CRISIS

MANAGEMENT
COMPILE BY BULAN
MAC 2020
 RELATED VIDEO FOR CRISIS MANAGEMENT

 3\4P² for Crisis Management by THE LAB

 [Link]

 Crisis Management Strategies: Ian Mitroff on Successfully Managing Crises

 [Link]
LECTURE ON CRISIS MANAGEMENT
 Crisis management
 [Link]
 Crisis Management Strategies
 [Link]
 Three Things You Need to Know About Crisis Communications
 [Link]
 Crisis Management: How to Lead During a Crisis - Project Management
Training
 [Link]
CASE STUDY – CRISIS MANAGEMENT
 Handling a Social Media Crisis:  [Link]
Domino's
 HEELP: AIRPORT EMERGENCY
 [Link] NOTIFICATION AND CRISIS
MANAGEMENT SYSTEM
 Toyota CEO Apologizes for Recall,
Accidents  [Link]
 [Link]  Louis Vuitton: Crisis Communication
(2013)
 Toyota Recall Crisis Management
 [Link]
 [Link]
 Focus on crisis management
 3.5 CRISIS MANAGEMENT
 A crisis is defined as an event that by
its nature or its consequences:
 Definition of crisis:
 By Faulkner (2001):
 A triggering event, which is so significant
• constitutes a threat to vital national that it challenges the existing structure,
interests or to the essential needs of the routine operations or survival of the
population; organization.
• prompts rapid decision making;  High threat, short decision time and an
• demands coordination between different element of surprise and urgency.
departments and organisations
 A perception of an inability to cope.
 T YPES OF CRISIS
During the crisis management  Confrontation
process, it is important to identify  Malevolence
types of crises in that different crises
necessitate the use of different crisis  Organizational Misdeeds
management strategies.[9] Potential  Workplace Violence
crises are enormous, but crises can
be clustered.[9]  Rumours
 Lerbinger[10] categorized eight  Terrorist attacks/man-made
types of crises disasters
 Natural disaster
 Technological crises
[Link]
[Link]
[Link]/nupsb/crisis-
management-types-
and-
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[Link]
[Link]/nupsb/crisis-
management-types-
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[Link]
[Link]/nupsb/crisis-
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 COMMON FEATURES OF A CRISIS
1. The situation materialises increasingly difficult
unexpectedly
9. Demands are made to identify
2. Decisions are required urgently someone to blame
3. Time is short 10. Outsiders take an unaccustomed
interest
4. Specific threats are identified
11. Reputation suffers
5. Urgent demands for information are
received 12. Communications are increasingly
difficult to manage
6. There is sense of loss of control
7. Pressures build over time
8. Routine business become
 CRISIS MANAGEMENT

Crisis Management: Prevents a Purpose of crisis management:

crisis from becoming a  Prevention
catastrophe.
 Survival
Crisis management can be  Successful outcomes
defined as a system or
methodology of solving crisis
situations. We can be sure that
the actual crisis situation will
differ from our expectation.
 CRISIS PLANNING

1. Assess risks organisation chart

2. Produce plans 7. Promote crisis-ready culture
3. Define roles and 8. Publish plans and conduct
responsibilities training
4. Appoint crisis management 9. Test, review and practise
team
5. Draw up communication plan
6. Produce contact and
CRISIS MANAGEMENT PLAN
 3.6 CONFLICT PROBLEMS Conflict problems may be solved in three ways:

 Frequently relates to problems with a Hard choice: you have to

bite the bullet and make Easy choice: One is obviously
choice between two conflicting moral the best choice possible more significant than the other
values, each of which seems to be correct with the information and easy choice
available at the time
 You must rely on “gut feelings” for which
part is the correct one
 Example of conflicts:
 Corruption
Creative
 Bribery Middle way:
Compromise
 Conflict of interest that will work
for everyone
 Whistleblowing
 Plagiarism
 etc
[Link]
 FIVE CRUCIAL STEPS THAT WILL HELP YOU BUILD A
RELIABLE CRISIS MANAGEMENT STRATEGY.

