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Introduction
Social Sense is the ability to understand and respond to the social context and dynamics of a crisis situation. It involves recognizing the needs, expectations, and emotions of different stakeholders, such as customers, employees, partners, regulators, media, and the public. Social Sense also involves communicating effectively and transparently with these stakeholders, building trust and rapport, and managing conflicts and reputational risks.
In this episode, we will discuss how Social Sense can help your organization to:
- Assess the social impact and implications of a crisis
- Identify and prioritize the key stakeholders and their concerns
- Develop and implement a communication plan that addresses these concerns
- Engage and collaborate with stakeholders to find solutions and restore confidence
- Learn from feedback and improve your social performance
We will also look at some real-life examples of how Social Sense was applied by successful organizations in crisis situations, such as Alibaba, Amazon, and IKEA. We will analyze how these organizations used Sense to overcome challenges, seize opportunities, and enhance their social reputation and value.
Stay tuned for more on Social Strategies for Crisis Resolutions!
Topic
Social Sense is one of the 8 Good Ways to resolve crises effectively and efficiently. It refers to the ability to understand and adapt to the social context and expectations of a crisis situation. Social Sense helps businesses to communicate clearly and respectfully with their stakeholders, such as customers, employees, partners, regulators, and media. Social Sense also helps businesses to avoid or minimize conflicts and misunderstandings that may escalate the crisis.
One of the ways to practice Social Sense is to be flexible in one’s approach to the crisis. Flexibility means being able to adjust one’s behavior and attitude according to the changing circumstances and needs of the situation. Flexibility can be achieved through various methods, such as:
- Detachment: This means being able to detach oneself from one’s emotions and biases, and view the situation objectively and rationally. Detachment helps businesses to avoid overreacting or underreacting to the crisis, and to make sound decisions based on facts and evidence.
- Perfection: This means being able to strive for excellence and quality in one’s actions and outcomes. Perfection helps businesses to demonstrate their competence and professionalism, and to deliver high standards of service and performance to their stakeholders.
- Imagination: This means being able to envision different scenarios and possibilities, and to think creatively and innovatively. Imagination helps businesses to find new solutions and opportunities, and to overcome challenges and obstacles in the crisis.
- Imperfection: This means being able to accept one’s limitations and mistakes, and to learn from them. Imperfection helps businesses to acknowledge their weaknesses and vulnerabilities, and to seek feedback and improvement in the crisis.
- Memory: This means being able to recall past experiences and lessons learned, and to apply them to the present situation. Memory helps businesses to avoid repeating past errors and failures, and to leverage past successes and best practices in the crisis.
By practicing these methods of flexibility, businesses can enhance their Social Sense and resolve crises more effectively and efficiently.
Market Studies
Case 1 - Alibaba
Alibaba is a Chinese e-commerce giant that faced a major crisis in 2003 when the SARS outbreak hit China and disrupted its business operations. The company had to shift to remote work and deal with the uncertainty and fear of the pandemic. However, Alibaba used this crisis as an opportunity to launch a new online marketplace for consumers, Taobao, which later became one of its most successful businesses. Alibaba also used flexibility in its approach to the crisis, applying different methods of Social Sense to communicate and adapt to the changing situation. Some examples of these methods are:
- Detachment: Alibaba detached itself from its original business plan and focused on creating a new product that met the needs of the customers during the crisis. Taobao offered free listings and transactions for sellers and buyers, and provided a platform for people to shop online while staying at home.
- Perfection: Alibaba strived for perfection in its execution and delivery of Taobao, ensuring that it had a user-friendly interface, a reliable payment system, and a strong customer service. Alibaba also invested heavily in marketing and promotion of Taobao, using celebrities and influencers to attract users.
- Imagination: Alibaba used imagination to envision new possibilities and opportunities in the crisis. The company saw the potential of online shopping as a long-term trend, and leveraged its existing resources and capabilities to create a competitive advantage in the market. Alibaba also imagined new ways of engaging with its customers and partners, such as hosting online events and contests.
- Imperfection: Alibaba embraced imperfection as a way of learning and improving from the crisis. The company acknowledged its mistakes and failures, and sought feedback from its users and employees. Alibaba also experimented with different features and functions for Taobao, and iterated based on the data and insights.
- Memory: Alibaba used memory to recall its core values and mission during the crisis. The company reminded itself of its vision to make it easy to do business anywhere, and its culture of customer first, teamwork, innovation, integrity, and passion. Alibaba also drew inspiration from its previous successes and challenges, and applied the lessons learned to overcome the crisis.
