Empowering HR within the Workforce by Manya Shukla

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This show is titled

‘’Examples of successful Crisis Management”

Sources:
https://brandfolder.com/resources/crisis-management/
https://mention.com/en/blog/crisis-management-examples/
https://sashandcompany.com/crisis-management/successful-crisis-management-examples/

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Episode Transcript

Speaker 1 (00:42):
Good evening everyone, Welcome to the new HIDS shown Education.
My name is Manya Shukla and you are with me
on the another episode of Empowering HR within the Workforce.
You'll go to podcast for the ever evolving word of HR.
This podcast is the way of sharing insights on building
a more effective and efficient workforce while also focusing on

(01:06):
your personal growth. If you tune into our previous episode,
thank you so much for your support. We talked about
HR trend of twenty words in twenty twenty five. If
you missed it, be sure to check it out. Come back.

(01:30):
What do you think when you hear this word? Well,
when I hear this word, I imagine more impact, much
improvement and greater resilience. Not only we human make a comeback,
but there are companies those but there are companies who
faced crisis so badly that question their survival, yet they

(01:57):
made a comeback. Today we will be talking about the
companies which came back thriving after a crisis. And before
we go through these examples, let's first understand like what
is crisis management and why it is such a critical
part of any organization. And let me mention that for

(02:23):
this podcast, I have gone through the websites of brandfolder
dot com, Sasha and Company dot com, and mentioned dot
com so to gain insights now a brand, A brand
crisis can be defined as any negative event, whether it

(02:45):
happened on social media or in person or through any
other channel, that damages companies brand image or reputation. And
these these moments can spread fast, impact customer trust, and
even threaten a long term business survival. That's where crisis

(03:10):
management comes in. Crisis management is the process that prepares
leaders and employees to stake calm under pressure, manage emotion,
minimize risk, and respond effectively to criticism or unexpected change.
It is about making the right decision in the toughest

(03:31):
moments when the stakes are the highest. Now, let's quickly
go through some examples. Number one is Johnson and Johnson.
Johnson and Johnson is an extensive healthcare and pharmaceutical manufacturer.
One product, Tailannol, was found to contain cyanide, causing the

(03:57):
death of seven people. The cause of the tampering were
never was never solved. Johnson and Johnson immediately halted advertising
and sent a nearly half a million message to healthcare facilities.
A safety warning was also issued through the customer and

(04:20):
Johnson and Johnson pulled all the products of the shelf,
thus costing them around a million to protect the public
and avoid further outrage. In addition to these measures, they
also established a hot line for worried customer to address

(04:41):
any concerns that they have regarding tailanol capsules the Johnson
and Johnson so the response of the Johnson and Johnson
provided a benchmark in crisis management in public safety situation.

(05:02):
The second one I have is fatal accident of Southwest
Airline SO in twenty eighteen, an engine malfenger malfunction on
Southwest Airline flight led to the company's first in flight
fatality in twenty eighteen. The accident occurred when an engine

(05:25):
blade broke off and stuck and shattered the window next
to the passenger who lost her life in this accident. Now,
let's see how south What was the response of the
Southwest Airlines. The company's CEO, Gary Kelly, immediately came up

(05:47):
to manage the situation. He sent a heartfelt apology note
to the victims family. He pulled on all companies advertisement
from social media channels and made per phone call to
passenger to offer support and counseling resources. So from from

(06:10):
the Southwest Airline example, what what are we learning here?
We are learning that a crisis can strike any business
at any point at any time, and it is essential
to prepare for any situation. In this example is in
this real life example, this situation was dealt with the

(06:32):
empathy and genuineness and they which helped to which which
helped to manage the company's reputation. The third one I
have here is Zoom. So in early twenty twenty, Zoom

(06:54):
faced serious scrutiny over security flaws and privacy issues. So
there were issues like uninvited participants would disrupt meetings, often
with offensive content. Additionally, there were reports of zoom Zoom's
encryption's shortcoming and data sharing practices raised further concern, causing

(07:19):
user and organization to question the platform's reliability. So what
was the So what was the company's response? The company
launched a comprehensive ninety day security plan, during which it
passed all feature update to focus exclusively on improving security

(07:41):
and privacy. This included rolling out end to end encryption
for all users, bolstering meeting controls, and adding enhanced security
features like waiting room and password protection for meeting. Zoom
also invested educating users on how to utilize these new

(08:04):
features to safeguard their meetings, and the company hired top
cybersecurity expert to ensure their system met industry leading standards.
So before we go into further examples, let's take a
short break.

