Organizational Crisis Management: The Human Factor


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Organizational Crisis Management: The Human Factor

  1. 1. <ul><li>Organizational Crisis Management: The Human Factor </li></ul><ul><li>  </li></ul><ul><li>Floods, hurricanes, power outages, layoffs, violence, litigation, earthquakes, fires, hacking, sick building syndrome, strikes, terrorism. work crises come in all shapes and sizes. </li></ul><ul><li>  </li></ul><ul><li>This presentation will focus on pre-incident plans and policies as well as post-incident services and strategies to help mitigate the impact on personnel. In addition, the Human Impact Assessment Tool (HIAT) developed by the presenter will be described.   </li></ul><ul><li>In addition, a portion of the presentation will be devoted to the development of the contingency planning profession. </li></ul><ul><li>  </li></ul>
  2. 2. Organizational Crisis Management Gerald Lewis, Ph.D. Gerald Lewis, Ph.D. & Assoc., P.C. 1290 Worcester Road, Framingham, MA 01702 508.872.6228 Crises come in all shapes and sizes… to all shapes and sizes of work organizations
  3. 3. BCP: The Next Generation “ What do we want to be when we grow up?” <ul><ul><li>Purposeful Goals </li></ul></ul><ul><ul><li>Practical Applications </li></ul></ul><ul><ul><li>Professional Standards </li></ul></ul><ul><ul><li>People focused </li></ul></ul>
  4. 4. Crisis Management = Cultural Management “ Human beings, who are almost unique in having the ability to learn from the experiences of others, are also remarkable for their apparent disinclination to do so!” Douglas Adams Author of “The Hitchhiker’s Guide to the Galaxy
  5. 5. • Evacuation congestion • Infrastructure damage • Civil disorder • Fires • Overwhelmed medical services • Overwhelmed transport system • Thousands of people isolated for days without water, food or medical care • Communication failures • Inequity (racism and excessive suffering by the poor) From Todd Litman Victoria Transportation Policy Institute Hurricane Katrina, San Francisco, 1906 If the past is prelude… Why aren’t we paying attention !
  6. 6. Pioneers Most of us have journeyed great (occupational) distances to find ourselves in our current position. <ul><li>Many felt a sense of adventure… </li></ul><ul><li>Some felt they were “volunteered”… </li></ul>Prophets & Messengers <ul><li>Others felt they were thrown under the bus </li></ul>
  7. 7. right after you needed it!! “ On the Job Training” (OJT) is getting the experience you need…
  8. 8. POP QUIZ!!! <ul><li>What was the first </li></ul><ul><li>emergency management or </li></ul><ul><li>crisis management plan? </li></ul>
  9. 9. It may be argued…Religions It wasn’t smoke-stacked… Emergency Management Business Continuity COOP Risk Mgt. Security Involved… Planning Preparedness Prevention Mitigation Response/recovery Had buy-in from all within the Community… Included a Prevention and Mitigation plan for those who did not buy in… “H.M”
  10. 10. Since then… The blind men and the elephant… IT/DR Emer. Mgt BCP COOP Risk Mgt. Security each with their own view of “reality” Contingency Resiliency
  11. 11. What is the strategic plan… “Industry,” “Trade” vs. “Profession” <ul><li>INDUSTRY </li></ul><ul><li>the people or companies engaged in a particular kind of commercial enterprise; </li></ul><ul><li>any grouping of businesses that share a common method of generating profits, such as the &quot;movie industry&quot;, the &quot;automobile industry.” </li></ul><ul><li>TRADE </li></ul><ul><li>An occupation, especially one requiring skilled labor: the building trades, including carpentry, masonry, plumbing, and electrical installation </li></ul>
  12. 12. Profession <ul><li>The body of people in a learned occupation; </li></ul><ul><li>An occupation requiring special education </li></ul><ul><li>A specialized work function generally performed by a professional. </li></ul>What is your professional/personal goal?
  13. 13. The “CP” of the future <ul><li>Education (formal and organizational) </li></ul><ul><li>Specialization </li></ul><ul><li>Certification </li></ul><ul><li>Standardization </li></ul><ul><li>Common terminology </li></ul><ul><li>Continuing education </li></ul><ul><li>Recognition/understanding outside of your “industry” </li></ul>
  14. 14. Moving along… The Human Factor
  15. 15. The Focus is… <ul><li>Rescue & restoration of services </li></ul><ul><li>Focused on infrastructure </li></ul><ul><li>IT </li></ul><ul><li>Security </li></ul><ul><li>Structural operations </li></ul><ul><li>It may be easier to recover IT </li></ul><ul><li>than to recover HT </li></ul>
  16. 16. <ul><li>“ You can get your phone lines up… </li></ul>
  17. 17. <ul><li>… and have your computers </li></ul><ul><li>backed up… </li></ul>
  18. 18. … but your employees may still be messed up.”
