THE HISTORIC CORONAVIRUS CRISIS

This is the most significant crisis that this consultancy has seen in our last three decades. The surge in illness, the outbreaks legal and business ramifications are critical and undeterminable. Government and industries are desperately trying to understand the challenge, support victims and their families, and find a solution.

The problem is, the more the world enters lock-down and isolation, the harder it is to effectively confirm risk and the human and technical resources available. Most of the renowned immunologists are cautiously optimistic. Putting a time on this, however, is virtually impossible. Most businesses are investing in virtual technology, improved infrastructure and future stability of the workforce. Our virtual crisis scenario testing and training is working well as we continue face-to-face contact with crisis and incident response teams.

Prepared executive management is communicating constantly through video-conferences and regular bulletins. In fact, some businesses have set up broadcast studios in home and office to ensure that all employees are communicated with to understand the new and changing operating models. 

Harvard epidemiologist, Professor Mark Lipsitch, made the concerning point on the outbreak as it continues to spread, when he said, “I think the likely outcome is that it will ultimately not be containable”.  We are in the middle of the containment process and there are good and bad examples of this around the world. 

I see Singapore as a shining example of proactive and immediate response. Like many Australian businesses, Singapore had a plan before the virus came.  Most of Asia had plans because of their past experience with SARS and other epidemics.  In Singapore, the ABC reported that testing regimes were up and running by the time the first case was confirmed on January 23^rd. “Labs were in place for our first case”, said Dale Fisher, an Australian infectious disease expert working with the Singapore Government on its strategy.  “And soon after our first case, every lab in every public hospital, was capable of doing tests,” Professor Fisher said.  “So, we ramped up very quickly.”  Within days of the first case, temperature checks were happening at Changi Airport for incoming passengers.  This is in contrast to Australia where passengers arriving recently at Sydney Airport were complaining there were still no mandatory temperature checks for incoming passengers.

A key lesson can be learnt from this crisis so far - the internationalisation of the corona-virus. What was completely unusual about this event was the fact that even though the disease had been discovered, the escalation was confusingly slow at first. Media and public opinion did not focus on the possibility of the battle to control COVID-19.  At the beginning of its spread, some containment measures were discussed in the background but the thought of widely banning travel, closing down cities and hoarding resources, was not even a consideration.

The global authorities, the World Health Organisation and the United States Centres for Disease Control, were somewhat confusing through the escalation phases. Their process lacked the recognition of the rising international threat. There was also confusion over the causes of the crisis in China. 

  

Another lesson was the question of leadership communication in every country.  National leaders had different approaches to the problem. Their press conferences lacked continuity of universal information. Public confidence was severely undermined. This has been particularly relevant in the US.  To quote President Trump in late March: “We’re opening up this incredible country. Because we have to do that. I would love to have it open by Easter.  I would love to have that. It’s such an important day for other reasons, but I’d love to make it an important day for this. I would love to have the country opened up, and rarin’ to go by Easter.” Very little consideration of the worst-case scenario. The response from Dr. Tina Tan of the Infectious Diseases Society of America was - "This is the making of a major public health disaster. I am not sure where he is getting his information from but it is extremely flawed."

Leadership hubris has a problem of underestimation – the tendency to plan for the easiest public option – the most logical way out. A common statement of underestimation during the Second World War was “we’ll all be home for Christmas”. 

The central crisis management responses needed in this continually unfolding crisis are:

• Determining your organisation’s preparedness.
• Constantly work-shopping a broader set of disruptive scenarios.
• Reviewing the human and technical resources needed to respond.
• Become the central point of leadership communication.
• Assessing the needs of your stakeholders: people, customers, suppliers and others.
• Ensuring the continuity of critical processes.
• Continually assess investment strategies.
• Date & privacy considerations 
• Reviewing control of supply chains.
• Preparing ahead for recovery and growth.

