Society for Healthcare Strategy and Market Development


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  • JohBenet Ramsey’s murder was sensational. Within days, her parents’ attorneys hired Rowan & Blewitt of New York. Hank Boerner, a Sr.VP said, the lawyers recognized what could happen with media coverage and wanted people who could communicate with the media. A website was established to serve media needs and CNN posted a link to it on the CNN site. On another occasion a New Jersey town, worried about public reaction to a toxic chemical clean-up effort under the US Superfund. They joined with the company doing the clean-up and created a web site loaded with information.
  • Society for Healthcare Strategy and Market Development

    1. 1. Before, During & After the Crisis Fred Bagg, ABC, APR, Fellow PRSA Dan Pyle Millar, Ph.D., APR
    2. 2. The Chinese character for crisis is made up of two different ideograms or characters...
    3. 3. for danger, and...
    4. 4. for opportunity!
    5. 5. Preparation is the MOST important component!
    6. 6. Definitions
    7. 7. Wilson: “Moment to moment intense experience”
    8. 8. Institute for Crisis Management: <ul><li>Significant business disruption </li></ul><ul><li>Extensive news coverage </li></ul><ul><li>Extensive public scrutiny </li></ul><ul><li>Adverse affect on normal operations </li></ul><ul><li>Exceeds the normal capacity of the organization to respond </li></ul>
    9. 9. Think of crisis as a wave
    10. 10. ...And Crisis Communication as a second wave
    11. 11. Preparation: <ul><li>Eliminate or reduce the probability of occurrence, process for informing audiences </li></ul>D
    12. 12. Impact and Crisis Response <ul><li>“ Prepare Relentlessly” </li></ul><ul><li>Rudy Guilliani </li></ul><ul><li>Leadership, 2003 </li></ul>
    13. 13. Definition of a Business Crisis <ul><li>A significant business disruption which results in extensive news media coverage and public scrutiny </li></ul><ul><li>Different types of business crises </li></ul><ul><ul><li>Sudden </li></ul></ul><ul><ul><li>Smoldering </li></ul></ul><ul><ul><li>Perceptual </li></ul></ul><ul><ul><li>Bizarre </li></ul></ul>
    14. 14. What to Expect in a Crisis <ul><li>Surprise </li></ul><ul><li>Insufficient information </li></ul><ul><li>Escalating flow of events </li></ul><ul><li>Loss of control </li></ul><ul><li>Increased scrutiny </li></ul>
    15. 15. Adverse Business Impact <ul><li>• Loss of sales and profits </li></ul><ul><li>• Increased litigation </li></ul><ul><li>• Loss of jobs </li></ul><ul><li>• Decreased employee morale </li></ul><ul><li>• Loss of reputation </li></ul><ul><li>• Decreased competitive strength </li></ul><ul><li>• Increased government intervention </li></ul><ul><li>• Increased consumer activism </li></ul><ul><li>• Decreased trust in management </li></ul>
    16. 16. Crisis Response <ul><li>Immediate </li></ul><ul><li>Open </li></ul><ul><li>Honest </li></ul><ul><li>Accurate </li></ul><ul><li>Clear Message Platform </li></ul><ul><li>Focused </li></ul>
    17. 17. Crisis Response Plan <ul><li>Need to have a communication plan INDEPENDENT of the organization’s operational crisis or disaster plan! </li></ul>
    18. 18. The Elements of a Crisis Response Plan <ul><li>Criteria/categories </li></ul><ul><li>Crisis team and responsibilities </li></ul><ul><li>Basic message points / platform </li></ul><ul><li>Contacts and media list </li></ul><ul><li>Crisis command post and media center </li></ul><ul><li>Guidelines, checklists & forms </li></ul>
    19. 19. HEALTHCARE CRISES 1990-----1995-----2000 <ul><li>catastrophes 0% 1.1% 2.2% </li></ul><ul><li>casualty accidents 12.8% 9.6% 6.5% </li></ul><ul><li>environmental 3.3% 1.1% .8% </li></ul><ul><li>class action 2.5% 7.0% 14.8% </li></ul><ul><li>consumer action 6.6% 2.1% .4% </li></ul><ul><li>defects/recall 2.9% 5.9% 15.2% </li></ul><ul><li>discrimination 2.1% 3.2% 2.2% </li></ul><ul><li>executive dismissal 1.7% 1.6% 2.2% </li></ul>
