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Ch 11.ppt

  1. 1. Principles of Incident Response and Disaster Recovery Chapter 11 Crisis Management and Human Factors
  2. 2. Objectives <ul><li>Understand the role of crisis management in the typical organization </li></ul><ul><li>Guide the creation of a plan preparing for crisis management </li></ul><ul><li>Understand and deal with post-crisis trauma </li></ul><ul><li>Work toward getting people back to work after a crisis </li></ul><ul><li>Know the impact of the decisions regarding law enforcement involvement </li></ul>
  3. 3. Objectives (continued) <ul><li>Manage a crisis communications process </li></ul><ul><li>Prepare for the ultimate crisis in an organization through succession planning </li></ul>
  4. 4. Introduction <ul><li>Reactions to a crisis are typically focused on technical issues and economic priorities </li></ul><ul><li>The most critical assets – the people – are often overlooked </li></ul><ul><li>People cannot be readily replaced </li></ul>
  5. 5. Crisis Management in the Organization <ul><li>Crises are inevitable, whether the organization is prepared or not </li></ul><ul><li>Crisis management brings its own terminology, and a host of myths </li></ul>
  6. 6. Crisis Terms and Definitions <ul><li>Crisis : a significant business disruption that stimulates extensive news media coverage </li></ul><ul><li>Crises are typically caused by: </li></ul><ul><ul><li>Acts of nature (storms, earthquakes, volcanic activity, etc.) </li></ul></ul><ul><ul><li>Mechanical problems (ruptured pipes, metal fatigue, etc.) </li></ul></ul><ul><ul><li>Human errors (wrong valve opened, miscommunications, etc.) </li></ul></ul><ul><ul><li>Management decisions and indecisions (ignoring a problem, hiding a problem, etc.) </li></ul></ul>
  7. 7. Crisis Terms and Definitions (continued) <ul><li>Crises can be categorized into two types: </li></ul><ul><ul><li>Sudden crisis </li></ul></ul><ul><ul><li>Smoldering crisis </li></ul></ul><ul><li>Sudden crisis : a disruption in the company’s business that: </li></ul><ul><ul><li>Occurs without warning </li></ul></ul><ul><ul><li>Is likely to generate news coverage </li></ul></ul><ul><ul><li>May adversely impact employees, investors, customers, suppliers, and other stakeholders </li></ul></ul>
  8. 8. Crisis Terms and Definitions (continued) <ul><li>A sudden crisis may be: </li></ul><ul><ul><li>A business-related accident resulting in significant property damage that disrupts normal business operations </li></ul></ul><ul><ul><li>Death or serious illness or injury of management, employees, contractors, customers, visitors, etc., as the result of a business-related accident </li></ul></ul><ul><ul><li>Sudden death or incapacitation of a key executive </li></ul></ul><ul><ul><li>Discharge of hazardous chemicals or other materials into the environment </li></ul></ul><ul><ul><li>Accidents that cause disruption of telephone or utility service </li></ul></ul>
  9. 9. Crisis Terms and Definitions (continued) <ul><li>A sudden crisis may be (continued): </li></ul><ul><ul><li>Significant reduction in utilities or vital services needed to conduct business </li></ul></ul><ul><ul><li>Any natural disaster that disrupts operations or endangers employees </li></ul></ul><ul><ul><li>Unexpected job action or labor disruption </li></ul></ul><ul><ul><li>Workplace violence involving employees, family members, or customers </li></ul></ul><ul><li>Smoldering crisis : any serious business problem not generally known within or without the company, which may generate negative news coverage if or when it goes public </li></ul>
  10. 10. Crisis Terms and Definitions (continued) <ul><li>Examples of smoldering crises: </li></ul><ul><ul><li>Sting operations by a news organization or government agency </li></ul></ul><ul><ul><li>OHSA or EPA violations that could result in fines or legal action </li></ul></ul><ul><ul><li>Customer allegations of overcharging or other improper conduct </li></ul></ul><ul><ul><li>Investigation by a federal, state, or local government agency </li></ul></ul><ul><ul><li>Action by a disgruntled employee such as serious threats or whistle-blowing </li></ul></ul>
  11. 11. Crisis Terms and Definitions (continued) <ul><li>Examples of smoldering crises (continued): </li></ul><ul><ul><li>Indications of significant legal, judicial, or regulatory action against the business </li></ul></ul><ul><ul><li>Discovery of serious internal problems that will have to be disclosed to employees, investors, customers, vendors, and/or government officials </li></ul></ul><ul><li>Crisis management ( CM ): those actions taken by an organization in response to a an emergency situation in an effort to minimize injury or loss of life </li></ul>
