Managing a crisis.Introduction The key to successful crisis management is advance planning and preparation. In a crisis situation, there is little time available to consider options, and yet much hangs on the decisions taken. The process of drawing up an action plan enables managers to consider eventualities in advance and provides a flexible framework for action, should a crisis occur. It can also help to identify actions which will avoid or reduce the risk of potential crises. By its very nature, a crisis is unexpected and is frequently seen as something which happens to other people. It can be difficult to convince colleagues of the need to plan for a crisis and even more difficult to ensure that the project is given priority and receives the investment required in terms of time, money and resources. However, a badly handled crisis can inflict severe damage to both the performance and the reputation of the business, and even threaten its survival. Effective crisis management can, in contrast, save lives, minimise loss of money and public image and safeguard the future of the organisation. National Occupational Standards for Management and Leadership This checklist has relevance to the following standards: B: Providing direction, units 5, 6, 7 Definition A crisis is an unexpected event or situation with potentially negative consequences and effects that threaten resources and people, or the success and continued operation of the organisation. Crises come in many shapes and forms, from both internal and external sources including: * physical disasters such as fire, flood, accident, chemical hazards A chemical hazard arises from contamination with harmful or potentially harmful chemicals. Chemical hazards Chemicals have the ability to react when exposed to other chemicals or certain physical conditions. * acts of terrorism * industrial disputes * financial threats such as a hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. bid * product liability claims * security leaks * failure of computer and IT systems * shifts in the business environment such as new competitive threats or changes in legislation * business failure of major suppliers or customers * loss of key personnel * allegations of unethical unethical said of conduct not conforming with professional ethics. behaviour or illegal action on the part of employees, especially senior managers * public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most mistakes such as gaffes, careless careless adj., adv. 1) negligent. 2) the opposite of careful. A careless act can result in liability for damages to others. (See: negligent, negligence, care) remarks or poor communication. Crisis management is the actions taken by an organisation in response to a crisis, so as to minimise its impact and aid recovery. This checklist takes a broad approach to planning for a crisis, rather than focusing on one specific type of crisis. Action checklist 1. Appoint a crisis management team The team should be made up of people with a range of skills and attributes, who can work together effectively. The members of the team must have the authority to provide overall direction in the event of a crisis. The appointment of the team leader is crucial. This must be someone who is able to command respect and galvanise Verb 1. galvanise - to stimulate to action ; "..startled him awake"; "galvanized into action" galvanize, startle ball over, blow out of the water, floor, shock, take aback - surprise greatly; knock someone's socks off; "I was floored when I heard that I was people into action, even though they may not necessarily have an abundance of technical skills. 2. Analyse an·a·lyse v. Chiefly British Variant of analyze. analyse or US -lyze Verb [-lysing, -lysed] or -lyzing, the current position Carry out a SWOT analysis SWOT Analysis A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. . Consider how the organisation has managed any previous crises and identify strengths and weaknesses. Review any policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental which are already in place; decide how well they work and where there is room for improvement. Consider undergoing a third-party audit against appropriate standards or codes of practice or taking advice from a business continuity expert to assist with stages 2-7. 3. Identify possible threats The crisis management team should take responsibility for identifying potential crises which could arise and things which could go wrong. It is important to take as broad an approach as possible--brainstorming may be helpful here. Consider the potential impact of each type of threat, both within the organisation and externally, and who would be affected. 4. Take preventative action Consider how the threats you have identified can be reduced. For example, the installation of fire alarms or detection systems can reduce the risk of serious fire damage; offsite or online storage of computer backups can prevent major data loss, should the operation or integrity of IT systems be compromised. 5. Research the experiences of others Find out what you can about the effects of crises on other organisations, and how they were handled, so that you can learn from them. This may be achieved through reading articles in journals and newspapers, attending crisis/disaster planning seminars and through networking. 6. Identify appropriate strategies Draw up a plan of action for dealing with and containing each type of crisis. Attempt to build into the plan contingencies and enough flexibility to deal with incidents of a type that you have failed to anticipate. Allocate responsibilities within the crisis management team in accordance with individual skills and abilities, to cover areas such as taking decisions, approving expenditure and handling communications. Make sure that each member of the team is fully informed as to their role and knows the responsibilities of other team members. 7. Draw up a communication plan Communication is a crucial aspect of any crisis management plan. Who will handle communications with the media, with employees, with the chief executive, with other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. , internally and externally? Identify organisations, such as the police and fire brigade that will potentially be involved in managing the situation and gather names and contact details of all individuals and organisations that you may need to contact. 