1. Internal communications. Identify your key spokesperson and brief them PR perspective, is necessary in order to avoid inconsistences within your
on what’s happening as well as how your brand is going to move forward. corporate response that could further damage your reputation or appear
Then move quickly to respond internally with those messages to your dishonest. As aforementioned, all public outreach should remain honest,
employees. The point here is to quickly alleviate any internal fears or consistent and focused on addressing the crisis as it relates to your
concerns in the workforce. strategy.

2. Understand the potential impact. In Volkswagen’s case, the crisis had a 4. Create a means for monitoring. Once you’ve determined the channel of
major impact on the company’s brand reputation in addition to an impact distribution for your message, monitoring your publics’ responses is
on its shares as they took a major hit on the stock market. As a decision equally critical. The one question you should ask, “Is our PR crisis still a
maker, you’ll always want to understand what the immediate impact crisis?” Know that this type of fire doesn’t diminish over night;
could be on your business. As you begin to think about key messages and sometimes it can take a business months before customer inquiries and
your overall corporate communications strategy, which should include questions have diminished.
message delivery on social media, you’ll want to determine how your
decisions will impact business, revenue and overall brand reputation. 5. Learn the lessons. Mitigating the negative connotations of your brand is
only one aspect of a PR crisis strategy. You’ll need to take a deep-dive and
3. Position yourself. Now that you have a thorough understanding of the reflect into any events that caused this crisis to occur. By considering how
impact a crisis can have on your company, you should have a clearer idea certain events affected your organization, you will be better prepared to
of how to position your corporate stance accordingly. Begin drafting your have an appropriate and timely response should another conflict arise.
messaging and ensure you get buy-in from the executive team and key Additionally, we recommend developing a standard protocol or training
decision makers. Be prepared for a bit of back and forth (naturally), but guide to better help employees efficiently manage a future crisis.
rest assured, your research in understanding any potential impact will
help ensure alignment during this process. Alignment, especially from a
[Link]
digital-age/
EXAMPLE CRISIS
MANAGEMENT
[Link]
[Link]/
blog/3-crisis-
management-case-
studies-we-can-
learn-from
CASE STUDY’- CRISIS MANAGEMENT
 Malaysia Airlines Flight MH370  banjir kelantan 2014

 Malaysia Airlines Flight MH17  Samsung's exploding phones

 Honda Recalls Another 4.5M Cars
for Takata Air Bags
 Haze (Jerebu)
 CASE STUDY- CRISIS MANAGEMENT
 The Volkswagen emissions scandal seemed to be handling the crisis in a dishonest way by not
fully “owning” its role in the scandal.
 In September 2015, the Environmental Protection Agency
accused Volkswagen of manipulating its engine controls to  The brand likely would have fared better through this
be able to pass laboratory emissions tests. Not only was crisis if it had taken a few key steps:
the company violating the Clean Air Act by selling vehicles
that didn’t meet environmental requirements, but it was  Been up front and honest as soon as the story broke
also violating its customers’ trust by making its cars seem
more environmentally friendly.
 Kept its response consistent, with an empathetic and
apologetic tone
 Unfortunately, the way the company handled the scandal
made things even worse. As the story continued to evolve,
the company’s response was seen as inconsistent and, at  Reimbursed all affected customers the same amount
times, contradictory to previous statements. Executives
claimed they didn’t know about the cheating, only to  Demonstrated a commitment to change in some way (e.g.,
reveal they did just a few days later. Meanwhile, the by setting new emissions goals or partnering with an
company’s PR and social media teams struggled to keep environmental organization to help combat air pollution)
up. As the company set out to recall millions of vehicles,
officials promised to reimburse some, but not all,
customers for their troubles.
 All the while, consumers reported that the company
[Link]
studies-we-can-learn-from
CASE STUDY- CRISIS MANAGEMENT
 Southwest Airlines’ social media response  Unfortunately, the onslaught of customer-
service requests and complaints seemed to
 Right in the middle of the busy 2016 summer overwhelm the company’s social media team.
travel season, Southwest Airlines was suddenly Not long after the IT outage began, complaints
struck by a wide-reaching technology failure. Its on Twitter began going unanswered for hours—
website and other key systems were down for and, in the case of Facebook, days. Ideally, the
more than 12 hours, prompting the airline to company would have answered each customer
cancel thousands of flights. Over the course of in a more timely manner.
four days, the company worked to respond to
customer complaints quickly and effectively, in  Finally, Southwest seemed to forget that such a
large part by leveraging social media. Its crisis is bound to impact all of its social media
approach offers some key lessons. channels—even Instagram. The company failed
to post an apology or acknowledgement of the
 Southwest did several things right in its social situation on its Instagram account, instead
media response: It apologized profusely for the choosing to feature its typical content. As a
inconvenience, admitted fault, and continually result, the account received hundreds of angry
posted updates as the crisis unfolded. comments—and all of them went unanswered,
Southwest’s team even made use of photos and surely leaving a bad taste in the mouths of
videos posted to Facebook and Twitter to many followers.
personalize the response.
[Link]
studies-we-can-learn-from
 CASE STUDY- CRISIS MANAGEMENT
 Samsung's exploding phones