In terms of crisis management for small or large businesses, it will be a case of riding out the months, and maybe years, of managing the huge number of new risks. As Dr. Edward de Bono, international author international lateral thinker, said “the key responsibility as a Risk Manager and Team Leader is the ability to generate viable risk-adverse alternatives and ways of doing business that minimise your company’s operational risk.” 

Crisis management during the COVID-19 outbreak needs a refreshed playbook because this virus is a historic challenge to contain and recover. 

Do you think you could have been more prepared? 

CRISIS IN OR OUT OF CONTROL

How often have we heard the expression “this is completely out of control”?

A crisis of any magnitude can hit an organisation where it hurts without a moment’s notice and it doesn’t take long to lose control.  The only protection is a well-rehearsed crisis management plan.

In a matter of minutes, a serious incident or emergency can run out of control and seriously disrupt a business with catastrophic effect.  In some cases, it takes years to recover.

The right response actions can minimise serious damage and can quickly put an organisation in control of its destiny.  Management needs to consider the organisation strategically and ask what is the worst thing that could possibly happen.  Fire, financial problems, lawsuits, cyber crisis, product defect, sexual harassment, act of violence, terrorism, security breach, technology collapse, executive misconduct or environmental issues to name a few.  With the most likely threats in mind, management can prepare strategies to avoid or manage a potential problem and control the agenda.

Reading between the lines in today’s media reports of crises, it is easy to see which organisations have anticipated the problem and have a planning process in place to deal with it.  If an organisation is ready, then there will be a clear message about what is being done and who is doing it.  

It is not just large organisations that need to have comprehensive and integrated crisis management plans.  All organisations need to anticipate crises.  It is so important that small and medium-sized organisations look at their worst case scenarios - the service industry, government, educational institutions, professional firms and research organisations.  They often face the greatest damage from a negative event because they may lack the financial and managerial support required to respond and recover efficiently.

Ownership of crisis management planning must come from the top because most crises end up at the top.  The top global executives recognise that crisis management is a corporate governance strategy and endorse its implementation.  They know that a crisis out of control is liable to lead to loss of profits, lawsuits, loss of market share,  serious loss of reputation and, in many cases, loss of senior jobs.  After writing numerous plans for organisations, I am totally convinced that unless complete support of the Chief Executive and top management is assured, the crisis management program will flounder and never reach its currency.  The day the Chief Executive or Managing Director endorses the organisation’s intentions to install a crisis management program is the day it really happens.

Readiness for global office crises

A crisis in another country often does not fit into any known framework.  The organisational response, therefore, has to deal with the problem of finding people to manage the problem at the same time as anticipating the escalation factor and providing support for the most exposed aspects of the business.

There is simply little time for planning, organising, equipping or training once the crisis is imminent. 

Importantly, the crisis management approach needs to ensure that the various operations and projects of an international operation are in a constant state of readiness and that crisis teams know what to do and how to do it.

Basically, the objectives of any plan should be to protect the company’s people and assets.

International operations crisis management objectives:

1.      Protect the life of employees and their families.

2.      Protect assets and earnings by restoring normal operations rapidly.

3.      Protect the local community and environment.

4.      Minimise damage to corporate reputation.

5.      Retain effective relationships with government of the country

Because international business management and employees could be cut off for long periods from the parent company by failure of communication lines, it is important that teams are trained in advance to follow prescribed guidelines in their crisis response. The way in which the crisis is tackled will depend on the quality of training and briefing for the crisis teams before the event. 

The plan needs to clearly establish authority and responsibilities at every level.  It is useful here to define mobilisation actions and list contact points with details about communication links and notification procedures.  

Interfacing with external agencies is an essential part of crisis planning in other countries because the crisis management response may well include support systems from embassies or law enforcement agencies. But this interface with expected support from your embassy or consulate may not be reliable and needs to be confirmed well in advance of an incident.  Setting these communication links up in advance is vital to the success of the plan.                 

