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HELSINKI SCHOOL OF ECONOMICS ABSTRACT International Business, Master’s Thesis Jutta Glad 08.05.2009

ORGANIZATIONAL CRISIS MANAGEMENT – CRISIS COMMUNICATION WHEN INFORMATION TECHNOLOGY FAILS

Objectives of the thesis The objective of this study is to find out what different factors an organization should consider when responding to an organizational crisis that has been caused by an information technology failure. The study also tries to find out whether crisis communication is considered in the field of information technology management. The empirical part of this study will look at the crisis communication of a case company that has gone through an information technology related organizational crisis. Sampo Pankki and their information system update in spring 2008 is used as a case example in this study.

Methodology and data collection Sampo Pankki’s communication during their information system crisis in spring 2008 is analyzed from the viewpoint of a theoretical framework that is developed based on the literature review on organizational crisis management. The data for the single-case study analysis is collected from Sampo Pankki’s press releases and media coverage of Sampo Pankki’s crisis communication. The customer reactions to Sampo Pankki’s crisis communication are studied with a netnographic study by reviewing Internet discussion board postings. The data is collected from discussions related directly to media coverage where Sampo Pankki comments on the crisis situation.

Main findings The crisis management process consists of elements before the crisis, elements during the crisis and elements after the crisis. According to the theoretical framework used in this study the crisis management process should include preparation and planning for a possible crisis situation. If and when a crisis happens the crisis should be detected quickly and assessed to identify the key factors affecting the type of a response that should be communicated to the customers and the public. The previous research has found that an appropriate crisis response can spare the crisis company from the possible negative effects the crisis might have on the reputation of the organization. The factors that should influence the selection of a crisis response strategy are at least the severity of the crisis and the organization’s responsibility for the crisis. The more severe the crisis is, and the more responsibility the organization has for the crisis, the more accommodative the crisis response should be. The principles of crisis communication, rapidity, openness and initiative should be applied to the crisis response.

Keywords: Organizational crisis management, crisis management process, crisis communication, crisis response, information technology failures