  12. 12. Crisis Terms and Definitions (continued) <ul><li>Emergency response : all activities related to safely managing the immediate physical, health, and environmental impacts of an incident </li></ul><ul><li>Crisis communications : the public relations aspect of crisis management, including both internal and external communications </li></ul><ul><li>Humanitarian assistance : efforts designed to address the psychological and emotional impact on the workforce </li></ul>
  13. 13. Crisis Misconceptions <ul><li>Myth #1: The majority of business crises are sudden crises </li></ul><ul><ul><li>Fact: There are more smoldering crises than sudden crises </li></ul></ul><ul><li>Myth #2: Crises are most commonly the result of employee mistakes or acts of nature </li></ul><ul><ul><li>Fact: Crises resulting from management actions, inactions, or decisions are more prevalent </li></ul></ul>
  14. 14. Crisis Misconceptions (continued)
  15. 15. Crisis Misconceptions (continued)
  16. 16. Preparing for Crisis Management <ul><li>Organizations must prepare for crisis management </li></ul><ul><li>Crises may be small and innocuous, or large and catastrophic </li></ul><ul><li>The most effective executives have learned to deal successfully with crises </li></ul><ul><li>Goal is to keep crises well managed and out of the media when possible </li></ul>
  17. 17. General Preparation Guidelines <ul><li>Preparation tips: </li></ul><ul><ul><li>Prepare contingency plans in advance </li></ul></ul><ul><ul><li>Immediately and clearly announce internally that only the crisis team members should speak about the crisis to the outside world </li></ul></ul><ul><ul><li>Move quickly: the first hours after the crisis breaks are when the media will jump on it </li></ul></ul><ul><ul><li>Use crisis management consultants </li></ul></ul><ul><ul><li>Give accurate and correct information; trying to manipulate information will backfire </li></ul></ul><ul><ul><li>Consider both short-term and long-term effects when making decisions about actions </li></ul></ul>
  18. 18. General Preparation Guidelines (continued) <ul><li>Excuses frequently offered by companies in crisis: </li></ul><ul><ul><li>Denial: “It can’t happen to us.” </li></ul></ul><ul><ul><li>Deferral or low prioritization: “We’ve got more important issues to handle.” </li></ul></ul><ul><ul><li>Ignorance: “Risk? What risk?” </li></ul></ul><ul><ul><li>Inattention to warning signs: “I didn’t see it coming.” </li></ul></ul><ul><ul><li>Ineffective or insufficient planning: “I thought we were ready!” </li></ul></ul>
  19. 19. Organizing the Crisis Management Team <ul><li>Crisis management planning committee : </li></ul><ul><ul><li>Group charged with analyzing vulnerabilities, evaluating existing plans, and developing and implementing a comprehensive crisis management program </li></ul></ul><ul><ul><li>Should include representatives of all appropriate departments </li></ul></ul><ul><ul><li>May include an outside consultant </li></ul></ul><ul><li>Crisis management team : responsible for handling the response to an actual crisis situation </li></ul>
  20. 20. Organizing the Crisis Management Team (continued) <ul><li>CM team: </li></ul><ul><ul><li>May consist of only a few individuals </li></ul></ul><ul><ul><li>Usually relatively devoid of technical proficiency </li></ul></ul><ul><ul><li>Primary focus is the command and coordination of human resources in an emergency </li></ul></ul><ul><li>Crisis management focuses on the physical, mental, and emotional health and well-being of the people in the organization </li></ul>
  21. 21. Organizing the Crisis Management Team (continued) <ul><li>CM team members typically include: </li></ul><ul><ul><li>Team leader: responsible for overseeing the actions of the CM team; usually a senior HR executive </li></ul></ul><ul><ul><li>Communications coordinator: manages all communications between CM team, management, employees, and the public, including media and government </li></ul></ul><ul><ul><li>Emergency services coordinator: responsible for contacting and managing all interactions between the organization and any emergency services, including utilities </li></ul></ul><ul><ul><li>Other members as needed </li></ul></ul>
  22. 22. Organizing the Crisis Management Team (continued) <ul><li>Head count : </li></ul><ul><ul><li>Physical accountability of all personnel; essential in determining the whereabouts of employees during an emergency </li></ul></ul><ul><ul><li>Usually the responsibility of the first-line supervisor, with reporting to the next level of management </li></ul></ul><ul><ul><li>Top of the chain of command aggregates the totals to ensure all employees are accounted for </li></ul></ul><ul><li>Crisis management planning team is responsible for developing the CM plan </li></ul>
  23. 23. Organizing the Crisis Management Team (continued) <ul><li>Questions in preparation: </li></ul><ul><ul><li>What kind of notification system do we have or need? Automated or manual? How long does it take? </li></ul></ul><ul><ul><li>Is there an existing crisis management plan? How old is it? When was it last used or tested? </li></ul></ul><ul><ul><li>What internal operations must be kept confidential to prevent embarrassment or damage to the organization? How are we currently protecting that information? </li></ul></ul><ul><ul><li>Is there an official spokesperson? Who is the alternate? </li></ul></ul>
