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A lifebuoy that supports in deep water Master’s Thesis 30 credits Department of Business Studies Uppsala University Spring Semester of 2017 Date of Submission: 2017-05-30 Nadia Bazydlo Sofia Wallin Supervisor : Anna Bengtson - A qualitative case study investigating how an external actor can support an organisation in crisis

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Page 1: A lifebuoy that supports in deep water - uu.diva-portal.org1111719/FULLTEXT01.pdf · A lifebuoy that supports in deep water Master’s Thesis 30 credits Department of Business Studies

A lifebuoy that supports in deep water

Master’s Thesis 30 credits Department of Business Studies Uppsala University Spring Semester of 2017

Date of Submission: 2017-05-30

Nadia Bazydlo

Sofia Wallin Supervisor: Anna Bengtson

- A qualitative case study investigating how an external actor can support an organisation in crisis

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Acknowledgements

For making this thesis possible we would like to thank the respondents at Prime for taking

their time to participate. Without your effort in sharing your knowledge and experiences, we

would not have been able to perform valuable results.

Furthermore we would like to thank our supervisor Anna Bengtson, for her great support and

for her constant availability by giving us guidelines during periods of crises. She also helped

us to achieve our goals and encouraged us to make the paper as good as possible by giving

suggestions for improvements. We also want to thank our seminar group who have given us

valuable and useful feedback during the whole process.

We wish you a pleasant reading and that you will gain valuable insights within this subject,

since you never know when your next crisis will appear.

__________________________ __________________________

Nadia Bazydlo Sofia Wallin

Uppsala University, Uppsala, May 30th 2017

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Abstract Problem Crisis management has never been as important as it is today. Considering that

criticism is being spread in a fast pace through social media, the reputation of

an organisation can quickly be damaged. Several organisations however lack

internal knowledge about crisis management. The majority of the previous

research about crisis management has been conducted from the organisations’

perspective. There is however relatively little research done from an external

actor’s role in supporting an organisation in crisis.

Purpose This study aims to contribute in the crisis management and communication

field by investigating how an external actor can support an organisation in

crisis.

Method The study was conducted through a qualitative single case study of crisis

management support provided to firms by one external actor, a PR-agency.

Primary data for the case was collected from six semi-structured interviews.

Conclusion External actors are a suitable helping hand in crises because they possess

experience and knowledge in media and crisis communication and can view

the situation objectively. Crisis consultants support their clients by providing a

response strategy that is built on being honest and open. Proactive and post

work are not prioritised by clients but are highly important for crisis

preparedness and building a strong reputation. Social media is a standard part

of today’s crisis communication but is also a demanding channel that creates

incentives for hiring external support.

Keywords Crisis management, Crisis communication, Crisis Consultancy, PR-agency,

Reputation, Social Media, External support, Social-Mediated Crisis

Communication Model (SMCC), Situational Crisis Communication Theory

(SCCT)

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Table of Contents

1. Introduction .......................................................................................................................... 1 1.1 Background ...................................................................................................................... 1 1.2 Problem discussion ........................................................................................................... 3 1.3 Research purpose .............................................................................................................. 4 1.4 Thesis outline ................................................................................................................... 5

2. Theory ................................................................................................................................... 6 2.1 Organisational crisis ......................................................................................................... 6 2.2 Different types of crises ................................................................................................... 6

2.2.1 Origin approach of crises ......................................................................................... 6 2.2.2 Influence and predictability approach of crises ........................................................ 7

2.3 Management consulting ................................................................................................... 8 2.3.1 Crisis consulting ........................................................................................................ 9 2.3.2 PR-agencies ............................................................................................................... 9

2.4 Three stages of crisis management ................................................................................. 10 2.4.1 Pre-crisis ................................................................................................................. 11 2.4.2 Crisis Response ....................................................................................................... 11 2.4.3 Post-crisis ................................................................................................................ 12

2.5 Crisis communication ..................................................................................................... 13 2.5.1 Situational Crisis Communication Theory .............................................................. 13 2.5.2 The social media environment ................................................................................. 15

2.6 Reputation ...................................................................................................................... 16 2.7 Model of analysis ........................................................................................................... 17

3. Method ................................................................................................................................. 19 3.1 Research approach .......................................................................................................... 19 3.2 Research design .............................................................................................................. 19

3.2.1 Qualitative research ................................................................................................ 19 3.2.2 Case study ............................................................................................................... 20

3.3 Data Collection ............................................................................................................... 20 3.3.1 Primary data ........................................................................................................... 20 3.3.2 Secondary data ........................................................................................................ 21

3.4 Selection process ............................................................................................................ 22 3.4.1 Selection of Case ..................................................................................................... 22 3.4.2 Selection of Respondents ......................................................................................... 22

3.5 Operationalisation .......................................................................................................... 24 3.6 Data collection process ................................................................................................... 25

3.6.1 The interview process .............................................................................................. 25 3.6.2 Data collection from internal lecture ...................................................................... 26 3.6.3 Data analysing ........................................................................................................ 26

3.7 Ethical considerations .................................................................................................... 26 3.8 Critical reflection ............................................................................................................ 27

4. Empirical Findings ............................................................................................................. 28 4.1 About Prime ................................................................................................................... 28

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4.2 The supporting actor ....................................................................................................... 28 4.2.1 Support from a crisis consultant ............................................................................. 29 4.2.2 Clients ...................................................................................................................... 29 4.2.3 Easier said than done .............................................................................................. 30

4.3 Crisis origin .................................................................................................................... 30 4.4 The life cycle of a crisis ................................................................................................. 31

4.4.1 Proactive work ........................................................................................................ 31 4.4.2 Taking action ........................................................................................................... 32 4.4.3 After action .............................................................................................................. 33

4.5 The audience perspective ............................................................................................... 33 4.6 The connected place to be .............................................................................................. 33

4.6.1 The use of a social media specialist ........................................................................ 34 5. Analysis ............................................................................................................................... 36

5.1 When and how to expect a crisis .................................................................................... 36 5.2 External support ............................................................................................................. 36

5.2.1 Dealing with difficulties .......................................................................................... 38 5.3 Stages of a crisis ............................................................................................................. 39

5.3.1 Preparation for possible battle ............................................................................... 39 5.3.2 Dealing with trouble ................................................................................................ 39 5.3.3 Cleaning up the mess ............................................................................................... 41

5.4 The shifting media usage ................................................................................................ 42 5.4.1 The demanding side ................................................................................................. 43

5.5 The outside perception ................................................................................................... 44 6. Conclusion ........................................................................................................................... 46

6.1 Managerial implications ................................................................................................. 48 6.2 Limitations and future research ...................................................................................... 48

References ............................................................................................................................... 49 Appendix 1 - Interview Guide - Crisis Management .......................................................... 57 Appendix 2 - Interview Guide - Social media ...................................................................... 58 Appendix 3 - The Ten Commandments used in Social Media ........................................... 59

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1. Introduction

The following chapter provides a background to the topic of crisis management and gives a

further explanation of the shifting technological environment. A problem discussion is

thereafter presented that describes and motivates the relevance of the topic, followed by a

research question.

What have an earthquake, corruption, and dishonest communication in common? They are all

examples of incidents that can cause crises. Crises that can affect different levels of the

society, from individual to global impact. In a world that is perceived to be uncertain and

changeable, crises can easily expand and cause huge damage for those being involved.

Organisational crises often occur as irregular and unexpected events that can create high

uncertainty and become a threat to an organisation (Coombs, 2007; Ulmer et al., 2009). It can

furthermore damage a reputation and be a risk of affecting the viability of the company

(Ulmer et al., 2009). Even though a crisis is an unexpected incident with high risks for the

organisation, the damage and appearance of it can however be managed and reduced with the

right knowledge, tools, planning and preparation (Gage & Reinoso, 2002).

The past decade has witnessed plenty of unexpected upheavals that have put organisations

into crises. Some of them have emerged by internal controllable actions (initiated from issues

inside the organisation) and others by external incidents (initiated without any influence from

the organisation) (Jin et al., 2014). The eruption of the volcano Eyjafjallajökull in Iceland is

one example of a crisis that can be interpreted as an external crisis due to the fact that it

happened independently without any controllable impact. This paralysed the whole air travel

in Western and Northern Europe, which in turn affected many other actors negatively

(Nilsson, 2010). Another example is the recent Volkswagen emission scandal, which can be

perceived as an internal crisis that is generated by organisational actions. Volkswagen had

intentionally been dishonest about the nitrogen oxide emissions from their cars, which made

the communication deceptive towards their clients (Spencer, 2015).

1.1 Background

Considering today’s uncertain environment, organisations must regularly cope with diverse

crises, which expose the organisation to threats that can harm its position and reputation at the

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market (Grewal & Tansuhaj, 2001). The development of the technology era has implied new

risks and crises that organisations need to be aware of and be able to handle. Within the

technology, social media plays an essential part in the rapid exchange of information

(Palenchar, 2009). The availability and the access to information around-the-clock create

more pressure for companies to be alert and react on unexpected events or occasions. Social

media creates a place for quick interaction and information sharing, and is thereby also of

great importance in crisis situations (Jin et al., 2014). The technological progress has

transferred how crisis management professionals and researchers communicate, receive, and

distribute information during a crisis situation. It has moreover changed the foundation of the

network communication and how people are connected to one another (Veil et al., 2011). One

result of the technological change is that traditional media is successively being replaced by

social media. Increasingly, the public believe that social media is the most reliable source

when searching for news and engage in conversations (Liu et al., 2011). In this thesis the

public is defined as individuals in the society that can get affected when a crisis occur.

As a result of the fierce media climate and the increased requirements for transparency and

proper actions, crisis management has never been as important as it is today (Fors-Andrée,

2012). Considering that opinions and speculations are being spread in a fast pace through

social media, the reputation of an organisation can quickly be damaged (Alsop, 2004; Barton

2001; Coombs, 2007). It is thereby said that organisations which develop strategies that

prevent crises have better possibility to manage unpredictable happenings than those who do

not (Gage & Reinoso, 2002). Organisations that moreover work with proactive planning of

crises, have a better chance to manage the crisis more effectively, and smoothly recover from

it by rebuilding its reputation in order to continue its business (Barton, 2001; Carney &

Jorden, 1993; Coombs & Holladay, 2006).

Silence is rarely the best way to manage a crisis. To achieve successful management when

handling a crisis, communication is crucial (Bakewell, 1997). Without any internal or external

communication, an organisation will most likely not survive (Wells, 1978). During a crisis,

the communication is challenging because an immediate response from the informative

institution is expected by the surrounding (Aula, 2010; Ulmer et al., 2007). Not only are

organisations being expected to give a quick response, it also needs to be accurate and

consistent (Coombs, 2015), considering that the first impressions are often the lasting

impressions (Bakewell, 1997). In a highly connected world, nowadays people in first hand

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use social media to search information and obtain knowledge about a crisis (Liu et al., 2011;

Seltzer & Mitrook, 2007; Taylor & Perry, 2005). Due to the increased information sharing

online, crisis management has changed (Jin et al., 2014). Today social media has a much

more central role in crisis communication than before. Yet the majority of the organisations

have not incorporated social media into their strategic communication (Liu et al., 2011; Veil

et al., 2011). Even though this is a well-addressed topic, several organisations do not have the

internal knowledge and tools to act and respond to a crisis in media and are therefore

demanding external expertise. Public relations (PR) agencies are examples of external actors

that have great influence and knowledge about crisis management and media relations. These

agencies have a central role when responding to a crisis by providing training and support for

the organisation, both prior, during and after a crisis (Coombs, 2014).

