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CrisisManagementApresentationbyBruceHugmanConsultanttotheUppsalaMonitoringCentrePretoria,September2004Whatisacrisis?Ingeneral?Foranorganisation?Forgovernmentorbureaucracy?Foraprivatecompany?Inhealthcare?Indrugsafety?TopicsThenatureofcrisisCrisismanagementmodelPlanningRiskassessmentRiskmanagementCrisiscommunicationsRiskCommunicationsKeyfeaturesofaCrisisLowprobabilityHighimpactUncertain/ambiguouscausesandeffectsDifferentialperceptionsHighlevelthreats:SafetyHealthEnvironmentNationalsecuritySpecificthreatstoorganisation:OperationalviabilityReputationCredibilityFinancialstabilityLegalactionConsequentialeffects:Uncertainty/ambiguityUrgencyofresponseStrategiceffectsofdecisionsCommonfeaturesofacrisis:ThesituationmaterialisesunexpectedlyDecisionsarerequiredurgentlyTimeisshortSpecificthreatsareidentifiedUrgentdemandsforinformationarereceivedThereissenseoflossofcontrolPressuresbuildovertimeRoutinebusinessbecomeincreasinglydifficultDemandsaremadetoidentifysomeonetoblameOutsiderstakeanunaccustomedinterestReputationsuffersCommunicationsareincreasinglydifficulttomanagePurposeofcrisismanagement:PreventionSurvivalSuccessfuloutcomesSuccessfuloutcomes:Positivebalanceofsuccess/failure-Perpetratorwasneveridentified-Futureattemptscannotthereforebeprecluded-SwiftreactionsreinforcedCompanyreputationforintegrity-Stakeholdersreportedhighdegreeoftrust-ProductdidnotsufferinlongtermTYLENOLTAMPERING-Longtermcostsweretransferredtopublic-Delaysinimplementingclean-upleadingtolossofwildlife.-ImagemanagementfailedtofullyrecovertheCompany’sreputationinwidercommunity-Financiallosseswerebearable-Costsrelatingtoclean-upwerelessthanpre-emptivecosts-ImagemanagementrecoveredtheCompany’sreputationinbusinesscommunityEXXONVALDEZFailureoutcomesSuccessoutcomesIncidentThreecriteriaofsuccess:Hasorganisationalcapacitybeenrestored?Havelossesbeenminimised?Havelessonsbeenlearned?CrisisManagementModelAntecedentconditionsIntrinsiccrisisPerceivedcrisisImmaturecrisisresponseMaturecrisismanagementReviewandFeedbackExistingconditions:Openbowdoors/poorsafetycultureSmoker/poorcleaningstandardsCultureorenvironmentExistingconditions:Crisis-preparedorcrisis-prone?Intrinsiccrisis:TotalsituationasseenbyneutralobserverwithallthefactsAsseenbyallindividualsfromparticularviewpointsPerceivedcrisis:CrisisManagementModelAntecedentconditionsIntrinsiccrisisPerceivedcrisisImmaturecrisisresponseMaturecrisismanagementReviewandFeedbackImmaturecrisisresponse:Instantandirrational(denial/shock/panic)Maturecrisismanagement:GraspofintrinsiccrisisImplementationofplansandproceduresMaturecrisismanagement:TechnicalintelligenceEmotionalintelligenceReviewandfeedback:AssessingsuccessandfailureFeedinglearningintofutureplanningCrisisManagementModelAntecedentconditionsIntrinsiccrisisPerceivedcrisisImmaturecrisisresponseMaturecrisismanagementReviewandFeedbackManagementobjective:Adhocemergencyreaction?ORBuildingmanagementcapacitytohandleunforeseenevents?EndofPart1Part2:PlanningforCrisisManagementIntegrationoflearningCrisisManagementImplementationAuthorisationProceduresTechnicalIntelligenceCrisisManagementPlanningCrisisManagementModelAntecedentconditionsIntrinsiccrisisPerceivedcrisisImmaturecrisisresponseMaturecrisismanagementReviewandFeedbackCrisis-preparedcultureEmotionalIntelligenceGatheringintelligence:Who?What?When?How?WhoforGovernment?MinistersOfficialsPoliticalpartiesSponsorsVotersInternationalalliesThepublicingeneralTax-payersConsumerandlobbygroupsLawyersThemedia?Whoformedicineanddrugsafety?ManufacturersRegulatorsPoliticiansEmployeesHealthprofessionalsPharmacistsAcademicsThepublicPatientsConsumerandlobbygroupsLawyersThemedia?ThefirstgoalofcrisismanagementispreventionIntelligence:Continuousscanning(networks/media/ppublicopinion,etc)OutwardfocusCollaborationPositiverelationshipsAssessrisksRiskassessmentis:IdentificationdefineanddescribeEstimationlikelihoodandconsequencesEvaluationacceptabilityofriskAcceptableHighchancethatpublicandmediacriticismwillariseRecallofadefectivebatchofmedicationmaylowerconsumerconfidenceandtake-uprateUnacceptableMediumchanceleadingtoseverehealthproblemsordeathMedicationinquestioncouldbemistakenforsweetsbyyoungchildrenEvaluationEstimationIdentificationPriorityactionstosensitivelywithdrawproductwhilstreassuringhonestlyandopenlyAcceptableHighchancethatpublicandmediacriticismwillariseRecallofadefectivebatchofmedicationmaylowerconsumerconfidenceandtake-uprateProductneedstobere-designedtopreventthepossibilityUnacceptableMediumchanceleadingtoseverehealthproblemsordeathMedicationinquestioncouldbemistakenforsweetsbyyoungchildrenPlanningEvaluationEstimationIdentificationRiskmanagementis:PlanningResourcingMonitoringControllingCrisisPlanning:AssessrisksProduceplansDefinerolesandresponsibilitiesAppointcrisismanagementteamDrawupcommunicationplanProducecontactandorganisationchartPromotecrisis-readyculturePublishplansandconducttrainingTest,reviewandpractiseEndofPart2Part3:Cris

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