Thursday, March 1, 2012

Costa Crociere Is Already Paying For Latest Crisis

With two disasters on two cruise liners in less than six weeks, Costa Crociere, a subsidiary of Carnival Cruise Lines, and the largest business of its kind in Europe, had already lost more than a third of its anticipated bookings after the Costa Concordia ran aground, killing at least 32 passengers and crew January 13.

Then, this week, an engine room fire left more than 600 passengers and 400 crew members adrift in the Indian Ocean with no electricity, no running water and no hot food.

Lawsuits and negative public relations are swirling around the company, which, so far, has mismanaged both incidents -- blaming the first on the captain and failing to be forthright about the conditions on the ship in the second case.

Industry experts are already speculating that Costa Crociere could face a troublesome future if it doesn't change its name or get a lot of help from its parent company in the U.S.

The lesson for all organizations is simple:  you can survive and recover from even a terrible business or organizational disruption, IF you respond quickly, effectively, with empathy for employees and customers/clients, and take responsibility for what happened and be honest about it.

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