1.2 Problem discussion

A field that has been highly examined lately is how social media can be used in risk reduction

and crisis response, and what importance it has in managing a crisis (Alexander, 2014; Aula,

2010; González-Herrero & Smith, 2008; Schultz et al., 2011; Veil et al., 2011). In fact, during

crisis situations the public's use of social media increases (Jin et al., 2014), which results in

that public participation should be a standard part of today’s crisis management (Baron,

2010).

The reputation of an organisation is another field that plays a vital role in how the

organisation will be able to handle a crisis and how it will be perceived afterwards. Several

authors (e.g. Alsop, 2004; Barton, 2001; Davies et al., 2003; Dowling, 2002; Greyser, 2009)

have investigated the role of reputation in crises, and conclude that a weak reputation before

the crisis reduces the chances of surviving a crisis and vice versa. Furthermore, its is not only

about surviving the crisis, it is also about the damage a crisis can cause on a reputation, which

can affect the organisation’s further progress and business. In recent years many organisations

therefore request help from PR-agencies in order to cope with managing crises and corporate

reputation (Pang & Yeo, 2012; Yeo & Sriramesh, 2009).

Whether it is a life crisis, an organisational crisis or a natural disaster research show that one

can benefit from obtaining support from friends and family but also from external

professional expertise (Wilcox, 1981). The majority of the previous research about crisis

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management has been conducted from the organisations’ perspective, where crises are

supposed to be handled internally. There is however relatively little research done on how an

external actor, such as management consulting, can support an organisation in their crisis

management (Frandsen et al., 2013; Pang et al., 2013). This is problematic, because many

organisations do not have the proper internal knowledge to manage a crisis in a favourable

manner. Wilcox (1981) states that one can gain greater advantage by seeking help from

external professionals. As the support increases, the better a crisis can be handled (Cassel,

1974; 1976). This literature gap is therefore highly interesting and significant to fill in order

to provide organisations with valuable knowledge of how an external actor can support in

crisis management. This could help in reducing the risk of damage, or even prevent the

appearance of it (Gage & Reinoso, 2002). It is moreover crucial to be able to handle a crisis

effectively in order to decrease the chance of harming the reputation (Ashcroft, 1997). If the

damage has already occurred it is even more necessary to have the knowledge of how to

recover from a crisis and rebuild the reputation since it otherwise can create severe damage to

the viability of the organisation (Coombs, 2007; Ulmer et al., 2009).

1.3 Research purpose

Based on the discussion above this study aims to contribute to fill the gap in the crisis

management and communication consultancy literature by investigating how crises are being

handled from the perspective of an external actor towards its clients. In this study, an external

actor is defined as a consultancy firm working with crisis management. More particularly, this

research is applying a PR-agency’s view in managing clients’ crises. External actors can play

an important role in their clients’ crisis management by working with supporting activities,

such as social media. In order to achieve the aim of this thesis, the following research

question is formulated:

- How can an external actor support an organisation in crisis?

By answering the research question, this thesis will result in a both practical and theoretical

understanding regarding the importance of an external actor within an organisation’s crisis

management.

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1.4 Thesis outline

This thesis will present the following. Chapter 2 contains a theoretical framework including

two theories and key concepts connected to organisational crisis, crisis management and crisis

communication. Chapter 3 outlines the methodological selection, in terms of data collection,

sampling and limitations. Chapter 4 present the empirical data collected from the interviews,

expressing insights about supporting activities from the external actor in managing crisis in

different stages and how they contribute with knowledge and tools in crisis management.

Chapter 5 analyses the theoretical framework with the empirical data collected from the case

company. The final chapter ties it all together with a conclusion that can be drawn from the

study in relation to the research question. The last section states managerial implications,

limitations and suggestions for future research.

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2. Theory

This chapter presents the theoretical background that has been chosen in order to answer the

research question. First, a more broadly view of organisational crises and its different types

will be described. Thereafter, the role of the consultancy, more specifically PR-agencies, in

crisis communication is discussed together with two theories consisting of the Situational

Crisis Communication Theory (SCCT) and the Social-mediated Crisis Communication Model

(SMCC). The chapter ends with a model of analysis that the thesis is based on.

2.1 Organisational crisis

An organisational crisis is defined as followed: “A crisis is the perception of an unpredicted

event that threatens important expectancies of stakeholders related to health, safety,

environmental, and economic issues, and can seriously impact an organisation’s performance

and generate negative outcomes” (Coombs, 2015, pp.3). When referring to a crisis in this

study, Coombs’ (2015) definition will be applied. Coombs (2015) is furthermore stating that a

crisis is unpredicted but not unexpected and that well-enlightened organisations have the

awareness of that crises eventually will arise but do not know exactly when it will appear.

Crises have the ability to hit suddenly and without warning, which results in unexpected

surprises and the inability to predict when they will occur (Barton, 2001; Coombs, 2015). A

crisis has the potential to disrupt the operations of an organisation and even threaten the

viability of it. It can moreover create negative outcomes such as damaging the reputation,

harming the financial position, and create loss in the productivity (Barton, 2001; Coombs,

2015; Coombs, 2007).

2.2 Different types of crises

2.2.1 Origin approach of crises

Crises are mainly divided into two different types depending on how the crisis has evolved. A

crisis can either be of external character, which means that the issue has emerged without any

organisational influence, or of internal character, which means that the issue has appeared

within the organisation. This in turn influences how the crisis response strategies are being

designed (Jin et al., 2014). Ulmer et al. (2007) is similarly distinguishing between non-

intentional crises (decreasing economical cycle, natural disasters, unpredictable technical

breakdowns) and intentional crises (terrorism, unethical leadership, lack of risk management).

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Although crises differ in impact and complexity they have several common attributes. Crises

are mainly being associated with uncertainty that affect the organisation's way of handling,

processing and interpreting information.

2.2.2 Influence and predictability approach of crises

Instead of describing a crisis from its origin, it can also be explained in accordance to its

predictability and level of influence it has on the environment. Gundel (2005) has done an

example of this when constructing a matrix with four boxes that represent four different types

of crises: conventional, unexpected, intractable, and fundamental.

Conventional crises are characterised of being relatively easy to predict and plan for. This

type of crisis can easily occur when risks are being realized into an accident. The E. coli

bacteria outbreak in Taco Bell’s restaurants in 2006 is one example of a conventional crisis,

considering that one is aware of the risks when not washing and sanitising food in a hygienic

way (Martin & Holusha, 2006). By having prior accident experience, one is aware of that

similar events can sooner or later occur and it is therefore significant to be able to create

proactive action plans so that the event will not evolve into a severe crisis.

Unexpected crises occur when a crisis goes beyond the conventional and expected but can be

handled relatively well considering the circumstances (Gundel, 2005). An example of an

unexpected crisis is the Västmanland wildfire that broke out during summer in 2014.

Although it was Sweden’s largest wildfire in 40 years and about 13 000 hectare forest were

destroyed, the rescue operation was able to evacuate all the people and the majority of the

farm animals living nearby, however one victim was encountered (Ekström et al., 2014).

Intractable crises are mainly being distinguished by the difficulty of managing a crisis, which

easily can lead to severe problems. With intractable crisis, conflict and definition battles often

follows as to what actually occurred and what the right action is to restore the crisis (Gundel,

2005). One example of an intractable crisis was when the oil tanker Exxon Valdez got

stranded in Alaska in 1989 and 41 million litre oil spilled out in the sea. Even if

decontamination work was implemented during the next three years, measurements from

2009 showed that there was still three million litre oil left, hiding under the sand (Salomon,

2011). Although decontamination work was done it was certainly intractable since oil is in

general hard to manage.

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Fundamental crises are considered to be most complex, because it is unexpected, intractable

and thereby difficult to handle (Gundel, 2005). The likelihood and/or the risk that the

fundamental crisis occurs are extremely difficult to identify and anticipate. Moreover, if the

crisis occurs, the effects often become severe through fast viral dissemination. The terror

attack of 9/11 is an example of a fundamental crisis, mainly because it was hard to predict due

to the unusual situation and confidential arrangements (Gundel, 2005). The consequences

made the crisis also difficult to handle considering its negative outcome and its expansion into

a worldwide issue with future problematic impact (Boin & Lagadec, 2000).

Figure 1. Gundel’s (2005) matrix with examples of crises

2.3 Management consulting

The market for management consulting firms has evolved in a rapid speed during the last

decade (Furusten, 2003). Organisations choose to hire consultancy firms due to several

reasons (Rudgard, 2003). One of the most common reasons is that organisations lack the

expertise within the company, and therefore want to take advantage of external actors, such as

management consultants, in specific tasks or services (Rudgard, 2003; Wilcox & Cameron,

2011).

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2.3.1 Crisis consulting

Obtaining help from external actors can be a winning concept when managing a crisis

(Wilcox, 1981). Research has shown that external support can provide advantages in the

preparation for a crisis, in the response during a crisis and in the handling after a crisis, which

is of great importance for rebuilding the capacity in order to proceed its further business

(Coombs, 2015; Lages & Simkin, 2003; Laufer, 2007; Rudgard, 2003). During a crisis,

verifiable information about the crisis is often lacking, which makes the public actively search

for information in media (Wilcox & Cameron, 2011). This creates pressure on organisations

to answer with complete and accurate information as fast as possible in order to prevent

misinformation and speculations to be spread in media (Coombs, 2015; Wilcox & Cameron,

2011). Crisis management consultancies’ mission is first of all to protect stakeholders from

negative outcomes caused by a crisis, and thereafter to protect financial and reputational

assets (Coombs, 2015; Wilcox & Cameron, 2011). There is however a lack in crisis

preparedness and crisis management in organisations. A study made by Wu and Dai (2001)

concluded that more than half of their respondents admitted that their organisation did not

possess either a crisis management team or a crisis management plan, even though a crisis had

happen during the last five years. Thereby many organisations are often outsourcing these

tasks to management consultancies, such as PR-agencies, to perform preventable, responding

and restoration crisis strategies (Rudgard, 2003).

2.3.2 PR-agencies

PR-agencies provide a variety of services: marketing communication, counselling, public

affairs, media relations, digital and social media, events management, financial relations, and

crisis management (Wilcox & Cameron, 2011). Wilcox & Cameron (2011) state that the

advantages with hiring PR-consultancies are that they are experts in their field and can view

tasks more objectively and thereby analyse it from a new perspective and perform fresh

insights. They often possess a large network with access to a lot of resources, and by being a

successful PR-agency, the firm possess a solid reputation that speaks for its credibility in its

work (Wilcox & Cameron, 2011). The disadvantages are that consultants may lack

understanding of their client's business due to limited information, which may result in

difficulties with accomplishing tasks. In connection to this, managers at higher levels need to

take their time to inform consultants and also be willing to share all of their information, even

their sensitive material. Furthermore, consultancies work with several clients at the same

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time, which may result in a lack of full-time attention towards one customer. Also, hiring

consultants are costly and hiring outside expertise can make internal staff feel less valuable

and see it as an indication that they lack competencies of doing their job (Wilcox & Cameron,

2011).

2.4 Three stages of crisis management

Crisis management builds on a set of factors that are invented for handling a crisis (Coombs,

2015). These factors consists of prevention, preparation, response and revision, which

illustrates the importance of being able to see a crisis as a life-cycle process with different

stages that requires diverse actions to manage it effectively (Gonzalez-Herrero & Pratt, 1995;

Sturges, 1994). Crisis management is not a disposable action that is invented when a crisis

emerge, it is an ongoing process that demand continuous improvements. The life-cycle

perspective and the factors of crisis management have produced alternative stage approaches.

