PJAEE, 17(6) (2020)
TIMELINESS - THE KEY TO EFFECTIVE CRISIS MANAGEMENT
Ruchi Pathania
Assistant Professor
University Institute of Media Studies, Chandigarh University, Punjab, India
Ruchi Pathania, Timeliness - The Key To Effective Crisis Management–
Palarch’s Journal of Archaeology of Egypt/Egyptology 17(6) (2020), ISSN 1567-
214X.
Introduction: Crisis communications case studies from across the world underscore
how timely response to crisis has helped brands/companies win half the battle and
emerge with reputations intact. The opposite, has led to catastrophic reputational
damage. Rapid evolution of technology, ever changing consumer expectations, 24x7
media have made it imperative for communication managers to remain on their toes
as also the need to plan for a crisis beforehand. Having crisis communications SOPs
in place, for managing internal and external communications, is also critical. This
brief review paper attempts to understand the importance and impact of timeliness
in crisis management through a few case studies researched earlier. A brief summary
of the crisis, ensuing management response and result, is discussed in the
forthcoming sections. The paper ends by summing up key takeaways from these case
studies and suggestions on how to improve timeliness of crisis response that can be
researched further.
Case Study: The Boeing Max 737 crisis (2019)
Brief summary – In 2019, Boeing’s celebrated passenger aircrafts Max 737 were
grounded the world over after two tragic air crashes, in a span of five months.
Investigations revealed a malfunctioning anti-stall system – MCAS, a software
component present in all Boeing Max 737s, as the cause of the fatal air accidents.
The revelation, subsequently led to most countries’ aviation authorities disallowing
the airplanes to fly.
Crisis response by the management– Boeing’s inordinate delay in responding to
the situation compounded the situation. Additionally, instead of proactively taking
responsibility, voluntarily grounding the planes, calming rising public concerns
about Boeing’s flight safety standards through concerted communication efforts, the
4208
PJAEE, 17(6) (2020)
company resorted to studied silence. The crisis eventually cost the airplane
manufacturer, billions of dollars in losses and an unused inventory of more than four
hundred new planes and tarnished perception. Articles published in public relations
journals point out how not acting in a timely manner to communicate its response,
damaged Boeing’s impeccable image of unmatched safety standards.
Case study: Nestlé India’s Maggi crisis (2014)
Brief Summary – In the year 2014, Nestlé’s popular instant noodles brand ‘Maggi’
ran into trouble after multiple samples of the product showed higher than permissible
quantities of lead and MSGs. The company was also accused of misleading
consumers by adding ‘No added MSGs’ label on Maggi packets. The crisis saw
Maggi being banned by FSSAI, record loss of money and market share.
Crisis response by the management– The brand delayed response, was not
forthcoming with information required to address the issue and consumers’ concerns
thereby losing precious time. It did not take responsibility for its actions, thereby
amplifying a lack of transparency. The crisis corroded Maggi’s spotless image of
being India’s most preferred brand. News articles and research papers highlighted
the initial lack of timeliness and transparency in the brand’s crisis communication
plan which led to loss of reputation and consumer brand loyalty.
Case study: Deepwater Horizon Oil Spill incident (year 2010)
A blast in Deepwater Horizon Oil rig owned by BP Plc. led to loss of lives and an
oil spill of enormous proportions leading to an environmental disaster. Oil and
methane gas continuously leaked from an uncapped well one mile under the ocean
waters. The spill destroyed marine life and ecology surrounding the area. It also had
a major impact on the livelihood of communities dependent on the ocean.
Crisis response by the management– The management at BP was slow in
responding to the crisis and took more than three days to ascertain the cause of the
disaster. The top management of the company delayed responding to media,
stakeholders, as also resorting to not address public concerns in a timely manner. It
also failed to reach out to comfort the victims and tender an apology which led to BP
being perceived as a company which was arrogant and lacked empathy. This resulted
in calls for boycott of BP from across the world tarnishing its brand image as
corroborated by research studies done on the case.
Case Study: Facebook’s - Cambridge Analytica data scandal (2018)
The crisis entails social media giant Facebook getting embroiled in a data privacy
sandal pertaining to a political consulting firm Cambridge Analytica managing to
collect personal data of more than 80 million Facebook users without their consent.
The data was used for political advertising. The scandal caused a huge public uproar
and jeopardized Facebook’s perception including its market capitalization.
Crisis response by the management –Mark Zuckerberg, the founder and CEO of
Facebook did not address the crisis head-on and the firm delayed responding to
questions by media and the users alike. The loss of time in acknowledging the data
breach, putting up with questions of protecting users’ personal data cost the brand
4209
PJAEE, 17(6) (2020)
dearly in terms of perception and erosion of its brand credibility. Research studies
and published news articles have also highlighted Facebook’s lack of transparency
and falling short on providing timely response to the crisis which negatively
impacted Facebook’s perception.