  19. 19. Active & Passive Trauma <ul><li>Active - a boundary violation of some kind, clearly a toxic interaction… </li></ul><ul><li>a violent presence. </li></ul><ul><li>Passive - a form of physical or emotional neglect… the absence of nurturance… and of connection. </li></ul><ul><li> From: I Don’t Want to Talk About It </li></ul><ul><ul><ul><ul><ul><li>Terrence Real </li></ul></ul></ul></ul></ul>
  20. 20. Steven Fink’s Assessment Model <ul><li>Subjectively rate the following questions on a 1-10 scale </li></ul><ul><li>Might the crisis intensify and if so, how fast? </li></ul><ul><li>How observable is the crisis by outsiders such as media, regulatory agencies or customers? </li></ul><ul><li>How much does it interfere with operations? </li></ul><ul><li>Is the company the victim or culprit of this crisis? </li></ul><ul><li>How damaging is it to the bottom line (however one defines bottom line) </li></ul><ul><li>Divide by 5 to calculate the CIV </li></ul>S. Fink, Crisis Management: Planning for the Inevitable . IUniversity, 1986, 2002
  21. 21. Steven Fink’s Assessment Model <ul><li>Probability Factor Scale (PFS) </li></ul><ul><li>Subjective estimation of the likelihood of an event occurring (0-100%). </li></ul>S. Fink, Crisis Management: Planning for the Inevitable . IUniversity, 1986, 2002
  22. 22. Crisis Plotting Grid 10 9 8 7 6 5 4 3 2 1 0 10 20 30 40 50 60 70 80 90 100% PFS CIV Hi impact/ Hi probability High Impact/ Low probability Low impact/ Hi probability Low impact/ Low probability S. Fink, Crisis Management: Planning for the Inevitable . IUniversity, 1986, 2002 X Hurricane in Florida X strike Hi prob Hi Impact Hi prob Low impact Lo prob Lo impact Lo prob Hi impact X law suit
  23. 23. Human Impact Assessment Tool © (HIAT) <ul><li>Types of Crises </li></ul><ul><li>Manmade 1 </li></ul><ul><li>Manmade II </li></ul><ul><li>Natural disaster </li></ul><ul><li>Organizational transition </li></ul><ul><li>Infrastructure disruption </li></ul>
  24. 24. Manmade I <ul><li>Single perpetrator involved in civil/criminal activity or behavior that disrupts workplace </li></ul><ul><ul><li>Violence </li></ul></ul><ul><ul><li>Law suit </li></ul></ul><ul><ul><li>Termination </li></ul></ul><ul><ul><li>Sexual harassment </li></ul></ul><ul><ul><li>Robbery or assault </li></ul></ul><ul><ul><li>Conflict between two employees </li></ul></ul>
  25. 25. Manmade II <ul><li>Disruption caused by an organized large group </li></ul><ul><ul><li>Strike or other work action </li></ul></ul><ul><ul><li>Terrorism/war </li></ul></ul><ul><ul><li>Large scale vandalism </li></ul></ul>
  26. 26. Natural Disaster <ul><li>Incident caused by nature </li></ul><ul><ul><li>Flood </li></ul></ul><ul><ul><li>Hurricane </li></ul></ul><ul><ul><li>Earthquake </li></ul></ul><ul><ul><li>Blizzard </li></ul></ul><ul><ul><li>Pandemic </li></ul></ul>
  27. 27. Organizational Transition <ul><li>Crisis caused by changes in policies, personnel and/or placement </li></ul><ul><ul><li>Lay offs </li></ul></ul><ul><ul><li>Reorganizations </li></ul></ul><ul><ul><li>Mergers and acquisitions </li></ul></ul><ul><ul><li>Relocations </li></ul></ul><ul><ul><li>Work action </li></ul></ul><ul><ul><li>Brand damage </li></ul></ul>
  28. 28. Infrastructure Disruption <ul><li>Incidents that disrupt the delivery of utilities, services, transportation, etc. </li></ul><ul><li>Often these may be part of natural disasters, but may also be “stand alone’ events. </li></ul><ul><ul><li>Power outage </li></ul></ul><ul><ul><li>Computer hacking or shut down </li></ul></ul><ul><ul><li>HVAC shutdown </li></ul></ul><ul><ul><li>Other utility difficulties </li></ul></ul><ul><ul><li>Disruption of vendor services </li></ul></ul>
  29. 29. Human Impact Assessment Tool © (HIAT) <ul><li>Impact Factors </li></ul><ul><li>1. Locus of impact </li></ul><ul><ul><li>Building, city, region </li></ul></ul><ul><li>Timing </li></ul><ul><li>Duration </li></ul><ul><li>Contained vs. on going </li></ul><ul><li>4. Warning vs. sudden </li></ul><ul><li>5. Impact on operations </li></ul>
  30. 30. Human Impact Assessment Tool © (HIAT) <ul><li>Impact Factors continued </li></ul><ul><li>5-9. Damage/bodily injury/death </li></ul><ul><li>5. Premise- damage to building </li></ul><ul><li>6. Personnel- physical injury/death of employees </li></ul><ul><li>7. Private residences- damage to homes and property </li></ul><ul><li>8. Social structure-damage to utilities, roads, etc </li></ul><ul><li>9. Reputation- damage to organization’s reputation </li></ul><ul><li>10. Concurrent stressors </li></ul><ul><li>Scores over 50 indicate a significant social/emotional impact </li></ul>
