In “The Crisis Manager: Facing Risk and Responsibility” by Otto Lerbinger, the author emphasizes the inevitability of crises in organizational life and the necessity for effective crisis management. The book serves as a comprehensive guide for managers, providing a framework for understanding, preparing for, and responding to various types of crises.

Lerbinger categorizes crises into seven types: natural disasters, technological crises, confrontational crises, crises of malevolence, crises of skewed management values, crises of deception, and crises of management misconduct.

Actionable Advice: Conduct a risk assessment to identify which categories of crises your organization is most vulnerable to. Create a crisis portfolio that outlines potential scenarios for each category.

The author outlines three essential components of crisis management: prevention, preparation, and response.

Actionable Advice: Develop a crisis management plan (CMP). This plan should include clear protocols and designated responsibilities to mitigate the impacts of potential crises.

Lerbinger insists on the critical role of public relations during a crisis, advising that transparency and timeliness in communication can often make or break the situation.

Concrete Example: The Tylenol poisoning case (1982) is used to illustrate effective crisis communication. The company’s prompt action and transparent communication helped restore public trust.

Actionable Advice: Train your public relations team in crisis communication strategies. Schedule regular drills that include real-time press releases and social media updates.

According to Lerbinger, every crisis has distinct stages: detection, prevention/preparation, containment, recovery, and learning. Each stage requires specific actions and involvement from different parts of the organization.

Concrete Example: In the Challenger Space Shuttle disaster, poor detection and ignored warnings led to a catastrophic failure.

Actionable Advice: Implement a crisis detection system, such as a whistleblower program or regular safety audits, to identify potential problems early.

Leadership is pivotal during a crisis. Lerbinger emphasizes the necessity for decisive and directional leadership to steer the organization through turbulent times.

Concrete Example: Rudy Giuliani’s leadership during the 9/11 terrorist attacks is often highlighted as effective crisis leadership—providing clear instructions and maintaining public morale.

Actionable Advice: Leaders should engage in regular crisis management training. Simulate various crisis scenarios to develop decision-making and stress management skills.

Clear, honest, and timely communication is key. Lerbinger advocates for a well-structured communication plan that includes internal and external stakeholders.

Concrete Example: When Mad Cow Disease hit the UK in the 1990s, the delayed and irregular communication exacerbated public fear and mistrust.

Actionable Advice: Develop a communication strategy that includes identified spokespersons authorized to speak on behalf of the organization. Ensure they are well-trained in public speaking and crisis communication.

Ethics play a critical role. Misleading stakeholders or downplaying the severity of a crisis can lead to a loss of trust and further damage.

Concrete Example: The Ford Pinto case, where cost-saving measures led to dangerous design flaws being overlooked, shows the dire consequences of unethical decision-making.

Actionable Advice: Establish a code of ethics in your organization. Make ethical training a core part of crisis management preparations.

Lerbinger advises understanding the legal implications of crises, from liabilities to regulatory compliance, to mitigate legal risks.

Concrete Example: The Exxon Valdez oil spill led to extensive legal battles and highlighted the importance of legal preparedness.

Actionable Advice: Consult with legal experts to ensure your crisis management plan complies with relevant laws and regulations. Regularly update legal protocols in the plan.

Analyzing past crises to understand what went wrong and applying those lessons to future planning is indispensable.

Concrete Example: Post-flight analysis after the Three Mile Island nuclear accident led to enhanced safety protocols in the nuclear industry.

Actionable Advice: Conduct post-crisis reviews to evaluate the effectiveness of your response. Use these reviews to update and improve your crisis management plan.

The psychological well-being of individuals involved in or affected by crises must not be overlooked. Keeping morale high can significantly influence the overall recovery.

Concrete Example: After Hurricane Katrina, organizations that provided psychological support to their employees saw better recovery outcomes.

Actionable Advice: Include mental health support in your crisis management plan. Ensure access to counseling services for employees.

Lerbinger emphasizes the formation of cross-functional crisis management teams to cover all aspects of crisis response.

Concrete Example: The response to the Johnson & Johnson Tylenol crisis was managed by a team that included PR, legal, and operational experts working cohesively.

Actionable Advice: Form a crisis management team that includes individuals from different functions of the organization, such as PR, legal, operations, and HR. Regularly train together.

Regular simulations can help in identifying gaps in the crisis management plan and improve readiness.

Concrete Example: The aviation industry frequently conducts emergency simulations that involve all crew members, ensuring that everyone knows their role in a crisis.

Actionable Advice: Schedule annual crisis simulations involving the entire organization. Use these simulations to assess and refine your crisis management plan.

Managing media is crucial during a crisis. Lerbinger stresses the importance of keeping the media informed to control the narrative.

Concrete Example: During the BP oil spill, initial attempts to control information backfired, illustrating the need for proactive media management.

Actionable Advice: Build strong relationships with key media contacts before a crisis occurs. Prepare a media kit that can be quickly distributed when a crisis happens.

With the rise of social media, managing the organization’s online presence during a crisis is more important than ever.

Concrete Example: The 2010 Toyota recall crisis was exacerbated by viral social media posts, showing the need for real-time online crisis communication.

Actionable Advice: Have a social media crisis plan that includes rapid response protocols. Monitor social media platforms continuously for emerging issues.

Lerbinger outlines the steps needed for recovery and continuity post-crisis, emphasizing the importance of getting back to normal operations while maintaining transparency with stakeholders.

Actionable Advice: Develop a business continuity plan that outlines steps to resume normal business operations quickly. Ensure that this plan is integrated with the overall crisis management plan.

“The Crisis Manager: Facing Risk and Responsibility” by Otto Lerbinger provides a thorough roadmap for organizations to prepare for, manage, and learn from crises. By following the actionable advice derived from the book, organizations can fortify their defenses and improve their resilience against future crises. Regular training, ethical decision-making, effective communication, and a culture of continuous learning are cornerstone practices that can lead organizations through the storm and back to stability.