Organizational Communication for leaders

Item Page

1.0 Introduction………………………………………………………………. 3

2.0 Background………………………………………………………………… 3

3.0 Purpose……………………………………………………………………. 4

3.1 Financial…………………………………………………………… 4

3.2 Personnel…………………………………………………………… 5

3.3 Benefits……………………………………………………………. 5

4.0 Crisis management team……………………………………………………. 5

5.0 Third party supporters and experts…………………………………………. 6

6.0 Immediate response checklist………………………………………………. 7

7.0 Procedures for dealing with media…………………………………………. 7

8.0 Press release template………………………………………………………. 8

9.0 Evaluation……………………………………………………………………. 8

1.0 Introduction

A crisis is a situation that has the potential of negatively affecting the operations of an organization or a business (Miller, 2012). In the course of operations, business organizations are likely to be faced by circumstances that can potentially interfere with their competitiveness in the market. Such instances are referred to as crises. As much as at some point they can be foreseen, businesses might not have many options with respect to how to deal with such situations. It all depends on the experience of the management team. It should be noted that regardless of the industry in which an organization operates, at some point, it might be hit by a crisis. However, it should be kept in mind that the specific nature of crises that can hit different organizations vary depending on various factors such as the size of the organization, its activities or the industry in which it operates.

As aforementioned, crises have negative impacts on the affected organizations and this likely to derail such organizations in terms of achieving their goals and objectives. Keeping this in mind, it is important for businesses to do whatever they can to make sure they reduce the chances of being hit by crises. In addition to this, it is important for the most effective crisis recovery strategies to be utilized to make sure businesses are back to normal operations as soon as possible.

2.0 Background

Microsoft is a technology company that was established in 1975 by Bill Gates. It is among the giants in the technology companies today especially through its dominance in the software industry. As much as it offers a variety of products and services, Microsoft is famously known for its Window Operating System that runs on personal computers and other devices such as tablets and smartphones.

Over the years, Microsoft has been known for the PC Windows Operating System, however, the technology giant thought of expanding its reach so as to also introduce the Windows Phone Operating System. This was a move that saw the company take over another technology giant, Nokia. The strategic move was intended to strengthen Microsoft’s grip in the market. Despite the great entry as well as high expectations, it was necessary for the crisis team to be on alert that it was not a guarantee that the new move would work. It is important for them to consider the various challenges that the company was likely to encounter under its new investment. It was later evident that the company’s move to invest in Windows Phone Operating System would be a crisis that would have a significant impact on operations. It was a crisis that needed strategic intervention.

3.0 Purpose

The plan’s main purpose is to enable the company to recover from the potential crisis and how it can stabilize itself once more. The crisis plan should basically restore the organization to its former condition of productive operations. In the case of the failure of the Windows Phone Operating System, below are the various crises that Microsoft plunged itself into.

3.1 Financial

The company suffered a financial crisis because of the huge investment that it put into the project. The development of the Windows Phone Operating System, as well as the takeover Nokia, was a huge financial investment. Given the fact that it did work out, the company a huge financial crisis.

3.2 Personnel

The company also suffered a personal crisis because it had hired additional employees especially in the field of software development but since the investment was not successful, the new employees had to be laid off. The purpose of this crisis plan is to establish how such a situation could be contained with minimal damage to the affected individuals.

3.3 Benefits

Microsoft expected a range of benefits from the new investment. The benefits include an increased market share, profitability, increase in customer numbers, and general company performance among others. The company had future plans that were based on these benefits; however, they did not come to pass. This implies that it is a crisis because it largely affected the company’s situation.