    20. 20. HEALTHCARE CRISES 1990-----1995-----2000 <ul><li>financial damages 2.5% 3.2% 5.8% </li></ul><ul><li>hostile takeover 2.1% 0% .4% </li></ul><ul><li>labor dispute 20.7% 15.5% 11.7% </li></ul><ul><li>mismanagement 26.0% 16.6% 10.9% </li></ul><ul><li>sexual harassment 1.2% 3.7% 1.3% </li></ul><ul><li>whistle blowing .08% 6.4% 6.5% </li></ul><ul><li>white collar crime 11.6% 19.8% 14.3% </li></ul><ul><li>workplace violence 3.3% 3.2% 4.3% </li></ul>
    21. 21. Most Crisis-prone industries : 1990s <ul><li>1. Banking & Depository Institutions </li></ul><ul><li>2. Stock & Bond Brokerages </li></ul><ul><li>3. Insurance </li></ul><ul><li>4. Motor Vehicles </li></ul><ul><li>5. Oil & Gas Extraction </li></ul><ul><li>6. Aerospace </li></ul><ul><li>7.Telecommunications </li></ul><ul><li>8. Air Transportation </li></ul><ul><li>9. Computer Software </li></ul><ul><li>10. Pharmaceuticals </li></ul>
    22. 22. Harsh Realities of Crisis <ul><li>Most crisis situations can be PREDICTED and PREVENTED; those that can’t be avoided can be minimized. </li></ul><ul><li>Serious business problems don’t become a “crisis” until the PROBLEM ESCAPES THE ORGANIZATION. </li></ul><ul><li>The LONGER A CRISIS GOES ON, the GREATER THE DAMAGE to sales, earnings, stock price, morale and competitive position. </li></ul><ul><li>MANAGEMENT DENIAL is the biggest obstacle to effective crisis management. </li></ul><ul><li>The primary concern in crisis communication management is the COURT OF PUBLIC OPINION not the court of law. </li></ul>
    23. 23. <ul><li>• Top management </li></ul><ul><li>• Crisis participants </li></ul><ul><li>• Journalist </li></ul><ul><li>• Agency PIOs </li></ul>CRISIS RESPONSE TEAMWORK Audiences Responsibilities • Employees and families • Key government officials • Stakeholders • Opinion leaders • Communication policy • Crisis team tie breaker • On-site overview remarks • One-on-one with movers and shakers • News media • Outside experts • Principal briefing spokesperson • Interface with crisis participants • Liaison with outside experts • Interview gatekeeper • Media coverage intelligence • Majority of phone interviews • General spokesperson Top Mgmt Operational and Staff Experts Media and Community Relations Staff
    24. 24. ICM approach to managing sudden crises <ul><li>1. Have a Crisis Communications Plan that can be implemented immediately </li></ul><ul><li>2. Base EVERYTHING you say on factual, confirmed information </li></ul><ul><li>3. Notify your management and communications people ASAP </li></ul><ul><li>4. Anticipate the news media reactions and be ready to respond </li></ul><ul><li>5. Coordinate your communications with government agencies </li></ul>
    25. 25. ICM approach to managing sudden crises <ul><li>6. Line up additional manpower for the first 48 hours </li></ul><ul><li>7. Manage the aftermath as effectively as the initial crisis itself </li></ul><ul><li>8. Document everything you are doing during the crisis </li></ul><ul><li>9. Debrief everyone on how well the crisis was managed </li></ul>
    26. 26. Message Points <ul><li>First words FRAME the story </li></ul><ul><ul><li>“ what you’re about the see may surprise and shock you” </li></ul></ul><ul><ul><li>“ the comment that we have at this time is ‘no comment’” </li></ul></ul><ul><ul><li>“ our employees are our most important asset” </li></ul></ul><ul><ul><li>‘ we are dedicated to the safety of our employees and neighbors” </li></ul></ul><ul><li>First words should be YOURS </li></ul><ul><ul><li>shape your perspective on the event </li></ul></ul><ul><ul><li>emotional connection to publics; compelling </li></ul></ul><ul><ul><li>frame for future statements </li></ul></ul><ul><ul><li>platform for future actions </li></ul></ul>