  24. 24. Organizing the Crisis Management Team (continued) <ul><li>Questions in preparation (continued): </li></ul><ul><ul><li>What information should be shared with the media? With our employees? </li></ul></ul><ul><ul><li>What crises have we faced in the past? What crises have other organizations in our region faced? Have we changed how we operate as a result of those crises? </li></ul></ul><ul><li>CM Planning team should also use the BIA and IR, DR, and BC scenarios with best-case, worst-case, and most likely outcomes to provide insight </li></ul>
  25. 25. Crisis Management Critical Success Factors <ul><li>Critical success factors : those few things that must go well to ensure success for a manager or organization </li></ul><ul><li>Crisis management critical success factors: </li></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Speed of response </li></ul></ul><ul><ul><li>A robust plan </li></ul></ul><ul><ul><li>Adequate resources </li></ul></ul><ul><ul><li>Funding </li></ul></ul><ul><ul><li>Caring and compassionate response </li></ul></ul><ul><ul><li>Excellent communications </li></ul></ul>
  26. 26. Crisis Management Critical Success Factors (continued) <ul><li>Leadership: </li></ul><ul><ul><li>Provides purpose, direction, and motivation to others </li></ul></ul><ul><ul><li>Leaders need not be managers </li></ul></ul><ul><li>Important leadership skills: </li></ul><ul><ul><li>Multitasking </li></ul></ul><ul><ul><li>Rational under pressure </li></ul></ul><ul><ul><li>Empathy </li></ul></ul><ul><ul><li>Quick, effective decision making </li></ul></ul><ul><ul><li>Delegation </li></ul></ul><ul><ul><li>Communications </li></ul></ul><ul><ul><li>Prioritization </li></ul></ul>
  27. 27. Crisis Management Critical Success Factors (continued) <ul><li>Golden hour : in medical terms, the first hour after an injury; if treated within this period, there is the highest probability of recovery </li></ul><ul><li>Speed of response: </li></ul><ul><ul><li>Handle as much as possible in the first hour to ensure the highest probability of minimizing crisis impact </li></ul></ul><ul><li>A robust plan: </li></ul><ul><ul><li>Plan is the heart of the CM response </li></ul></ul><ul><ul><li>Plan must be clearly defined, rehearsed, and managed </li></ul></ul>
  28. 28. Crisis Management Critical Success Factors (continued) <ul><li>Adequate resources: </li></ul><ul><ul><li>The right resources at the right place </li></ul></ul><ul><ul><li>Some critical resources include: </li></ul></ul><ul><ul><ul><li>Access to funds, especially cash </li></ul></ul></ul><ul><ul><ul><li>Communications management </li></ul></ul></ul><ul><ul><ul><li>Transportation to and/or away from the crisis area </li></ul></ul></ul><ul><ul><ul><li>Legal advice </li></ul></ul></ul><ul><ul><ul><li>Insurance advice and support </li></ul></ul></ul><ul><ul><ul><li>Moral and emotional support </li></ul></ul></ul><ul><ul><ul><li>Media management </li></ul></ul></ul><ul><ul><ul><li>Effective operations center </li></ul></ul></ul>
  29. 29. Crisis Management Critical Success Factors (continued) <ul><li>Funding: </li></ul><ul><ul><li>Don’t be cheap; spend what is needed when it is needed </li></ul></ul><ul><ul><li>Cutting corners may lead to legal fees and punitive damages later </li></ul></ul><ul><ul><li>Expenses may include: </li></ul></ul><ul><ul><ul><li>Employee assistance programs, including counseling </li></ul></ul></ul><ul><ul><ul><li>Travel expenses, including lodging </li></ul></ul></ul><ul><ul><ul><li>Employee overtime for hourly staff </li></ul></ul></ul><ul><ul><ul><li>Replacement of lost, damaged, or destroyed property for employees </li></ul></ul></ul><ul><ul><ul><li>Compensation for those who were injured </li></ul></ul></ul>
  30. 30. Crisis Management Critical Success Factors (continued) <ul><li>Caring and compassionate response: </li></ul><ul><ul><li>At some point it has to be people concerned about people </li></ul></ul><ul><ul><li>CM team and management must have good people skills, be able to demonstrate they understand the personal issues their employees are facing </li></ul></ul><ul><li>Excellent communications: </li></ul><ul><ul><li>Fear of the unknown is the worst fear of all </li></ul></ul><ul><ul><li>Keep employees, the community, and the media informed of events and the organization’s efforts </li></ul></ul>
  31. 31. Crisis Management Critical Success Factors (continued) <ul><li>Communications items to consider in planning: </li></ul><ul><ul><li>Have key personnel undergo media training </li></ul></ul><ul><ul><li>Know your stakeholders and keep them apprised </li></ul></ul><ul><ul><li>Tell it all, tell it fast, and tell the truth </li></ul></ul><ul><ul><li>Have information ready to distribute, either verbally or in writing </li></ul></ul><ul><ul><li>Express pity, praise, and promise </li></ul></ul>