The plan should contain details of the organisation's team roles and responsibilities, setting out the core action group at each location who are responsible for managing the problem.  It will be their responsibility to assess the situation and respond accordingly with the necessary resources required.  They will also need to contact and communicate other teams in the region and the necessary stakeholders affected, including Head Office in the home country.

In some cases, the crisis management team may only be one or two people. This is particularly the case for small offices, exploration, research or transport teams working in far distant locations.  It is still important that these teams have an understanding on how to pinpoint a crisis and what on-the-spot actions they have to achieve to protect life and ongoing operations.                   

Catastrophes and best practice crisis management

Regarding the recent terrible flooding crisis in the UK, I have just returned from that country and seen first hand the devastating flooding as torrential rain has caused the worst weather in UK’s history, with much of the Somerset area that I saw looking more like an inland sea.

As The Guardian newspaper quoted then - “public anger has risen as inexorably as the filthy waters in thousands of homes.”  The Prime Minister, David Cameron, took a while to get there which presented the question in the court of public opinion of “why has he taken so long”?  Once there, he seems to have been very community active but he could have learnt a lot from the early leadership stance of then Premier, Anna Bligh, to the floods in Queensland, Australia. She walked and talked to the community from the start. Leadership spokespeople in crises must arrive early and say and make things happen.

2014 will see the timely launch of a new British Standard for Crisis Management for both business and government organisations and most applicable for strategic response to major events such as floods, fires, riots, explosions, critical accidents and major product disasters. 

The new Standard will be aimed very much at executive management and those with strategic responsibilities in developing crisis management capability within their organisation. To quote the British Cabinet Office Public Available Specification facilitated in advance of the new Standard, "crises present organisations with complex and difficult challenges that may have profound and far-reaching consequences, sometimes irrespective of how successfully they are seen to be managed.  These consequences can be very damaging, especially where it is perceived that the organisation failed to prepare for, manage or recover from a crisis."

This is very relevant as countries and organisations around the world develop their crisis management capability at a more high-level context to respond to catastrophes. Malaysia Airlines and the Malaysian Government are experiencing this level of executive response under the microscope regarding their missing 777 aircraft where airline officials and government leaders are presenting information with very mixed and misleading messages.

Qantas explosion communication

Qantas has just come through one of the toughest critical events in the airline's history. The airline has handled a mid-air explosion with professionalism, speed and sensitivity. One of Qantas' Airbus A380's four Rolls Royce engines failed in flight, not far from Singapore, on the way to Sydney. "I just heard this massive bang like a shotgun going off," a passenger said on Australia's Nine Network news. "Part of the skin had peeled off and you could see the foam underneath. Pieces of broken wire sticking out." The aircraft landed safely in Singapore and all 459 people on board were unhurt.

A strong message of incident control was delivered rapidly across the media about the escalating situation, first by the aircraft's Captain, and then by the CEO to qualify the facts. Qantas made sure the passengers got a chance to tell their story.

Qantas Captain, Richard Champion de Crespigny, was given accolades for his communication skills and the way in which he explained the incident on board. When the engine exploded he spoke to the passengers immediately. "I do apologise. I am sure you are aware we have a technical issue with our number two engine...I am sure you are aware we are not proceeding to Sydney at this stage...the aircraft is flying safely at this stage...thank you for your patience."

In fact part of the engine had come away and torn through the left wing. Indonesian media showed Facebook pictures of debris that had fallen from the aircraft onto an island. Qantas has grounded its fleet of A380s as safety regulators and investigators from Rolls Royce and Qantas carry out tests to determine the cause.

Alan Joyce, Qantas' proactive CEO, moved forward with the company's response. "This was a significant engine failure," he told a press conference. "We are not underestimating the significance of this issue."

Earlier this year, Alan Joyce told Business Review Weekly: "We have a fairly refined crisis management team and crisis management process, probably more so than many other companies. It’s what my predecessor, Geoff Dixon, calls the ‘constant shock syndrome’. We plan on a steady state and then we plan scenarios and risks around that.”

