Comprehensive Crisis Management with special emphasis on HUMAN-CAUSED CRISES HUMAN-CAUSED CRISES Ian I. Mitroff © 2006

Before During After Before During After 1. Crisis Types 2. Crisis Mechanisms 3. Crisis Systems 4. Crisis Stakeholders Expose Weaknesses Expose Weaknesses Build Capabilities Build Capabilities Enact Capabilities Enact Capabilities Learn Redesign Learn Redesign To Enact Is NOT To React To Enact Is NOT To React To Enact Is To Be Proactive To Enact Is To Be Proactive

1. Crisis Types 1. Crisis Risks

The Manager’s Crisis Index : The Lukaszewski Group Potential Crisis Situations A Abortion Accidents Adverse Government Actions AIDS Anonymous Accusers W Whistleblowers Over 120 items & the list seems endless!! Situation Hopeless??

CRISIS FAMILIES EXT ECON ATTACKS EXT INFO HR / REP PSYCHO OCCUP-HEALTH MEGA-DAMAGE ORG / SOC TECH / ECON BREAKS CRIMINAL LEGAL NATURAL DISASTERS GOVT REGULATORY

Breaks Loss of Key Equipment, Plants, Supplies Breakdown of Key Equipment, Plants Loss of Key Facilities Major Plant Disruption

Psycho/Criminal Product Tampering Kidnapping Hostage Taking Terrorism Workplace Violence

Economic Labor Strikes Labor Unrest Labor Shortage Major Decline in Stock Price and Fluctuations Market Crash Decline in Major Earnings

Human Resource Loss of Key Executives, Personnel Rise in Absenteeism Rise in Vandalism and Accidents Workplace Violence

Informational Loss of Proprietary and Confidential Information False Information Tampering with Computer Records Loss of Key Stakeholder Information

Natural Earthquakes Fires Floods Explosions Typhoons Hurricanes

Reputation Slander Gossip Sick Jokes Rumors Damage to Corporate Reputation Tampering with Corporate Logos

CRISIS FAMILIES EXT ECON ATTACKS EXT INFO HR / REP PSYCHO OCCUP-HEALTH MEGA-DAMAGE ORG / SOC TECH / ECON BREAKS CRIMINAL LEGAL NATURAL DISASTERS GOVT REGULATORY T F NORMALABNORMAL

CRISIS FAMILIES EXT ECON ATTACKS EXT INFO HR / REP PSYCHO OCCUP-HEALTH MEGA-DAMAGE ORG / SOC TECH / ECON BREAKS CRIMINAL LEGAL NATURAL DISASTERS GOVT REGULATORY T F NORMALABNORMAL NS

Which Family Is Planned For Most and Why?

CRISIS FAMILIES EXT ECON ATTACKS EXT INFO HR / REP PSYCHO OCCUP-HEALTH MEGA-DAMAGE ORG / SOC TECH / ECON BREAKS CRIMINAL LEGAL NATURAL DISASTERS GOVT REGULATORY T F BREAKS NORMALABNORMAL NS

Which Family Is Planned For Least and Why?

CRISIS FAMILIES EXT ECON ATTACKS EXT INFO HR / REP PSYCHO OCCUP-HEALTH MEGA-DAMAGE ORG / SOC TECH / ECON BREAKS LEGAL NATURAL DISASTERS GOVT REGULATORY T F PSYCHO NORMALABNORMAL NS CRIMINAL

2. Interventions Crisis Mechanisms 2. CRISIS PHASES

The 6 Phases of CM Signal Detection SDM’s for: Any Crises? Build on Existing Data Bases? Integrated? Types of Signals, Noise? Blockers? Transmitted to Whom? Actions? Internal Assassin Team Exercise?

--- Signal Received? Signal Detector Exists? --- Signal Transmitted? --- Signal Received By The Right Person? --- Signal Related To An Org Problem? --- Actions Taken? --- Signal Related To An Org Actions? ORGANIZATIONAL Signal Detection --- Signal Correctly Interpreted?

Types of Signals ExternalInternal People Technical Communities Special Interests MediaConsumers Remote Sensing Government Monitoring Industry Scientific Research Gossip / Rumors Personal Networks The Culture Personal Data Bases PCsIT

Signals TypesEconomicReputational InternalExternal Tech People ???? ????