Due to this a three-stage model has been created and recommended by several experts in

crisis management, according to Coombs (2015). The stages consist of: first, Pre-crisis;

second, Crisis response; and third, Post-crisis. These three stages work as a way to synthesise

and organise different insights about the crisis management process (Coombs, 2015). This

three stage model has been chosen since it is one of the few that has been constructed within

crisis communication.

Figure 2. Crisis communication phases, (Coombs, 2015)

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2.4.1 Pre-crisis

Preventing a crisis is the best way of handling one (Coombs, 2015). If the crisis does not take

place, no parties will experience any damage. Pre-crisis is the first reaction stage and refers to

the proactive work that includes prevention strategies in order to avoid a crisis. This phase

contains three main sub stages: signal detection, prevention, and crisis preparation (Coombs,

2015). The majority of all crises provide early signals and by being attentive to these signals

and taking fast action, crises can be avoided (Gonzalez-Herrero & Pratt, 1995). Considering

that 90% of all crises are said to be preventable (Wilcox & Cameron, 2011), it is not only

important to be aware of early warning signs. It is also vital to gather related information and

analyse it in order to develop suitable prevention strategies or preparation plans if the crisis

unlikely occurs. The core in the preparation phase is to implement a so-called crisis

management plan. The plan includes identifying crisis vulnerabilities, choose and educate a

crisis management group and spokespersons, and build up a knowledge foundation in order to

avoid potential threats (Coombs, 2015). Thus, by taking advantage of existing organisational

resources it facilitates to prevent a crisis. The pre-crisis stage is moreover about building up a

stable reputation in order to recover from a crisis in the most harmful way (Alsop, 2004;

Greyser, 2009; Jones et al., 2000).

2.4.2 Crisis Response

The crisis response stage occurs when the first sign of misstep has happened and ends when

the crisis is managed and perceived to be resolved (Coombs, 2015). Communication during a

crisis is a vital part of the crisis response stage. Crisis managers must act to prevent the crisis

from disseminating but also to limit its duration (Mitroff, 1994). Internal managers need to

search and identify from where the crisis first started and thereafter collect information about

the crisis and evaluate its outcome. Thereafter, crisis managers and/or the spokespersons must

make their first public statement to inform external stakeholders about the crisis in a proper

way. Social media is normally the first way to deliver a message about a crisis, and it is vital

to be accurate, quick and deliver a clear and understandable message (Geraldi & Kutsch,

2010). Technology in terms of increasing speed of information, has been a driving force in

creating a fast response by crisis managers due to the higher expectations of obtaining

information fast (Barton, 2001). The faster a crisis arise in media, the quicker a crisis team

must respond, and the more risks the organisation is taking in terms of accidental mistakes.

The benefits of a fast response however outweigh the risks. The organisation can then tell

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their side of the story of what has happened instead of making an unintended invitation to

outsiders to take control and make diagnoses over the situation, which otherwise can create

huge damage and increased work for the organisation. By a quick response, before other

sources, the organisation appears to have control over the situation and takes action against

the crisis in order to solve it, so called stealing thunder (Arpan & Pompper, 2003; Arpan &

Roskos-Ewoldsen, 2005; Claeys & Cauberge, 2010). During a crisis, the crisis management

team needs to ensure that the spokesperson of the organisation is well-informed and prepared

to deliver a consistent message to the public. Consistency builds credibility of the response

and is more believable than inconsistency (Garvin, 1996). Another essential part when

answering a crisis is to have openness in the organisation. This means to be available to

media, willing to share information and be honest. Effective crisis response also allows an

organisation to continue faster with its business, resulting in less productivity loss and

minimising the decreased demand for its service or product (Garcia, 2006).

2.4.3 Post-crisis

When a crisis has come to an end, the organisation often wants to return to its business as fast

as possible. A crisis is however an excellent opportunity for improvements (Pauchant &

Mitroff, 1992). The post-crisis stage is therefore a highly important step but that unfortunately

in some situations is not fully prioritised, mainly because it is time and energy consuming.

When a crisis has ended, managers firstly have to evaluate their work of what went right or

wrong and how effective the crisis management plan was, since evaluation helps the

organisation for further improvement (Barton, 2001). Secondly, after the crisis has been

solved it still needs to be monitored, which can include further collection of information to

stakeholders and other involved (Coombs, 2015). By taking care of the relationship with its

stakeholders, the organisation is automatically taking care of itself. Withholding information

from its stakeholders will in the long run harm the organisation and intensify the damage of

the crisis. A well-conducted evaluation and crisis documentation will hopefully make future

crisis management more efficient and successful with less overall damage (Coombs, 2015).

Coombs & Holladay (2005) and Ulmer et al. (2007) have also done research in this field, with

a focus on image restoration, renewal and how post-crisis communication can prevent

reputational damage or repair an already damaged reputation. Image restoration focuses

mainly on explaining and defining what actually happened and what the cause of the crisis

was in order to repair the organisational image and reputation. Renewal is on the other hand

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more about the work after of how the organisation should move forward and create strategies

to repair the possible damage (Ulmer et al., 2007).

2.5 Crisis communication

Crisis communication is defined as “An interactive process of exchange of information and

opinion among individuals, groups, and institutions; often involves multiple messages about

the nature of risk or expressing concerns, opinions, or reactions to risk messages or to legal

and institutional arrangements for risk management.” (National Research Council, 1989,

pp.332). Crisis communication moreover involves how the organisation chooses to respond to

a crisis and the strategy to achieve a certain outcome (Coombs, 2015). There are several

studies addressing the implications of being able to communicate with the public and how the

reactions can affect an organisation’s further crisis management (Coombs, 2007; Coombs &

Holladay, 2007; Liu et al., 2011). The way of communicating has moreover changed

drastically in the last decade when new communication channels have appeared due to the

technological development (Veil et al., 2011). Within communication strategies it is

important to convey a consistent and accurate message towards its stakeholders in order to

avoid false rumour dissemination that can harm the reputation (Coombs, 2015).

2.5.1 Situational Crisis Communication Theory

In order to obtain knowledge of how stakeholders react to an organisational crisis response

action, a theoretical communication guidance has been evolved by Coombs (2007), named

situational crisis communication theory (SCCT). The SCCT does not only make it possible to

understand how stakeholders will respond to an organisation’s crisis management, it also

identifies how crisis managers can choose and apply proper response strategies to protect

organisations from reputational damage during a crisis. These are the reasons why this theory

will be applied in this thesis. Coombs (2015) has identified the ten most common crisis

response strategies that have been used in order to repair an organisation's reputational

damage caused by a crisis. The SCCT has organised these response strategies by dividing

them into four postures, depending on the strategy's intention. Table 1 shows the four postures

containing: denial posture, diminishment posture, rebuilding posture and bolstering posture.

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Table 1. Crisis response strategies by posture (Coombs, 2015)

Crisis response strategies by four postures

The denial posture aims at avoid all connection and links related to the crisis. The

organisation tries to step away from being involved in the crisis to reduce or avoid any harm.

An example of this kind of crisis is a rumour, were false information about the organisation is

being disseminated in media. Strategies included in the denial posture are attacking the

accuser, scapegoating and denial. The diminishment posture seeks to reduce the responsibility

for the crisis or give an explanation of the crisis occurrence. These strategies are called

excusing and justification. The rebuilding posture attempts to affect the reputation of an

organisation in a favourable manner by providing stakeholders with compensation or through

apology expressing their regret for the crisis and ask for forgiveness. Lastly, the bolstering

posture tries to reinforce a positive connection between the organisation and its stakeholders.

This is performed by reminding of past good deeds, ingratiation to prise stakeholders and

victimage themselves as a victim of the crisis (Coombs, 2015).

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Estimation of reputational threat

In order to estimate the reputational threat of a crisis, three factors are used in the SCCT:

initial crisis responsibility, crisis history and prior relational reputation. Initial crisis

responsibility is about the stakeholder’s perception to which degree the organisation is

responsible for the crisis (Coombs, 1995). If for example the organisation is guilty to an

incident, the response from the surrounding will be negative. If the organisation instead is

absolutely or relatively innocent to the incident, the response will be less severe and the

organisation’s reputation thus less exposed. Crisis history concerns an organisation’s previous

critical events. If the organisation has had similar crises before, it can for instance make it

more difficult for stakeholders to trust the organisation, which thereby result in a less reliable

reputation. Prior relational reputation explains the historic relationship between the company

and its stakeholders. If an organisation has treated its stakeholders poorly during previous

events and thus built up a negative relationship, it will expose its reputation for greater threat

when a new crisis occurs (Coombs & Holladay, 2002; Porritt, 2005).

2.5.2 The social media environment

Social media is defined as a “collection of online technologies that allow users to share

insights, experiences, and opinions with one another. The sharing can be in form of text,

audio, video, or multimedia” (Coombs, 2015, pp.18; cf. Safko & Brake, 2009). Historically,

crisis managers have used news media, newspapers and websites in their response strategy.

The media environment of today is perceived to be highly complex with many different social

media channels to choose from when considering a crisis response. This creates an external

pressure to apply social media in one’s communication (Baron, 2010; Jin et al., 2014; Veil et

al., 2011). Today’s technological environment gives organisations no longer a choice whether

to integrate social media in their crisis communication or not, instead it is more a question of

how and when to do it (Jin et al., 2014).

Organisations must cope with the new digital media, where customers who use social media

on a daily basis or become more active when a crisis occurs, have more trust in information

that is coming from social media than from traditional media (Procopio & Procopio, 2007;

Sweetser & Metzgar, 2007). Individuals are increasingly expressing their opinions through

various social media channels, resulting in a new and changing environment for

communication where information travels fast and global (González-Herrero & Smith, 2008).

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Social media can also be argued to increase the risk of harming an organisation. Due to the

users’ simplicity to share quick and unverified information, which can be both true and false,

it can largely differ from the organisation’s values and thereby damage the organisation’s

reputation (Coombs, 2015). In addition, this creates incentive for organisations to mediate and

distribute complete media coverage before, during and after a crisis in order to avoid

misunderstandings and unwarranted speculations that can put the organisation in danger. In

relation to that, most of the information that stakeholders obtain about organisations comes

through social media (Carroll, 2004; Carroll & McCombs, 2003; Meijer, 2004).

Social-Mediated Crisis Communication Model

The social-mediated crisis communication model (SMCC) explains the importance of using

social media in crises, by visualizing how different media and media users influence and

affect each other (Liu et al., 2011). The model argues that a primary reason for why the public

use social media in crisis situations is to receive emotional support or venting emotional

thoughts (Jin & Liu, 2010). Emotional expressions by the public get more intensified if the

crisis origin is caused internally and if the information about the crisis is disseminated by a

third party through social media (Jin et al., 2014). The model helps organisations to achieve

advantageous crisis results by understanding how the public use social media. It moreover

illustrates that the source of a crisis determinates how the responsibility will be distributed

and how the response will evolve. This means that the public perceives an internal crisis to be

more manageable than an external one and thereby puts more responsibility on the

organisation when the crisis is internally caused (Coombs, 2015; Jorgensen, 1993; Lyon &

Cameron, 2004; Weiner, 1986). According to the SMCC-model, there are two components

that are crucial to take in consideration in order to perform a successful response strategy. The

first component, crisis information form, describes how the information about a crisis is being

communicated, through which media channels. The second component, crisis information

source, indicates where the information has its origin (Jin & Liu, 2010).

