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Navigating a Corporate Crisis                         Pre-Crisis Phase                        September 20, 2012          ...
Does your company have a              crisis management plan?Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
Is this your current crisis                      management plan?Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
Why do you need a crisis                   management plan? Crises are unpredictable, but should not  be unexpected Sinc...
Why do you need a crisis                   management plan? In times of great stress, people revert back to  what they kn...
Role of In-House Counsel Educate, educate, and then educate  some more      -   Counsel must educate management and the  ...
Role of In-House Counsel Preparation of a crisis management plan  is going to involve costs Provide cost-benefit analysi...
Role of In-House Counsel Think about and estimate lost business  per day/per site Analyze potential losses related to:  ...
Role of In-House Counsel Prepare Crisis Management Plan.      -   Strategize regarding the kinds of crisis that          ...
Potential Corporate Crisis Product recall or product safety issuesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
Potential Corporate Crisis Federal or State investigation or  enforcement actionNavigating a Corporate Crisis© 2012 Fox R...
Potential Corporate Crisis Attacks by consumer advocacy groupsNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
Potential Corporate Crisis Serious injuries involving your product or  serviceNavigating a Corporate Crisis© 2012 Fox Rot...
Potential Corporate Crisis Major infrastructure failure/supply chain  disruptionNavigating a Corporate Crisis© 2012 Fox R...
Potential Corporate Crisis Executives or officers are indicted or  arrestedNavigating a Corporate Crisis© 2012 Fox Rothsc...
Potential Corporate Crisis Natural disaster or firesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
Potential Corporate Crisis A whistlebloweremployeeNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
Risk Audit    What could disrupt our business?    Short Term disruptions    Long Term disruptions    Look to your comp...
Risk Audit    Financial    Strategic    Operational    Compliance    ReputationalNavigating a Corporate Crisis© 2012 ...
Crisis Management Team Who should be on the team? A well thought out team should include:      -   Management      -   L...
The greatest                   crisis management plan This is called the nuclear football, it is  part of our country’s M...
Prepare Your Plan Components of a crisis management  plan:      -   Executive summary      -   Crisis Management policy  ...
Prepare Your Plan Crisis management team should have good  understanding of all aspects of the company  and business Dep...
Prepare Your Plan Brainstorm and role play Assign other team members as a Devil’s  Advocate committee Contemplate and a...
Prepare Your Plan Design is important      -   Easy to read type      -   Understandable sub headings      -   Index     ...
Prepare Your Plan Include and maintain information on  major projects in-progress Assign team members’ responsibilities...
Prepare Your Plan Incorporate your company’s vision and  ethical standards into your plan Develop and prepare your respo...
Prepare Your Plan Develop crisis communication plan      -   You will need an internal crisis          communication team...
Prepare Your Plan Develop crisis communication plan      -   Take charge of communication quickly but          cautiously...
Prepare Your Plan Develop crisis communication plan      -   Understand who will likely be your audience          in a cr...
Prepare Your Plan Develop crisis communication plan      -   Communications during a crisis should be calm,          orga...
Prepare Your Plan Develop crisis communication plan      -   Develop positive messages for your crisis          response ...
Prepare Your Plan Develop crisis communication plan      -   Act FAST – the media will mobilize quickly      -   Make the...
Prepare Your Plan Develop crisis communication plan      -   Be aware and appropriate if crisis has          caused death...
Prepare Your Plan Integrate your crisis management plan  into your company policies and  procedures Train your employees...
Now What??Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
Contact Information                        Dori K. Stibolt                  DStibolt@foxrothschild.com                    ...