  32. 32. Developing the Crisis Management Plan <ul><li>Crisis management plan: </li></ul><ul><ul><li>Developed by the CM planning team </li></ul></ul><ul><ul><li>Specifies the roles and responsibilities of individuals during a crisis </li></ul></ul><ul><ul><li>Provides instruction to the CM team and to individual employees </li></ul></ul><ul><ul><li>Can serve as both policy and plan </li></ul></ul>
  33. 33. Developing the Crisis Management Plan (continued) <ul><li>Typical CM plan has these sections (continued): </li></ul><ul><ul><li>Purpose </li></ul></ul><ul><ul><li>Crisis management planning committee </li></ul></ul><ul><ul><li>Crisis types </li></ul></ul><ul><ul><li>Crisis management team structure </li></ul></ul><ul><ul><li>Responsibility and control </li></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Crisis management protocols </li></ul></ul><ul><ul><li>Crisis management plan priorities </li></ul></ul><ul><ul><li>Appendices </li></ul></ul>
  34. 34. Developing the Crisis Management Plan (continued) <ul><li>Purpose: </li></ul><ul><ul><li>Overview of the purpose </li></ul></ul><ul><ul><li>Identifies the individuals to whom this plan applies </li></ul></ul><ul><li>Crisis management planning committee: </li></ul><ul><ul><li>Identifies the CM planning committee </li></ul></ul><ul><ul><li>Distinguishes the planning committee from the operating team </li></ul></ul><ul><ul><li>May also specify the frequency and location of the planning committee meetings </li></ul></ul>
  35. 35. Developing the Crisis Management Plan (continued) <ul><li>Crisis types: </li></ul><ul><ul><li>Groups crises into 3 or 4 categories with corresponding level of response required </li></ul></ul><ul><ul><li>Examples: </li></ul></ul><ul><ul><ul><li>Category 1: Minor damage to physical faculties or minor injury to personnel addressable with on-site resources or limited off-site assistance </li></ul></ul></ul><ul><ul><ul><li>Category 2: Major damage to physical facilities or injury to personnel requiring considerable off-site assistance </li></ul></ul></ul><ul><ul><ul><li>Category 3: Organization-wide crisis requiring evacuation of facilities </li></ul></ul></ul>
  36. 36. Developing the Crisis Management Plan (continued) <ul><li>Crisis management team structure: </li></ul><ul><ul><li>Identifies CM team and responsibilities by names or titles </li></ul></ul><ul><li>Responsibility and control: </li></ul><ul><ul><li>Defines the level of authority granted to the CM team leader during a crisis </li></ul></ul><ul><ul><li>Chain of command : list of officials from an individual to the top level executive </li></ul></ul><ul><ul><li>Executive-in-charge : the ranking executive on site when the crisis occurs </li></ul></ul>
  37. 37. Developing the Crisis Management Plan (continued) <ul><li>Implementation: </li></ul><ul><ul><li>Details on implementation, including contingencies </li></ul></ul><ul><ul><li>Should handle optimal and suboptimal situations with reduced services </li></ul></ul><ul><ul><li>Key tasks include communications to emergency services, management, and employees </li></ul></ul><ul><li>Crisis management protocols: </li></ul><ul><ul><li>Notification protocols for individuals based on typical crisis or emergency events </li></ul></ul>
  38. 38. Developing the Crisis Management Plan (continued) <ul><li>Typical protocols include: </li></ul><ul><ul><li>Medical emergency: epidemic or poisoning </li></ul></ul><ul><ul><li>Violent crime or behavior: robbery, murder, suicide, personal injury (existing or potential), etc. </li></ul></ul><ul><ul><li>Political situations: riots, demonstrations, etc. </li></ul></ul><ul><ul><li>Off-campus incidents or accidents involving employees </li></ul></ul><ul><ul><li>Environmental or natural disasters: fires, earthquakes, floods, chemical spills or leaks, explosions, etc. </li></ul></ul><ul><ul><li>Bomb threats </li></ul></ul>
  39. 39. Developing the Crisis Management Plan (continued) <ul><li>Crisis management plan priorities: </li></ul><ul><ul><li>Defines priorities of effort for the CM team and other responsible individuals </li></ul></ul><ul><ul><li>Requires the establishment of general priorities, each with a number of subordinate priorities </li></ul></ul><ul><ul><li>Details the objectives for each priority level </li></ul></ul><ul><li>Appendices: </li></ul><ul><ul><li>Critical phone numbers (communications roster) </li></ul></ul><ul><ul><li>Building layouts or floor plans </li></ul></ul><ul><ul><li>Planning checklists </li></ul></ul>
  40. 40. Developing the Crisis Management Plan (continued) <ul><li>Assembly area ( AA ): an area where individuals should gather to facilitate a quick head count </li></ul><ul><li>Sample CM plan is included in Appendix C </li></ul>