    27. 27. Contacts and Media List <ul><li>Keep Local media in mind /up to date </li></ul><ul><ul><li>Print </li></ul></ul><ul><ul><li>Electronic(including broadcast, internet) </li></ul></ul><ul><li>National Media (up to date) </li></ul><ul><li>Trade Press (Modern Healthcare, etc.) </li></ul>
    28. 28. Crisis Command Post & Media Center <ul><li>The organization should have BOTH a crisis command post AND a separate, but close by, media center </li></ul>
    29. 29. Crisis Command Post <ul><li>Secure </li></ul><ul><li>Fully equipped </li></ul><ul><li>Access to top management </li></ul><ul><li>Legal, other “support” </li></ul><ul><li>Link to “Operational” response </li></ul>
    30. 30. Media Center <ul><li>“ Away” from crisis BUT accessible to people, pictures, activity </li></ul><ul><ul><li>Not in Emergency Room, but in conference room down the hall </li></ul></ul><ul><li>Equipped </li></ul><ul><ul><li>Electrical, </li></ul></ul><ul><ul><li>Phone jacks </li></ul></ul><ul><ul><li>Lectern/podium (well lit) </li></ul></ul><ul><li>Interview room </li></ul>
    31. 31. Guidelines, Checklists, Letters of Agreement & Forms <ul><li>Disclosure </li></ul><ul><li>Media Policy </li></ul><ul><li>Advertising (e.g. pull product ads in case of product recall crisis) </li></ul><ul><li>Checklists for media, management calls, equipment, media center, </li></ul><ul><li>Letters of Agreement for vendors, supplies, additional people, etc </li></ul><ul><li>Form statements, media lists, timetables, casualty list, etc.. </li></ul>
    32. 32. Technologies used in Crisis planning <ul><li>Web sites </li></ul><ul><li>CD Rom </li></ul><ul><li>PDA’s </li></ul><ul><li>Portable memory for computer(s) </li></ul><ul><li>Equipment agreements </li></ul>
    33. 33. Use your Web site <ul><li>Four basic strategies: </li></ul><ul><li>Present and maintain accurate perception of the organization </li></ul><ul><li>Present timely, accurate, up-to-date information </li></ul><ul><li>Facilitate the work of the media </li></ul><ul><li>Manage negative publicity </li></ul>
    34. 34. Use your Web site <ul><li>Source for background info </li></ul><ul><li>Hidden/ghost page </li></ul><ul><ul><li>SwissAir model </li></ul></ul><ul><ul><li>Media uses it </li></ul></ul><ul><ul><li>Reduces repeat calls from reporters </li></ul></ul><ul><ul><li>Crosses time zones </li></ul></ul><ul><ul><li>Gets ahead of rumors </li></ul></ul>
    35. 35. Lessons from Sept. 11, 01 and Aug. 15, 03 <ul><li>“ COMMUNICATION is VITAL” reinforced </li></ul><ul><li>1. Cell phones, e-mail </li></ul><ul><ul><li>• Instant communication </li></ul></ul><ul><ul><li>• Interactive DURING and AFTER the crisis </li></ul></ul><ul><li>2. Web </li></ul><ul><li>•  Information dissemination, rumor control </li></ul><ul><li>• Monitoring - response & investigation </li></ul><ul><li>3. You can’t count on power </li></ul><ul><li>• Generators, batteries, car batteries </li></ul>
    36. 36. CD ROM <ul><li>Backgrounders </li></ul><ul><li>Electronic “media kits” </li></ul><ul><li>Photo archives </li></ul><ul><li>Pre-prepared statements, forms </li></ul><ul><li>Etc. </li></ul>
    37. 37. PDAs <ul><li>Organization contact list(s) </li></ul><ul><li>Media contact lists </li></ul><ul><li>Community & Gov’t contact lists </li></ul><ul><li>E-version of the “plan”, </li></ul><ul><li>Downloadable information gathering </li></ul><ul><li>Infrared transfer of information </li></ul>
    38. 38. Equipment Agreements <ul><li>Cell phones </li></ul><ul><li>Computers(Laptops) </li></ul><ul><li>Copiers </li></ul><ul><li>Faxes </li></ul><ul><li>Pre-arranged 800 or 888 numbers </li></ul><ul><li>Etc. </li></ul>
    39. 39. SPOKESPEOPLE NEED MEDIA TRAINING <ul><li>Before a crisis strikes, pick a spokesperson </li></ul><ul><li>Train and prep from message platform </li></ul><ul><li>Hearing firsthand from you can diffuse the issue </li></ul>
    40. 40. The steps to crisis response <ul><li>Before </li></ul><ul><li>During </li></ul><ul><li>After </li></ul>1. Call for Help 2. Bend over, grab your knees and ... 3. Pray...