2.6 Reputation

When a crisis occurs, anger and anxiety are the emotions that drive people to share negative

information about an organisation, both online and offline (Coombs & Holladay, 2007; Jin,

2009; Jin & Pang, 2010). This creates a negative communication dynamic, which makes it

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even more important for organisations to know how to respond to these comments in order to

compensate the stakeholders and reduce the reputational threat (Coombs, 2015).

Building a strong reputation is a long term process, but destroying a reputation can happen in

a day. As Warren Buffett states “It takes 20 years to build a reputation and 5 minutes to ruin

it”. A reputation is being built and developed through information about the organisation that

stakeholders receive by interaction with media and the organisation (Coombs & Holladay,

2006; Dowling, 2002; Fombrun & Van Riel, 2004). It also develops through information

received by second-sources in terms of word-of-mouth, blogs and discussion boards (Coombs

& Holladay, 2007). Positive interaction between the organisation and its stakeholders builds a

favourable reputation while negative reactions by word-of-mouth or in social media channels

creates an unfavourable reputation (Coombs & Holladay, 2006). A favourable reputation can

be an advantage during the crisis response stage. It overlaps with the credibility of the

response, where stakeholders may ignore the crisis because they do not believe that the

organisation has done anything wrong (Coombs, 2015). Reputations are seen as valuable and

intangible assets that are linked to significant outcomes. It can for example generate

favourable media coverage, which is of great advantage during a crisis (Alsop, 2004; Davies

et al, 2003). Coombs and Holladay (2006) state that a strong and favourable reputation can

create a so-called halo-effect that can protect the organisation during a crisis. It additionally

means that a favourable reputation creates a reputational capital, in relation to the ones that

have a bad or weak reputation. Another advantage by having a strong and reliable reputation

is that it may reduce the negative speculations from non-expert opinions that can come with a

crisis (Coombs, 2015).

2.7 Model of analysis

The above theories have been compiled into an analysis model (see figure 3 below) that will

be used when analysing the gathered empirical data.

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Figure 3. Model of analysis, constructed from the presented theory

The model consists of the three main actors: the organisation in crisis, the external actor and

the public. The model starts with an organisation in crisis that needs support from an external

actor, in this case a PR-agency, in order to handle the situation. The support of the external

actor builds on crisis communication and its two main tools: SCCT and SMCC. The two

theories in combination with the three crisis communication phases (figure 2) are working as

guidelines for the external actor when helping the organisation to respond to a crisis. The

response of a crisis, that are made through crisis communication, are then mediated to the

public that indirectly decide how the reputation of the organisation in crisis will be formed. It

is thereby significant for the external actor to use the right crisis communication in order to

reduce the negative impact that a crisis can cause before, during and after the incident. The

dotted line show that crisis communication will indirect affect the reputation of an

organisation in crisis, although in the end it is the publics who decides what impact it will

have on the organisations reputation.

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3. Method

In the chapter below, the method of what and how this study was conducted is described and

motivated. Firstly, a research approach is being presented followed by the research design of

how the data was collected. Secondly, the selection process of the respondents and an

operationalisation is being presented. The chapter ends by explaining the process of

collecting and analysing the data and a discussion about ethical considerations as well as

critical reflections.

3.1 Research approach

In order to reach the aim of this study, a qualitative research design with an inductive

approach is being applied. An inductive approach is suitable since this study is collecting data

in order to understand and explore a phenomenon while building and extending a theoretical

framework (Saunders et al., 2016). Due to limited research in this field and a desire to deeper

understand the process of how an external actor can support an organisation in crisis, the data

collection is not limited to one theoretical framework. It is rather flexible and continually

developed when new insights are being realised. When clarifying an understanding of a

phenomenon, whose origin is unsure, the study is having an exploratory approach. Because of

the flexibility, the inductive approach fits well with the exploratory study approach, since it

also has the advantage of being adaptable and adjustable to changes (Saunders et al., 2016). In

order to gain new in-depth knowledge about the research phenomenon, the data collection

mainly consists of interviews, which also is in line with a qualitative base. The qualitative

approach is particularly applicable when it is significant to acquire the respondent’s

perspectives of a phenomenon (Yin, 2015). During the interviews a pattern emerged that was

supported with the help of the theoretical framework. The study started with a broad focus

and became narrower during the research process, which also characterises an exploratory

study (Saunders et al., 2016).

3.2 Research design

3.2.1 Qualitative research

To investigate the external organisation’s role as a supporting function, a qualitative approach

was chosen. In combination with an exploratory design a qualitative research approach can

entail new, rich and in-depth data, which enables to understand the external organisation’s

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role and functions towards its clients (Saunders et al., 2016). To obtain an understanding of

the external parts role in managing crises, a single case study approach was applied. Within

the single case study, the respondents were told to prepare case examples that they had been

involved in. Furthermore, the qualitative approach allows the respondents’ to view and

interpret the situation from their own perspective, which is important because it creates a deep

and detailed understanding of the phenomenon (Yin, 2015). Investigating the role of a

supporting function from the respondent’s view is an essential part in answering the aim of

this study as it is examined from the perspective of the external actor. The research design is

also suitable due to that little or no numerical data is needed, instead a verbally or other non-

numerical data forms give more value to the study’s findings (Robson, 2016).

3.2.2 Case study

In line with the qualitative research design and the exploratory approach, a case study design

is the most common strategy when collecting data (Saunders et al., 2016). For this reason a

case study on a PR-agency was chosen as an approach for this research. By conducting a case

study, a deeper understanding of the context can be provided, which is in line with an

exploratory research (Saunders et al., 2016), and what this study is aiming for. A case study is

moreover preferable since it provides rich and accurate empirical data. It is also of relevance

when investigating unexplored research areas as well as answering research questions

addressed with “how” (Eisenhardt & Graebner, 2007), which is in accordance with this

study’s research question. In addition, further arguments for using this approach are to extend

and build theory by providing new insights from an external perspective, and not to test the

theory. Furthermore, a single-case study was chosen for this study in order to gain extended

and deeper knowledge of how the external actor can support an organisation in crisis. This is

preferable when a deep description of a phenomenon will be investigated. It also offers a rich

observation of the details in a process (Eisenhardt & Graebner, 2007). For these reasons a

single-case study is suitable as the purpose of this study is to investigate the details and

elements of a phenomenon (Eisenhardt & Graebner, 2007).

3.3 Data Collection

3.3.1 Primary data

When implementing a case study various data collection methods are suggested. In this study,

semi-structured interviews were considered as the most suitable method for the primary data

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collection, which Saunders et al. (2016) argues is a favourable approach when conducting

exploratory research. Semi-structured interviews consist of a couple of basic questions that

are being further developed during the interview by adding follow-up questions, which

enables to give a thorough description and explore the research question in detail. This kind

of data collection allows the respondents to talk freely beyond the existing theory, which

provides more in-depth answers (Saunders et al., 2016). This is significant in order to truly

understand the process of when and how an external actor supports an organisation in crisis.

3.3.2 Secondary data

In addition to the interviews, secondary data was collected in terms of publically available

information, such as websites and news articles, as well as internal documents and an internal

lecture provided by the chosen PR-agency. These sources enabled to add data about historical

crisis situations and how they had been managed. This material made it possible to attain

insights about the importance of crisis management and what role external actors, such as PR-

agencies, can have in crises. Secondary data was used in order to triangulate, which include

using more than one source of data and method of collection, in order to increase the

credibility of the data and add depth to the research (Denzin 2012; Denzin & Lincoln, 2011;

Saunders et al., 2016).

Pre-study

The purpose with a pre-study is to seek information, in this case through secondary sources,

to obtain an overview of the subject and to explore previous studies within the field. A pre-

study is preferable when there is limited knowledge about the research field in advance

(Bryman & Bell, 2013). This pre-study consisted of searching for information online on

various media websites about previous crises, how they had been handled and how companies

have recovered after a crisis. By performing a pre-study within this research, it provided more

knowledge beforehand that was valuable when investigating the research question and to

understand the context of crisis management. Furthermore, it provided an overview and

insights about different kind of crises, their cause of origin and evaluation of what could have

been done differently. This gave a broader understanding of what crisis management means

and that its outcome depends mainly on how it is handled towards the public in media. It

moreover contributed with background information about different types of crises that helped

in the creation of the interview questions.

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3.4 Selection process

3.4.1 Selection of Case

To be able to answer this study’s research question, it is important to select a case that has the

right settings for what is aimed to investigate (Saunders et al., 2016). In this study the

selection of case was therefore made from a purposive sampling method, which Saunders et

al. (2016) argues to be a preferable method. This is due to that the selection is based on a case

that best meet the study’s objectives and provide informative settings. The purposive

sampling of a case was performed by several criteria to fulfil the aim of this study. The first

criterion was that the external actor was supposed to be a consultancy firm that continuously

work with crisis management. Further criteria were that the firm was located in Sweden and

had a broad client portfolio. This in turn could generate a lot of valuable empirical knowledge

from different situations within the field. Finally, the case firm should be able to provide

information and give access to data that can fulfil the purpose of this study. When searching

for an external supporting actor within crisis management, a PR-agency was considered to be

the most suitable one. The reason for choosing a PR-agency was due to their knowledge and

experience in working with supporting activities and services, especially in crisis management

and media.

Based on the listed criteria above, the chosen case firm was the Swedish PR-agency Prime.

Prime is one of the biggest PR-agencies in Scandinavia, located in Stockholm, Sweden, with a

broad client portfolio and many years in the field. The agency has an extensive knowledge

and experience in crisis management and crisis communication, including several employees

that are mainly being responsible for managing crises (Prime, 2017).

3.4.2 Selection of Respondents

The next step in the process, after the selection of case firm, the selection and access to

respondents from the agency was considered. When selecting the interview respondents, a

snowball sampling method was used. A snowball sampling is useful in research when it is

difficult to identify suitable respondents of the preferred population (Saunders et al., 2016). In

order to come in contact with appropriate respondents for the study, the press manager of the

agency was contacted, which further on gave suggestions on relevant respondents. This is a

typical snowball effect considering that one person was contacted that further on

recommended and identified additional suitable respondents for the study (Bryman & Bell,

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2013). In addition, a non-probability sample was in this case most applicable, considering that

the study was under time constraints and had limited resources (Bryman & Bell, 2013).

The majority of the selected respondents have senior positions with plenty years of experience

and knowledge in the crisis management field. This implied that the interviews gained in-

depth answers. In addition, one respondent gave important insights into the social media area

and what impact it has in crisis, which is perceived to be a relatively new field within crisis

management. More details about the respondents and the interviews, is being presented in

table 2.

Table 2. Description of the respondents and interviews

This table shows more detailed information about the six respondents, which include their

position at the PR-agency, as well as the date and the length of the interview. By interviewing

employees with different positions it made it possible to obtain various aspects of the subject.