8. Document your plans and procedures Make sure that all plans and procedures and related information is written down and stored in an accessible but secure location, so that it is immediately available when necessary. Consider producing multiple copies to be stored on- and off-site. 9. Communicate and implement the plan Make sure all staff are aware of what to do in a crisis--including who to contact, how and when. Develop good working relationships individuals in key organisations; this should ensure that in a crisis they will be supportive and cooperative. 10. Test the plan It is essential to test your plans to ensure that the plan really works, that your procedures are robust and that key personnel are familiar with them. Test scenarios A set of test cases that ensure that the business process flows are tested from end to end. They may be independent tests or a series of tests that follow each other, each dependent on the output of the previous one. The terms "test scenario" and "test case" are often used synonymously. may be developed in-house, but restrict the process to as few personnel as possible to ensure secrecy and therefore realism. Observers, either external consultants or managers who would not play a leading role in a crisis, should be used to monitor the execution of the plan and provide feedback. Following any exercise, arrange a debriefing de·brief·ing n. 1. The act or process of debriefing or of being debriefed. 2. The information imparted during the process of being debriefed. Noun 1. session with the observers and members of the crisis team. Focus on any failures in the operation of the plan, or any changes made to the plan in the course of the exercise. The results will enable you to make any necessary changes to the written plan. Follow up by setting a date for the next test. 11. Provide any training needed Consider whether the tests have revealed any skill deficiencies or training needs and take steps to address these. Review the skills mix of the crisis management team and consider whether any additional training is required in areas such as media and communication skills. 12. Monitor progress Where recommendations for action have been made, set time scales to check that they have been implemented. Keep the plan under review, and revise it regularly in the light of the test results, and when circumstances change or additional threats are identified. How not to manage a crisis: Don't: * think it will never happen to you * forget to test your plan * let your plan get out of date * become complacent com·pla·cent adj. 1. Contented to a fault; self-satisfied and unconcerned: He had become complacent after years of success. 2. Eager to please; complaisant. * assume insurance will cover everything. Additional resources Books Managing a crisis: a practical guide: a practical guide, Tom Curtin with Daniel Hayman and Naomi Husein Basingstoke: Palgrave Macmillan, 2005 Tolleys handbook of disaster and emergency management: principles and practice, 2nd ed., Raj raj also Raj n. Dominion or rule, especially the British rule over India (1757-1947). [Hindi r Lakha and Tony Moore, eds. Croydon: LexisNexis UK, 2004 Managing communications in a crisis, Peter Ruff and Khaled Aziz Khaled Aziz (Arabic: خالد عزيز) (born 14 July 1981) is a Saudi Arabian football (soccer) player who currently plays as a midfielder for Al Hilal. Aldershot: Gower, 2003 Disaster management a guide to management and crisis communication, Chris Skinner Skin·ner , B(urrhus) F(rederick) 1904-1990. American psychologist. A leading behaviorist, Skinner influenced the fields of psychology and education with his theories of stimulus-response behavior. and Gary Mersham Oxford: Oxford University Press, 2002 Business recovery planning in a week, Jacqueline Chapman Chartered Management Institute Inspiring Leaders The Chartered Management Institute is a professional institution for managers, based in the United Kingdom. In addition to supporting its members, the organisation encourages management development, carries out research, produces a wide variety Business in a Week series London: Hodder and Stoughton, 2002 Fast thinking: crisis, Ros Jay Harlow, Pearson Education Pearson Education is an international publisher of textbooks and other educational material, such as multimedia learning tools. Pearson Education is part of Pearson PLC. It is headquartered in Upper Saddle River, New Jersey. , 2001 This is a selection of books available for loan to members from the Management Information Centre. More information at: www.managers.org.uk/mic Journal articles Effective leadership response to crisis, Helio Fred Garcia Strategy and Leadership, vo1 34 no 1, 2006, pp4-10 Leadership as unusual: how to display competences in times of crisis, Erika Hayes James and Lynn Perry Wooten Organizational Dynamics, vol 34 no 2, 2005, pp141-152 This is a selection of journal articles available from the Management Information Centre. More information at: www.managers.org.uk/mic Related checklists Disaster Planning disaster planning - disaster recovery (100) Business Continuity Planning Business Continuity Planning (BCP) is an interdisciplinary peer mentoring methodology used to create and validate a practiced logistical plan for how an organization will recover and restore partially or completely interrupted critical function(s) within a predetermined for Telecoms Services (151) Internet resources UK Resilience resilience (r  ·zilˑ·yens),n : www.ukresilience.info Practical guidance on emergency preparedness pre·par·ed·ness n. The state of being prepared, especially military readiness for combat. Noun 1. preparedness - the state of having been made ready or prepared for use or action (especially military action); "putting them from the Civil Contingencies Secretariat The Civil Contingencies Secretariat, created in July 2001, is the department of the British Cabinet Office responsible for emergency planning in the UK. The role of the secretariat is to ensure the United Kingdom’s resilience against disruptive challenge, and to do this by at the Cabinet Office MI5 The Security Service: www.mi5.gov.uk Advice for business on protection against terrorism and security threats. Globalcontinuity.com: www.globalcontinuity.com Portal site Noun 1. portal site - a site that the owner positions as an entrance to other sites on the internet; "a portal typically has search engines and free email and chat rooms etc. with news and information on disaster recovery and disaster planning. Organisations The Business Continuity Institute 10 Southview Park Marsack Street Caversham RG4 5AF Tel: 0870 603 8783 www.thebci.org |
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