  41. 41. Crisis Management Training and Testing <ul><li>Training for CM is similar to that for IR, DR, and BC </li></ul><ul><li>Includes desk check, talk-throughs, walk-throughs, simulation, and other exercises on a regular basis </li></ul><ul><li>Training exercises unique to CM include: </li></ul><ul><ul><li>Emergency roster test (notification test or alert roster test): seeks to determine the ability of the employees to respond to a notification system </li></ul></ul><ul><ul><li>Tabletop exercises: scenario-driven talk-through </li></ul></ul><ul><ul><li>Simulation: allows employees to practice their responses to the simulated situation; may be done in concert with fire or emergency services </li></ul></ul>
  42. 42. Crisis Management Training and Testing (continued) <ul><li>First aid training: </li></ul><ul><ul><li>Advisable for first responders </li></ul></ul><ul><ul><li>Should include first aid and CPR training </li></ul></ul><ul><ul><li>May include heart defibrillators </li></ul></ul>
  43. 43. Other Crisis Management Preparations <ul><li>Emergency kits containing: </li></ul><ul><ul><li>Copies of DR, BC, and CM plans </li></ul></ul><ul><ul><li>Laminated checklist of steps in CM plan </li></ul></ul><ul><ul><li>Map with assembly areas and shelters </li></ul></ul><ul><ul><li>Laminated card with emergency services numbers </li></ul></ul><ul><ul><li>Flashlight, batteries, and reflective vests </li></ul></ul><ul><ul><li>Warning triangle markers and caution tape </li></ul></ul><ul><ul><li>First aid kit with disposable gloves </li></ul></ul><ul><ul><li>Clipboard, notepad, and pens </li></ul></ul><ul><ul><li>Permanent markers </li></ul></ul><ul><ul><li>Spray paint or other high-visibility markers </li></ul></ul>
  44. 44. Other Crisis Management Preparations (continued) <ul><li>ID cards: </li></ul><ul><ul><li>Contain employee personal information plus emergency information </li></ul></ul><ul><ul><li>Must protect employee privacy, however </li></ul></ul><ul><li>Medical alert tags and bracelets </li></ul><ul><ul><li>Recommended for all employees with allergies, diabetes, or other special medical conditions </li></ul></ul>
  45. 45. Other Crisis Management Preparations (continued)
  46. 46. Post Crisis Trauma <ul><li>Post-traumatic stress disorder can affect anyone who has experienced a severe traumatic episode </li></ul><ul><li>The organization must look out for the well-being of its employees </li></ul><ul><li>Effects of trauma may not show up for some time </li></ul>
  47. 47. Post-Traumatic Stress Disorder <ul><li>Post-traumatic stress disorder ( PTSD ): </li></ul><ul><ul><li>A psychiatric disorder that can occur following the experience or witnessing of life-threatening events such as military combat, natural disasters, terrorist incidents, serious accidents, or violent personal assaults like rape </li></ul></ul><ul><ul><li>Often manifests as nightmares and flashbacks </li></ul></ul><ul><ul><li>Symptoms include difficulty sleeping, detachment </li></ul></ul><ul><ul><li>Requires outside expert assistance </li></ul></ul>
  48. 48. Employee Assistance Programs <ul><li>Employee assistance program (EAP): </li></ul><ul><ul><li>Provide a variety of counseling services </li></ul></ul><ul><ul><li>May include </li></ul></ul><ul><ul><ul><li>Counselors </li></ul></ul></ul><ul><ul><ul><li>Legal aides </li></ul></ul></ul><ul><ul><ul><li>Medical professionals </li></ul></ul></ul><ul><ul><ul><li>Interpreters </li></ul></ul></ul><ul><ul><li>May be part of health benefits program </li></ul></ul>
  49. 49. Immediately After the Crisis <ul><li>Use assembly areas to gather employees, conduct head counts, and assess injuries and needs </li></ul><ul><li>Hold an information briefing to provide employees with an overview of the situation and what the course of action will be </li></ul><ul><li>Advise employees not to speak with the media </li></ul><ul><li>Be prepared to deal with family members: </li></ul><ul><ul><li>May need outside expert assistance </li></ul></ul><ul><ul><li>Follow up with employees receiving medical care </li></ul></ul><ul><ul><li>Personal visits to injured employees or grieving families is advised </li></ul></ul>
  50. 50. Getting People Back to Work <ul><li>Start with an information briefing to all employees to squelch the rumor mill </li></ul><ul><li>Include the facts, management’s response, impact on the organization, and plans to recover, plus timetables if available </li></ul><ul><li>Vital to use skilled crisis management professionals to monitor and follow up on employees as needed </li></ul>
  51. 51. Dealing with Loss <ul><li>Employees may leave the organization through: </li></ul><ul><ul><li>Death </li></ul></ul><ul><ul><li>Serious injury </li></ul></ul><ul><ul><li>Unwillingness to return after a crisis </li></ul></ul><ul><li>Vital skills and organizational knowledge may be lost when employees leave </li></ul><ul><li>Techniques to prepare for loss of skills and knowledge include: </li></ul><ul><ul><li>Cross-training </li></ul></ul><ul><ul><li>Job and task rotation </li></ul></ul><ul><ul><li>Redundancy </li></ul></ul>