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3.5 Operationalisation

In the preparation process for the data collection an interview guide, built on seven different

themes, was created. The seven themes were based on the previous literature review and

theories combined with the research question of how an external actor can support an

organisation in crisis. These themes were thereafter divided into smaller sub-themes that thus

created the foundation for the interview questions (see appendix 1 and 2). This was made in

order to narrow down a large complex into more concrete explanations (Saunders et al.,

2016). The interviews were divided into two main parts. The first part included general

questions in order to obtain a broader knowledge and understanding of how Prime, as an

external actor, mainly work with crisis management and crisis communication both prior,

during and after a crisis occur. The second part consisted of questions regarding one or

several chosen real life case examples that the respondent had been involved in. The choice of

investigating several case examples was due to the significance of gaining knowledge of what

factors affect a crisis origin and how the outcome of a crisis will be depending on how it is

managed. By looking at numerous case examples, different views were revealed, which

provided a deeper understanding of how crises are being managed in practice. Two types of

interview guides were however made. One that was aimed for the first five interviews and

another one that was adjusted for the last interview with the social media specialist, in order

to obtain more specific answers about social media in crisis management. The seven themes

are presented in the Table 3 below, together with the aim of every theme.

Table 3. The seven interview themes and the aim with every theme that the interview guide is build on

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3.6 Data collection process

3.6.1 The interview process

The data consisted of six semi-structured interviews with six employees from the PR-agency

Prime. All the provided information was treated cautiously due to its sensitivity to be spread

outside the organisation. It was moreover vital to be well-prepared before the interviews to

obtain proper information to be able to answer the research question (Saunders et al., 2016).

The interview participation requests were therefore sent out 3-4 weeks before the actual

interviews in order to agree on a suitable date to meet with the respondents. The interview

guide was moreover sent to the interviewees a couple of days before the actual interview to

give the respondents a chance to prepare thorough answers and case examples to limit

possible misunderstandings of the questions. All of this made the interview process very

smooth, which in turn provided comprehensive data for the study.

Five of the interviews were held at Prime’s head office in Stockholm, Sweden. When

choosing the location for an interview it is significant that it is convenient for the respondents

and that the interview is unlikely to be disrupted, since it can have an impact on the given

responses (Saunders et al., 2016). The reason for the interviews being held at Prime’s HQ was

due to make the respondents feel more comfortable than if they would have been hold in an

unknown place. The sixth interview, with the social media specialist, was however made

through a Skype-session due to that the person was on parental leave. Since a camera was

used, both the interviewers and the respondent were able to see each other during the whole

interview. This made the Skype interview similar to the rest of interviews considering that

one could see facial expressions in the same way as one would have been sitting next to each

other in the same room. All the interviews were held in Swedish because it was the

respondents’ and the interviewers’ native language, considering that the chosen language

should be based on what feels natural for the involved parties (Piekkari & Welch, 2006). The

questions were also presented in Swedish, which means that the interview guide and the

answers were afterwards translated to English. Every interview started with a presentation of

the thesis purpose followed by some broader, more general questions, before digging deeper

into the more specific case questions. Since there were two interviewers, notes were taken by

one person while the other one asked the questions, which is preferable in semi-structured

interviews (Saunders et al., 2016). The conversations were additionally recorded in order to

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not miss any important details and to make it possible to transcribe afterwards. Before the

interviews the respondents were informed and agreed on to be recorded.

3.6.2 Data collection from internal lecture

A part of the secondary data consisted of data conducted from an internal lecture. The lecture

was held at Prime’s head office in Stockholm April 30th for 70 minutes and was intended for

people working at the agency. The lecturer was a former Prime employee that is a crisis and

communications expert. The lecture was about crisis management and crisis communication,

where the lecturer shared its experiences in managing previous crises. This provided more

new insights and a broader understanding for the crisis management work from a consultant

perspective. During the lecture, detailed notes were taken in order to make it possible to use.

The lecturer was informed about that notes had been taken and agreed on that part of the

material would be used in this study, the person however wanted to be anonymous and is

thereby referred as the lecturer in the paper.

3.6.3 Data analysing

The interviews were transcribed in order to analyse it together with the secondary data by

sorting out the key messages from the obtained information. When analysing the collected

data, several different areas were identified and applied with various colours. This was made

in order to easier sort out the data and remove parts that were irrelevant and did not contribute

to answer the research question. In order to provide a more comprehensive understanding of

the issue, the general perspective was combined with the given case examples. According to

Saunders et al. (2016), the advantage of recording and transcribing interviews is that the

researcher gains access to comprehensive details about what and how it was said during the

interview.

3.7 Ethical considerations

Before the first contact with Prime, ethical guidelines concerning this study’s data collection

process were gathered from the Swedish Research Council (Svenska Vetenskapsrådet, 2017).

This was especially important in this study due to its sensitivity. For this reason, the

respondents were thoroughly informed about that their participation was voluntary and that

the information about their clients was going to be treated anonymously with no distribution

to third parties. The respondents also had the possibility to be anonymous, everyone however

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agreed on publishing their names in the study. The respondents were moreover provided with

information about that their answers were only going to be used within this study and to this

study's purpose. Additionally they became informed that the study would be publically

published.

3.8 Critical reflection

A qualitative approach with a single case study makes it hard to replicate due to the fact that it

is built on a specific case firms’ subjective perceptions. It is furthermore difficult, or may

even be impossible, to generalise the results to other fields (Bryman & Bell, 2013). However,

these methods are not selected due to their level of generalisability and replicability, instead

they give opportunities to perform an in-depth investigation of a single phenomena with the

value of richness, which is of interest for this study (Eisenhardt & Graebner, 2007; Weick,

2007).

In advance to the semi-structured interviews, the interview guide was sent to the respondents.

This can create issues, due to the respondents’ freedom to choose what information they want

to address or leave out, which can make the answers become partial (Bryman & Bellm 2013;

Saunders et al., 2016). Although, it creates the possibility to attain more in-depth and rich data

by letting the respondents be prepared. By interviewing several respondents, the study is not

only providing more in-depth results, it also ensures that the received answers are trustworthy.

Another risk connected to this is that the interview can go in directions that are not relevant

for the study. This was thus addressed by making a small guidance in a sensitive manner

without making the respondent feel distressed or distracted. In order to not influence the

respondents’ answers, an open mindset with focus on building trust between the interviewer

and the respondent was established (Saunders et al., 2016).

Moreover, recording interviews may put the respondent in an uncomfortable position, which

can result in that they feel restricted to share information. Despite this, recordings enable to

transcribe the data, which entails in more accurate data than if only briefly notes were

composed (Saunders et al., 2016). Same goes for transcribing, even if it is considered to be

very time consuming in relation to other data collection methods, it brings valuable in-depth

data to the research (Saunders et al., 2016). When translating the interview guide and the

answers from Swedish to English, there is a risk that the translating will be incorrect. To

minimise the risk of inaccuracy, a native English speaker were asked to read it through.

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4. Empirical Findings

This section presents the case about Prime and their clients. The empirical findings provide

information of how the case firm works with crisis management, which is being illustrated

with case examples. The section ends by presenting the importance of being aware of the

influence on the reputation and managing social media in crises.

4.1 About Prime

Prime is a Swedish leading PR-agency that is providing various communication services such

as concepts, campaigns, and projects with a global reach (Prime, 2017). Prime is part of one

of the world’s largest PR-networks, Weber Shandwick, which is present in 81 countries.

There are about 130 employees working at Prime mainly within marketing communications,

sustainability communications, citizen communications, public affairs, crisis communication,

etc. According to the respondents, Prime has around 200 clients but uses a 30-list with the 30

biggest and most important clients that they have close collaborations with. Among these

clients one can find authorities as well as private companies, such as IKEA, Sonos,

McDonald's, Hemnet, Trygg-Hansa, Electrolux, The County Administrative Board of

Stockholm, and Riksbanken (Sweden’s central bank). The crisis management department has

been active since 2006 and is one of Prime’s smaller offers but is still highly prioritised. The

department mainly consists of five persons, which are included in this study, that daily work

with crisis management but are at the same time also involved in other projects (Prime, 2017).

4.2 The supporting actor

Over the past decade, the demand of crisis management has constantly increased. According

to Stjernberg, Crisis Management Specialist and Senior Consultant, the reason for the upturn

of crisis management is the changing media environment. Nowadays there are more media

channels that require knowledge and experience to understand how to use them, but there is

also an increased awareness of possible external support. Clumsy behaviour and clumsy

people have according to Moro, Media Specialist and Key Account Manager, always existed,

but as more media channels and multimedia arenas have occurred, the number of crises has

increased.

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4.2.1 Support from a crisis consultant

One of the most common reasons why organisations end up in crises is because of media-

driven activities, which means that organisations obtain information from media that they

have been audited. This in turn can harm the external picture and the reputation of the

organisation. Since the majority of the organisations are not able to handle the crisis by

themselves, they thereby choose to hire crisis consultants due to that they possess knowledge

and expertise within crisis communication. According to Prime, a consultant’s major task in

clients’ crises is to support them in their communication towards media. Prime also helps

clients to prepare for how they will be perceived externally. They are moreover supporting the

board of directors to prepare how to inform the affected parts, by writing press releases, have

an available press phone, and prepare possible question and answers to media.

Working as a crisis consultant at Prime, one has to be available around the clock for its clients

in crisis situations. Prime’s role is moreover to provide internal and external communication.

External communication is about clarifying or modifying the picture of an organisation by

providing the public with information about the situation, in order to not create any false

speculations. Internal communication consists of crisis strategies, media trainings,

copywriting and media contact. A consultant’s role is also to find appropriate information

channels to communicate in, and to find where the problem was founded.

“By working at PR-agencies for many years, one obtains a lot of experience and knowledge

about the media environment. Media practice is therefore a natural part of our job that we

can provide to our clients” - Stjernberg, Crisis Management Specialist

According to the majority of the respondents at Prime, crisis consultancy is valuable for

organisations in crisis due to their ability to see the issue from an outside perspective. Many

clients are not able to handle their crisis situations by themself because they often see the

situation from an inside perspective that results is actions based on anger, frustration and

emotions. Therefore Prime sees their position as “a diplomat between the organisation in

crisis and the media”, says Freudenthal, Key Account Manager and Senior Consultant.

4.2.2 Clients

Today, Prime has more clients than ever before due to that their expertise and experience has

grown within the crisis management field. According to Oljelund, Key Account Manager and

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Senior Consultant, there is also a high acceptance of hiring consultants during crises

situations, considering there is a lot of uncertainty and risks that are connected to a crisis,

which makes companies being extra careful. Clients get in contact with Prime due to that they

are a large consultancy firm with a well-known reputation that are very active in their crisis

management. Organisations come in contact with Prime mainly through word-of-mouth and

recommendations.

4.2.3 Easier said than done

Crisis management is complex due to that there may be many different conflicts and interests

at the same time in combination with the pressure from media. The lecturer mentions that

“You can assume that many people lie to save their own skin and therefore it is a complex

situation”. Another challenging part in crisis management is, according to Freudenthal, to

obtain a complete trust from the client in order to make them give as detailed information as

possible about the crisis, without being afraid that sensitive information will leak out.

Another difficulty when handling a client’s crisis situation is when they want to apply an

invisibility cloak strategy, meaning that the problem should not come out, or should get as

little media attention as possible. This is problematic since Prime’s ideology is the opposite;

to be honest and open about the situation. According to Stjernberg, the client should always

tell the truth, there is however a difference between telling the whole truth and working on a

need-to-know-basis.

“In some situations the whole truth is not necessary but the things you say need to be true.”

