making process, identify action options, do best option, evaluate progress, initiate a proper course of action.

-A well rehearsed emergency plan that is carried out by the emergency team to carry out actions immediately to saving lives & property.

Recovery: It is post crisis follow-up – to look back and reflect on the crisis. to

perform post incident investigation, revise response plans, share lesson learned, correct response deficiencies, mitigate identified hazards, and keep all records.

-To review the effectiveness of the crisis management plan and correct any deficiencies.

-Actions taken to return a community back to normal conditions, including the restoration of basic services and the repair of physical, social & economic damages. For example debris cleanup, rebuilding of roads & bridges & key facilities, & sustained mass care for displaced human population.

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Where should the Crisis Management Centre be Located?
The Crisis Management Centre is to be located at the Head   Office of the airline or organisation concerned.

a.    Who should lead the Crisis Management Centre?

The Head of Crisis Management will be in-charge of leading the Crisis Management Centre

a.    List the 3 key responsibilities that the Head of Crisis Management is in charge of.

a. developing systems and procedures for the effective management of a crisis and coordinating the operational readiness of the airline or organisation to handle a crisis.

b. facilitating a Command Centre for management to coordinate led by the CEO, control and direct the airline's responses to a crisis and in the case of an airline to any of the company's aircraft anywhere enroute.

c. providing a coordinating centre and therefore single source of information associated with a crisis and to co-ordinate all aspects pertinent to passengers and crew on board in the case of an airline.  The CMC is divided into the Directorate and the Passenger Information Centre (PIC) and is headed by a Director and representatives from involved departments.

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3. What lessons can be learnt from the handling of the two crises above?

MH370: They should have prepared a crisis communications plan that will address every scenario and crisis management team with a spokesmen that conduct a crisis communications drill annually. They also can conduct media training annually for everyone who may have to serve as a spokesman.

1. It’s important to minimise and manage hostile media coverage in a Crisis.

2. It’s important to Apologise, compensate, and most companies implement risk management processes and systems.

3. Establishing systems that can detect potential problems, which could arise from the commercial, political/regulatory, social, economic, and the technological, among other trends.

4. Prepare for problems by identifying possible issues that could affect the industry in which it operates.

5. Identify and prioritise the risks. Provide basis for developing and validating risk issue management strategies, both short-term action and in taking a long-term strategic view on how to clarify and enhance understanding of a company's objectives, operations, values and behaviours.

6. Developing risk issue strategies, helps to determine what kind of response would be ideal, taking into account the position of the company, its resource assessment and approval, identifying every stakeholder that needs to be targeted, and developing an action plan which details the necessary steps that need to be taken, outlining the different responsibilities.

7. Putting the strategy, which has been approved by appropriate management, into action, and consulting with and communicating the response effectively to relevant stakeholders. Understanding the need for a better response, opinion-formers and decision-makers can help determine the company's support base and potential for a stronger force.

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1.  What was/were the strategies adopted?
MH370 : Do Nothing. Malaysia has been widely criticised for their crisis communication after the plane MH370 went missing and even for not handling the missing flight MH370 situation with more transparency and promptness. Citizens of China also criticized their lack in managing the search operations.Malaysian Party that runs Malaysia’s government, has been accused of giving false leads on the plane’s whereabouts. The government and Malaysian Airlines have also come in for criticism for not revealing enough details about security lapses that led to the presence on the plane of two Iranian passengers with stolen passports, which have fuelled speculation that terrorism could be a cause for the MH370 plane’s disappearance.

Stonewall. The initial original news responding to the loss of flight MH370 was released on 8th March, during evening around 5 hours after the plane MH370 was disconnected.. As the role of carrier, the crisis communication of Malaysia Airlines Public Relation (PR) team is under intense security. They tired to take ownership but only after 3 weeks of the crisis. they apologise. (straits of Malacca- practice). They apologise for the mishandling.

Malaysia Airlines Public Relations team has discovered a strategy of recovering the case through social media platforms. It is a media communication strategy surrounding with analog of few social media platforms which includes digital assets, web pages and social networking sites such as Facebook and Twitter. The example of the use of social media by the team of Malaysia Airlines: To manage the crisis, Malaysia Airlines Public Relations team regularly shared information with people who are interested and concerned about the search and rescue of MH370 aircraft.

2.  Which strategies were effective and which were not?

MH370: Malaysia's lack of planning, preparation and practice in a crisis especially when facing the media exposed weaknesses in conveying MH370's key. The delayed response from Malaysian Airlines has created a credibility gap, which gave Malaysia Airlines’ crisis communication operation an unprecedented challenge. At the time of writing, flight MH370 is still gone missing.Malaysia Airlines Public Relation team was lack of cooperation.The whole event remains unfolded. Malaysian media had banned grief-stricken mothers and spouses from giving speeches to the media. This not only considered as violation of free speech but to leave a bad image of disrespecting the victims from MH370 flight.  Malaysia Airlines PR team failed to communicate and prioritise the concerns of passengers on board and most of them were in Chinese families.

