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- 1. Introduction to Crisis Management By: Dr. Mahmoud Beshr العربية لألكاديمية محفوظة والنشر الطبع حقوق جميع البحري والنقل والتكنولوجيا للعلوم Arab Academy for Science, Technology & Maritime Transport
- 2. Objectives By the end of this course, you will be able to: Understand the nature of a crisis. Understand impact of a crisis on individuals and how it effects communication Learn tools for managing and communicating information in a crisis. Define roles and responsibilities of crisis management team Understand crisis response strategies Develop crisis communication plan Arab Academy for Science and Technology 2
- 3. Objectives Plan for crisis management Develop crisis communication plan Construct crisis management team Develop crisis management response plan Arab Academy for Science and Technology 3
- 4. References The course is developed based on the following criteria: Crisis Management in a complex world. (Oxford University PR./ISBN 0-19-532872- 1/pub. Year 2008) PAS 200:2011 standard: Crisis management. Guidance and good practice Arab Academy for Science and Technology 4
- 5. Delegates Assessment Delegates will be assessed according to : Mid term exam ( third week ) Report/ presentation Final exam Arab Academy for Science and Technology 5
- 6. Delegate Introduction Interview in pairs ( 6 minutes per interview / presentation up 2 minutes ) Information to be obtained : Full name, name of organization for which they work Position and role within that organization Education and Career background related to crisis management Their knowledge of crisis management ranked from 1 to 10 Any voluble information allowing successful communication Arab Academy for Science and Technology 6
- 8. Lecture objectives Understand the crisis terminologies Understand crisis families Identify crisis types Be familiar with crisis common feature Differentiae between business continuity and crisis management Understand the main stages of crisis Arab Academy for Science and Technology 8
- 9. What is a Crisis? “An inherently abnormal, unstable and complex situation that represents a threat to the strategic objectives, reputation or existence of an organisation” PAS 200, Cabinet office and British Standards Institute5 “An abnormal situation, or even perception, which is beyond the scope of everyday business and which threatens the operation, safety and reputation of an organisation” The UK Department for Business Innovation and Skills Arab Academy for Science and Technology 9
- 10. What is Crisis Management? Crisis Management is the overarching process that provides the appropriate structure, leadership, information management, decision making and communications response to support an organisation in managing an immediate crisis. Arab Academy for Science and Technology 10
- 11. Crisis Management Realities Prompt action reduces collateral damage Prompt action reduces length of crisis & moves situation to quicker resolution Focus on response, not sources of threat Not possible to detail every conceivable crisis Important decisions made before crisis ever occurs (structure, process, leadership) Arab Academy for Science and Technology 11
- 12. Crisis Management Realities Decisions based on site, location & unique set of circumstances that occur during a crisis “Cardiac assessment,” intuition plays key roles Tend to victims’ needs immediately, compassionately and completely Be prepared … bad stuff happens Continuous process requiring annual review Arab Academy for Science and Technology 12
- 13. Crisis Families Confrontation Crisis Technological Crisis Natural Crisis Crisis of Malevolence Crisis of Organizational Misdeeds Bankruptcy Crisis Due to Natural Factors Crisis Due to Rumours Crisis due to Workplace Violence Arab Academy for Science and Technology 13
- 14. Types of Crisis • These are characterised by an immediate onset with no notice.. Sudden Crises: • Their impacts grow or develop over a period of time, often undetected. Slow Burn Crises: Arab Academy for Science and Technology 14
- 15. Common Features of a Crisis The situation materialises unexpectedly Decisions are required urgently Time is short Complexity and uncertainty Specific threats are identified Urgent demands for information are received There is a sense of loss of control Pressures build over time Routine business becomes increasingly difficult Demands are made to attribute blame Unusual and significant interest from outsiders and media Reputation suffers Arab Academy for Science and Technology 15
- 16. Anatomy of a Crisis Arab Academy for Science and Technology 16
- 17. Business Continuity& Crisis Management Arab Academy for Science and Technology 17 Business Continuity Plan(BCP) • To recover mission critical business services and/or processes • Limited scenarios • Facilities and/or data • Focus on technology Crisis Management Plan (CMP) • To limit, control and manage negative effects of an event • Many scenarios • Focus on people, Products, services and organization values
- 18. Resilient Organisations vs. those without Crisis Management Capabilities Good planning Effective communic ations Adequate resources Well structured risk approach Excellent leadership Strategic capability Arab Academy for Science and Technology 18 Resilient organization
- 19. Resilient Organisations vs. those without Crisis Management Capabilities Lack of Crisis Management Duplication of efforts Misplaced good intention Confusion Possible risks of lives Conflicting decision and instructions Arab Academy for Science and Technology 19