- Stjernberg, Crisis Management Specialist

4.3 Crisis origin

All the six respondents agreed on that internal crises are far more common to occur among

Prime’s clients than external ones, which means that they arise from issues inside the

organisation. Usually the origin of a client’s crisis starts with that they have acted in a way

that attracts the public’s disapproval. There are however both unplanned and planned crises,

which are needed to be handled in differently. A planned crisis is according to Oljelund, for

example when an organisation decides to close one of their factories, which often means that

a lot of employees will be terminated. The challenge is then to communicate this information

with a high frequency to various parts, such as employees, suppliers and stakeholders. Prime

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is then supporting the organisation’s communication during the resignation and the days

before the factory close. An unplanned crisis is very similar, the difference is mainly that one

needs to be able to handle the whole situation much faster and take crucial and important

decisions in a short time, which can increase the chance of mistakes. A planned crisis is often

prepared a couple of months ahead, meanwhile an unplanned crisis has often only a couple of

hours forewarning.

“A crisis is generally defined by an increased need for information during a limited time.”

- Stjernberg, Crisis Management Specialist

According to Lisa Thambert, Press Manager and Project Manager, a crisis either starts with

an investigation, when something very concrete is revealed, for example if a CEO uses the

organisation’s money for private use and it leaks out. Or it can be a systematic investigation,

when a reporter finds interest in a particular topic and thoroughly investigate it through

documents and tips from the surrounding. The first action after a crisis has occurred is to

define the crisis type. Prime is separating between two different backgrounds to a crisis. If an

organisation obtains negative response of the wrong reason, for example if there has occurred

a misleading picture of their product or employee, it is a communication problem. If the

organisation is being criticised for the right reason, for example by having a bad product or an

organisational problem, it is a business problem.

4.4 The life cycle of a crisis

4.4.1 Proactive work

The key in handling a crisis in the best manner is to be prepared, according to Freudenthal.

Weak preparation may lay the foundations for a failure. Prime is trying to work proactive and

long term in order to protect the client and its reputation, by creating an air bag against crises.

It is significant to have thorough discussions internally before information will be revealed in

media. The most problematic setting is when the organisation is not prepared and suddenly a

reporter demands an interview. These interviews are often the ones that are leading to trouble.

However, sometimes one can be well-prepared for a crisis but it can be worthless since no one

ever knows what media will reveal. The proactive work that Prime is offering includes risk

inventories and media trainings of how to handle possible questions from media. The agency

is also performing lectures to educate and inform about crisis situations and how to prevent or

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handle those situations. Proactive work is however not their strongest offer and is not being

prioritised. The reason is that organisations often do not want to spend money on something

that possibly can create a crisis but is not really a crisis yet. Even if the client does not

prioritise proactive work, Prime is trying to promote the importance of implementing it. In

one case Prime was asked to scan an organisation to find potential threats and risks, which

they also found. They could then reciprocate the potential threat by rewrite their policy

documents and change parts of their organisation, in order to not obtain any criticism about it

in media.

4.4.2 Taking action

The first thing Prime does when helping an organisation in crisis is to meet the board of

directors, the CEO and the communication manager. The communication manager is often the

direct contact person and also the one who answer all the questions by being the spokesperson

in media. By meeting the involved people from client, Prime obtains all the needed

information of what has happened, and how they plan to inform all the concerned parts such

as employees, clients, collaboration partners and other stakeholders. They then create a

communication plan or a communication strategy that involves possible solutions and

question and answers to media. Prime aims to never ignore a problem and put the lid on,

which they try to accomplish through be as open, transparent and available as possible by

answering all the incoming questions so one can build up a trust towards the stakeholders

again. It is moreover important to list a main message that all the work should proceed from.

In crisis situations, when organisations interact with media, they furthermore need the right

legal grounds to provide correct information, therefore Prime is often collaborating with

lawyers, revision and security partners.

According to the lecturer, the incident is often the side issue and how the crisis has been

handled is the main matter since it decides how it will be received. The most successful crisis

management is about to do right from the beginning. One can say that organisations are like

people, if you want to be respected you have to behave. It is moreover important to always

adapt the communication to the channel where the organisation in crisis is most active.

“Anything can happen that can cause a crisis, but it is not what happened that will be in the

history books, or determine how you come out of the crisis, instead it is how you handle the

crisis that is important.” - Lecturer, Prime

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4.4.3 After action

When a crisis has passed, the majority of Primes clients want to move on with their regular

business and forget about the crisis as fast as possible, due to all the time and energy they

have spent on the response stage. Some organisations however realise the opportunity in it by

being able to strengthen the brand. Prime is nevertheless always recommending to do post

work in terms of further long-term strategies to build up the organisation after potential

damage.

4.5 The audience perspective

An organisation’s reputation can be harmed if the crisis is not being managed correctly. Prime

will not assist clients in creating an improved picture than the reality shows, since it is not in

line with Prime’s values. The public deserves the truth about what has happened. Prime

however disagrees with the picture that crisis communication is a way to diminish and

confuse the crisis.

“It is all about to make clients to appear in a deserved position, not just in a good position.”

- Moro, Media Specialist

Depending on if the organisation has a good or bad reputation before the crisis, it can affect

the outcome of the crisis. In general, one can say that large, established, and well-known

organisations will always be more audited because they are of public interest. There are

however some organisations that have bigger resistance than others in crisis situations and can

survive global criticism and negative effects. The resistance is thereby about building up trust

and have a strong reputation. According to Freudenthal, a crisis is not just about to save a

reputation, it is also an opportunity to communicate and make something good from it.

4.6 The connected place to be

During the last decades many organisations have made a great shift from using traditional

media to social media in their marketing and communication. According to Gunnarsson,

Digital Marketing and Social Media Specialist, social media provides a totally different

distribution than traditional media. The digitalisation allows media to produce much more

material than traditional media.

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“Today the dissemination has a much bigger influence than 10 years ago, which means that

organisations have to be more updated and active in social media when managing crises.”

- Gunnarsson, Social Media Specialist

According to Prime, social media is today the primary channel where people are active to read

about news, take part of discussions and comment different activities. It is an effective media

channel where news is spreading fast and it is therefore a necessary platform for organisations

to be present in. Through social media, organisations can have direct contact with their

customers, in comparison to traditional media where the journalists are the tools for reaching

the public. The increased use of different social media channels creates possibilities for

organisations in crisis by having their own social media channels at Twitter, Facebook,

Instagram, or websites in order to meet criticism and publish information. By using social

media, organisations have the possibility to respond to criticism faster. Social media also

gives the opportunity to tell their story of what has happened, which in some cases can be

hard to reach out with.

“Social media is a necessary channel to handle because the discussion during a crisis

situations will always take place there.” - Gunnarsson, Social Media Specialist

One of the major challenges of working with crises today is that they are becoming much

bigger through social media than they would have through traditional media. Gunnarsson said

that every crisis will in some way always culminate into social media. A crisis may be local in

the beginning but within a few hours it may become national, or even international. As

Gunnarsson said, “A message on social media can quickly get widespread, it can obtain

thousands of comments in just a few minutes, even though it can be a false rumour”. News,

true as false, are usually being spread with a fast pace, which makes social media to be a

demanding platform that easily can create crises.

4.6.1 The use of a social media specialist

When a crisis occurs that involves people's emotions, it can have an aggressive distribution in

social media. This situation can be hard to manage by an organisation that is not used to deal

with social media in crisis situations, which is an argument to bring in external expertise,

according to Gunnarsson.

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A social media specialist at Prime is mainly supporting clients in managing and publishing

messages on their social media platforms or giving advice in how to handle and use social

media. The social media specialist is also performing digital media strategies during clients’

crises. Social media can further be used in a proactive stage of communication, where the

organisation can prepare questions and answers to media, build their own website and prepare

it with valuable information. It can also be applied as a tool for reactive response in crisis to

answer comments and questions from customers. Gunnarsson moreover revealed Ten

Commandments to take in consideration when managing social media in crisis (see appendix

3). These commandments are often conveyed to the client by Gunnarsson when supporting an

organisation in crisis.

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5. Analysis

This chapter will analyse the empirical findings based on the theoretical framework in order

to find out how an external actor can support an organisation in crisis.

5.1 When and how to expect a crisis

According to Jin et al. (2014) a crisis can either be of external or internal origin, which

depends on if the crisis has emerged within (internal) the organisation or without

organisational influence (external). According to the empirical findings, internal crises are the

most common ones to arise, and are thereby the crises that the external actor most often helps

its clients with. As Gundel (2005) moreover states, a crisis can be described from its level of

predictability or environmental influence, which builds on four different types of crises. The

empirical findings however reveal that instead of focusing on the origin and level of

environmental influence, the main focus is to find out if it is either a communication problem

or a business problem. This implies that the external actor’s first action is to find out the

source of the problem. Due to that, it gives better possibilities to know how to proceed and

manage the crisis situation in order to obtain a positive response from the public.

The results are moreover describing two other types of crises, planned and unplanned crises.

These types have the same characteristics as non-intentional and intentional crises, described

by Ulmer et al. (2007). A planned or an intentional crisis gives the organisation a better

opportunity to be prepared with suitable strategies. In these situations a crisis consultant helps

its clients with proactive activities in order to manage the crisis effectively. This type of crisis

would however not be in line with the definition that crises always are unpredictable (Barton,

2001; Coombs, 2015). An unplanned or non-intentional crisis, which appears more suddenly,

entails that the management of the crisis needs to be handled quicker and more accurate

considering that the time is limited and decisions have to be made faster. The empirical

findings reveal that crisis consultants are available around the clock, which implies that they

can support clients in every crisis situation even though it is an unplanned crisis.

5.2 External support

According to the previous research, crisis consulting is being described as one of the most

demanding professions in the consultancy industry (Lages & Simkin, 2003; Laufer, 2007;

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Rudgard, 2003). The empirical findings agree with this and imply that the demand for crisis

management has constantly increased over the past decade. According to the results, the main

reasons for the upturn are the changing and more complex media environment and the

increased awareness of possible external support. In addition, the view of hiring crisis

consultants has become more accepted nowadays. This can be explained by the risks and

uncertainties that are connected to a crisis, which entails that organisations hire external

support to minimise these risks.

According to Coombs (2015), Rudgard (2003) and Wilcox & Cameron (2011) organisations

do not usually possess a crisis management team or a crisis management plan, therefore many

organisations are often outsourcing these tasks to management consultancies, such as PR-

agencies, to perform preventable, responding and restoration crisis strategies (Rudgard, 2003).

According to the results, crisis consultants possess knowledge and expertise in managing

crisis and media, which is a rare skill that is hard and expensive to possess inside a company.

Crisis consultants help their clients by performing press releases, question and answers to

media, media training and educate the board of directors’ in internal and external crisis

communication. Organisations’ lack of skills in crisis management in combination with crisis

consultants’ deep expertise in managing crises is the main reason why organisations are in

need of external support.

Crisis consultancies’ first mission is, according to previous research, to prevent and protect

stakeholders from negative outcomes caused by a crisis, and thereafter to protect financial and

reputational assets (Coombs, 2015; Wilcox & Cameron, 2011). The results show that a crisis

consultant’s role is mainly to support clients by providing and producing crisis

communication, internally and externally. The empirical findings thereby contribute with new

insights about the supporting activities that the external actor helps its clients with, which

means to be able to handle both external and internal communication in crisis management.

Providing help from crisis consultants is preferable due to that they can view the situation

objectively by analyse it from a new perspective and perform fresh insights (Wilcox &

Cameron, 2011). The results show that the consultants’ strength is that they can see the issue

from an external viewpoint and act as a diplomat between the organisation in crisis and the

media. By knowing the external actor’s role and strength in managing crises, organisations

can more easily see the benefits of hiring external support. By being a successful crisis

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consultancy firm, they possess a solid reputation that speaks for its credibility in its work

(Wilcox and Cameron, 2011). According to the case firm, clients choose them instead of other

agencies mainly because they are a consultancy firm with a well-known reputation in crisis

management. Their proven reputation attracts clients primarily through word-of-mouth and

recommendations. This implies that an organisation should ensure that the consultancy firm

has good reviews before hiring them, to know that they possess the expertise and knowledge

that is required.