  52. 52. Dealing with Loss (continued) <ul><li>Cross-training : </li></ul><ul><ul><li>Ensuring that every employee is trained to perform at least part of the job of another employee </li></ul></ul><ul><ul><li>Usually occurs as on-the-job training and one-on-one coaching </li></ul></ul><ul><ul><li>Must ensure that employees do not feel they are being prepared for termination </li></ul></ul><ul><li>Job and task rotation: </li></ul><ul><ul><li>Job rotation moves employees from one position to another </li></ul></ul><ul><ul><li>Can use vertical and horizontal job rotation </li></ul></ul>
  53. 53. Dealing with Loss (continued) <ul><li>Vertical job rotation : rotating an employee through jobs in the same functional area from lowest to highest (through progression and promotion) </li></ul><ul><li>Horizontal job rotation : movement of employees between positions at the same organizational level </li></ul><ul><li>Task rotation : involves the rotation of a portion of a job rather than the entire position </li></ul><ul><li>Personnel redundancy : hiring more individuals than the minimum number required to perform the function </li></ul>
  54. 54. Law Enforcement Involvement <ul><li>Do not hesitate to contact law enforcement during a crisis </li></ul><ul><li>Law enforcement have skills geared to crisis management: </li></ul><ul><ul><li>Crowd control </li></ul></ul><ul><ul><li>First aid </li></ul></ul><ul><ul><li>Search and rescue </li></ul></ul><ul><ul><li>Physical security </li></ul></ul><ul><li>Involvement may escalate from local to state to federal agents and officers </li></ul>
  55. 55. Federal Agencies <ul><li>Key federal agencies that might be involved: </li></ul><ul><ul><li>Dept. of Homeland Security (DHS) </li></ul></ul><ul><ul><li>Federal Emergency Management Agency (FEMA) </li></ul></ul><ul><ul><li>U.S. Secret Service </li></ul></ul><ul><ul><li>Federal Bureau of Investigation (FBI) </li></ul></ul><ul><ul><li>Federal hazardous materials agencies </li></ul></ul>
  56. 56. Federal Agencies (continued) <ul><li>Dept. of Homeland Security (DHS): </li></ul><ul><ul><li>Organized to handle crises, especially those involving threats to safety of citizens and potential danger to the U.S. infrastructure </li></ul></ul><ul><ul><li>Sponsors a public education Internet site on preparing for crises: </li></ul></ul><ul><li>Federal Emergency Management Agency (FEMA): </li></ul><ul><ul><li>Focus is on preparing for, mitigating against, responding to, and helping individuals and communities recover from natural and man-made disasters </li></ul></ul>
  57. 57. Federal Agencies (continued) <ul><li>U.S. Secret Service: </li></ul><ul><ul><li>Protects high-level politicians </li></ul></ul><ul><ul><li>Investigates crimes related to financial securities, identity theft, computer fraud, and computer-based attacks on U.S. financial, banking, and telecommunications infrastructure </li></ul></ul><ul><li>Federal Bureau of Investigation (FBI): </li></ul><ul><ul><li>Has jurisdiction over counterterrorism, counterintelligence, cybercrime, public corruption, civil rights violations, organized crime, major thefts, and violent crimes </li></ul></ul>
  58. 58. Federal Agencies (continued) <ul><li>Federal hazardous materials agencies: </li></ul><ul><ul><li>Hazardous material (HAZMAT) agencies deal with radiological, biological, or chemical threats </li></ul></ul><ul><ul><li>Incidents resulting from transportation accidents are handled by Dept. of Transportation </li></ul></ul><ul><ul><li>Terrorist or criminal acts are handled by DHS and/or FBI </li></ul></ul><ul><ul><li>If radioactive materials are involved, Dept. of Energy’s Nuclear Incident Response Team is responsible </li></ul></ul>
  59. 59. State Agencies <ul><li>Organizations are more likely to interact with state agencies than with federal agencies </li></ul><ul><li>State agencies will work with trade associations, individual businesses, and local governments in emergency preparations and crisis management: </li></ul><ul><ul><li>State emergency management agency </li></ul></ul><ul><ul><li>State investigative services </li></ul></ul><ul><ul><li>State hazardous materials agency </li></ul></ul>
  60. 60. State Agencies (continued) <ul><li>State emergency management agency: </li></ul><ul><ul><li>State’s point of interaction with federal DHS and FEMA </li></ul></ul><ul><li>State investigative services: </li></ul><ul><ul><li>Usually a state bureau of investigation </li></ul></ul><ul><ul><li>May be associated with the state highway patrol </li></ul></ul><ul><li>State hazardous materials agency: </li></ul><ul><ul><li>State transportation dept. may handle emergency spills </li></ul></ul>