Speaker 2 (08:26):
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(08:49):
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(09:10):
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Speaker 1 (09:25):
Welcome back, listeners. So before before the break, we were
discussing about the companies who came, who came, who came back?
And as like driving in after handling a crisis management.

(09:45):
So the next one I have here is Pelotone Trademill.
So in twenty twenty one, Pelotone, a high end fitness
equipment brand, found itself at a crisis when there was
a case of injury and the tragic death of a
child involving UH its treadmill. The US Consumer Product Safety

(10:08):
Commission issued a warning advising consumer to stop using the product,
and initially Peloton resisted recalling that treadmill, denying that machine
was at fault, denying that the machine was at fault,
and urging users to follow safety guidelines. This response sparked

(10:33):
widespread public backlash, as many criticized the brand for putting
its reputation and profit ahead of customer safety. Now faced
with pressure from consumer regulators and media outlets, Pelotone quickly
realized it realized it needs to change it's uh, it's

(10:58):
it's it needs to change his it's course of actions.
The company reversed disposition and issued a formal recall of
tread trademill UH, in addition to offering full refund to customers,
and a Peloton committed to strengthening the safety feature of
its of its product moving forward. CEO John Folly publicly apologized,

(11:26):
admitting the company's initial response had been mishandled, and he
emphasized Peloton's sorry, Peloton's renewed commitment to customer safety, pledging
to work closely with CPSC to provent the future accidents. Now, this,

(11:46):
this case, this real life example, presents a good example
of how how to successfully manage again, how to successfully
manage a crisis from some of the leading brands. So
the last one I have here is Whole Foods. So

(12:09):
Whole Foods overcharged their customer for prepackaging food by mishandling
the weight and charging for packaging. Social media contained a
negative criticism, and customer bought a and a customer bought
a lawsuit against Whole Foods. So Whole Foods admitted its error.

(12:30):
Six days later. The CEO eventually posted a video on
social media where it admitted to its mistakes, owned up
to them, and told customers what they were doing to
fix them. They mentioned weighing errors due to their hands
on approach to bring to bring you are fresh food,

(12:54):
to bring you fresh food. So it was sounding like
they are their employees. However, they did win praise for
confirming what they would do to rectify the issue moving forward.
They improved training regarding regarding store packaging, weighing and labeling process. Additionally,

(13:17):
they also implemented a company by third party auditing process
for all the stores UH and and UH provide they will.
They also provided an update in the next forty five
days so that customer can follow their progress as well.
So these are the the These are the five examples

(13:41):
from a well from well known brands who who faced
crisis and due to their effective response and effective crisis management,
they came back. They thrived again. And I think in
the in the Peloton case, if I forgot to tell you,

(14:01):
like what what was the treadmill? It was like tread
treadmill where the which which caused the injury and the
tragic death of a child. So h yes, So these
are the five brand, five well known brands from which
we can take the example of how to manage, how
to manage a crisis and rebuild yourself in a more

(14:25):
effective and resilient manner. And so from all all these
five examples, they just reflect one thing very common UH
in in all of them, is that UH transparency and acceptance.
So I feel that in crisis management, UH, transparency and

(14:51):
acceptance are very important elements. And companies that are openly
acknowledged their mistake, they are transparent with their consumers and
they didn't hide or denied any problem were able to
rebuild their credibility faster. And the second piece of work
is working working hard to UH to bridge the gaps,

(15:18):
to to bridge the to correct the issues, to rectify
the issues that caused the crisis in the first place.
And like any any kind of crisis, whether it's redesigning products,
restructuring finances, anything, so these organizations put their hard work
and to prove to prove that they truly care about

(15:40):
the customer and they truly care about the community they
are serving for UH. And and yes, UH that's how
they earned their UH trust back, the customers trust back.
And this is this is what what we can call

(16:00):
a successful crisis management. And they they if you can
like still check their check the company's profile. So they
didn't just like recovery. They came back stronger than before,
like they updated their features. They UH, they did what

(16:21):
whatever the customer demanded UH, and they they understood the
they understood what exactly they should do to fix the
to fix the gap and do and to fix fix
this crisis. So thank you so much. This is all
for this podcast. Uh, this is all for this episode.

(16:42):
Thank you so much for tuning in. I hope that this,
uh this episode is helpful for you and for your
company in in some manner. And and yes, thank you
so much, and have a great weekend. Thank you, Think.

Speaker 3 (17:08):
Nigal and

Speaker 1 (17:23):
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