Why is crisis considered a 'when' rather than an 'if' for organizations?
Because 69% of leaders faced a major crisis in the past five years and large companies average one crisis per year.
What caused the Wells Fargo fake-accounts scandal?
Internal sales-target pressure.
When was the Wells Fargo fake-accounts scandal discovered?
In 2016.
What was the financial consequence of the Wells Fargo scandal?
A $3 billion federal settlement in 2020.
What crises does the course prepare students to identify?
Major social, economic, and technological crises.
What behavioral challenges does the course address in crisis leadership?
Behavioral and well-being challenges.
What happens to participation grade after an unjustified absence?
It becomes zero for that day
What is the consequence of missing the final group presentation without justification?
The grade lowers for both the absent student and the group
What are the steps in the team ice-breaker activity?
Individual reflection, role assignment, one-slide introduction, and under one-minute presentation.
When is a case classified as a crisis?
When it fits one or more crisis types.
How is a routine or planned event classified?
As not a crisis.
What is the first step teams take to classify a business case?
Decide whether it is a crisis.
What do teams do after deciding a case is a crisis?
Identify one or more crisis types, research uncertain cases, and justify classification.
What defines an organizational crisis according to Seeger, Sellnow, & Ulmer, 1998?
A specific, unexpected, non-routine event creating high uncertainty and threatening key goals.
What is a potential crisis?
A threat that has not fully materialized yet.
Which six types of crises exist?
Financial, informational, destruction of property, human resources, reputational, and violent behavior crises.
What are the three phases of the crisis timeline?
Pre-crisis, crisis event, and post-crisis.
What happens during the pre-crisis phase?
Threats grow, warning signs may appear, and organizations prepare and prevent crises.
When does most damage occur during a crisis?
During the crisis event phase.
What must an organization do during the crisis event?
Respond while the situation is unfolding.
What occurs during the post-crisis phase?
Order is re-established, explanations are investigated, and the organization learns from mistakes.
Which topics do the remaining course sessions cover?
Preparedness, organizational vulnerability, decision-making under uncertainty, crisis leadership and communication, culture, technology, the post-crisis phase, and next-generation crisis-management plans.
How is the semester-long crisis-management plan developed?
It is built progressively across sessions for an organization selected by each team.
What does the final group presentation require teams to explain?
How they would manage the crisis facing their chosen organization.
What does the final group presentation represent in the course?
The culmination of the crisis-management plan.
Which organizational functions can a crisis affect?
Finance, operations, marketing, and human resources.
What is the rule about using generative AI in class deliverables?
It is not allowed unless the instructor states otherwise
Which role involves staying calm during the crisis activity?
The role called staying calm.
Which role is responsible for taking charge in the crisis activity?
The role called taking charge.
Which role focuses on creating a solution during the crisis activity?
The role called creating a solution.
Which role panics first in the crisis activity?
The role called panicking first.
Which role maintains morale during the crisis activity?
The role called maintaining morale.
Which role spots risks before others in the crisis activity?
The role called spotting risks before others.
What are the rules for assigning roles and justifying choices in the team?
Each teammate must have a role once and justify every choice in one sentence.
Which companies' actions were classified as not crises?
Apple, Jeff Bezos, and Tesla's specific actions.
What did Apple do that was classified as not a crisis?
Postponed software features to improve quality.
What role change did Jeff Bezos make classified as not a crisis?
Moved from CEO to Executive Chair.
What Tesla action was classified as not a crisis?
Delayed Model 3 targets while continuing operations.
What type of crisis did Lehman Brothers' 2008 bankruptcy illustrate?
A financial crisis.
What crisis type does Equifax's 2017 hack represent?
An informational crisis.
Which crisis type is shown by Deepwater Horizon's 2010 explosion?
Destruction of property crisis.
What crisis type is Uber's 2017 workplace scandal an example of?
A human-resources crisis.
Which crisis type did the 2015 Charlie Hebdo attack exemplify?
A violent behavior crisis.
How do organizations typically allocate attention across crisis phases?
They over-invest in the crisis event and under-invest in prevention and learning.
Why is crisis management won or lost across all three phases?
Because effective management requires prevention, response, and learning.
What must teams do before the next class regarding the group project?
Review the final group-project folder and choose an organization.
How are organizations assigned to teams for the group project?
Each team works on a different organization on a first-come, first-served basis.
Answer 18 questions on Crisis Management Foundations.
1. Regarding organizational crisis exposure, select the accurate statements:
2. Which statements accurately describe the Wells Fargo fake-accounts scandal?
Go over the full study guide for Crisis Management Foundations.
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