Conclusion:
These case studies, which have also been researched upon and published in journals,
news magazines, portals etc. underscore how crucial timeliness is, to crisis
communications and crisis management. These cases show the need for brands,
managers, companies to respond and communicate with stakeholders immediately.
Time is of the essence when managing a crisis. Not only does it help bridge the
communication gap that builds up as the company braces to tackle the crisis, but it
also cements brand loyalty among the internal and external publics. Not wasting time
to admit a shortfall and being honest about all aspects of the crisis with the
stakeholders can go a long way in promoting goodwill and positive perception,
which eventually help any brand to tide over the crisis. It is disastrous for
managements to delay responding in a timely manner during a crisis, because they
unwittingly give away their power to control the narrative, leaving it to external
parties for commenting and speculation, thus deepening the crisis.
The research done so far on this subject suggests keeping communication channels
open and countering misinformation through fact based response. It also highlights
cases where timely communications from brand managers or management of a
company has helped mitigate the damage done by a crisis.
As a suggestion, additional research could be undertaken on the importance of having
a crisis preparedness audit by companies/brands every month, role of social media
listening tools in helping predict any crisis before hand and charting up plans to
tackle the same. Another aspect that could be researched upon is effectiveness of
communication training imparted to top and mid level management as well as the
role of a brand/company’s internal publics in helping respond to crisis in a timely
fashion.
References:
1. Sapriel, C., 2003. Effective crisis management: Tools and best practice for the new
millennium. Journal of Communication Management, [online] 7(4), pp.348-355. Available
at:<https://www.researchgate.net/publication/241305270_Effective_Crisis_Management_T
ools_and_Best_Practice_for_the_New_Millennium>
2. Li, M. and Wei, H., 2016. How to Save Brand after Crises? A Literature Review on Brand
Crisis Management. American Journal of Industrial and Business Management, [online]
06(02), pp.89-96. Available at:
<https://www.researchgate.net/publication/295253700_How_to_Save_Brand_after_Crises_
A_Literature_Review_on_Brand_Crisis_Management>
3. Ganev, D., 2020. Boeing’S Ethiopian Crash: A Study In Bad Crisis Management -
Commetric. [online] Commetric. Available at: <https://commetric.com/2019/04/12/boeings-
ethiopian-crash-a-study-in-bad-crisis-management/>
4210
PJAEE, 17(6) (2020)
4. Baker, S., 2020. Boeing's Response To The 737 Max Crisis Confused And Frightened
People, Making It Hard To Believe Its Apologies, Experts Say. [online] Business Insider.
Available at: <https://www.businessinsider.in/transportation/boeings-response-to-the-737-
max-crisis-confused-and-frightened-people-making-it-hard-to-believe-its-apologies-
experts-say/articleshow/69398129.cms>
5. Baker, S., 2020. Boeing's Response To The 737 Max Crisis Confused And Frightened
People, Making It Hard To Believe Its Apologies, Experts Say. [online] Business Insider.
Available at: <https://www.businessinsider.in/transportation/boeings-response-to-the-737-
max-crisis-confused-and-frightened-people-making-it-hard-to-believe-its-apologies-
experts-say/articleshow/69398129.cms>
6. Hickman, A., 2020. Flop Of The Month: Boeing Delay Allows Others To Take Control Of
Narrative. [online] Prweek.com. Available at:
<https://www.prweek.com/article/1580584/flop-month-boeing-delay-allows-others-control-
narrative>
7. Sucher, S., 2020. How Boeing Should Have Responded To 737 Max Safety Crisis. [online]
Available at: <https://hbr.org/2019/03/how-boeing-should-have-responded-to-the-737-max-
safety-crisis>
8. Bhuta, A., 2020. The Story Of 'Maggi' In India : A Case Study In Crisis Management.
[online] Questia.com. Available at: <https://www.questia.com/library/journal/1P4-
1963096158/the-story-of-maggi-in-india-a-case-study-in-crisis>
9. Sharma, N., 2020. Conquering A Corporate Crisis. [online] Livemint. Available at:
<https://www.livemint.com/Leisure/cRUXqoVqNnncSaJllAiE7M/Conquering-a-corporate-
crisis.html>
10. Sanders, J. and Patterson, D., 2020. Facebook Data Privacy Scandal: A Cheat
Sheet. [online] TechRepublic. Available at:
<https://www.techrepublic.com/article/facebook-data-privacy-scandal-a-cheat-sheet/>
4211