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1. What was/were the strategies adopted?
Take the offensive & ownership/ respond & defend/ Transparent: After the SQ006 crash, former CEO Cheong Choong Kong took personal charge of the media conferences, proactively address the situations by answering all the difficult questions on how the airline’s handling the accident. He disseminated accurate information and corrected wrong information released by a Los Angeles employee who stated that there were no fatalities in the first few hours after the crash. He also travelled to Taiwan within hours of the crash and accepted that the airline took full responsibility.

2. Which strategies were effective and which were not?
SQ006: Most of the strategies adopted were highly affective the only setback is that during the media management response, they were slow in contacting the next of kin and releasing the names of those who had perished.

3. What lessons can be learnt from the handling of the

two crises above?
SQ006: SIA was well prepared for the crisis as they have learned from the crash of its subsidiary airline, SilkAir. SIA adopted this willingness to take responsibility of the accident. SIA in the beginning had made an extensive preparations for crises. Such as they had a resources of cash to quickly enable them to offer compensation to the victims. Also, SIA had trained hundreds of its employees the use of the ‘buddy strategy’ for the affected passengers and their families to facilitate crisis management.

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a) What is meant by the level of downtime tolerance?

The level of downtime is tolerance means how long a organisation based on their operation needs and requirements, how long they can actually seize operations and it will not have a substantial impact on them as they have the ability to hold that specific downtime before the are deemed to be in crisis. Downtime vary within industries especially due to the difference effects of downtime

b) How do you adopt a mixture of crisis strategies
- Do nothing at the first stage of the crisis so that the company could evaluate/assess all the facts, going silent is not a bad thing when you are monitoring a crisis as sometimes certain situations just require time for it to self resolve or cool off. After doing nothing, being stonewall is important so that only official informations can be given by the official spokersmen. Delay is fine because the company can come out with the best decision and then be able to take ownership of the incident and be able to respond properly and defend the organization to possible threats. The company might be able to take offensive so that to show how the company really felt about the crsis.Lastly, to be able to be transparent is crucial because being able to manage the hostile media coverage could help or prevent the reputation of the organization. Manage the different strategies used in different areas of the crisis. Adopting the mixture of strategies may be hard because it may complicated things but every factors of the crisis should be handled and analyze properly and given the proper strategy. Different factors of the crisis may requires different crisis strategies so that it could be handled properly. But in the end, all the crisis strategies should come together. This intensive collaboration of crisis strategies is one of the key ingredients of a successful integration.

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1a) What are the advantages and disadvantages of adopting these Crisis Strategies?

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1a) What are the advantages and disadvantages of adopting these Crisis Strategies?

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Do nothing

Pros: Say nothing until the company evaluate/assess all the facts, going silent is not a bad thing when you are monitoring a crisis as sometimes certain situations just require time for it to self resolve or cool off.

Cons: Chances that it could escalate to even worse crisis. Companies are judged by how they withstand a crisis.

Stonewall

Pros: When delayed there is a better chance of thoughts before an explanation is given.

Cons: shows an inability of being unable to make accurate decisions and also gives the impression of avoiding or hiding something that needs to be flagged out.

Respond and defend

Pros: Act fast otherwise, misinformation and speculation can quickly fill the bareness.

Cons: The cons of respond to defend approach will cause information and instructions to overlap as there is a rush factor to protect, thus this might lead to a disordered situation and inaccurate information.

Take the offensive

Pros: the ability to extend heartfelt apology is the key to moving forward.

the ability to accept responsibility, acknowledge the incident and apologize. It somehow creates a level of professionalism of the company, the ability to show that they are on top of situation.

Cons: Demoralise the employees who are managing the crisis and also the image of the organization, it will also not help the organization in terms of gaining back trust from various parties

Be Transparent
Pros: Today’s real-time world of social media, and with critics. The tenets of any crisis communication are to be proactive so that the information given is transparent, and be accountable. When put into action it looks like this: acknowledge the incident, accept responsibility, and apologize.
Cons: Might damaged the reputation of the organization.

Take ownership

Pros: taking full responsibility allows the company to be viewed as a reliable organization. Enable customer to gain their trust once again.

