Sunday, October 17, 2010

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.

Sunday, September 26, 2010

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.

Tuesday, September 14, 2010

Managing crises overseas

The growing interest in investment abroad means that many of the world’s largest companies are continually moving into new areas offering a broad range of opportunities.

Growth for US and UK companies in oil, gas, mining and construction continues, as do the areas of manufacturing, telecommunication, retail and financial services. The fastest growing new development areas are China, South America and Eastern Europe.

As companies go global, the threat to the security of people, technology, information and assets gains in impact. Doing business in foreign countries does have crisis connotations and can mean a life or death difference for an organisation.

Dealing with the problems of a changing political arena, threats of bribery, sabotage, vandalism, theft, having to deal and negotiate with irrational customers in distant locations, being faced with problems of armed intrusion or trespassers and the growing international problem of drug abuse, are all threats that need to be recognised and planned for.

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

Thursday, September 2, 2010

Product recall crisis fatalities

Not planning for a product recall escalating to crisis leaves a corporation, its brand and reputation extremely vulnerable. We have seen this in massive pharmaceutical, automotive, food, children’s toys and even pet food recalls.

No-one can forget the shockwaves that came out of the Tylenol Paracetamol cyanide poisoning in Chicago back in the 1980s when two mothers, two sisters, a bride, a 12 year-old girl and a stewardess all died from deliberate poisoning. The product crisis was immediate and tragic. Johnson & Johnson recalled Tylenol and, working with the Federal Drug Administration, developed a tamper-proof package for redistribution at a cost of $150 million.

Globally, there is a tightening of product safety controls. Regulators are looking for thorough, fast response to recalling a faulty or contaminated product in terms of consumer contact and recovery of products. The fact is, incidents of product recalls escalating to crisis are occurring with greater frequency than ever before.

Corporations need to establish crisis teams that can respond fast to a critical product recall. Threats need to be identified in advance. Product recall processes need to include a crisis trigger.

Deliberate contamination or threats to a product that might kill or injure are crises that require the immediate involvement of law enforcement agencies.

Running regular product recall and integrated crisis exercises will anticipate and deflect or reduce the impact of the worst case scenario.

Monday, August 16, 2010

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.

Sunday, August 1, 2010

Executive rehearsal of crisis plans

There are countless cupboards of costly crisis management, risk management, business continuity, emergency management, issues management and product recall plans that sit gathering dust on corporate shelves. These plans are simply no use unless the people using them are trained and tested. Crisis-prone organisations are exposed and vulnerable without a process that assures continual review and testing of plans.

It is not just organisations involved in oil, resources, transport or manufacturing who need executive training for crisis management. Organisations operating in hazardous industries invariably have and test crisis plans, but it is amazing how many businesses in the service sector such as banking and finance, legal and accounting have never tested a plan or a team.

A large corporate legal firm recently had cause to face its own internal crisis with the rapid departure of a number of senior partners following an issue of ethics. Countless media arrived in the plush foyer and the crisis lingered for many weeks. There may have been a crisis plan in place but very few of the senior management partners had ever practised their response to such a situation. Damage control took far too long and their client base was seriously affected by the loss of reputation.

The major problem faced by crisis management leaders in every organisation is the difficulty in getting team members together to train and practice. The most successful plans are those that make sure the team rehearses as a unit. Where the CEO makes himself available for the Head Office team training process, the organisation can be assured of a positive and committed result. Live leadership involvement is a great team builder.

Thursday, July 1, 2010

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.