A Business in Crisis

Transcription

1 A Business in Crisis

2 In a recent survey of approximately 50 C-level Executives, General Counsel and Risk managers 60% Responded they have a Crisis Plan in place NO 40% YES 60% Results are based on % of survey respondents. Survey conducted by Pillsbury Winthrop Shaw Pittman s Crisis Management Team and Levick Strategic Communications. June

3 Of the 60% 29% were Very Confident in their ability to effectively respond to a Crisis 40% 60% 29% 3 Results are based on % of survey respondents. Survey conducted by Pillsbury Winthrop Shaw Pittman s Crisis Management Team and Levick Strategic Communications. June 2011

4 Of those Very Confident 32% did not know the last time their plan was reviewed 71% 29% 32% 4 Results are based on % of survey respondents. Survey conducted by Pillsbury Winthrop Shaw Pittman s Crisis Management Team and Levick Strategic Communications. June 2011

5 What is a crisis? 5

6 When does an incident become a crisis? Media Public Awareness Company Name / Brand at risk Loss of consumer confidence Business impact hits critical mass Crippling to business survival Business continuity at risk 6

7 Crisis Preparedness 1. Establish your Team 2. Build a Plan 3. Practice the Plan 7

8 1. Establish your Team Imperatives for an effective Team: 1. Small, manageable group 2. Backup identified for each member 3. Capable of mobilizing quickly 4. Empowered to make decisions 5. Formalized interface with CEO, other top execs 6. Able to cascade strategic/tactical direction throughout the organization 8

9 The role of the Crisis team: Facilitate decision making Formalize responsibilities, accountability Improved agility in fast-moving crises Enables continuity of tactical response Streamlines internal communications Minimizes redundancies Averts turf battles Coordinates operational response 9

10 CEO/President CORE TEAM Crisis Team Leader Crisis Manager Communications 10

11 CORE TEAM Full Team Legal Security Ops IT Support Regulatory Finance Fleet Logistics Quality Safety Union 11

12 FULL TEAM Support Team Outside Counsel Plant Manager Product Manager MOD Local QA Finance Logistics Local HR Shop Steward Safety Officer 12

13 13

14 2. Build a Plan Recommend to start with a SWOT Analysis: STRENGTHS WEAKNESSES Contingency OPPORTUNITY THREATS 14

15 The plan should be comprehensive Site Crisis Management Plan Objectives Assumptions Business Continuity Plan Documents & Crisis Response Phase Business Continuity Plan Documents 15

16 2.1. Develop a representative set of planning scenarios. Some examples include: Fire, Floor, Tornado, Hurricane Shooter on site - bomb threat Product Recall Epidemic, Pandemic Digital Sabotage facebook, twitter, blogosphere campaign Strike work stoppage, slow down Transportation interruption Major fire, Chemical Spill, Chlorine or Ammonia Leak Major economic dislocation Infrastructure failure (roof collapse, extended power grid outage, loss of the Web or telephone lines, disruption in the water supply). 16

17 2.2. Develop a flexible set of response modules. A crisis WILL happen at the least opportune time. Leaders should be able to pull combinations of pre-set response "modules" out of their Crisis Management Binder which provide a roadmap to follow. These modules must be kept up to date and cover most likely scenarios and be practiced in combinations of scenarios i.e. infrastructure failure with fire and ammonia system leak. 17 Response modules might include: facility lockdown police or fire response evacuation, isolation (preventing people from entering facilities) medical containment (response to significant epidemic) grief management/counseling Mock recall, including supply chain and sales down to customer level External communication to media and other external constituencies.

18 2.3. To be effective, the plan must match response modules to scenarios. This is the core of your plan, the linkage between each of the planning scenarios to the response modules that will be immediately activated. For example, a "shooter on site" event triggers; 1) an immediate facility lockdown 2) a police response 3) preset communication protocols to convene the crisis-response team and warn staff 4) It may also include mustering to pre-assigned location 18

19 2.4. A designated chain of command. We've talked about this at length earlier in the presentation A Crisis demands a rapid centralized response, this means creating a centralized parallel organization, in which the leader has a designated deputy and they, too, have a backup who would take command if the others were unavailable or disabled. It also means having a core crisis response team of perhaps five or six people who function as the leader's staff in the parallel crisismanagement organization. 19

20 2.5. Business Continuity contingency plan It is imperative that customer supply and confidence is maintained during a crisis. Regardless of tangible or intangible every company has a product and every company has suppliers and customers related to their products. Business continuity must be an element of your crisis planning. 1) Who will notify suppliers of a work stoppage, transportation breakdown, infrastructure failure etc. Material planning is critical to your suppliers, you do not want your crisis to become theirs as well. 2) Who will provide what products/services to your customers during and after the crisis if business is interrupted? 20

21 2.6. Identify and stock a command post and backup. This should be a dedicated location or one that can be rapidly converted to be used by the crisis response team. Requirements include 1. The ability to rapidly connect many lines of communication 2. To have access to external media (TV coverage) 3. To provide access to crisis management plans, etc. 4. Adequate work supplies pens, pads, chart boards 5. Emergency Shelter-In-Place supplies (food, water, first aid) 21

22 2.7. Clear communication channels. Easily activated channels for reaching people on site and outside. For example: 1. Use of internal speakers and TV monitors to make announcements. 1. Use of facebook, twitter, modern media to reach employees at home 22

23 2.8. Crisis Action Log An essential task is to maintain the action log during a crisis. 23

24 2.9. Backup resources. Critical resource stocks to be tapped if necessary. Examples include 1. Backup power generation 2. Gas supplies 3. Modest reserves of food and water, and medical supplies 4. Battery operated walky-talky or other similar type communication device 24

25 2.10. Disciplined post-crisis review. A post-crisis review should be conducted by the crisis response team within 60 days after each significant event. The guiding questions should be: What went well? What went poorly? What are the key lessons learned? What changes do we need to make to our organization, procedures, and support resources? Review a Business impact Analysis 25

26 3. Practice the plan Crisis Plan Optimization and Training 1. Develop a Crisis Training Handbook 2. Issue crisis training at all levels 3. Initiate quarterly simulation exercises 4. Review/Revise crisis plan 5. Review Crisis Team list The best plans are worthless if they exist only on paper. 26

27 Questions??? 10 minute Break Second Hour Practice Table Top Exercise Crisis Scenario Mock Recall-Traceability 27