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Effective Crisis Management: Tools and Best Practice for the New Millennium
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Caroline Sapriel
CS&A International
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All content following this page was uploaded by Caroline Sapriel on 25 April 2016.
Caroline Sapriel
is the founder and Managing Director of CS&A, a specialist risk and crisis management consulting firm with offices in Europe,
Asia and the USA. With particular experience in high-risk and controversial industries, CS&A works with the senior
management of multinational corporations in the oil and gas, chemical, nuclear, shipping, airline, tobacco, food, construction
and property sectors to assess risk, develop response structures and systems, plan scenarios, train executives and staff and
stage multi-location simulation exercises. With over 15 years’ experience in risk and crisis management, corporate
communications and public affairs Caroline Sapriel is recognised as a leader in her profession and acknowledged for her
ability to provide customised, results-driven counsel and training at the highest level.
Abstract This paper outlines the new approach to crisis management, as forming an
integral part of business contingency planning Crisis management is no longer primarily
a function of the corporate communication department. To address effectively the variety
of risks and complex issues that corporations face today, crisis management must be
mandated from the top of the organisation and driven and implemented by all key
business functions jointly. Crisis management needs a corporate custodian that ensures
plans and skills are up to date throughout the organisation. Processes must be
established and tools that facilitate and speed up crisis response are critical.
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 000–000 Journal of Communication Management 1
Sapriel
Risk identification
Risk evaluation
Minor loss
Severe loss Retain?
Pre-loss
- Transfer Loss Post-loss
- Prevention
Crisis Business
Business
management continuity plan recovery plan
plan © CS&A
2 Journal of Communication Management Vol. 7, 4 000–000 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management: Tools and best practice for the new millennium
Not all crises are preventable. However, legal, IT, health safety & environment,
having effective risk and issues sales & marketing, communications and
management processes in place will help reputation security.
organisations foresee, plan scenarios, be A major oil company in Latin America
more proactive and decide on whether to last year embarked on a six-month
take, treat, transfer or terminate the risk. programme to completely overhaul its
Actual crisis management planning deals existing crisis management plan. The
with the loss, just as disaster recovery and process began with an in-depth assessment
business continuity planning deal with the of its risk and issues management
situation after the loss. Crisis management processes, emergency and crisis response
is about being prepared to handle adversity plans and procedures, facilities, and
and minimise impact most effectively and aptitudes and skills.
facilitating the management process during The findings generated comprehensive
chaos. recommendations to close identified gaps.
An action plan with specific completion
BEST PRACTICE targets was then formulated to revise,
This integrated and holistic approach is expand and integrate processes, train
being adopted by multinationals across management and staff, and test.
various industries. A crisis custodian is Monitoring and evaluation are critical to
appointed with the task to assess, plan and the success of the process. In this case, a
implement a comprehensive and number of tasks still need to be completed
professional crisis response system, before the company receives a ‘clean bill of
bringing together key business functions health’ in the area of crisis management
including operations, human resources, according to recognised criteria. This
Increased
crisis
preparedness
Monitoring &
evaluation
Testing
Training
Reputation
management
Emergency &
crisis
response
Crisis Crisis management capability
preparedness development
assessmen t
Risk
management Risk eliminatio n Risk reduction
Risk
assessmen t Risk identification Risk evaluation
© CS&A
Figure 4: Risk & crisis managemtn planning process
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 000–000 Journal of Communication Management 3
Sapriel
Tier 3
Crisis
Disaster Tier 2
2-way communication
Tier 1
Emergency
©CS&A
Figure 5: Linking emergency response to crisis management
4 Journal of Communication Management Vol. 7, 4 000–000 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management: Tools and best practice for the new millennium
‘Facing and supporting grieving individuals ‘Like other airlines, we had the systems in
effectively is difficult. It requires awareness, place in the event of an accident, such as call
sensitivity and skills. When a crisis involving centres, processes and trained staff. But in a
injuries or fatalities occurs, the way a worst-case scenario, we wanted to be able to
company manages its communication with do more for those who would be most
victims and next-of-kin is critical to affected, namely the families, so we set up
minimising potentially devastating and long- FAST which includes a train-the-trainer
lasting impact on the affected parties. It also programme to sustain our in-house
helps to protect corporate reputation.’ capability on a continuous basis.’