4.0 Crisis Management Team

The crisis management team basically refers to a team of individuals whose purpose is to deal with the crises that arise within an organization. Basically, it is a team made of the top leaders and managers who make strategic decisions for the organization at different moments. Below is the list of Microsoft’s crisis management team (Microsoft, 2019)

1. Satya Nadella – Chairman

2. Judson Althoff – Executive Vice President, Worldwide Commercial Business

3. Scott Guthrie – Executive Vice President, Microsoft Cloud and AI Group

4. Kathleen Hogan – Executive Vice President, Human Resources

5. Peggy Johnson – Executive Vice President, Business Development

6. Amy Hood – Executive Vice President and Chief Financial Officer

7. Bill Gates – Founder and Technology Advisor

8. John Thompson – Board Chairman

The mentioned individuals have vast knowledge in different areas of specialization, and this puts them in the perfect position to handle the various crises that the company faces. Each of them contributes their ideas and together they can find the best solution that enables the company to recover from the crisis.

5.0 Third party supporters and experts

Third party supporters and experts are basically external stakeholders who have expertise in different areas of specialization that of interest to Microsoft. Simply, they are expert other organizations whose input is useful to Microsoft. In this case, third-party supporters and experts are major members of the board. They include the following.

1. Reid Hoffman – Partner, Greylock, Partners

2. Hugh Johnston – Vice Chairman and Chief Financial Officer, PepsiCo

3. Teri List-Stoll – Executive Vice President and Chief Financial Officer, Gap Inc.

4. Charles Noski – Former Vice Chairman, Bank of America Corp.

5. Helmut Panke – Former Chairman of the Board of Management, BMW AG.

6. Sandra Peterson – Former Group Worldwide Chairman, Johnson & Johnson

7. Penny Pritzker – Founder and Chairperson, PSP Partners

8. John Stanton – Chairman, Trilogy Partnerships

6.0 Immediate Response Checklist

Dealing with a crisis requires several items to be accomplished to make the process successful. Below is the immediate response checklist.

1. Suspend the production and updating of the Windows Phone Operating System

2. Determine the various damages the crisis has had on the company

3. Conduct research on what led to the failure of the project

4. Establish the specific departments that are most responsible for the crisis

5. Assess the level of damage the company has suffered

6. Put in place a plan for crisis recover

7.0 Procedures for dealing with media

Given the size of Microsoft, such a crisis attracts media attention. Various media houses will be interested to know what really happened for the company to be where it is. It should be kept in mind that some of the reasons for the crisis are strategic, therefore, the company should be careful with respect to the nature of the information that it releases to the media (Frandsen & Johansen, 2016). The first step in the procedure is to make sure sensitive information is not given out, only general information should be shared with the media. The second step in the procedure is to make sure the director of communication is the one to release the information to the media. He is well informed about anything that happens in the organization; therefore, he is better positioned to give the right information with respect to the crisis at Microsoft. Following this procedure will ensure the media is only given the necessary information.

8.0 Press release template

Discontinuity of Windows Mobile

Microsoft hereby announces its discontinuity of producing or upgrading Windows Phone Operating System. Due to unavoidable circumstances, the company has suspended the service until further notice. Additional detailed information concerning the issue will be released in due time. Customers and other partners are asked to stay calm as the company launches investigations into the issue. Any inconvenience created is highly regretted.

9.0 Evaluation

It is evident that the crisis has had a significant negative impact on the company. However, the damage has not been fully established. At this point, the evaluation basically looks into determining the extent to which the company has suffered (Blaschke, 2016). The first procedure in the process involved thorough research into the project to establish the exact point where the problem started. This will reveal important details that will enable the company to take the next step in terms of recovering from the crisis. It should be kept in mind that prior to effectively managing a crisis, its cause must be clearly established. This is a critical procedure in the evaluation process because it enables the crisis management team to have a clear understanding of what happened so that the right corrective steps can be taken to salvage the situation. The evaluation process requires a variety of resources which will enable the experts to effectively deliver their duties and responsibilities.

References

Blaschke, S. (2016). Organization as Communication: Perspectives in Dialogue. New York: Routledge.

Frandsen, F. & Johansen, W. (2016). Organizational Crisis Communication: A Multivocal Approach. London: SAGE.