Qantas has never had a fatal accident and there have been no fatal accidents involving the A380.

Chile rescue crisis high ground

The Chilean miners are safe on high ground after one of the most intense rescues in modern mining history. Thirty three men safely recovered after 68 days of critical and dangerous recovery. The government of Chile can stand proud in the knowledge that it achieved a dynamic process of crisis management response and leadership. In short, they under-promised and over-delivered.

Chilean President, Sebastian Pinera, and the Minister for Mining, Laurence Golborne, took the high ground in taking control of rescue operations and leadership. They delivered the status of the rescue accurately and transparently. A very different result to mining disasters like Sago in West Virginia where a tired, washed out CEO gave the news that 13 miners were alive, and a short time later it was announced that 12 people had died and only one had survived. The Chilean example of crisis leadership also differs greatly to the confusing response to the devastating Hurricane Katrina and more recently the BP oil spill.

The keys to the success of this crisis outcome relate very much to the Chilean government having a focused crisis plan and communicating proactive, clear messages to essential stakeholders. The first and most important audience were the miners and the community, and the government placed them at the centre of their communication strategy. The government's candour with the mine's employees and community increased its credibility with a massive number of global media. Credibility translated into fair treatment and respect for the rescue process.

Key points in handling crisis interviews

After 20 years of orchestrating, rehearsing and attending media interviews at real or rehearsed crises, I am convinced that spokespersons delivering media interviews in times of critical events need to be prepared to deliver concise answers quickly and effectively. They need to show leadership and agenda control. In these days of the instant news grab, long-winded statements are useless.

Here is my hit list for handling crisis interviews and taking the high ground:

• Take time to rehearse your key messages.
• Do the interview sooner rather than later.
• Avoid sit-down interviews. Stand up and deliver.
• Give the right facts before they suggest the wrong ones.
• Start with a statement of sympathy and understanding.
• Link your actions with those of the authorities.
• DON’T TELL LIES.
• Stay calm and positive. Show you are in total control.
• Get your main points across at the start - live interviews are fast.
• Be brief in all your answers.
• Correct any introductory misinformation or negative statements.
• Don’t respond to rumour or innuendo.
• Finish the interview before it finishes you.
• Tell them you will return soon and give them more.

Capturing Crisis Management learnings – evaluating response

Post-crisis evaluation is a review of a crisis response. It is not about evaluating front-line tactical/emergency response or clean-ups. It is about how crisis teams responded. The following items are some of the issues that need to be addressed in a post-crisis evaluation review:

1. A narrative of the actual event. What caused the event?
2. How was the response managed by the crisis management team?
3. How did the crisis response relate to governance of the business
4. Was the reputation and brand of the business affected?
5. What was the decision making process based on?
6. Were human and technical resources adequate?
7. Is the organisation still at threat from the problem?
8. What were the unintended consequences from the original incident?
9. Were there any barriers to communication (internally or externally)?
10. Were all stakeholders advised effectively?
11. Was there sufficient co-operation with government?
12. Were crisis plans, manuals and procedures useful?
13. Was human resources response effective?
14. Were there barriers to crisis response from senior management?
15. Were legal and commercial issues dealt with efficiently?
16. Was the spokesperson’s role effective?
17. Were message strategies effective
18. Was media managed effectively?
19. How was business continuity and recovery managed?
20. What is in place to prevent this crisis from happening again?

A post-evaluation needs to be carried out by either outside consultants or a senior management team and preferably not by the crisis management team. The process should be dedicated to continually improving crisis management response capability, decision making, plans and protocols and particularly leadership skills. It should also ensure the crisis management team has understood its roles and responsibilities.

Crisis management and the police

One of the most frequently asked questions of organisations participating in crisis management and recovery training is - "how do we work with the police"?

