Not turning a crisis into a disaster.

This checklist focuses on the preparation required to manage a possible crisis by considering the key steps necessary to crisis planning.

By its very nature the timing of a crisis is uncertain; similarly crises always "happen to others". It may therefore be difficult to convince colleagues of the importance of preparing for, and investing in, a plan. However, there is little doubt that a badly handled crisis reflects adversely on the company concerned. Planning for a crisis makes handling one easier--and reduces the risk of a potential full-scale disaster.

Definition

Crises can come in any form including: physical disaster (accident, chemical leak, fire), financial threat (hostile take-over), product liability claims, security leaks or failure of computer security. This checklist is not concerned with a particular form of crisis, but with the basic steps that should be taken in planning so that if (or when) a crisis occurs, it is managed as effectively as possible.

Advantages of planning for a crisis

* If a crisis situation develops, little time is available to consider the actions that should be taken. By planning for a crisis you have a flexible approach ready to deal with it.

* Planning for a crisis can save lives, money and public image, as well as safeguarding the organisation's future.

* Rehearsed action can help control damage.

Failing to plan for a crisis means:

* Public and financial confidence in the company can be shaken when a crisis hits.

* Key decision-makers may be uncontactable in an emergency.

Action checklist

1. Appoint a crisis management team

This team should be made up of people with a range of skills and attributes. The members of the team must have the authority to provide overall direction and counsel in the event of a crisis. The appointment of team leader is crucial. They may not necessarily have an abundance of technical skill, but must be able to command respect and galvanise people into action.

2. Analyse the current position

Carry out a SWOT analysis. By checking where you are now, possible threats can be identified (fire, flood, terrorism, accident). Consider how these risks can be reduced (install alarm or detection systems, check security and storage systems) and implement the necessary changes.

Ensure that your policies and procedures can stand up to public examination, and demonstrate your organisation's credibility by carrying out responsible actions and through a third-party audit against appropriate standards or Codes of Practice. Consider calling in a business continuity expert for steps 2-6.

3. Brainstorm what could go wrong

The crisis management team is responsible for drawing up your action plan. Identify situations which could develop, and which could constitute a crisis. Identify those who may be affected (both within the organisation and externally), and how communication about a crisis would be handled (by whom and to which individuals, organisations or media). Although the crisis team will aim to anticipate all possible crisis situations it is still essential to prepare for the unexpected.

4. Research others' experiences

Find out what you can of the effects of crises on other organisations, so you can learn from them. This may be achieved through reading, attending crisis/disaster planning seminars and through networking.

5. Identify strategies for dealing with the situations

For each scenario, draw up a plan of action for containing and dealing with the crisis--remember the plan must be flexible to cope with the unexpected. Identify those organisations (including police, fire brigade etc) which may be jointly responsible for managing the situation, and obtain names and contact details of those you wish to communicate with (including those in the media). Finally, write down the plans so that if a situation develops, the ways to handle it are immediately available. Consider where the plan should be stored--it must be accessible, but also protected from risk.

6. 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. Implement corrective measures where necessary to deal with problems identified during the brainstorming process--this may help prevent a crisis situation arising. Build on working relationships within key organisations, this should ensure that in a crisis these individuals work on your behalf.

7. Check the plan's progress

Where the plan makes interim recommendations for action, ensure that there are indicators or milestones to check. Check that changes identified as necessary have been made, and review the plan in the light of any further findings.

8. Test the plan through "what if" scenarios

It is essential to test your plans and that key personnel are familiar with them. A role-play situation can be developed in-house, but it should be designed by as few personnel as possible to ensure its secrecy (and therefore realism). Observers should monitor the situation (either engage external consultants, or use members of management who would not have a main role in a crisis) in order to provide feedback.

9. Revise the plan regularly in light of the test results, or because of changing circumstances 

Following any exercise, a debriefing session should be carried out by the observers with analysis from the crisis team themselves. Concentrate on any failure of the plan, or any changes made to the plan when it was in practice. Implement all necessary changes to the written plan, and set the date for your next test.

Dos and don'ts for crisis planning

Do

* Learn from the mistakes of others.

* Be prepared for the unexpected.

* Think of what it will take to get up and running the next day.

Don't

* Be complacent.

* Assume that you have covered all angles.

* Rely on insurance premiums.

* Think it only happens to others.

Useful reading

Tolleys handbook of disaster and emergency management: principles and practice (2nd ed) Raj Lakha and Tony Moore eds Croydon, LexisNexis UK,2004

Disaster management a guide to management and crisis communication: Chris Skinner and Gary Mersham Oxford, Oxford University Press, 2002

Business recovery planning in a week: Jacqueline Chapman Chartered Management Institute (CMI business in a week series) London, Hodder and Stoughton, 2002

Fast thinking: crisis: Ros Jay Harlow, Pearson Education, 2001 (Fast thinking series)

Thought starters

* What did you think of the handling of the crises caused by:

* the Channel Tunnel fire?

* the Hatfield Rail disaster

* the Foot and Mouth crisis in 2001?

* If your factory burned down would your organisation survive?

* Are any key information systems not protected by computer back-up?

* Are you clear on the cover your insurance provides?