Communication During Times of: Crisis. Change or. Presented by NP Strategy September 21, 2017

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1 Communication During Times of: Crisis Change or Presented by NP Strategy September 21, 2017

2 Change and Crisis Like Death and Taxes Change and Crisis are Certain npstrat.com

3 Change in the Healthcare Industry Top Trends Driving Change in Health Care 2017 Mergers/consolidation New payment structures, cost pressures and system integration Uncertainty in the legal and regulatory landscape Drivers for technological and clinical advances Vertical integration - payors and providers npstrat.com

4 Change in the Healthcare Industry npstrat.com

5 Change in the Healthcare Industry npstrat.com

6 Crises in our World npstrat.com

7 Crises in Health Care npstrat.com

8 Communications Revolution The Great Communications Revolution

9 Communications Revolution

10 Communications Today

11 Communications Today

12 Why Does Communication Matter? Change and Crisis Disaster? or Opportunity?

13 Why Does Communication Matter? Success Failure Organization Merger Acquisition Closing New Policy or Program Your Job and Career

14 Change Communication Why is it Important? Uncertainty Anger Fear CHANGE Mistrust Frustration Confusion

15 Change Communication Why is it Important? Uncertainty Anger Fear CHANGE Exit! Mistrust Frustration Confusion

16 Change Communications The Right Messages The Right People In the Right Way At the Right Time This merger will Employees Prior to benefit our Patients Letter Announcement community by Physicians Phone Call The Official Announcement Community Personal Meeting Your job will Officials Town Hall Meeting Following Up Repeating the Media Video Message Our patients are our Donors Press Event Messages top priority Partners Social Media Gathering Feedback Providing Updates

17 Changes Communications Will I have to Will I lose my job? change positions How will our new company operate? Top Employee Questions or relocate? Will there be new management? Will I have to learn new skills? Will my pay or benefits change? Will my department be reorganized?

18 Changes Communications Will I have to change doctors? Will my costs go up? Will the staffing be reduced? Top Patient Questions Will the way I m cared for change? Will I have to go to a new location? Will my insurance plan still work with my provider? Will I have access to better resources?

19 Change Communications How will my practice change? Will my compensation or benefits change? How will our new company operate? Will I have to treat Top Physician Questions Will I have to relocate? Will I have to take on more admin tasks? patients differently? Will I have new management, systems, expectations? Will I lose nurses and staff?

20 Change Communication: Results Effective Communication: Defines the New Organization Provides Vision Addresses how they will be impacted Motivates and Encourages Builds your brand Strengthens your market position Improves you bottom line Define your leadership Help those you serve

21 Change Communication: Results Failed Communication: Creates fear, frustration, anger, and mistrust Fuels speculation, rumors, and misinformation At best: disorganized or unsure. At worst: incompetent or uncaring Opportunity for your competitors or opponents

22 Change Communications: Results

23 CRISIS COMMUNICATIONS Crisis: Any situation that is threatening or could threaten to harm people or property, seriously interrupt business, significantly damage reputation and/or negatively impact the bottom line by Jonathan Bernstein

24 CRISIS COMMUNICATIONS Effective Crisis Communications: Prevent an escalation Bring the event to closure more quickly Control costs hard and soft costs Reduce the impact on your business long term Less painful & possible positive opportunity

25 CRISIS COMMUNICATIONS Failed Crisis Communications: Greater chance of escalation Increased costs hard and soft costs Greater the impact on your business long term Takes longer to resolve More painful

26 CRISIS COMMUNICATIONS FAILURE BP Video

27 Communications Learnings In a crisis, people will forgive almost anything if you communicate properly but will persecute and prosecute you if you don t. (almost!)

28 Communications Learnings Court of public opinion can be harsh, mercurial and quick to judge and can do more harm to you and your organization than a court of law.