The 6 Phases of CM Probing/ Signal Detection Mandatory? Formal Failure Analyses? Rewarded? Blame the Messenger? Organizational Status? Preparation

The 6 Phases of CM Signal Detection Damage Containment Maintained? Updated? APPROPRIATE TYPES? Physically Contain? Buffer? Wall Off? Disperse? Decay? Neutralize? Treat? Convert? Dilute? Reduce Concentration? Deflect? Redirect? Probing/ Preparation

The 6 Phases of CM Damage Containment Physically Contain? Buffer? Wall Off? Disperse? Decay? Neutralize? Treat? Convert? Dilute? Reduce Concentration? Deflect? Redirect? Rebound? Transparency? Tear Down Walls? Open/Expose?

The 6 Phases of CM Signal Detection Damage Containment Business Recovery Damage Containment Business Continuity Minimum Services? Most Important Stakeholders? Off-site, On-Site? Backups? Hot/Cold Sites? Probing/ Preparation

The 6 Phases of CM Probing/Pre paration Signal Detection Damage Containment Business Recovery No-Fault Learning Damage Containment Formal Reviews? Near Misses? No Blame? Generalize Learning?

The 6 Phases of CM Probing/Pre paration Signal Detection Damage Containment Business Recovery No-Fault Learning Redesign Damage Containment Actually Implement Changes?

The 6 Phases of CM Probing/Pre paration Signal Detection Damage Containment Business Recovery No-Fault Learning Redesign Damage Containment PROACTIVE REACTIVE INTERACTIVE

3. Root Causes 3. CRISIS SYSTEMS

SYSTEMS 1. Technology 5. Top Mgt Psychology 4. Culture 3. Human Factors 2. Org Structure

Critical Issues 1. Technology Complexity Design Knowledge Age / Standardization Controls / Risks 2. Org Structure Layers Rewards Jobs Information Channels Business Strategies 4. Org Culture Safety : Crisis Prepared Crisis Prone 3. Human Factors Operator Interface Org Interface 5. Top Mgt Psychology Decision Styles Risk Conflict Styles Family History Education

The Systems Dynamics of BHOPAL Initial Crisis: -$ Poor Design Poor Maintenance Low Morale Poor Safety Standards Poor Infrastructure Poor Safety The Final Crisis Cost-Cutting

Organizational Issues Well-Trained CM Team? Appropriate Functions? Facilitate? Conflict Management? Org Flexibility? Share Resources?

Human Factors Three-Mile Island Amtrak Mental-Map Conferences? KNOWLEDGE-BASED Designers, Operators, Maintenance? OK NOT

ORGANIZATIONAL CULTURE Dangerous Rationalizations Our size will protect us. Excellent companies don’t have crises. Our location will protect us. Certain crises only happen to others. If a crisis happens, someone will rescue us. CM is someone else’s responsibility. Each crisis is so unique that it is pointless to prepare. OVER 30 KEY RATIONALIZATIONS!!!

Shared Freudian Defense Mechanisms Shared Freudian Defense Mechanisms 1. Denial 2. Disavowal 3. Idealization 4. Grandiosity 5. Projection 6. Intellectualization 7. Compartmentalization 1. Invulnerability 2. Impacts Negligible 3. We Don’t Have Problems 4. We’re Big & Powerful 5. Someone Else to Blame 6. Probabilities Small 7. Can’t Affect the Whole System System IndividualOrganization

The Impact of Culture CM Preparation Number of Dangerous Rationalizations Crisis Prone = 7 X Crisis Prepared !!

4. Affected Parties 4. STAKEHOLDERS

Stakeholder Analysis INTERNATIONAL CORE EXTERNAL NATIONAL INTERNAL BELIEFS POWER VALUES RESOURCES INFLUENCE CULTURAL I I III II IV

Crisis Stakeholders Crisis Stakeholders Organization Organization Employees Competition Top Management Media Special Interests Governments Power/ Reputation Information Resources Influence BanksUnions

Stakeholder Analysis The San Diego Zoo Least Important Most Important Certain Uncertain Scientific Reputation Employee Loyalty Sister Organizations

Stakeholder Analysis The San Diego Zoo Least Important Most Important Certain Uncertain Scientific Reputation Sister Organizations Employee Loyalty WRONG!

AN IDEAL CM PROGRAM 1. CM A TOP CORPORATE PRIORITY!! 2. A Robust CRISIS PORTFOLIO 3. Constantly Improve Signal Detection / Probing / Damage Containment 4. Constantly Audit Systems: Technology X Culture 5. Constantly Audit / Incorporate Stakeholders 6. PRE-TRAUMA Training / Simulations 7. Integrate CM With TQM, Safety, IM, Environmentalism