By using Social Sense, Alibaba was able to turn a crisis into an opportunity, and emerged stronger and more resilient than ever.
Case 2 - Amazon
Amazon is one of the few companies that thrived during the coronavirus pandemic, as online shopping became essential for many consumers. However, Amazon also faced many challenges, such as labor unrest, supply chain disruptions, regulatory scrutiny, and environmental concerns. To manage these crises, Amazon used social sense, one of the 8 Good Ways model for crisis resolution.
Social sense involves understanding and adapting to the social context and expectations of a crisis situation, and can be achieved through flexibility in one’s approach to the crisis. Amazon showed flexibility in several ways, such as:
- Detachment: Amazon detached itself from its usual goal of fast delivery and prioritized essential items over non-essential ones, to cope with the surge in demand and protect its workers and customers.
- Perfection: Amazon perfected its safety measures and testing capabilities, to prevent the spread of the virus among its employees and ensure their well-being.
- Imagination: Amazon imagined new ways of serving its customers and communities, such as launching a $25 million relief fund for delivery partners, donating millions of masks and gloves to healthcare workers, and supporting small businesses affected by the pandemic.
- Imperfection: Amazon admitted its imperfections and mistakes, such as when it fired a warehouse worker who led a protest over safety conditions, and later apologized and reinstated him.
- Memory: Amazon remembered its core values and mission of being customer-centric, innovative, and long-term oriented, and communicated them clearly to its stakeholders.
By using social sense, Amazon was able to communicate clearly and respectfully with its stakeholders, avoid conflicts, and find new solutions and opportunities in the crisis.
Case 3 - IKEA
In 2012, IKEA faced a crisis when it was revealed that some of its products contained horse meat instead of beef. The scandal affected IKEA’s reputation and sales in several European countries. IKEA responded to the crisis by using Social Sense to adapt to the social context and expectations of its customers and stakeholders. IKEA used the following methods of flexibility to manage the crisis:
- Detachment: IKEA withdrew all affected products from its stores and apologized to its customers for the inconvenience and disappointment. IKEA also offered refunds and vouchers to customers who had bought the products.
- Perfection: IKEA conducted thorough investigations to identify the source of the horse meat and to ensure that its quality standards were met. IKEA also implemented stricter controls and tests on its meat suppliers and products.
- Imagination: IKEA used creative ways to communicate with its customers and stakeholders about the crisis and its actions. For example, IKEA created a video that explained how it traced the origin of the meat and what it did to prevent future incidents. IKEA also used social media platforms to answer questions and address concerns from customers.
- Imperfection: IKEA acknowledged its mistakes and took responsibility for the crisis. IKEA did not blame or criticize its suppliers or regulators, but instead focused on improving its own processes and practices. IKEA also expressed its commitment to transparency and trust with its customers and stakeholders.
- Memory: IKEA leveraged its positive brand image and reputation to restore customer confidence and loyalty. IKEA reminded its customers of its values and vision, such as providing affordable and quality products, supporting social and environmental causes, and creating a better everyday life for people.
By using Social Sense, IKEA was able to manage the crisis effectively and efficiently, and to recover from the negative impacts of the scandal. IKEA also learned from the crisis and improved its operations and communications. IKEA demonstrated that it cared about its customers and stakeholders, and that it was a responsible and reliable business partner.
Simulation
Imagine you are the owner of a small bakery that specializes in custom-made cakes. You have a loyal customer base and a good reputation in your community. One day, you receive a large order from a local company for their anniversary celebration. They want 100 cakes with their logo and slogan on them, to be delivered by tomorrow morning. You are thrilled by the opportunity and accept the order without hesitation.
However, as you start working on the cakes, you realize that you have made a mistake. You have confused the company’s logo with another one that looks similar, and you have written the wrong slogan on the cakes. You have already finished 50 cakes and you don’t have enough ingredients or time to start over. You are facing a crisis that could damage your reputation and cost you a lot of money.
What do you do?
One possible way to resolve this crisis is to use Social Sense, one of the 8 Good Ways for crisis resolution. Social Sense involves understanding and adapting to the social context and expectations of a crisis situation, and can be achieved through flexibility in one’s approach to the crisis.
In this case, you could use the following methods of flexibility:
- Detachment: You detach yourself from your emotions and focus on the facts of the situation. You don’t panic or blame yourself or others for the mistake. You accept that it happened and look for ways to fix it.
