WHAT DID I SIGN UP FOR? T I P S F O R B O A R D S FA C I N G A C R I S I S

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1 WHAT DID I SIGN UP FOR? T I P S F O R B O A R D S FA C I N G A C R I S I S

2 What did I sign up for? Tips for boards facing a crisis MCN 2019 Finance and Sustainability Conference Heidi Christianson, Nilan Johnson Lewis Don Lewis, Nilan Johnson Lewis Liz Tunheim Sheets, Tunheim Communications Veena Iyer, Nilan Johnson Lewis (moderator)

3 What constitutes a crisis? Crisis situations are generally based on the following situations: Operational fire, explosion, equipment malfunction, incidents involving workplace safety. Acts of Mother Nature tornadoes, hurricanes, cyclones, storm damage, flooding, lightning strikes, blizzards. Personnel workplace violence, harassment charges, personal disputes, terrorism, kidnapping, political unrest. Sensitive scandal, labor disputes, protests, rumors, legal actions, questionable business practices, fraud, identity theft, embezzlement, fraud, data breach, privacy breaches.

4 Crisis situation Unexpected: A situation has occurred and requires immediate action to avoid imminent effects that threaten the reputation of the organization Creeping: A crisis is developing over a period time as an investigation has uncovered issues with the organization, such as labor disputes, legal actions, government engagement or an audit

5 Six stages of crisis Source: Center for Crisis Communication at UCF

6 Six stages of crisis defined Warning signs: There is almost always a warning before a crisis, either from internal or external sources. Know what your warning signs are, know where they will come from and facilitate their ability to be raised, heard and recognized. Risk assessment: As the potential crisis takes shape, estimating the type of potential risk it poses, the different trajectories it could take and the outcome of those trajectories is necessary to determine the best response, management, and resolution plan. Response: The response is defined by making the decision of what steps will be taken to address the crisis and how those are communicated to the organization s key stakeholders. Management: The goal of management is to be active with expressed goals and key success factors. The risk of taking a passive approach to management is never escaping crisis mode, setting a new and unhealthy paradigm. Resolution: An organization that successfully navigates a crisis will not look the same upon exiting as it did when it entered. Identify new dynamics that will assist the grantee and strengthen the organization overall. Recovery: Any damage to an organization s reputation may suffer, now needs to be repaired, and its credibility restored. Recovery is the active management and communication of how the organization has not only moved on from its crisis, but is making good on its new direction and is successfully executing its mission.

7 Crisis preparedness goals Protect the reputation of the organization. Ensure that necessary individuals within an organization agree on a course of action should a crisis occur. Be prepared by having a plan in place for external communications to alleviate the unknown and quickly prepare and respond to a crisis event in a thoughtful and deliberate manner. Each crisis is a unique situation and will require an approach that addresses the issue; practicing preparedness will help the organization start in a better place should a crisis occur.

8 Board preparedness Assume you will face a crisis so you have a mindset of preparedness. Talk openly about risks many crises can be managed if warning signs are identified. Identify spokesperson(s) and provide training. Know key stakeholders.

9 Institutional preparedness Establish clear code of conduct for board, employees, volunteers, and key contractors. Ensure that board members and key employees disclose conflicts of interests. Include cooperation clauses in employment agreements, board job descriptions, and employee handbooks. Provide robust training in areas of risk (e.g., discrimination, harassment, financial mismanagement). For grantors, require grantees to take these steps.

10 Board Risk Assessment Tool

11 Engaging assistance in a crisis Ensure that the ED and chair of the board are introduced to legal counsel, the audit firm, and any communications consultants before a crisis arises. Contact and involve legal counsel as soon as possible to protect attorney-client privilege. Utilize a reputable investigator whose findings will be credible to major stakeholders. Ensure the board is meeting in executive session to discuss legal options and to authorize and assess the results of an investigation.

12 Communicating in a crisis Establish a crisis communications team Key leaders within the organization (including communications) Key leaders of affected partners (including communications) Legal representation and counsel Communications counsel Identify communication roles Identify key stakeholders Identify communications channels including social media, website and traditional media

13 Sample tools communication roles Contact Role Tasks NAME Executive in charge of crisis communications Final approval of all plans and communications Spokesperson on behalf of management NAME Board lead in crisis communications Board liaison Spokesperson on behalf of board NAME Legal counsel Legal review, input and communications oversight NAME Communications contact Draft all communications tools. Create Key Messages Draft internal and external communications documents Identify Key Stakeholders Disseminate as appropriate Maintain roles and contact information up to date in plan and throughout crisis to resolution

14 Sample tools key stakeholders Key stakeholders include every audience who should hear about the crisis from your organization. These can include: Executive team Managers Employees Board of Directors Partners People you serve Media

15 Communicating in a crisis Crafting your message Be honest and authentic Be proactive not defensive Hone in on three or four key messages Use empathy, it is important Provide solutions Create a Q&A to address all possible scenarios Utilize the authorities and law enforcement officials if involved If you should prioritize message cadence by stakeholder group, coordinate and map in a timing and action plan

16 Sample tools message cadence Stakeholder Message Channels Timing group/audience Leadership team Full disclosure of situation In person, phone calls, and s Immediately Board of Directors Disclose situation and Phone calls and s Once situation is assessed organization s response Employees Internal message In person and/or Before sharing external information Key Partners Approved external message Determine based on situation Vendors/Partners Media Approved external message Approved external message

17 Situation One Reading and Riting (R&R) is a 25-year old statewide reading program. Michael is R&R s founder and executive director. He is the charismatic face of the organization and is a national expert on increasing literacy in low-income communities. Several newer staff members approach the board chair Joan to inform her of social media posts from two public school teachers implying that Michael sexually harassed them a few years ago at a conference.

18 Situation Two Helping Hands (HH) is an organization that assists families in crisis by providing emergency food, rental, and energy assistance. HH s energy assistance program (EAP) pays the utility bills of households in crisis directly to the utility company. HH s EAP is funded by the federal Department of Health and Human Services (HHS) and grants from several utilities. HHS s inspector general conducts an investigation into EAP programs in the Midwest region and concludes that HH has the highest number of questionable payments in the region. The findings are published, which leads to a number of communications from board members to Jorge, the board chair.

19 Situation Three Disability Rights for All (DRA) is a statewide organization that promote equal rights people with disabilities, particularly in the areas of education and employment. The chair of the board and the organization s biggest financial contributor is Jade, who is also the Chief Human Resources Officer for a large company. Jade s company is the subject of a recently filed class action by applicants and employees with disabilities and has faced previous public litigation on this topic. A group of current and former WRC student volunteers initiates a social media campaign to remove Jade from the board and decline any additional donations.

20 Takeaways What are the responsibilities of the board in the event of a crisis? Would it be prudent of the board to review crisis communications plans? Do we have provision for the board to have its own advisors in the event of a crisis? Do we have a standard approach to review our risk assessments and mitigation plans? In management s view, what categories of risk should the board take a more active approach to managing?

21 THANK YOU