Question

How would you compare Boeing’s response to the 737 Max crisis to Johnson & Johnson’s response to the Tylenol crisis in 1982? In your opinion, what are the three most important things that an organization can do to effectively manage a crisis?

Answer 1

Question : How would you compare Boeing’s response to the 737 Max crisis to Johnson & Johnson’s response to the Tylenol crisis in 1982?

Answer : Boeing is the latest example of what happens when circumstances or judgement create a situation in which the organization whose reputation and business is under threat delay responding. Boeing has also taken a lot of heat following reports that it knew of problems with one of the safety features well before the two crashes, but did not disclose the issues to airlines or regulators until after the October Lion Air crash in Indonesia.

In any incident involving airplane safety it is to be expected that all parties avoid detailed public comment until air crash investigators can establish the cause of the accident.

However, when commercial airlines around the world, including the US, began grounding Boeing 737 MAX aircrafts it became obvious Boeing was being held at least partly responsible for the tragedies that took place last October in Indonesia and more recently, in March of this year, in Ethiopia.

Now, Boeing is not just struggling with the questions about the airworthiness of its aircraft, but also a distrust amongst the public that air passenger safety is the company’s top priority. Even assurances from Boeing and airlines that the planes are safe may not necessarily resonate with travelers.

Johnson & Johnson

Johnson & Johnson Tylenol case is a perfect example of Crisis management and the company's response to the Tylenol poisoning.

Before the crisis, Tylenol was the most successful over-the-counter product in the United States with over one hundred million users.Tylenol was also responsible for 19 percent of Johnson & Johnson's corporate profits during the first 3 quarters of 1982.

Unfortunately, at that point one individual succeeded in lacing the drug with cyanide. Seven people died as a result, and a widespread panic ensued about how widespread the contamination might be.

Johnson & Johnson's handling of the crisis a success included the following:

• They acted quickly, with complete openness about what had happened, and immediately sought to remove any source of danger based on the worst case scenario - not waiting for evidence to see whether the contamination might be more widespread
• Johnson & Johnson also used the media, both PR and paid advertising to communicate their strategy during the crisis. Johnson & Johnson used the media to issue a national alert to tell the public not to use the Tylenol product. In the first week of the crisis Johnson & Johnson established a 1-800 hot line for consumers to call. The company used the 1-800 number to respond to inquires from customers concerning safety of Tylenol.
• They also establish a toll-free line for news organizations to call and receive pre-taped daily messages with updated statements about the crisis
• Having acted quickly, they then sought to ensure that measures were taken which would prevent as far as possible a recurrence of the problem
• They showed themselves to be prepared to bear the short term cost in the name of consumer safety. That more than anything else established a basis for trust with their customers

Today Johnson & Johnson has completely recovered its market share lost during the crisis. The organization was able to reestablish the Tylenol brand name as one to the must trusted over-the-counter consumer products in American. Johnson & Johnson's handing of the Tylenol crisis is clearly the example other companies should follow if the find themselves on the brink of losing everything.

QUESTION : What are the three most important things that an organization can do to effectively manage a crisis?

ANSWER :

The three most important things that an organization can do to effectively manage a crisis are as follows :

1. Identify the type of crisis and gather correct and relevant information : An organization should not depend on mere guess works and assumptions during emergency situations.Also, an effective communication is essential to overcome crisis in the organization. Information must flow across all departments in its desired form so that the employees must be aware of what is happening around them.
2. Roles and responsibilities must be delegated as per the employee’s specialization. An organization needs to make sure the right person is doing the right job. Employees must be motivated to deliver their level best and focus on the organization’s goals to overcome tough times in the best possible way. All other employees who may not play a role in resolving a given crisis situation, yet will still be impacted by its occurrence, should be informed of the actions they’re expected to take as well.
3. Adopt a focused approach and develop a plan to resolve the crisis : An organization needs to take initiative and find out where things went wrong. Identify the problem areas and devise appropriate strategies to overcome the same. This will help to identify all potential aspects of these crises on a very detailed level as the employees will work through the rest of the crisis management plan steps.