PRE-CRISIS MANAGEMENT

Posted in Anticipation, CRISIS MANAGEMENT STARTS WITH PLANNING, Ethics and Crisis Management, PRE-CRISIS PLANNING on September 12th, 2012 by mnayor

 The term crisis management itself is enough to send executives and managers scurrying back to their desks, burying their heads in papers so they can be overlooked. If one is tapped to head a pre-crisis management team, it’s like being the designated fire marshal for your floor in the building. If you are appointed to manage a post-crisis event, you may have everything to lose and nothing to gain. After all you may be in the cross hairs of public opinion and totally distracted from your regular role in sales, marketing, advertising, or finance.

 

But crisis management is a vital function. It should be recognized as such by the CEO of any organization and communicated down the chain. Any one event, whether due to totally external factors or self created, a crisis can set an organization back years or deep six it, if not handled properly. Handling that one event may well far outweigh for example the importance of the market roll-out of a new product.

 

Pre-crisis management is preventative in nature. It helps you avoid a crisis. It also prepares you for handling a crisis in the event one occurs.

 

Post crisis management implements the plan you have prepared in anticipation of a crisis occurring.

 

So, what is a crisis. It can be any event or circumstance that has the potential for negatively impacting your organization whether it is damage to reputation, operations, markets, or products. Tainted, shoddy or defective products. High profile litigation. A government investigation. The resignation of a key officer. An environmental or natural disaster. n internet failure. Illegal employee activities. Computer data loss. A walkout or strike. The list goes on

 

The spill-over effect is the negative impact the event will have on your stakeholders – your customers, your suppliers, investors, employees, government officials, the public at large, the media. Major crises happen all the time. We have seen several  recently and they are not pretty.PennStateof course, Wal-Mart’s Mexican subsidiary bribery story, Netflix’s pricing fiasco, Olympus Corporation’s cooked books, J&J’s poor handling of product recalls. These stories and many more underscore the necessity for pre-crisis management.

 

Of course we are not all Wal-Mart or Johnson & Johnson.  But the owner of the local retail toy store has as much to gain from crisis management as the big boys. Bad press, damaged relationships, investor confidence, employee morale, supplier cut-offs, civil and criminal liability – none of these things happen only to giant institutions.

 

How to start. It’s easy. Brainstorm. No one can anticipate an exact crisis but we can all speculate as to what our organizations may be vulnerable. List these vulnerabilities and what you can do about them. Example: you are a farmer and need to protect yourself against weather-related events. Insurance coverage, smudge pots, protective coverings etc. may be your answer. Example: your supplier of critical components has had problems. Begin identifying and ordering from alternative sources of supply, vertical integration, overseas sources etc. may be your answer. Example: you produce or distribute products for human consumption. Check your sources for utmost reliability, third party liability insurance, random quality checks.

 

Other potential solutions to problems: alternate transportation sources, duplicate bookkeeping and records backup, key man insurance, family succession planning. All these actions, if circumstances warrant, can be extremely helpful in avoiding you being caught unaware.

 

Next, assemble a team, a core group made up of the CEO, your PR people and legal counsel. Identify those managers or employees who have the best in-depth knowledge and are capable of attacking a problem in their respective areas. Identify those managers and employees who are capable of succinctly explaining issues to top management and/or to the public. Assemble this team and assign roles. Ensure that you have an organized document management system in place that preserves data and information and be ready for fact finding. Develop a communications strategy which includes assigning responsibility for communication content and approval, and assigning the role of spokesperson. Recognize the need for different messages for different stakeholders. develop responses for different media, from press releases, on air responses and social media.

 

Don’t think you can handle everything in-house. Your attorney, your public relations consultant or those who you rely on for sage advice will come in handy. Outsiders have a broader perspective than you may have and can assist to anticipate problems, develop a plan, assist in investigations and document management, assess any legal exposure and help prepare public statements.

 

One observation I personally believe to be of utmost importance.  If you look at some of the highly publicized crises of the day, many stem from lax ethics. Enhancing the bottom line has many times replaced the goal of doing the right thing, often at the expense of customers. Increasing short term profits may make a hero out of someone today but the actions taken to accomplish this may have severe repercussions to an organization tomorrow. A CEO can pressure everyone to redouble their efforts to increase revenues and profits and let employees find their own path or a CEO can communicate the need for high ethical standards which in the long run, will bear more fruit and allow everyone to come to work the next day. Crisis management especially crisis planning is a crucial effort to manage those events that have slipped by you. The worst and the best that can happen is that you will never have to implement your plan.