    41. 41. Preparation for a Crisis <ul><li>Have it written down </li></ul><ul><li>Be flexible </li></ul><ul><li>Rehearse, rehearse, rehearse </li></ul><ul><li>Prepare for the things you KNOW will happen so you can free up your time for the unanticipated! </li></ul>
    42. 42. Before - <ul><li>Assess the vulnerabilities </li></ul><ul><li>Scenarios </li></ul><ul><li>Have a plan & prepare management </li></ul>
    43. 43. Assessing your Vulnerabilities <ul><li>Understanding organization’s history/ skeletons in the closet </li></ul><ul><li>Quick & dirty </li></ul><ul><ul><li>Grid </li></ul></ul><ul><ul><li>Formula sheet </li></ul></ul>
    44. 44. Human Technical/Natural Routine Severe CAUSE-SEVERITY GRID tornado sabotage data entry error explosion/fire thunderstorm blizzard flood computer virus terrorism boycott workplace violence discrimination failure to report problem toxic spill harassment class action lawsuit equipment failure failure to follow procedures major defect
    45. 45. Assess the Vulnerabilities <ul><li>Develop a list based on categories </li></ul><ul><ul><li>E.g. Category: Natural disaster: </li></ul></ul><ul><ul><ul><li>Flood </li></ul></ul></ul><ul><ul><ul><li>Tornado </li></ul></ul></ul><ul><ul><ul><li>Earthquake </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul><ul><li>Sort by Likelihood and Urgency </li></ul>
    46. 46. Assess the Vulnerabilities <ul><li>Establish priorities based on combination of Likelihood, urgency as well as level of impact on the organization </li></ul><ul><li>One book urges a 5 point system for each characteristic, applied to likelihood, urgency, and impact </li></ul>
    47. 47. Assess the Vulnerabilities
    48. 48. Assessing your Vulnerabilities <ul><li>Understanding organization’s history/ skeletons in the closet </li></ul><ul><li>Quick & dirty </li></ul><ul><ul><li>Grid </li></ul></ul><ul><ul><li>Formula sheet </li></ul></ul><ul><ul><li>Monitor media, trends </li></ul></ul><ul><li>Vulnerability study with consultants </li></ul><ul><li>Communication audit </li></ul>
    49. 49. Scenario planning <ul><li>Tied to vulnerabilities </li></ul><ul><li>Worst case </li></ul><ul><ul><li>What if </li></ul></ul><ul><li>Prepare for “worst case” </li></ul><ul><li>Multiple scenarios </li></ul>
    50. 50. Sample Scenario <ul><li>The lights and all power goes out all over the East Coast and you’re advised that power won’t be restored for two-three days. </li></ul><ul><li>Day 2…You’re running out of fuel for your emergency generators, pumps don’t work and water is being rationed </li></ul>
    51. 51. Preparing Management <ul><li>Attitude of openness </li></ul><ul><ul><li>Honest, verifiable or confirming, not necessarily “tell everything” </li></ul></ul><ul><li>Identified and trained spokespersons </li></ul><ul><li>Pre-approved statements, processes, policies </li></ul>F
    52. 52. During <ul><li>Centralize the information flow (script) </li></ul><ul><li>Inform affected publics in the most effective form </li></ul><ul><li>Respond to media openly, quickly & informatively </li></ul><ul><li>Treat all media fairly </li></ul><ul><li>Keep everyone informed as the crisis evolves </li></ul><ul><li>Monitor Media (Internet, TV, print or other “instant” media) </li></ul>
    53. 53. Technologies used in Crisis Response <ul><li>Web site /Intranet site </li></ul><ul><li>Hot Lines/800 numbers </li></ul><ul><li>Pagers </li></ul><ul><li>Broadcast Fax /Targeted Fax </li></ul><ul><li>Voicemail </li></ul><ul><li>Cell Phones </li></ul><ul><li>E-mail </li></ul>
    54. 54. Technologies used in Crisis Response <ul><li>Technology in control center / media center </li></ul><ul><ul><li>Walkie/Talkie </li></ul></ul><ul><ul><li>Cellular phones </li></ul></ul><ul><ul><li>IR capable computers </li></ul></ul><ul><ul><li>Internet linked computers </li></ul></ul><ul><ul><li>T1 lines </li></ul></ul>