- 20. Crisis Management Timeline Pre-Event Risk management Communicating risk issues Business continuity plans Crisis/Event Incident management Activating and executing plans Communications Incident response After Business recovery Organizational Resumption Updating the Plan – Lessons Learned Arab Academy for Science and Technology 20
- 21. Example Of Crises Tepco Natural disaster Netflix Change in business model Dow Chemical Olympic sponsorship ECB Eurozone crisis News Corp Phone hacking scandal Penn State Misconduct allegations Blackberry Major outage Sony Data breach HP Change in board members Qantas Labor dispute http://www.holmesreport.com Arab Academy for Science and Technology 21
- 22. Cost of a Crisis Example - Data Breach 0 100 200 300 400 500 600 700 2005 2006 2007 2008 2009 2010 2011 Frequency $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2005 2006 2007 2008 2009 2010 Severity Reported number of data breaches involving personal data Business Insurance, March, 19, 2012 Average organizational cost of a data breach involving personal data in millions Arab Academy for Science and Technology 22
- 23. Business Continuity Measures 37% 33% 42% 39% 30% 41% 46% 37% 42% 64% 0% 10% 20% 30% 40% 50% 60% 70% Reponded to the recent increase in natural disaster by rethinking business-continuity strategies Discussed business-resilience issues with supply chain partners Developed an integrated business-resilience strategy Developed a communications or training program to enhance its business-continuity or… Created a business-continuity plan Have adopted in the last 3 years Plan to adopt in the next 3 years Top business-continuity measures being adopted by large companies. Source: June 2011 international survey of 391 senior executives by the Economist Intelligence Unit on behalf of IBM. The survey covered all industries; 48% of the respondents worked in companies of more than $1 billion in revenue. Arab Academy for Science and Technology 23
- 24. CRISIS MANAGEMENT JARGON EXERCISE ONE Arab Academy for Science and Technology 24
- 26. Objectives Understand the business impact of crisis Identify crisis stakeholders Able to conduct stakeholders analysis Understand crisis management cycle. Understand crisis signal detection. Formulate signal detection algorithm for crisis Understand the role of management in crisis Arab Academy for Science and Technology 26
- 27. Key areas of impact on businesses Crisis Impact People Facilities Process IT & Data Supply Chain Arab Academy for Science and Technology 27
- 28. Crisis Stakeholders Organization Employees Government and media Special group Competitions Power/ Reputation Resources Influence Information Arab Academy for Science and Technology 28
- 29. Stakeholder Analysis 4. International 2. External 3. National 1.Internal Core BELIEFS POWER VALUES RESOURCES INFLUENCE CULTURAL I Arab Academy for Science and Technology 29
- 30. The Crisis Management Cycle Arab Academy for Science and Technology 30
- 31. Crisis Management Stages Detection Preparation & prevention Containment & damage control Business recovery Learning Arab Academy for Science and Technology 31
- 32. Signal Detector Exists? Signal Received? Signal Transmitted? Signal Received By The Right Person? Signal Related To An Org Problem? Actions Taken? Signal Related To An Org Actions? Signal Correctly Interpreted? Organizational Signal Detection Arab Academy for Science and Technology 32
- 33. Types of Signals Gossip / Rumors Personal Networks The Culture Communities Special Interests Media Consumers Personal Data Bases PCs IT Remote Sensing Government Monitoring Industry Scientific Research Arab Academy for Science and Technology 33 Technical External Internal People
- 34. Elements of Crisis Management Policy and Leadership Provides foundation, framework for action Crisis Management Plan Provides structure, mechanisms for operational response Crisis Response Plan Building plan operates within framework of district-level plan Provides roles, responsibilities for staff Coordinated response to more frequently occurring incidents Arab Academy for Science and Technology 34
- 35. Elements of Crisis Management Crisis Response Team Organization , district response personnel Communication Foundation of any crisis planning, implementation, management and recovery effort Training Preparation and knowing what to do is crucial Maintains preparedness Arab Academy for Science and Technology 35
- 37. Role of Leaders / Managers in Crisis Management Have full control on the employees Take complete charge of the situation. Make employees work as a single unit. A leader should be able to foresee crisis Take strict action against those spreading rumours and trying to tarnish organization’s image. leaders provide a sense of direction to the employees. Arab Academy for Science and Technology 37
- 38. Role of Leaders / Managers in Crisis Management Develop strong partnerships with external parties and ask for help. Make sure everyone at the workplace is well informed about emergency situations. Communicate the lessons learnt from the crisis Don’t avoid stakeholders, external parties and most importantly media Arab Academy for Science and Technology 38
- 39. Crisis Management Planning Cycle Structure a crisis management team Create crisis management plan Test and review the plan Arab Academy for Science and Technology 39
- 40. Contact details Contact details Dr. Mahmoud Beshr Contact details: mbeshr@aast.edu m.beshr@gmail.com Mahmoud.beshr@strath.ac.uk Arab Academy for Science and Technology 40