Thursday, July 21, 2011

The Missteps in Managing News Corp.'s Hacking Crisis

Another great WSJ article on the management issues at News Corp.  There were a couple of quotes which sums things up really well and tie into our text.

"The penalty for missteps in the early phase of a corporate crisis—expense, lost reputation, distraction—can be brutally high." 

This is talked about in our text in chapter 5.  Companies need to have a solid plan for business continuity in order to address issues that come up that interrupt a companies normal business operations.  One of the things mentioned was loss of a companies reputation. 

Another quote from the article:

"How the company manages the next stage of the crisis will determine one of two things: Will News Corp. be able to start rebuilding its reputation? Or will the crisis worsen into a more serious attack on the leadership of the company?"

If companies don't have a solid plan for addressing serious issues that come up it can become their downfall. 

Below is a video taken from WSJ web page discussing the management issues at News Corp.

http://online.wsj.com/article/SB10001424052702304567604576456222770513148.html?industry=IND_MEDIA&isub=

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