Cons: may be expensive to bare the full cost

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1) food poisoning and unhappy customers / fatality / quality of food (Ensure that ingredients that past its use-by-date aren't being consumed)

2) Did not consume within
the standard time / poor quality of ingredients / several hygiene lapses were identified eg. leaving ready to eat food uncovered in a chiller, not providing soap for hand washing

3) Loss of regular and normal customers when things go wrong, food poisoning,  drop in standard of service, drop in quality of food, poor hygiene by your staff, technological crisis.
Tendency of losing customers is when your company lose the customer trust when there is a crisis.

4) have insurance / increase company awareness of how a crisis happen

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Flight GTO999 from Kalongan to Bawalan has crashed into the Ramalan Sea while attempting to land at about 11:45 pm local time.

The Boeing 737 – 700 has been 10 years in service for the airline.

There are a total of 88 passengers and 12 crew members on-board.  Rescue and recovery operations are currently on going.

Based on sources, the aircraft was approximately 1000 feet before landing onto the runway but it crashed into the sea way before reaching the runway.

There are two infants on board. 60 Indonesian adults and 16 China adults.

At the current situation there have been 10 bodies recovered. The search and rescue operations are expected to continue through the night.

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Lion Air Crash

How do you provide Care and Consideration for Staff and Customers directly involved in a Crisis?

First control the social media because how you control it will determine how the company is managing the crisis.

- control what is being posted online
- control what is being say to the media and the family

- control the informations given to the viewers

- Manage it with advising the people to not post inappropriate pictures and post about the crash until further notice.

- apologise personally to the families

- have a buddies system to the families to know how they are coping to the crisis

- compensate to families on their lose

- they are demanding answers from the owner ( on why the plane still fly despite having problems 24 hours - like technical problems )

- to have official spokesperson on the updates on the crisis - etc - having the owner of lion air on the ground and apologises to the family of the affected passengers.

How do you minimize and manage possible negative or hostile media coverage in a Crisis?

Ensure that the company representative handling the media is a person who is able to give updates clearly and timely.

·       He/She is able to answer media questions in a very tactful and clear manner so as to avoid any misinterpretation from the public.

·       When there is no updates on the situation the media representative should have a good practice to still put up to the media that they are still awaiting for updates on the situation so as to avoid media making assumptions.

·       E.g There was a speculation that a baby was found alive in this crisis. However Indonesia Disaster Mitigation Agency spokesperson Sutopo Purwo Nugroho tweeted on not to spread fake news. The baby was from a ferry incident.

·       There was another fake news containing an aircraft fuselage image which was from an incident in April 2013 involving JT-610 in Bali which surfaced claiming that the fuselage was found for this incident.

·       A video was also circulated via whatsapp of passengers praying in the aircraft as the aircraft was facing turbulence but it gave a perception that this plane was the one that crashed as it has become a mental model of the people as there is already a crash.

How do you emerge with corporate reputation and key relationships intact or enhanced?

Apologise, compensate, and Most companies implement risk management processes and systems, which have two fundamental characteristics: firstly, they protect against risk in a vertical way, i.e. against credit, market or liquidity risk, to name but a few.

Establish systems that can detect potential problems, which could
arise from the commercial, political/regulatory, social, economic, and the
technological, among other trends. The system should assess the likely impact of the identified risk issues. Companies must also manage information regarding stakeholders, so as to identify and assess their levels of interest, potential positions
and influence.

Prepare for problems by identifying possible issues that
could affect the industry in which it operates. also
monitor websites and develop scenarios with outside consultants who are
experienced in tracking such risks, and brainstorming with experienced managers who know their individual businesses.

Identify and prioritise the risks. Provide basis for developing
and validating risk issue management strategies, both short-term action and in taking a long-term strategic view on how to clarify and enhance understanding of a company's objectives, operations, values and behaviours. to identify every risk issue, which could have a current or
potential impact on the company according to cost to commercial operations and reputation through impact on stakeholder relations, and the likelihood of occurrences

Understanding the need for a better response, opinion-formers and decision-makers can help determine the company's support base and potential for a stronger force.

Developing risk issue strategies, helps to determine what kind of response would be ideal, taking into account the position of the company, its resource assessment and approval, identifying every stakeholder that needs to be targeted, and developing an action plan which details the necessary steps that need to be taken, outlining the different responsibilities. A bullet-point template describing risk issue and assessment, with the related approach to be followed, can assist in the implementation process

Lastly, Putting the strategy, which has been approved by appropriate management, into action, and consulting with and/or communicating the response effectively to relevant stakeholders.