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Transcript of "Wp1 #500451-v1-acc presentation-on_navigating_a_corporate_crisis"

  1. 1. Navigating a Corporate Crisis Pre-Crisis Phase September 20, 2012 Presented by Dori K. StiboltNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  2. 2. Does your company have a crisis management plan?Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
  3. 3. Is this your current crisis management plan?Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
  4. 4. Why do you need a crisis management plan? Crises are unpredictable, but should not be unexpected Since crisis events are generally a surprise, planning is vital because you likely will have a short response time Protect reputation, market share, competitive edge, investor confidence and the long term health of the org.Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
  5. 5. Why do you need a crisis management plan? In times of great stress, people revert back to what they know and how they have been trained to respond As such, if you want your people and your organization to respond well to a crisis, your employees need a plan, leadership, and a level of knowledge and training to respond appropriately Preparation can be the difference between success and failureNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  6. 6. Role of In-House Counsel Educate, educate, and then educate some more - Counsel must educate management and the board of directors that no business is immune from a crisis - Lobby management to implement and commit resources ($$$) to a crisis management planNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  7. 7. Role of In-House Counsel Preparation of a crisis management plan is going to involve costs Provide cost-benefit analysis to upper management When undertaking your risk audit, think about how many days (or weeks) your company might be unable to operate per each potential crisisNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  8. 8. Role of In-House Counsel Think about and estimate lost business per day/per site Analyze potential losses related to: - Business opportunities - Reduction in market share - Customer confidence - Brand/reputation impactNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  9. 9. Role of In-House Counsel Prepare Crisis Management Plan. - Strategize regarding the kinds of crisis that may impact your company - Undertake a risk audit - Develop a crisis management team - Develop an agreed upon crisis response philosophy with senior managementNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  10. 10. Potential Corporate Crisis Product recall or product safety issuesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  11. 11. Potential Corporate Crisis Federal or State investigation or enforcement actionNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  12. 12. Potential Corporate Crisis Attacks by consumer advocacy groupsNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  13. 13. Potential Corporate Crisis Serious injuries involving your product or serviceNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  14. 14. Potential Corporate Crisis Major infrastructure failure/supply chain disruptionNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  15. 15. Potential Corporate Crisis Executives or officers are indicted or arrestedNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  16. 16. Potential Corporate Crisis Natural disaster or firesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  17. 17. Potential Corporate Crisis A whistlebloweremployeeNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  18. 18. Risk Audit What could disrupt our business? Short Term disruptions Long Term disruptions Look to your comparators Review and analyze past crises Identify your vulnerabilitiesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  19. 19. Risk Audit Financial Strategic Operational Compliance ReputationalNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  20. 20. Crisis Management Team Who should be on the team? A well thought out team should include: - Management - Legal - Operations - IT - Public relations - Human resources - Business unitsNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  21. 21. The greatest crisis management plan This is called the nuclear football, it is part of our country’s Mobile Emergency Command Center The President of the United States utilizes this when he is away from a fixed command center.Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
  22. 22. Prepare Your Plan Components of a crisis management plan: - Executive summary - Crisis Management policy - Types of events covered by the plan - Response plan - Crisis communication planNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  23. 23. Prepare Your Plan Crisis management team should have good understanding of all aspects of the company and business Depending on team configuration, each team member may report on their area of the business or prepare a fact sheet Utilize discoveries from the risk audit to determine probable scenarios to prepare forNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  24. 24. Prepare Your Plan Brainstorm and role play Assign other team members as a Devil’s Advocate committee Contemplate and address the worst case scenarios PrioritizeNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  25. 25. Prepare Your Plan Design is important - Easy to read type - Understandable sub headings - Index - Flow Charts - Lists Contemplate having a first hour check listNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  26. 26. Prepare Your Plan Include and maintain information on major projects in-progress Assign team members’ responsibilities Detailed contact information for team members and other important individuals (outside counsel, insurance, utility companies for a siteNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  27. 27. Prepare Your Plan Incorporate your company’s vision and ethical standards into your plan Develop and prepare your response to the crises that you have identified: - A product recall - An injury due to your product/service - A visit by law enforcement - A weather eventNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  28. 28. Prepare Your Plan Develop crisis communication plan - You will need an internal crisis communication team - Assign a person to communicate internally to employees - Make sure to have a back up person - Communicate accurate information to employees in a timely mannerNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  29. 29. Prepare Your Plan Develop crisis communication plan - Take charge of communication quickly but cautiously - Consider making a preliminary statement - Understand the facts and the situation before making a more detailed statement - Understand the dynamic between admissions and future litigation - Be aware of and monitoring social media - Be prepared to address any past issueNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  30. 30. Prepare Your Plan Develop crisis communication plan - Understand who will likely be your audience in a crisis situation  Employees  News media  Site neighbors  Community Leaders  Elected official  Customers  Stockholders and financial coummunityNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  31. 31. Prepare Your Plan Develop crisis communication plan - Communications during a crisis should be calm, organized and factual - Establish a predetermined communication center (and a back-up) - Establish telephone answering procedures for directing media and emergency inquiries to the appropriate people - Establish an internal system for communicating with employeesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  32. 32. Prepare Your Plan Develop crisis communication plan - Develop positive messages for your crisis response  Safety record  Family owned  Community and charitable giving - Be certain employees know who the authorized spoke person is and they further should be trained to not respond to mediaNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  33. 33. Prepare Your Plan Develop crisis communication plan - Act FAST – the media will mobilize quickly - Make the media aware that you want to be helpful and cooperative - But, do not speculate - Maintain contact information for media - Schedule additional updates both for the media and employeesNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  34. 34. Prepare Your Plan Develop crisis communication plan - Be aware and appropriate if crisis has caused death, injury, environmental damage - Providing some media statement is better than not talking - Do not provide “off the record” or “no comment” statement - Do tell the truth - Continue to be accessible and responsiveNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  35. 35. Prepare Your Plan Integrate your crisis management plan into your company policies and procedures Train your employees Practice for an emergency Update your plan on a regular basis Hold crisis management team meetingsNavigating a Corporate Crisis© 2012 Fox Rothschild LLP
  36. 36. Now What??Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
  37. 37. Contact Information Dori K. Stibolt DStibolt@foxrothschild.com 561.804.4417Navigating a Corporate Crisis© 2012 Fox Rothschild LLP
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