It is essential that police be informed in the event of a serious accident or incident, particularly if it relates to the death or injury of people. It is in fact a statutory requirement that police be contacted immediately following the identification of a critical incident.

The police will designate personnel to assist in the tactical response but they can also provide senior officers to work alongside an organisation to help coordinate the flow of information between an organisation and emergency services. In many countries this is mandatory.

The police must have a key role in informing next of kin of those dead, injured or missing. Company representatives should accompany the police in this process and planning for this is an important part of human resources preparedness for crisis response.

The police can also provide a well-oiled communications structure to support the delivery of messages to stakeholders in a crisis. Internationally, police forces have special Media Liaison Units that will provide interface guidelines in the process of announcing critical information to the public following a serious event.

In escalating crises related to terrorism, police will take command and can be relied on for high-level strategic advice for organisations that need clarity on response and control of their particular situation.

Incorporate police liaison details in your crisis plans.

Demise of crisis management planning in top corporations

BP's massive oil spill in the Gulf of Mexico; the deaths of leading mining executives, all on one plane in Africa, and the resignation of a major retail CEO in the wake of sexual harassment claims - the crises keep coming. And the management of these critical events is under the microscope. What is the brain of these corporations doing to ensure crises will be managed?

BP continues to struggle with the crisis management of, and recovery from, one of the world's worst environmental spills. This is long after the global learnings that came from the Exxon Valdez oil spill in Prince William Sound, Alaska, and the devastating Piper Alpha explosion in the North Sea. The BP oil spill carries with it major safety concerns related to response capability, ongoing communication problems, particularly from the CEO, and an early loss of stakeholder trust from the general public to the US President. An extraordinary response from a company that in 1989 was at the forefront of international crisis management planning.

The deaths in a plane crash of the Sundance Resources mining executive Board in remote Africa is a tragic crisis. Debate continues regarding the gigantic risk of so many key personnel flying together on one aircraft. Not only a loss of life but a serious loss of intellectual capital and corporate leadership. This event occurring only months after the catastrophic Polish air crash that killed 96 VIP passengers, most of whom were part of the Polish Government, including the President. Both these disasters needed to have been mitigated against in pre-crisis planning.

Sexual harassment, another high-level threat to corporations, is at the centre of the shock resignation of retail giant, David Jones CEO, Mark McInnes. He acknowledged that he committed "serious errors of judgement". The resignation led to $81 million being wiped off the market value of David Jones. As The Australian newspaper reported: "The resignation and the reasons given are unprecedented in corporate Australia". A parallel to this is the recent top-profile resignation of the CEO and President of Penguin Canada, David Davidar, who quit his post and later admitted that the publisher had sacked him after a sexual harassment case was filed against him by a former female colleague.

High impact, low probability critical events are a reality, and high-performing corporations must be prepared to face these events with a proactive and well-rehearsed strategic crisis management response. This requires a continual review of best-practice crisis management planning and should be an essential ingredient of an organisation's corporate governance.

Cutting crisis management chaos

Deciding on the structure and composition of a crisis team on the day of a crisis simply does not work. Effective performance during a crisis relies very much on team members' prior understanding of their roles and responsibilities in responding to an escalating event.

Organisations that know what to do, who is going to do it, and in what sequence, are more effective during a crisis. A prepared organisation can respond faster and better with reduced decision making time. Cooperation between team members enhances effectiveness and this experience through pre-training, discussion and planning will increase response.

A crisis team that is used to working together under clear leadership moves into their operational function with a more positive approach particularly in chaotic situations. Shared knowledge of the team organisation produces a capability far greater than the sum of individual members.