  61. 61. Local Agencies <ul><li>Local law enforcement: </li></ul><ul><ul><li>Capable of processing crime scenes and handling most common criminal activities </li></ul></ul><ul><li>Police special weapons units </li></ul><ul><ul><li>Also known as SWAT teams </li></ul></ul><ul><ul><li>Trained in special weapons and tactics </li></ul></ul><ul><ul><li>Handle hostage, sniper, terrorist, and other high-risk situations </li></ul></ul><ul><li>Bomb detection and removal </li></ul><ul><ul><li>Trained to deal with incendiary, explosive, or contaminating devices </li></ul></ul>
  62. 62. Managing Crisis Communications <ul><li>Managing internal and external communications during and after a crisis is an essential factor in keeping the organization together and functioning </li></ul><ul><li>Some communications can be managed; some cannot be easily managed, such as those with: </li></ul><ul><ul><li>Law enforcement </li></ul></ul><ul><ul><li>Emergency services </li></ul></ul><ul><ul><li>The media </li></ul></ul>
  63. 63. Crisis Communications <ul><li>11 steps of crisis communications: </li></ul><ul><ul><li>Step 1: Identify your crisis communications team </li></ul></ul><ul><ul><li>Step 2: Identify spokespersons </li></ul></ul><ul><ul><li>Step 3: Spokesperson training </li></ul></ul><ul><ul><li>Step 4: Establish communications protocols </li></ul></ul><ul><ul><li>Step 5: Identify and know your stakeholders </li></ul></ul><ul><ul><li>Step 6: Decide on communications methods </li></ul></ul><ul><ul><li>Step 7: Anticipate crises </li></ul></ul><ul><ul><li>Step 8: Develop holding statements to be used immediately after a crisis breaks </li></ul></ul>
  64. 64. Crisis Communications (continued) <ul><li>11 steps of crisis communications (continued): </li></ul><ul><ul><li>Step 9: Assess the crisis situation </li></ul></ul><ul><ul><li>Step 10: Identify key messages for stakeholders </li></ul></ul><ul><ul><li>Step 11: Riding out the storm </li></ul></ul>
  65. 65. Avoiding Unnecessary Blame <ul><li>Regardless of the cause of the crisis, the media seeks to assign responsibility, especially if there were casualties </li></ul><ul><li>Difference between fault and blame: </li></ul><ul><ul><li>Fault: occurs when management could have done something in line with due diligence or due care to prepare for or react to a crisis </li></ul></ul><ul><ul><li>Blame: occurs as a human response to deal with inexplicable travesty associated with loss </li></ul></ul><ul><li>If the organization believes it is not at fault, it should take steps to avoid being blamed </li></ul>
  66. 66. Avoiding Unnecessary Blame (continued) <ul><li>Examine vulnerabilities that could escalate to crises: </li></ul><ul><ul><li>Is there more that could be done to prevent or prepare for this event? </li></ul></ul><ul><ul><li>Will the planned reaction create further risk to employees or others? </li></ul></ul><ul><ul><li>If the CM plan goes as expected, will you be proud to be on the news? </li></ul></ul>
  67. 67. Avoiding Unnecessary Blame (continued) <ul><li>Manage outrage to defuse blame: </li></ul><ul><ul><li>Be prepared to demonstrate how prepared you were for the emergency </li></ul></ul><ul><ul><li>Seek and accept responsibility where appropriate </li></ul></ul><ul><ul><li>Consider the Johnson & Johnson response to the Tylenol poisoning in 1982 </li></ul></ul>
  68. 68. Avoiding Unnecessary Blame (continued) <ul><li>Questions to help avoid blame: </li></ul><ul><ul><li>Should we have foreseen this and taken precautions to prevent it? </li></ul></ul><ul><ul><li>Were we unprepared to respond effectively? </li></ul></ul><ul><ul><li>Did management do anything intentionally that caused this or made it more severe? </li></ul></ul><ul><ul><li>Were we unjustified in actions leading up to and following the incident? </li></ul></ul><ul><ul><li>Is there any type of scandal or cover-up related to our involvement in the incident? </li></ul></ul>
  69. 69. Succession Planning <ul><li>It is extremely difficult for individuals to function following a loss of life of someone they know or if they witnessed the death </li></ul><ul><li>When an organization's chain of command is broken, post-traumatic stress among the survivors may hamper action </li></ul><ul><li>Succession planning ( SP ): process that enables an organization to cope with any loss of personnel with a minimum degree of disruption </li></ul>
  70. 70. Elements of Succession Planning <ul><li>Succession planning is an essential executive-level function </li></ul><ul><li>Six-step model directs what management should do: </li></ul><ul><ul><li>Assure an alignment between the organization’s strategic plan and the intent of the SP process </li></ul></ul><ul><ul><li>Identify key positions that should be protected by SP </li></ul></ul><ul><ul><li>Seek out current and future candidates for key positions from among members of the organization </li></ul></ul><ul><ul><li>Develop training programs to ready potential successors </li></ul></ul>