 

 

 

 

 

 

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ANTICIPATION

Posted in Anticipating A Crisis, Crisis Communication Planning, Crisis Communication Response, Crisis Communication Training, Crisis Management Planning on September 3rd, 2010 by mnayor

This post is about crises that require that you and/or your organization be in the public eye. In a previous post the observation was made that you should try to control the dialogue, as long as you don’t overly rush and sacrifice accuracy. All that is true but in many cases you may have to open yourselves up to questions, and the questions may be hard ones. So not only is it important to craft your message honestly and pick your messanger carefully, but it is also important to ANTICIPATE.

That seems easy enough and many organizations do that but the method is usually very haphazard. A bunch of people get in a room and the leader says “what do you think They’ll ask?” And then the brainstorming begins and people feel obligated to spout something out. After an uncomfortable length of time when the perticipants have spent their energy, someone says “Ok, I think that does it” and that does do it.

Not good! First you should list your stakeholders and one by one list those issues in which each is primarily interested. Investors – the bottom line; employees - job security; customers – continuity of supply; suppliers – change orders and continued ability to pay. There are those in the organization who know the stakeholders best. Pull them into the room to tell you. Role-play. List the issues and develop the answers. Finally, brainstorm to develop everything and anything that might go wrong. Anticipate the worst. The crisis gets worse, competitors ponce, the news media tries to hang you out to dry. Make the list and try to develop the reaction. You won’t be able to anticipate every scenerio or have an answer for everything BUT the process will prepare you and get you close enough to most issues so you won’t be caught in the headlights.

Finally, the chief operating officer should certainly be your front-(wo)man. Nevertheless we all realize, and it is not expected, that the CEO is all-knowing. Mayor Bloomberg has a brilliant strategy of talking to reporters about key situations, giving the broad-brush information or account and then handing over the microphone to his deputy – the police commissioner, his financial chief, his environmental guru or whoever is the person with the handle on the situation. This has a dual-fold impact: the matter has the attention of the very top, and the organization has the expertise and knowledge to provide the public with detailed information. Oftentimes it may be necessary even for the deputy to surround himself with additional experts and rely on them to feed information or come forward and provide the additional information directly. That is why it is very good training to have your employees particpate in meetings and have some experience in speaking in front of a group. You never know when they will be needed.

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THE CATHOLIC CHURCH AND CRISIS MANAGEMENT

Posted in Crisis Communication Failures, Crisis Management Response, Crisis Mitigation on April 5th, 2010 by admin
Sometimes it pays to come out fighting, with fists flailing away. Other times it looks mighty defensive, if not downright ridiculous.
To equate the current “persecution” of the Pope with the persecution of the Jews during the holocaust falls into the latter category. Furthermore it just digs the hole deeper. Now instead of appearing not to understand the seriousness of deviant sexual behavior within the Church, Rome makes itself look quite hardened to the death of six million Jews, lending truth to the many accusations of antisemitism over the years.
What to do? Presumably, direction is not coming from the top, but it should. A few competent souls need to plan and orchestrate a world response. This has to be done with great foresight and intelligence – and bravery and humility. The planning must be two-pronged. Not only must the words be chosen carefully and sensitively, but the actions must be carefully planned to prove to the world that the Church wishes to correct its mistakes and to make the Church a better place. The desire to make real corrections within the Church must be genuine.
Next, the bureaucracy has to muzzle self-appointed spokespersons who are inept. The spokesperson needs to be the Pope or someone with the stature to be taken seriously and as the final word on the subjects that are plaguing the Church. Of course Rome cannot muzzle individual priests but no one will mistake individual comments with the declarations from on high.
Creating window dressing and masking mistakes of the past haunt the Church. The expression of genuine regret, acknowledgement of past transgressions, the will to deal with issues head on and actually implementing changes and punishment of transgressors will help restore the Church. Otherwise Rome will be reigning over an ever more exclusive club whose membership will surely diminish as defections escalate.
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