CEO crisis manager

Good to see Qantas Chief Executive, Alan Joyce, extolling the virtues of crisis management in Business Review Weekly magazine. "Flexibility and adaptability is really key," says Alan Joyce, the diminutive, Irish-born Chief Executive of Qantas, without any hint of irony. "We have a fairly refined crisis management team and crisis management process, probably more so than many other companies." Joyce was talking about a broad range of threats including the volcano turmoil where Qantas lost $10 million during the threat to air travel. "It's what (my predecessor) Geoff Dixon calls the constant shock syndrome...we plan on a steady state and then we plan scenarios and risks around that. But the volcano would not have been on the risk register." (BRW May 6-12,2010 - Managing the Unmanageable)


There is determined growing recognition among CEOs that crisis management is part of day-to-day planning. The process, its respondents and its leaders need to have matured either in an arena of real crises or with the experience of test runs. Best practice is practice. CEOs and crisis teams need to practise together. Organisations never know when the worst case scenario can happen but they can be prepared to handle adversity and minimise the impact when it does.

CEO crisis leadership

As we can see from current global crises, there is no hiding place for the CEO in a crisis. And when the big one hits, it is the CEO who will end up facing the music.

It is inevitable the CEO will be pursued for their views and opinions. What did they do? What did they say? Every stakeholder involved in the organisation knows that the company stands the best chance of surviving if the leadership is from the top and on top.

Ensuring the cultural approach to managing a crisis must have the imprimatur of the CEO. It is they who should proactively oversee the corporate crisis management strategy that will work in a crisis situation. However, the levels of unpreparedness, inexperience and defensive reactions that still exist in many organisations generally indicate that many lessons have not yet been learned.

To see the CEO walking the talk in crisis planning is a statement of strong leadership that will direct the organisation to the high ground when the worst case scenario happens.

In the end, the buck stops at the top. In rapid escalation, the sooner the CEO leads the agenda, the better.

Unpredictable crises 2010

The Financial Times has suggested that disaster management is a growth market, particularly related to unexpected events such as the tragic deaths and subsequent oil leak in the Gulf of Mexico, the sovereign debt crisis in Greece and the ongoing volcanic ash closing down air space in Europe.

Having the resilience to control an unpredictable event is the role of crisis management and when emergency response systems can't cope, strategic crisis management needs to kick in to respond swiftly to reputational brand and governance issues. The simple questions I would ask any organisation are:

* what are the worst case scenarios that could hit your business?
* what is the most inconvenient time for this to happen?
* do you have a strategic plan to deal with it?
* who will lead your response?
* can you contact/involve your key stakeholders rapidly?
* where will you manage the response from?
* can you continue to run the rest of the business?
* what are your short and long term recovery goals?

Now is the time to plan to limit the effects of an escalating unforeseen event. With a strategic crisis plan you can.

Social media for crisis response

Major corporations and government are faced with the reality that frontline crisis communication is now being seriously influenced by social media. The use of Twitter, Facebook and blogs is a paramount tool in taking the high ground.

Treading the proven path of communicating with key stakeholders through the usual internal and external media continues to be a priority but it is essential to listen to and talk the language of crisis conversation on the web.

Don't wait to deal with social media until a crisis occurs. Get your social media strategy together before the worst case scenario so as to gain maximum social media optimisation. Be sure you have the language of conversation right too - social media needs to be delivered with open dialogue and the process linked to the most effective internet search engines. Social media requires careful monitoring so that the key issues related to the crisis are being identified and dealt with as they occur.

Remember - news editors, producers and journalists are watching the web to read conversations in every crisis. Social media has to be part of your response strategy.

Mining crisis next-of-kin

It's rare for a US President to directly blame a company and government for a major crisis. President Obama has blamed the country's worst coal mining disaster in 40 years on the Massey Energy Company and government mismanagement. The explosion in West Virginia on 5 April killed 29 men and injured two. The President said: "Owners responsible for conditions in the Upper Big Branch mine should be held accountable for decisions they made and preventative measures they failed to take."

Only four years ago at Sago Mine, also in West Virginia, 12 miners died in another horrific mine accident. This event will long be remembered for the devastating media coverage where it was stated "12 Miners Found Alive" when in fact 12 miners were later declared as fatalities.