    55. 55. Technologies used in Crisis Response <ul><li>Technology in control center /media center </li></ul><ul><ul><li>TVs & VCRs </li></ul></ul><ul><ul><li>Radios </li></ul></ul><ul><ul><li>Teleconferencing hardware </li></ul></ul><ul><ul><li>Data projectors </li></ul></ul><ul><ul><li>Electronic message center </li></ul></ul><ul><ul><li>Etc. </li></ul></ul>
    56. 56. Human Interaction in Crisis Response <ul><li>Food </li></ul><ul><li>Friendliness </li></ul><ul><li>“ A Private Place” </li></ul><ul><li>Rest </li></ul><ul><li>Communication </li></ul>D
    57. 57. After <ul><li>Monitor broadcast, internet and print coverage </li></ul><ul><li>Debrief & evaluate </li></ul><ul><li>Write a report </li></ul><ul><li>Give yourself a “grade”/evaluation of how you did </li></ul>
    58. 58. After <ul><li>Identify audiences which need follow-up </li></ul><ul><li>...and follow up! </li></ul><ul><li>Recognize and reward outstanding performance </li></ul>
    59. 59. Technology used after the crisis <ul><li>Web site </li></ul><ul><li>CD Rom </li></ul><ul><li>PowerPoint, video or electronic report </li></ul><ul><li>Teleconferencing </li></ul><ul><li>Face-to-face (smile, thanks and handshakes) </li></ul>
    60. 60. ASSESSING THE FUTURE OF CRISIS COMMUNICATION <ul><li>News media coverage of business crisis events will continue to grow more pervasive and more visual </li></ul><ul><li>Traditional paper communications tools for public relations professionals will become increasingly ineffective in a crisis </li></ul><ul><li>The crisis priorities between attorneys and public relations professionals will narrow significantly </li></ul><ul><li>The use of computer and wireless technologies will have an increasingly important role in crisis communications </li></ul>
    61. 61. ASSESSING THE FUTURE OF CRISIS COMMUNICATION <ul><li>Legal, marketing, human resources and public relations will grow with the awareness of “smoldering crises” </li></ul><ul><li>The financial impact of a crisis will become more apparent to top management and they will look for answers to minimize it </li></ul>
    62. 62. A Crisis Communication Physical <ul><li>1. What kind of management notification system do we have in place for responding to emergencies during non-business hours? How good is it? </li></ul><ul><li>2. What’s our corporate emergency response plan like and how sure are we that it will work in a crisis? Has it ever been used or tested? Updated? </li></ul><ul><li>3. Who would be our spokespersons and how good would they be in responding to a mob of reporters and TV cameras? </li></ul><ul><li>4. How much information would we be willing to give out? Who would decide what would be said? </li></ul>
    63. 63. A Crisis Communication Physical <ul><li>5. How would we inform our employees, customers and other key audiences and how long would it take? </li></ul><ul><li>6. What crises have your competitors had and how well would we have done if it had been our business instead of theirs? </li></ul><ul><li>7. How well did we handle our most negative news event that went “public?” What would we do differently if we had it to do all over again? </li></ul><ul><li>8. How are we using technology? What new technologies would help us respond more effectively in a crisis? </li></ul>F
    64. 64. Conclusion <ul><li>Interdisciplinary planning and preparation frees up professionals to respond to those elements of the crisis that were unanticipated </li></ul><ul><li>Most crises are “smoldering” and “internal” </li></ul><ul><li>Technology can help be a part of crisis planning and response </li></ul>
    65. 65. Remember - <ul><li>One person’s crisis is another’s opportunity! </li></ul>
    66. 66. Successful Crisis Management Questions ? [email_address] [email_address]