29 Have a PLAN By failing to prepare, you are preparing to fail. ~Benjamin Franklin

30 Changes: Mergers Acquisitions Policy The need for effective communication is often overlooked or underestimated in the flurry of activity surrounding a deal. Executing a strong and clear communication strategy is critical to successful integration. PriceWaterhouseCoopers U.S. M&A Report, 2011

31 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision

32 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision Communicate to ALL Stakeholders

33 Stakeholders Community Employees Patients Media Elected officials Physicians Donors Regulators Leadership Partner Orgs

34 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision Communicate to ALL Stakeholders Arm your Managers, Physicians, Employees

35 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision Communicate to ALL Stakeholders (and Again) Arm your Managers, Physicians, Employees Provide Mechanisms for Questions and Feedback mergerquestions@ourhealthcare.com for-info

36 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision Communicate to ALL Stakeholders (and Again) Arm your Managers, Physicians, Employees Provide Mechanisms for Questions and Feedback Answer Questions and Concerns Openly Truth Facts Compassion Concern

37 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision Communicate to ALL Stakeholders (and Again) Arm your Managers, Physicians, Employees Provide Mechanisms for Questions and Feedback Answer Questions and Concerns Openly Communicate Updates

38 Communicating Changes: Mergers Acquisitions Policy Communicate a Shared Vision Communicate to ALL Stakeholders (and Again) Arm your Managers, Physicians, Employees Provide Mechanisms for Questions and Feedback Answer Questions and Concerns Openly Communicate Updates Prepare for Leaks

39 Crisis Communications Plans

40 Crisis Communications Plans Institute for Crisis Management reports that: only 50% of organizations worldwide have crisis management plan in place.

41 Crisis Communications Plans Patient Care Failure Facility Failure Cyber Ransom Terrorist Attack Financial Crime Crisis Social Media Attack Racial Bias Accusations Natural Disaster Moral Scandal Personal Information Hack Negligent Death Sexual Assault Employee Bad Acts

42 Crisis Communications Plans

43 Crisis Communications Plans Tylenol Crisis 1982 Great Response!

44 Crisis Communications Plans 1) Contact the Proper Crisis Team

45 Crisis Communications Plans 1) Contact the Proper Crisis Team 2) Gather and Assess the Facts

46 Crisis Communications Plans 1) Contact the Proper Crisis Team 2) Gather and Assess the Facts 3) Initiate Operational Responses

47 Crisis Communications Plans 4) Message Development Tell the truth. Provide the facts as you currently know them. Key Messages: Here is what happened How it happened (to the best of our ability) We will do our best to protect those harmed/contain damage We will do our best to make it right/better. We are working diligently to prevent this from ever happening again We are sorry/concerned.

48 Crisis Communications Plans 5) Notify Stakeholders Inform groups and individual stakeholders, as appropriate: Board members, key management Officials: regulatory, civic, law enforcement Physicians Employees Patients Community Media Partners Donors

49 Crisis Communications Plans 6) Monitor & Update Evolving Situations Update Monitor for Stakeholder Response: Media Social Media Employees and Physicians (what are you hearing?) Patients Again, provide a vehicle for questions and concerns.

50 Role of Governance President Harry S. Truman The Buck Stops Here!

51 Role of Governance Penn State Football Rocked by Sexual Abuse Scandal

52 Role of Governance 1) Be Proactive

53 Role of Governance 2) Balance Intrusiveness with Hands-Off Governance

54 Role of Governance 3) Don t Rely Strictly on Data or Traditional Risk Assessments The numbers don t lie, but nor do they always tell the whole truth.

55 Role of Governance 4) Balance the Court of Law with the Court of Public Opinion

56 Role of Governance 5) Support Immediacy of Response

57 Role of Governance 6) Ensure that Your Board is High-Functioning

58 Role of Governance 7) Provide a Moral Center Do the right thing in the right way.

59 Role of Governance 8) Spokesperson Qualities of Good Leadership Communication Proactive Authentic Timely Honest Shows integrity Visionary Confident (but not arrogant) Emotionally Appropriate

60 Role of Governance Before and After Events Develop Relationships with Key Stakeholders Make sure your Organization has an Effective and Up-to-date Crisis Plan & Solid Communications Plan for Change Events

61 QUESTIONS? QUESTIONS? QUESTIONS? Heather Matthews Erin Sanders Main St., Suite W. Trade St., #1550 Columbia, SC Charlotte, NC Facebook - NPStrategy Twitter Web - npstrat.com

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