Common to both these disasters were the sad and tragic faces of family members searching for information and confirmation. A scene too often presented in these industry emergencies.

Ahead of any major emergency or crisis, a number of essential actions will prepare an organisation to communicate with employees and next-of-kin. They are:

* designate who is accountable for coordinating communication with families
* pre-arrange internal training to deliver bad news to families
* make provision for counselling rooms to manage enquiries from families
* establish detailed records of families' names, addresses and phone numbers
* arrange protection of families from the media and outside stakeholders
* establish guidelines on communication with contractors
* develop a message strategy for spokespersons to update information
* establish a dedicated family call centre and train telephonists

Organisations will be judged on how they treat people in a crisis. Effective communication is the key.

The crisis 'blame game'

The blame game is inevitable in crises and this is particularly evident related to the Royal Commission Inquiry into the Black Saturday February 7, 2009 Australian bushfires in the State of Victoria.

Blame for the warning system, for emergency preparedness, and leadership of coordinated responses has been levelled at the Chief Fire Officer of the Authority, and further blame is now being levelled at the then Police Commissioner, who held a senior Disaster Plan responsibility and has been questioned about her failure to perform her duty on the day. She is particularly criticised for "leaving her post" although she had delegated her role to take a break for dinner.

More than ever, crisis leaders are met with increased scrutiny from key stakeholders about their strategic thinking and their integrity of leadership. What is clear is the court of public opinion's perception of their leadership in crisis. And often that is shaped by the leaders' personal attributes and values and not their response process management. Too often some media will focus on a leader's lack of integrity and decisiveness which leads to serious negative perceptions of what otherwise was a job well done.

In the end, a leader's role in times of crisis is to communicate a vision and reassure stakeholders of what is happening and the direction of the response. Every crisis leader is on "centre stage" and under public scrutiny from the beginning to the end recovery.

Crisis prevention is not enough

In an ideal world, most crises can be prevented and there are many risk-based solutions in place to achieve this. Some crises can be prevented through better warning systems, improved safety standards, regular risk and threat analysis, strategic issues management, best practice emergency and security standards and efficient product recall.

But certainty seldom exists. Crises will erupt to disrupt and destabilise an organisation. Prevention is not the only cure, and one thing is for certain - a strong, tested crisis plan can control the chaos when it happens.

It takes years to build a successful organisation and only minutes to pull it apart. Containment is the key and with a crisis plan, you can.

Product recall crisis

Whether it's a food scare, a design defect, a health problem, a manufacturing error or product tampering, product recall is part of the manufacturing process. There are hundreds of thousands of product recalls worldwide every week and some of these can escalate to crisis.

One of the essential elements in every product problem is the ability of the manufacturer or maker to realise at what point the problem can escalate to crisis status. Is it just a safety check or minor issue, or could it develop into a serious event with the possibility of class action and a critical effect on brand and reputation?

Crisis teams need to work with issues managers, product development managers, marketing managers and product recall teams to determine threats. It is essential to run regular product recall and integrated crisis exercises to test early warnings, identify gaps and confirm roles and responsibilities to manage a product crisis sooner rather than later.

Celebrities - managing the unmanageable.

So many entertainment stars and sporting personalities are being positioned as requiring crisis management. In perspective, three immediate criteria define a crisis situation. The first is loss of life or people being critically injured, the second is major damage of assets, and the third is serious loss of reputation. While it can be argued that loss of reputation is a threat to star status, the real purpose of crisis management is to make qualitative decisions to take control of an escalating critical situation and to expedite recovery. Rescuing celebrities from their own bad behaviour is not crisis management, it is issues management.

Managers of high-profile people need to think about threats to their stars' status or image long before the worst-case situation occurs. Good issues management is getting ahead of the agenda by planning to avoid one or many eventualities. Let's keep crisis management out of show business.