- Perfection: You strive for perfection in the aspects of the order that you can control. You make sure that the cakes are delicious, fresh, and well-packaged. You also prepare a sincere apology letter and a discount coupon for the company.
- Imagination: You use your imagination to find creative solutions for the problem. You think of ways to modify or cover up the wrong logo and slogan on the cakes, such as using frosting, sprinkles, or edible decorations. You also think of ways to make the cakes more appealing and festive, such as adding candles, ribbons, or balloons.
- Imperfection: You embrace imperfection as part of your charm and uniqueness. You don’t try to hide or deny your mistake, but rather own it and make it part of your story. You explain to the company that you made a human error and that you are sorry for any inconvenience. You also tell them that you hope they enjoy the cakes anyway and that they appreciate your effort and creativity.
- Memory: You use your memory to recall your past successes and achievements. You remind yourself that you are a good baker and that you have many satisfied customers. You also remember that mistakes are inevitable and that they can be opportunities for learning and improvement.
By using Social Sense, you can communicate clearly and respectfully with your stakeholders, avoid conflicts, and find new solutions and opportunities in the crisis. You can also maintain your reputation and goodwill with your customers and show them that you care about their satisfaction.
Analysis
Let’s take a look at how you did in the simulation. What worked well? What didn’t work? What could you have done differently? We’ll discuss the key takeaways from the simulation and how you can apply the strategies learned to your own organization.
The simulation presented a crisis scenario in which a small bakery received a large order from a local company for their anniversary celebration. The bakery made a mistake in the order by confusing the company’s logo with another one that looks similar, and writing the wrong slogan on the cakes. The bakery was facing a crisis that could damage its reputation and cost a lot of money. To resolve the crisis, the simulation suggested using Social Sense, one of the 8 Good Ways for crisis resolution. Social Sense involves understanding and adapting to the social context and expectations of a crisis situation, and can be achieved through flexibility in one’s approach to the crisis. The simulation presented several methods of flexibility that could be used, such as detachment, perfection, imagination, imperfection, and memory. By using Social Sense, the bakery could communicate clearly and respectfully with its stakeholders, avoid conflicts, and find new solutions and opportunities in the crisis. The key takeaways from the simulation are the importance of staying calm and detached, striving for perfection in the aspects of the order that can be controlled, using creativity and imagination to find solutions, owning and embracing imperfection as part of the bakery’s charm and uniqueness, and drawing on past successes and achievements to boost confidence and morale.
Conclusion
The Crisis Resolution Strategies episode on Social Strategies demonstrated how businesses can effectively and efficiently manage crises using Social Sense. Social Sense involves understanding and adapting to the social context and expectations of a crisis, achieved through flexibility in one’s approach. The episode presented successful case studies from companies such as Alibaba, Amazon, and IKEA, who used Social Sense to communicate clearly and respectfully with stakeholders, avoid conflicts, and find new solutions in the crisis. The episode also included a practice simulation challenging viewers to use Social Sense to resolve a crisis scenario involving a small bakery.
The key takeaways from the episode are the importance of staying calm and detached, striving for perfection in aspects of the crisis that can be controlled, using creativity and imagination to find solutions, owning and embracing imperfection as part of the company’s charm, and drawing on past successes to boost confidence and morale. By applying these strategies, businesses can enhance their Social Sense and more effectively resolve crises.
Disclaimer
Our Guides focus on helping you practice effective ways to overcome challenges and achieve well-being. Our Good Ways Model, which is our protocol for Crisis Resolutions, is presented in a simple, systematic, and repetitive manner throughout all episodes, so you won’t need to remember it. Personal and cooperative practice is key to mastering this model.
While the Good Ways Model can be a helpful tool, it is not required to practice effective ways and resolve crises. Self-effort is the foundation for becoming more autonomous, confident, and resilient in resolving all sorts of human-sustained crises, and we are here to provide assistance.
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. If expert assistance or counseling is needed, the services of a professional should be sought.
This production is not affiliated with or endorsed by any company mentioned in its case studies. The views and opinions expressed in this production are those of the authors and that of artificial intelligence and do not necessarily reflect the official policy or position of the showcased companies.
This publication has been licensed under Creative Commons CC BY SA. This means that it can be shared, remixed, and used for commercial purposes as long as attribution is given to the original creator and any derivative works are licensed under the same terms.
