The healthcare industry can be vulnerable to crises, but a comprehensive crisis management strategy can contribute to a successful outcome. In this webinar, we will look at the key elements needed to navigate and overcome a crisis in the Healthcare industry.

1. Healthcare Crisis Management

2. Hello!
Thomas Crampton
Consulting Principal,
Marketing Transformation
OgilvyRED
Peter Hirsch
Global Consulting Partner,
Healthcare Practice Lead
OgilvyRED

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5. March 1, 2018
Reputation Risk
Management in
Healthcare

6. HEALTHCARE: NO STRANGER TO REPUTATION RISK

7. WHY CRISES MATTER
Data from Oxford Metrica
Within any 5 year period, there is an 80% chance of a company losing at least
20% of its value over and above the market in a single month

8. MANAGING CRISES WELL MAKES A DIFFERENCE
-20
-15
-10
-5
0
5
10
15
20
0 20 40 60 80 100 120 140 160 180 200 220 240 260
Event Trading Day
ValueReactionTM
(%)
Data from Oxford Metrica
Value Reaction
Companies with successful crisis response
Companies with unsuccessful crisis
response

9. CHARACTERISTICS OF COMPANIES WITH SUCCESSFUL
CRISIS RESPONSE
• Robust prevention and mitigation systems
• Well-tuned crisis response program
• Balanced reputation recovery
o Effective crisis planning and the design of the response infrastructure
enables:
• Crisis avoidance
• Speed of response
• Decisive decision making
• Message consistency
• Responses that are truly aligned with stakeholder expectations, thereby
mitigating reputational damage and speeding recovery

10. DEFINING A CRISIS
A crisis is any event or series of events
that seriously threaten an organization's
reputation and business future
A crisis is also a negative event or series
of events, that, if handled well, can
burnish the reputation of an organization

11. CRISIS TYPES
Financial Fraud Data Privacy Breaches Natural Disasters
Product Failure Workplace
Misdemeanors
Marketing/Customer
Service Mistakes

12. WHAT HAPPENS IN A CRISIS
Spreading
Reputational
Damage
Flawed
and hasty
decision-
making
Freeze up
and no
decision-
making
Failure to
see the big
picture
beyond the
threat to the
organization

13. THREE PILLARS OF CRISIS MANAGEMENT
Crisis Prevention
Crisis Response
Crisis Recovery

14. CRISIS PREVENTION

15. CRISIS PREVENTION, MITIGATION AND RECOVERY
q Rapid response process
q Rapid response logistics
q Crisis process training and simulation
Crisis
Response
Reputation
Recovery
q Issue map
q Issue influencer and stakeholder map (on and offline)
q Issue management process and infrastructure
q Parallel pathways in place as crisis enters acute phase:
Structure Situation Strategy Solution
q Graduated scale down, aligned with stakeholder expectations
q Sentiment tracking
q Ongoing franchise activities and milestones management
q Iconic change programme (e.g. Suicidality Scale post-AZ case)
Preparation

16. ISSUES MANAGEMENT INFRASTRUCTURE
Monitoring
Critical
Issues
Preparation
Issues
Escalation
Process

17. ISSUES MAPPING
This process involves mapping your
business value chain against trends
in four forces -- demographics,
technology, economics and culture
The process identifies emerging
trends just over the horizon that
could create problems

18. CRISIS PREVENTION AND MITIGATION
Issues Mapping
Issues Management Infrastructure
Crisis Response Process and Logistics

19. CRISIS RESPONSE PROCESS AND LOGISTICS
Cross-functional Crisis Council
Crisis Triage Process
Off-site response capabilities
Pre-approved digital "shells”

20. CRISIS RESPONSE

21. MASTERING THE SELF

22. OUR JOB IN A CRISIS
Gather and analyze
incoming data and
reports
Provide an outsider’s
perspective on the
story arc
Promote calm and
rational decision-
making
Help organize work
flows so that the right
things get done in the
right order
Help triage media flow Document

23. PRIORITY WORKFLOWS
Holding Statement
Team and sub-team set
up
Fact finding
Monitoring
Outreach to authorities
when appropriate
Usually not much more than known facts,
expressions of compassion and
commitments to collaboration

24. LEADERSHIP AND TEAM FORMATION
Critical to appoint crisis team leader and sub-team leaders
Sub-teams should be organized by stakeholder group
Crisis Team Leader
Monitoring Media Outreach Fact Finding
Liaison Between
Sub-teams
Documentation
Communications
Creation*
Scenario Planning
*Including social media
and web activities

25. THE FIRST WAVE
Intense internal fact-finding
Identifying worst case scenarios
Predicting the story arc
Identifying heroes, villains, accelerants and retardants

26. THE RESPONSE
Absolutely no rush to judgment or to
find scapegoats
Focus completely on those who have
been hurt or damaged, organization
comes later
Examine causation: stupidity or evil?
In other words, did a process fail or
was deliberate bad behavior
involved?
Choose spokespeople and
communications methodology --
focus on facts, actions and express
concern about those affected

27. BEYOND THE FIRST WAVE
Suspension of affected
business activities or
individuals pending
investigation
Independent panel of
experts
Collaboration with
authorities
Policy change Compensation/Make
goods
Continuous
communication
Depending on process failure or individual
culpability, there are a range of options

28. WHAT TO DISCLOSE
There is no moral obligation to be
completely transparent
However, your level of transparency
(within legal limitations) should
correspond to what a reasonable
person would want to know about
what has happened and what you
are doing about it. This varies by
situation
Your disclosures should neither cause
panic nor create false confidence

29. WHEN TO DECLINE
When there is no new information
(you can communicate this)
When the media is simply looking for
more color to write a second day
story
Even if you have favorable news,
consider that your first priority is to
starve the story of oxygen

30. CRISIS RECOVERY

31. CRISIS RECOVERY
Don't declare a crisis over prematurely
When a crisis goes to the heart of an
organization's reason for being, recovery
requires a new relationship with
stakeholders
The deeper crisis, the longer you must
appear to be engaged with it, sometimes
for years
Disengage gradually but explain each step
Don't forget your employees need to heal
too

32. THE 7 PRINCIPLES
(Almost) every crisis is preventable
Speak to the “pain,” not just the “harm”
Social is your friend, not foe
The arc of a crisis is predictable
Be human
It’s not over when you say it’s over
Be patient

33. Questions?
Thomas Crampton
Consulting Principal,
Marketing Transformation
OgilvyRED
Peter Hirsch
Global Consulting Partner,
Healthcare Practice Lead
OgilvyRED