  31. 31. 8 10 10 10 10 7 1 2 7 5 70 5 10 6 8 10 10 0 7 1 5 62 10 3 8 8 6 1 8 1 9 5 59 Total >50 = sig. impact Concurrent stressors I/D infrastructure I/D Reputation I/D property I/D personnel I/D premises Operation Imp Duration Timing Locus of impact Infrastructure Disruption Org. Trans Nat’l disaster Manmade 2 Manmade I HIAT Worksheet 8 10 3 5 2 1 2 2 3 5 43
  32. 32. Reactions to Crisis & Trauma Emotional Physical Cognitive Familial Social Workplace Disruption
  33. 33. 10% Paradigm <ul><li>Impact on workplace </li></ul><ul><ul><li>Decrease in productivity </li></ul></ul><ul><ul><li>Increase in absenteeism </li></ul></ul><ul><ul><li>Increase in sick leave </li></ul></ul><ul><ul><li>Increase in health claims </li></ul></ul><ul><ul><li>Increase in disability claims </li></ul></ul><ul><ul><li>Increase in conflict (personal and professional) </li></ul></ul><ul><ul><li>Liability issues </li></ul></ul>
  34. 34. Characteristics of Resiliency <ul><li>“ Relationships” with others </li></ul><ul><li>An opportunity to contribute and feel valued </li></ul><ul><li>Effectiveness in work, play, and relationships </li></ul><ul><li>Healthy expectations and positive outlook </li></ul><ul><li>Self-esteem and self-discipline </li></ul><ul><li>Problem solving/critical thinking skills </li></ul><ul><li>Flexibility </li></ul><ul><li>A sense of humor </li></ul>
  35. 35. Security Safety, comfort, freedom from threatening events Belonging Friendship, affiliation, interaction Membership in a group Esteem Feeling valued, appreciated, respected by self and others Fulfillment by maximizing skills and potential. Continuation to grow Maslow’s Hierarchy of Needs 10% Self Actualization Physiological Food, shelter, clothing, relief from pain
  36. 36. Physiological Rescue, recovery, food, shelter, walls, windows, HVAC, Security IT, Security, Policies, etc. Belonging Inter/intra departmental interaction & understanding Esteem Employees feeling valued/cared for by the organization. They contribute… Maslow’s Hierarchy of Needs For ORP Self Actualization HT Responsive Leadership
  37. 37. When planning… Survival SURVIVAL Physiological 1-5 days SUPPORT Safety/security Support 2-3 wks ADJUSTMENT Belonging Adjustment 3-8 mos RESOLUTION Esteem 1 yr. Resolution 2+ yrs RE (dis) COVERY Self actualization Re(dis)covery Event
  38. 38. Guaranteed “Breaks”… The Three “Cs” C ommand structure C ommunication C ooperation
  39. 39. What to do? Know your demographics, “culture” and purpose <ul><li>Designation of “SAFE-T” team . </li></ul><ul><ul><li>Fund it with time, money and resources </li></ul></ul><ul><li>Sharing : Distribute resiliency plans… </li></ul><ul><li>Sensors : Utilize focus groups for employee input </li></ul><ul><li>Tabletop drills… over extended phases </li></ul><ul><li>Mitigation = Education, Information & Communication </li></ul><ul><li>Provide up-to-date information : 800 #, FAQ website, emails, webinars, brochures, wallet cards, con-calls, video presentations, health fairs, lunchinars… on-going </li></ul><ul><li>Guidelines and expectations of each role/category of employee </li></ul>
  40. 40. S ecurity Assessment A dministrative Preparedness F acilities and facilitation of Resources E mployee Services T ime and training “ SAFE-T TREE:” “ Developing the Infrastructure
  41. 41. <ul><li>Utilize HR, EAP, OH, LABOR UNITS </li></ul><ul><li>Responsive (Compassionate) Leadership: </li></ul><ul><ul><li>“ Face time” with higher ups </li></ul></ul><ul><ul><li>Awareness of peoples’ reactions </li></ul></ul><ul><ul><li>Openness to allow appropriate expression </li></ul></ul><ul><ul><li>Process to communicate/discuss with others </li></ul></ul><ul><ul><li>Acknowledgement and appreciation of efforts </li></ul></ul><ul><ul><li>Concern for family (role conflict) </li></ul></ul><ul><ul><li>“ Help” them understand that the “C” in their title does not stand for crisis … do this before the crisis. </li></ul></ul><ul><li>Recognize the stages and phases of a crisis go on long after the crisis is “over.” </li></ul><ul><li>Sell BCP/CP/CM/DR/COOP… as a safety policy </li></ul>
  42. 42. BCP as a safety policy
  43. 43. time & tolerance respect & responsibility unity & understanding thanks safety & structure TRUST T R U S T