  71. 71. Elements of Succession Planning (continued) <ul><li>Six-step model (continued): </li></ul><ul><ul><li>Integrate the SP process into the culture of the organization </li></ul></ul><ul><ul><li>Ensure that the SP process is complementary to the staff development programs throughout HR functions </li></ul></ul><ul><li>Alignment with strategy: </li></ul><ul><ul><li>SP process should be created to meet the current and future needs of the organization’s strategic plan </li></ul></ul>
  72. 72. Elements of Succession Planning (continued) <ul><li>Identifying positions: </li></ul><ul><ul><li>Positions to include in the SP are those where the loss of an incumbent will cause great economic loss, result in significant disruption of operations, or create a significant risk to secure operations of critical system </li></ul></ul><ul><ul><li>Must define thresholds for economic loss, degree of disruption, or increased risk </li></ul></ul><ul><ul><li>Identify the critical competencies and skills for each position </li></ul></ul>
  73. 73. Elements of Succession Planning (continued) <ul><li>Identifying candidates: </li></ul><ul><ul><li>Use performance appraisals, validated psychological assessments </li></ul></ul><ul><ul><li>Remember that managers tend to seek out and advance those who are similar to themselves </li></ul></ul><ul><li>Developing successors: </li></ul><ul><ul><li>In addition to expected training and development activities, candidates should receive mentoring and other organizational real-time learning opportunities </li></ul></ul>
  74. 74. Elements of Succession Planning (continued) <ul><li>Integration with routine processes </li></ul><ul><ul><li>SP process must be operated by the line managers that form the core of the broad executive team, not HR staff </li></ul></ul><ul><li>Balancing SP and operations: </li></ul><ul><ul><li>SP must have the same level of importance as other planning organizing, leading and controlling activities common to managers everywhere </li></ul></ul>
  75. 75. Succession Planning Approaches for Crisis Management <ul><li>All CM plans must have provisions for dealing with losses in key positions </li></ul><ul><li>SP plan must indicate the degree of visibility or transparency that will accompany the SP process </li></ul><ul><li>Two degrees of transparency: </li></ul><ul><ul><li>Operationally integrated succession planning: fully visible approach that is well known to incumbents and potential successors </li></ul></ul><ul><ul><li>Crisis-activated succession planning: concealed approach in which succession is unknown until implemented </li></ul></ul>
  76. 76. Succession Planning Approaches for Crisis Management (continued) <ul><li>If using crisis-activated SP, the SP mechanisms must become part of the crisis management operational plan </li></ul>
  77. 77. Summary <ul><li>Crisis: a significant business disruption that stimulates extensive news media coverage and could have legal, financial, and governmental impact </li></ul><ul><li>Crises can be caused by acts of nature, mechanical problems, human errors, or management decisions and indecisions </li></ul><ul><li>Two types of crises based on rate of occurrence and warning time: sudden crisis and smoldering crisis </li></ul><ul><li>Sudden crisis occurs without warning </li></ul><ul><li>Smoldering crisis is any problem not generally known within or without the company </li></ul>
  78. 78. Summary (continued) <ul><li>Crisis management: actions take by an organization in response to an emergency situation to minimize injury or loss of life </li></ul><ul><li>Crisis planning committee should have representatives from all appropriate business departments and disciplines </li></ul><ul><li>Crisis management team includes individuals responsible for handing the response to an actual crisis situation </li></ul><ul><li>Core assets to be protected are people, finances, and reputation </li></ul>
  79. 79. Summary (continued) <ul><li>Critical success factors for crisis management are leadership, speed of response, a robust plan, adequate resources, funding, caring and compassionate response, and excellent communications </li></ul><ul><li>Training for CM is similar to that for IR, DR, and BC </li></ul><ul><li>During a crisis, provide employees with the facts, management’s response, impact on the organization, and plans to recover </li></ul><ul><li>Use cross-training, job and task rotation, and job redundancy to mitigate loss of critical staff </li></ul>
  80. 80. Summary (continued) <ul><li>Do not hesitate to contact law enforcement if needed </li></ul><ul><li>Critical US federal agencies include DHS, FEMA, Secret Service, FBI, and federal hazardous materials agencies </li></ul><ul><li>Communications are essential to keeping the organization together and functioning during a crisis </li></ul><ul><li>Succession planning is used to enable an organization to deal with the loss of key personnel </li></ul>