5.2.1 Dealing with difficulties

Previous research states that consultants may lack understanding of their client’s business due

to limited information about the case, which may result in difficulties with accomplishing

tasks (Wilcox & Cameron, 2011). According to the results, the difficulties with crisis

management are that it can be hard to obtain a complete picture about what has happened.

This is due to that there are many different conflicts and interests at the same time in

combination with the pressure from media. People moreover do not always tell the whole

truth and with limited facts, consultants may make decisions based on incomplete

information. In connection to this, previous research discuss that managers at higher levels

need to be willing to share all of their information, even their sensitive material (Wilcox &

Cameron, 2011). This implies that it is significant that the client trust the consultant and is

willing to share detailed information so that the consultant can perform decisions and

strategies by the right foundation.

Another difficulty within previous research is the lack of full-time attention towards clients

(Wilcox & Cameron, 2011). The results show that crisis consultants are being involved in

managing client’s communication strategies and press services daily, especially during the

most critical phase. This disproves the negative aspects that have been raised against the fact

that an external actor may be distracted. Instead it implies that the external actor gives full-

time attention in supporting an organisation in crisis. Hiring consultants are costly, and hiring

outside expertise can make internal employees feel less valuable (Wilcox & Cameron, 2011).

The empirical findings shows that crisis consultants possess high competence in handling

crisis communication through media, which entails that it is usually more beneficial for

organisations to hire them instead of trying to solve the crisis on their own.

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5.3 Stages of a crisis

As Coombs (2015) describes, the life cycle of a crisis consists of three main parts: pre-crisis,

crisis response, and post-crisis. These three stages are also being applied in the crisis

consultant’s daily work with crisis management.

5.3.1 Preparation for possible battle

According to previous research, the preparation stage is a significant part of the crisis

management, considering it can determine how the consequences of a crisis will evolve or

even decide if the crisis will break out or not. By being aware of early signals, that crises

often provide, the chance of preventing that the crisis occurs increases (Coombs, 2015;

Gonzalez-Herrero & Pratt, 1995). There is however a lack in crisis preparedness and crisis

management in organisations (Wu & Dai, 2001). This is also being confirmed by the

empirical findings, which show that weak preparation may be the reason behind a crisis

failure. According to Coombs (2015) the proactive work consists of three parts: signal

detection, prevention, and crisis preparation. These parts are also in accordance to the

empirical findings which show that in order to find possible signals that can threat the client’s

organisation, crisis consultants offers to scan the organisation for potential risks, which

enables to avoid the occurrence of a crisis. In order to prevent and prepare for crises, they are

moreover performing lectures and media trainings to educate and inform how to handle

possible questions from media if a crisis unlikely occur. These preparation methods are

furthermore in coherence with Coomb’s (2015) crisis management plan which is about

identifying crisis vulnerabilities, educate spokespersons, and build up a knowledge foundation

to avoid potential threats. However, even if both previous research and the empirical findings

agree on that the proactive stage is an significant part of crisis management, it can

simultaneously be perceived to be contradictory as it sometimes is useless considering that

one can never be sure what the media will detect and reveal. This means that even if an

organisation has implemented a thorough preparation and a preventing plan, a crisis can still

appear.

5.3.2 Dealing with trouble

When a crisis occurs, the organisation needs to react with a fast and accurate response. Crisis

managers are being urged to prevent the crisis by stopping the dissemination of the

information as fast as possible (Mitroff, 1994). This tactic is being preferable by many

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organisations, which often wants to hide their problems and minimise the issue quickly. The

empirical findings are however presenting an opposite strategy to what have been revealed in

the theory. This strategy aims to help organisations to be as open, transparent and available to

media as possibly. According to the findings organisations will obtain greater trust from the

surrounding, which will result in an improved reputation after the crisis. The openness and

willingness to share information is also being supported by Garcia (2006). By reaching out

with a fast and honest message, organisations can take control over the situation before any

rumours or false speculations start to circulate (Arpan & Pompper, 2003; Arpan & Roskos-

Ewoldsen, 2005; Claeys & Cauberge, 2010; Coombs, 2015). According to the results, the

client should always tell the truth, but makes at the same time a difference between telling the

whole truth and working on a need-to-know-basis. To be open, transparent and willing to

share necessary information with media are the main tools for handling crisis management in

the best manner. The results reveal that the opposite strategy is never a winning concept,

which organisations may apply if they do not take advice from external crisis consultants.

When a crisis situation appears it is vital for the organisation to inform the closest affected

parts, such as employees and stakeholders, in a proper way (Geraldi & Kutsch, 2010). The

empirical findings reveal that in a crisis situation, consultants first of all meet the

spokesperson, which usually is the communication manager, and help to create a

communication strategy. They moreover help to list a main message that all the work should

proceed from, write press releases, create press release schedules and prepare possible

questions and answers to media. Previous research also states that it is important that the

spokesperson of the organisation is well-informed and prepared to deliver a consistent

message to the public (Garvin, 1996). In line with this, crisis consultants often collaborate

with third parties such as lawyers, accountants and security personnel, which supports and

assure that everything is being handled correctly. By having a well-prepared spokesperson it

facilitates the response phase of a crisis and may also create a stable foundation for further

crisis management work.

The SCCT’s four response strategies show different ways on how to protect and repair an

organisation’s reputational damage caused by a crisis (Coombs, 2007). The empirical findings

reveal that a response strategy needs to be honest and open to be able to function. The denial

and bolstering posture include strategies that are not in line with what the empirical findings

show regarding how a crisis consultant recommends working with its clients. To deny that the

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crisis has existed or see themselves as a victim and blame others for the crisis situation are

examples of strategies that are contradicted to the empirical findings. The rebuilding posture

however tries to affect the reputation of an organisation in a favourable manner by providing

stakeholders with compensation or apologises for the crisis and asks for forgiveness. Within

the diminishment posture there are two strategies: excuse and justification. It is however only

the justification strategy, which means to give an explanation to the occurred crisis, that the

empirical findings agree with when responding to a crisis.

Response through social media

Through the fast technology development, social media has become one of the most

important channels to use when responding to a crisis. The SMCC model includes two

components, crisis information source and crisis information form, which are important when

choosing how to respond to a crisis and communicate crisis information effectively in media

(Jin & Liu, 2010). The empirical findings reveal that a crisis consultant puts a lot of effort into

convincing its clients about the importance of telling their story of the crisis, since it is easy

for false rumours to be spread in social media. Social media is therefore an effective channel

to use when organisations quickly need to respond to criticism and communicate with their

customers. This implies that consultants guide their clients in how to respond to a crisis by

giving them advice in how to inform their stakeholders about the source of the crisis. The

empirical findings moreover suggests that in order to meet the public and stakeholders most

effectively, organisations in crisis should respond through the channel where they are most

active in. It also gives insights of how an external actor can help its clients to handle and use

social media and perform digital media strategies. Social media is an important part of today’s

crisis communication by being a tool for proactive preparation and reactive response in crises.

Both the theory and the results give insights about the importance of choosing the most

suitable channel to reach its audience.

5.3.3 Cleaning up the mess

The literature reveals that when a crisis has come to an end, the organisation often wants to

return to its business as fast as possible. Pauchant & Mitroff (1992) however state that a crisis

is often a good opportunity to make improvements. The post-crisis stage is highly important

but it is unfortunately not fully prioritised by organisations, mainly because it is time and

energy consuming. The empirical findings agree with this and describe that due to all the time

and energy that are being spent on the response stage, the majority of their clients want to

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move on with its business and forget about the crisis as fast as possible. This means that even

though post work requires time and energy from internal resources, it is still of great

advantage in the long run. Barton (2001) moreover highlights the importance of evaluating

the work of what went right or wrong and how effective the crisis management plan was.

After the crisis has been solved it still needs to be monitored, which include continuing to

collect information for stakeholders and other involved (Coombs, 2015). According to the

results, post work enables to strengthen the organisation’s brand and its relationships with

stakeholders. This is in line with Coombs (2015) who argues for the importance to strengthen

the relationship with stakeholders through information sharing. A well-performed evaluation

and documentation can prevent future crisis situations to become damaging and resource

demanding (Coombs, 2015). Coombs & Holladay (2005) and Ulmer et al. (2007) state that

post work can prevent or repair reputational damage and work as image restoration or

renewal. This implies that by implementing post work when a crisis has come to an end, the

organisation has a better chance to recover and prevent that another crisis will occur.

5.4 The shifting media usage

The literature reveals that in present time there is a highly complex media environment with

many different social media channels to choose from when performing a crisis response (Jin

et al., 2014; Veil et al., 2011). According to the empirical findings there has been a great shift

in the media usage, going from traditional media to social media in the communication. The

increased use of social media, which has resulted in greater information flow, has made it

crucial for organisations to keep up with the fast changing media environment.

The expanding media environment with numerous channels creates an external pressure to

apply social media in one’s communication (Barton, 2010). This is in accordance with Jin et

al. (2014), who describe that organisations do no longer have a choice whether to integrate

social media in their crisis communication or not, instead it is more a question of how and

when to do it. The results are in accordance with this and reveal that the crisis will appear and

be discussed in social media anyway. The importance with using social media is, according to

the results, that it brings one closer to the customers in comparison to traditional media where

journalists work as a tool to reach the customers. More advantages are that one can control the

message easier and also respond to the criticism faster. Considering that social media is the

primary communication channel it is perceived to be an essential part of today’s crisis

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communication. It further on gives more advantages than using traditional media, since it

brings the stakeholders closer to the organisation.

Within the SMCC model it has been suggested that it is important to use social media in crisis

communication (Liu et al., 2011). According to the empirical findings, social media is the

primary channel where people are active in when reading news, taking part of discussions and

commenting activities. The results reveal that organisations benefit from hiring external

expertise when managing social media during crisis situations due to that they possess the

skills to provide stakeholders with accurate information. This is in line with Carroll, (2004),

Carroll and McCombs, (2003) and Meijer (2004) who state that most of the information that

stakeholders obtain about organisations comes through social media. By being active in social

media, external actors have a better chance to support an organisational crisis and minimise

the damage by keeping its stakeholders updated with new information.

5.4.1 The demanding side

According to previous literature, social media has its disadvantages. Users of social media can

easily share quick and unverified information that can harm the organisation and its reputation

(Coombs, 2015). The results reveal that there are several challenges and risks when working

with crises in social media. Information and rumours can easily escalate from being local in

the beginning and fast become national, or even international. There are however not only

positive sides with using social media in crisis communication, several risks have been

revealed that are important to take in consideration when managing a crisis. The harsh media

climate creates incentives for organisations to mediate and distribute complete media

coverage in order to avoid misunderstandings and unwarranted speculations (Coombs, 2015).

The empirical findings inform that an external actor that works with crisis management

supports its clients with recommendations and tips about how to best manage social media

during crises. The results further on reveal Ten Commandments to consider when dealing with

social media in crisis (see appendix 3). The main message with the commandments is to be

clear and consistent when using social media in order to not leave any unanswered questions

that can create misunderstandings. This implies that an organisation that are not used to work

with social media on a daily basis should ask for advice and help from an external actor that

have knowledge and experience in handling crisis in social media.