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WK 3 - CRSIS MANAGEMENT TEAM (JT610 CRASH)

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WK 3 - CRSIS MANAGEMENT TEAM (JT610 CRASH)

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Operations  Team - To call out all the prepared CMT teams asap and the head of managements

Head of CMT

To make official proper decision making

Key decision makers

HR team

Plan the work-rest test and schedule to run the operations

The amount of the manpower on the crisis site and also the management team ( like the aiport and the crisis site)

Manage finical decision

The financial team ( to manage the money used for the team)

Operations ( Teams at both side - crisis site and also the airport)

Security Team ( to control the crowd in the airport)

Command centre - (both side) (information management and authorities )

Special Assistance Team (like counsellors and buddies system with affected pax)

Engineering Team - settle up booth for assistance team ( airport) - use as base for the crsis site - to have all th logistics

items and team base

Special Investigation team ( to go to the affected side) (to control the information released to the press and the management)

The logistics team - to support the things needed at the crisis site and also the airport.

Recovery Team

Military Team ( to maintain safe and order and also prevent any form of threats ) ( Rescuers team )

Medical team ( Crisis site and airport - to attend to all emergency related to medical)

Forensics Team ( Pathologist)

Communications - Public Relations

Public affairs ( social media , news and attend to media and press)

Official spokesperson(s)

Media Team - eliminate speculation, give correct & latest info ( both crisis site and airport)

Victim (NOK) -  update new info every hour possible

mployees - deploy team to various station to send message

Legal -

Insurances - Finances to employees , family affected by the crisis

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1. Manage Response and Recovery of Operation in Crisis. ( Emerge with corporate reputation and key relationships intact or enhanced)
2. Provide care and consideration for staff and customer directly involved in a crisis.
3. Minimize and Manage Possible Negative or Hostile Media coverage.

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It consists of key executives, internal and external stakeholders, head of business, operations and supporting services with critical functions.
- Each member has a set of pre-defined role and responsibilities.

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a) Study the picture

b) nature of crisis : earthquake, flood, fire, explosions
where :
when :
who : Fireman, locals, soldiers, rescue team, volunteers

5a ) Company : Malaysia Airlines (MH)
Key division ,
functions :
responsibilities :
objectives :
standard :
processes :
procedures :

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It is a process on how the organization deals with unforeseeable major occurrence. It involves detection of a crisis, assessing the situation, planning, resolving and learning.

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the crisis management plan is a clearly defined and documented plan of action to implement and manage a crisis

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Crisis planning is the description of coming up with the plan and the strategy that to is be used when there is a crisis.
Whereas, the difference between the other two is that the plan is only executed only after the planning is completed.
on the other hand, crisis management is the team of people that is part of the planning and the team is the one that will manage the plan when is executed.

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Concept of Crisis Management

Principles of Crisis Management

•   containment;

•   isolation;

•   preparation;

•   strategy;

The team will take up the component of containment.

1. Organization to provide a quick update to customers as soon as possible so there won't be any misinformation or speculation.
2. Organisation must appoint a spokesperson to attend to media queries and also the customers;if any so as to avoid any speculations.
3. A policy of containment and negotiation was the appropriate course of action

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2. Why is this component important in defining a crisis?

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2. Why is this component important in defining a crisis?

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•With this component being surfaced, the organization will be streamed into making very stringent decisions on how to deploy their balance manpower/resources to continue ops so as to have a strong containment of the situation.

•A good decision making must be incorporated at the earliest time possible in order to ensure the basic operation that is required by the organization.

•Therefore this component is important as decision making in this approach will help in the organisations handling of the situation.

- Causes organisation reputation to be tarnished and impacts productivity of the company.

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IBM Singapore - Shutdown of Global Technology Service's Department  Database  - Virus Attack
- 2 ASEAN IBM Company was attacked - IBM Singapore and Hong Kong.

How did it affect the department -
- Normal business operation seized.
- Some Company CONFIDENTIAL data was exposed.
- Department had a huge impact as there was a drop in revenue. (USD 50K for Singapore GTS's department)
- Department was still able to operate with the manual pen and paper method thus processes was slow.
- All purchase orders and invoices on that date was handwritten.

How did we contain the crisis -
- To be more strict on Internal Audits.
- Make sure staff are trained in the back up plan.
- Staff must be consistently briefed on other ways of handling the job tasking's when things go wrong with the systems.
- More improvements was made in the database and more privacy.
- Certain things in the database is assign to only certain people in the management so that no confidental information wasn't given to the wrong person.
- There must always be an appropriate person to handle any queries from the media and make sure the  person is able to give answers which will not damage the company reputation further.

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1. Explain the meaning of the component that you have chosen

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1. Explain the meaning of the component that you have chosen

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•In the event of a crisis, situations may be chaotic. The organization will face the challenges on its normal operations as it will affect daily business/operation as manpower and resources will be lowered in quantity.

•Therefore this will affect the normal business transaction as the organization does not have the optimum resources to function thus the organisation must take up accurate decisions.