Whilst the airlines had procedures in Since 11th September, companies in the
place to manage next-of-kin and employee oil & gas, financial and property sectors
communication on 11th September, most have considerably expanded their family
companies in New York’s World Trade support programmes. Teams of volunteers
Center had little in place to deal with the are being trained to handle next-of-kin
extent of the human tragedy facing them. telephone enquiries effectively in the event
Major world airlines have established of an emergency or crisis involving
processes and ongoing training casualties, and a formal telephone response
programmes to deal with public, family capability is being routinely tested as part
and employee assistance in the event of of crisis simulation exercises. The
accidents. When an accident occurs, management of victims and next-of-kin is
airlines immediately activate their often linked with enhanced security
passenger information call centres and procedures.
mobilise and despatch teams to provide
support to victims and next-of-kin at the Leadership
accident site. In a crisis, ‘leaders serve as a repository for
Singapore Airlines, for instance, people’s fears. Leaders can also act as a
established its ’next-of-kin buddy system’ mirror reflecting a group’s anger, grief,
in 1992 and has gradually built it up to a resolve or joy on a much larger stage than
total of 385 trained company staff. is available to most. Leaders say in effect ‘‘I
’Buddies’ are available to support families hear you’’ ’.
in the event of an accident, hijack or even On 11th September, New York City
extended delays due to air traffic control turned to its leader, Mayor Giuliani, for
failures as well as on-board food guidance. Leaders are essential to lead their
poisoning. Tragically, the airline had to organisation through a crisis, and provide
activate its next-of-kin support in their audience with a vision of the
November 2001 when one of its planes aftermath of the crisis. They provide focus
crash-landed on take-off at Taipei Chiang and overview, and rally their team under a
Kai Shek International Airport. That same mission.
evening, 150 buddies were flown in from Managing a crisis by consensus does not
Singapore to assist families. work. Short time, threat and the surprise
Smaller carriers are embracing industry elements of most crises imply that tough
best-practice as well. Dragonair, Hong decisions need to be made and made
Kong’s second airline, last year embarked quickly. The crisis management team
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 000–000 Journal of Communication Management 5
Sapriel
(CMT) must command and control and the CMT should formulate at the onset of
not get lost in endless debates to make the crisis, provides the organisation with a
decisions. guiding strength, a focus and a vision of
Industries that have the need for the aftermath of the crisis.
sophisticated emergency and safety Once this vision is established and the
management processes and skills at the organisation can rally around it, it acts as
operational level, such as the oil & gas the foundation for any and every message
industry, are raising the requirements for communicated to stakeholders. However,
such skills to the CMT level. Regular crisis communicating with stakeholders is only
leadership workshops are organised to half of the equation. Listening to them and
train crisis leaders and their CMT to be their concerns is essential to ensure that the
better prepared to lead under stress, and organisation’s internal operational view of
manage the situation proactively and the way the crisis is being managed is as
strategically. During such workshops, close as possible to the external perceptual
executives are invited to experience the one of stakeholders (Figure 6).
difference between consensus-based and In a crisis, reputation-management best
command and control styles of practice consists of the elements shown in
management by working through Figure 7.
scenarios. To enhance their strategic
planning and proactive crisis management
skills, CMT members are taught to work
with stakeholder and issues/risk-mapping The external perceptual view of the event by
the public, the media and other audiences
processes. Crisis leaders must assign
scenario planners on their team whose sole
responsibility it is to generate scenario
permutation based on the events and
The internal operational view of the
potential stakeholder reactions. This event by the company
facilitates the decision-making process,
helps prevent knee-jerk reactions and
generally promotes proactive and strategic
management. This reinforces the notion
that CMT should be made according to
© CS&A
suitability and not mere functionality.
6 Journal of Communication Management Vol. 7, 4 000–000 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management: Tools and best practice for the new millennium
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 000–000 Journal of Communication Management 7
Sapriel
References
1. International Association of Business Communicators.
2. Institute of Crisis Management.
3. Details to be supplied.
4. Details to come.
5. Fortune Magazine (2001) 12th November.
8 Journal of Communication Management Vol. 7, 4 000–000 # Henry Stewart Publications 1363–254X (2003)