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More and more people are becoming active on social media and are increasingly expressing

their opinions, resulting in a new arena for communication between the company and the

customer, where information travels fast and global (González-Herrero & Smith, 2008). In

addition, according to the SMCC model, the public use social media in crisis situations to

receive emotional support or express emotional thoughts (Jin & Liu, 2010). Emotional

expressions by the public become more intensified if the crisis origin is caused internally and

if the information about the crisis is disseminated by a third party through social media (Jin et

al., 2014). The empirical findings indicate that when a crisis that involves people’s emotions

occurs, it can have an aggressive distribution in social media. It can moreover be hard to

manage criticism that involves people’s emotions by an organisation that is not used to deal

with people’s emotional comments. The external actor’s expertise could therefore be a tool

for managing these situations to avoid mistakes that can make the situation become even

worse.

5.5 The outside perception

The development of social media has made people to easily share both negative and positive

comments and emotions online, which is increasing during crises and can have an affect on an

organisation’s reputation (Coombs & Holladay, 2007; Jin, 2009; Jin & Pang, 2010). This

creates incentive for organisations to respond and manage the situation in the best possible

way (Coombs, 2015). The empirical findings reveal that it is important to manage a crisis

consistent and accurately to minimise the risks of harming the organisation reputation. A

reputation is built on how the public see the organisation through information conducted by

media (Coombs & Holladay, 2006; Dowling, 2002; Fombrun & Van Riel, 2004). It is

furthermore built on secondary sources in terms of word-of-mouth, blogs and discussion

boards (Coombs & Holladay, 2007). The results further on reveal that it is important to build

a solid reputation by giving honest and open information. If a crisis has occurred, the

stakeholders should obtain the truth about the situation, or at least as much information as

needed. This implies that an organisation’s reputation is important to take in consideration

when dealing with crises, since a reputation can quickly be damaged if wrong actions are

made.

A favourable reputation is stated to be of great advantage during crisis situations (Coombs,

2015). It can lead to that the public may ignore a crisis, by having less negative thoughts. It

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can moreover generate better media coverage, work as shield against harm and create

reputational capital (Alsop, 2004; Coombs, 2015; Coombs and Holladay, 2006; Davies et al,

2003). This is confirmed by the empirical findings, which state that some organisations have

bigger resistance than others, depending on their level of truthfulness and former reputation.

The stronger the reputation of an organisation, the more resistant it is to a crisis. Coombs

(1995) further explains that the reputational threat is depending on whether the organisation is

initially responsible for the crisis, the organisational crisis history and the prior relational

reputation with stakeholders. This will also contribute to how the organisation’s reputation

will be affected by a crisis (Coombs & Holladay, 2002; Porritt, 2005). This entails that a

favourable reputation creates stronger protection against crises. Previous organisational

actions and the level of responsibility will also affect the crisis outcome. By taking these

aspects in consideration, external actors have a better ability to know the starting point of how

to help the organisation in crisis.

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6. Conclusion

The aim of this study was to investigate how crises are being handled from the perspective of

an external actor towards its clients and more precise how an external actor can support an

organisation in crisis. A conclusion of the findings is presented below.

The results show that crisis management is a very comprehensive research area and that no

organisation is safe from the occurrence of a crisis. Not all crises are however unpredictable,

since there are both planned and unplanned crises. Within a planned crisis the crisis

consultant helps its clients by performing proactive work. When an unplanned crisis occurs,

crisis consultants are constantly available for support. Internal crises, that have its origin

inside the organisation, are nevertheless the most common ones to arise. These crises are also

the ones that the external actor often helps its clients to solve. The origin and the level of

predictability or environmental influence of a crisis are perceived to be non important to focus

on. It is rather crucial to determine if it is either a communication problem or a business

problem. This provides better possibilities for the external actor to know how to handle the

crisis situation in a favourable manner.

The findings show that the demand of an external supporting actor in crisis situations has

increased during the past decade. Some of the reasons for the upturn are the more complex

media climate and the greater acceptance of hiring external support, together with increased

uncertainty and risks connected to a crisis. This study’s main findings reveal that an external

actor is supporting its clients by providing and producing crisis communication internally and

externally. Furthermore a crisis consultant possesses experience and knowledge in media and

crisis communication and views the situation objectively. By having knowledge about the

external actors role in crisis management, organisations better realise the external actor’s

utility. During crisis situations, the external actor is moreover helping its clients on a daily

basis by performing press releases, educating the board of directors and the spokespersons

through media trainings, preparing questions and answers from media, and giving advice in

how to handle criticism. Organisations that internally lack these skills, in combination with

the crisis consultant’s expertise in crisis management, are the main reasons for taking

advantage of external support. From the external actor’s view, the challenges are the different

interests and conflicts that make it hard to obtain a complete picture. Limited information is

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another reason that makes it difficult to support and perform decisions. Trust between the

external actor and the client and the willingness to share information is therefore important.

An external actor that works with crisis management has a carefully studied plan for handling

a client’s crisis. The external actor’s crisis work is moreover divided into three parts. The first

one, proactive work, is important since weak preparation may result in a crisis failure. Even

though the proactive work is significant, many organisations lack knowledge within crisis

preparation. One can however never be sure what the media will detect and reveal and when a

crisis will occur. Despite one can not fully prepare for a crisis, the preparation stage, which

include education provided by the external actor, is vital for being ready the day the crisis

occur. The second part, crisis response, consists of two main tactics, either to hide and deny

the problem, or to be open, transparent and honest to the surrounding. The latter one, which is

a part of one of the main theories named SCCT, is the most successful strategy in the long

run. Within this strategy the organisation needs to be accessible and honest, and having a

well-informed spokesperson. Moreover, in order to follow the latter strategy, the external

actor helps to inform the stakeholders about the source of the crisis through a suitable

response channel. These aspects are highlighted in the SMCC-model, as well. The last and

third part, post work, is highly significant but as the proactive work, not always prioritised by

clients. Post work enables external actors to build up and strengthen the organisation’s

reputation and its relationship with stakeholders after potential damage.

This study furthermore confirms that there has been a shift in the choice of media channel

when communicating during crises, going from traditional media to social media.

Communication through social media is a standard part of today’s crisis communication due

to it is the primary channel for news reading and interaction. The findings from this study

indicate that social media is a demanding media channel, where information is travelling fast.

This demanding channel creates incentives for hiring external support that helps the

organisation in crisis to minimise the damage by keeping stakeholders updated and answering

to criticism. Social media brings one closer to stakeholders, at the same time as users of social

media can easily share quick and unverified information that can harm the organisation and its

reputation. In this situation the external actor works as a shield to diminish the reputational

damage. A favourable reputation creates stronger resistance to negative reactions of a crisis

and generates better media coverage. Therefore, when an external actor helps an organisation

in crisis it is highly important to take the reputation in consideration, since if wrong actions

are made the reputation can quickly be damaged.

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6.1 Managerial implications

Based on the findings, this study has implications for consultancy firms within the field of

crisis management and organisations in crisis. Firstly, organisations in crisis can benefit from

the insights of how an external actor can support in crisis situations by being aware of the

advantages with hiring external support, such as their ability to view the situation objectively

and their expertise in handling crises effectively. Secondly, organisations in crisis can obtain

advice from external actors on how to deal with the complex and demanding media

environment in order to solve the crisis successfully. Thirdly, the external actor can benefit

from this study by obtaining more knowledge on how to work with the three stages of a crisis

and understand the advantage of both the proactive and post work when handling a crisis, and

not only the response stage. Fourthly, both the organisation and the external actor can benefit

from obtaining knowledge about the challenges of collaborating with the concerned parties.

6.2 Limitations and future research

Since this research is a single case study the data is restricted to only one specific case, which

means that it can result in lack of credibility. To reduce this risk, the case firm was selected

due to several criteria. Also, a pre-investigation about the firm was made in order to find out

if it was applicable for this study. The pre-investigation included a first contact with the firm,

asking questions regarding their suitability to the study as well as their desire to share

experience and information. Since it is a single case study, the research is moreover not

generalisable for all external actors in the consultancy industry. Possible future research could

therefore make a multiple case study that include several external actors that work with crisis

management in order to find out if or how they differ from each other. Considering that this

study is investigating a phenomenon from one external viewpoint, the empirical findings may

be considered as biased. Some of the theoretical framework in this thesis has its origin from

Coombs (1995; 2007; 2015). By including research from only one source, it can be perceived

as biased. It is however important to be aware of that Coombs is the major researcher within

the crisis management field, which means that it was not relevant to present information from

other sources. The study is furthermore not taking into account the client’s perspective of

crisis management. This is therefore a suggestion for future research since by investigating

the topic from the client’s perspective, it can reduce possible bias. Instead of investigating the

management of crisis, future research can rather target the research on a more specific aspect

of crisis management, for example deeper examine the reputational impact on a crisis.

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Appendix 1 - Interview Guide - Crisis Management

About the company and the respondent • How long have you been working at Prime and what is your position? • How long have you been working with crisis management?

Crisis consultation

• Would you generally be able to describe what your crisis management offer is? • What do your customers want help with when they are in a crisis situation? • What makes Prime good at managing crises comparing to others? • What are the challenges with working as a crisis consultant?

Type of crisis

• How often does a crisis arise that you have to deal with? • Is it more common for a crisis to occur internally or externally? • What types of crises are the most demanding to work with?

Upcoming questions will be answered both based on your chosen case and from a more general perspective from Prime.

• Can you mention a specific case where Prime helped a customer in a crisis in which you were involved?

• What were the underlying factors for the crisis to arise? Proactive work

• Did you do any proactive work to prevent the crisis from occurring? • Can you avoid a crisis occurring?

Response strategies

• How and by whom was the crisis discovered? • What was your response strategy? • What is important to consider when communicating with the public about a crisis?

Post work

• What happened after the crisis was resolved? • How do you work after a crisis has ended? • Did you help the client build strategies for how to proceed after the crisis in order to

correct possible damage? Reputation

• What were the consequences of the crisis? Was the client’s reputation affected? • How do you work to maintain a good reputation even if a crisis is created that could

damage the reputation? • Depending on whether the client has a strong reputation/brand beforehand - does it

affect the outcome of the crisis? Social Media

• When and how are social media used in crisis communication? • What are the pros/cons of dealing with a crisis through social media? • How do you choose which media channel you want to use to communicate effectively

during a crisis?

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Appendix 2 - Interview Guide - Social media

About the company and the respondent • How long have you been working at Prime and what is your position? • How long have you been working with crisis management? • What does your work look like Social Media Manager in Crisis Management? What

are your tasks? For these questions, please give concrete examples based on your own experience. Social Media

• How is social media used in crisis management? • Why are social media a good platform for communicating in crisis management? • What is important to consider when dealing with a crisis through social media? • Has the changed media environment changed the way in which a crisis is

communicated? • When and how are social media used in crisis communication? • What are the pros / cons of dealing with a crisis through social media? • How do you handle social media in comparison with traditional media during a crisis?

Response strategies

• How do you put up a media strategy to deal with a crisis? • What is important to consider when communicating in media with the public about a

crisis? • How is a crisis addressed through social media?

After work

• What can be done through social media as post-work after a crisis? Reputation

• How do you work with social media to maintain a reputation? • Depending on whether the customer has a strong reputation / brand beforehand - does

it affects the outcome of the crisis? • In view of today's fast dissemination of information through social media, can

reputation easily be affected?

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Appendix 3 - The Ten Commandments used in Social Media