 In September, less than a month after launching its new Galaxy Note 7
smartphone, Samsung announced plans to recall all of the more than 3
million devices it had sold to that point, after reports that the phone was
prone to overheating and spontaneous combustion. Eventually, it halted
production and scrapped the product entirely at a cost of at least $6 billion.

Samsung Electronics says battery defect was cause of Galaxy Note 7 fires
[Link]
HONDA RECALLS CARS FOR TAKATA AIR BAGS
 Airbag maker apologizes for deaths

 [Link]

 HONDA TAKATA AIRBAG INFLATOR RECALL VIDEO

 [Link]
CASE STUDY
COVID 19
CRISIS MANAGEMENT
Respond Team
CORONAVIRUS CRISIS
COVID-19: Confidently navigate through the coronavirus crisis
 [Link]
CRISIS MANAGEMENT: Lead Your Business Through the Coronavirus Crisis
 [Link]
COVID-19: Four essential crisis management lessons
 [Link]
[Link]
 7 questions to ask about your organization's readiness for the Wuhan Coronavirus
crisis
 [Link]
organizations-readiness-for-the-Wuhan-Coronavirus-crisis/
CORONAVIRUS DISASE (COVID-19) ADVICE FOR THE PUBLIC: VIDEOS
HTTPS://[Link]/EMERGENCIES/DISEASES/NOVEL-CORONAVIRUS-2019/ADVICE-FOR-PUBLIC/VIDEOS

 Novel coronavirus (2019-nCoV)  [Link]

 [Link]  Managing Business Relationships

During the Global Coronavirus
 How to protect yourself against (COVID-19) Health Crisis
COVID-19?
 [Link]
 [Link]

 How to wear and dispose of masks

 [Link]

 Q&A: COVID-19 in the workplace

CASE STUDY 1: THE COVID-19 : THERE ARE FOUR
CRITICAL POINTS TO MAKE:
HTTPS://[Link]/GX/EN/ISSUES/CRISIS-SOLUTIONS/COVID-19/[Link]

 The COVID-19 outbreak presents specific potential business  Focus on data. Reliable data underpins both crisis planning
challenges around people and commercial operations. The and response. PwC's 2019 Global Crisis Survey found that three-
COVID-19 outbreak presents specific potential business quarters of those in a better place post-crisis strongly recognise
challenges around people and commercial operations the importance of establishing facts accurately during the crisis.
It’s essential that the crisis plan outlines how information will
 Put your crisis and business continuity plans to the flow and that everyone has confidence in its veracity. Strong data
test. Most businesses will have crisis/incident and business also reinforces a central element of crisis planning – exploring
continuity plans – and every business should. Regularly stress different scenarios and how they could affect the business in the
testing these is essential. COVID-19 has already revealed flaws in short, medium and long term.
some plans, make sure that’s not the case for yours.
 Keep your people and working environment safe. The
 Create a strong, cross-function response team. A crisis ongoing situation with COVID-19 means that employees, or the
like COVID-19 can have an impact on every part of the business. potentially impacted communities they work in, will be looking
The response can demands high-level sponsorship and cross- to your organisation for a response, guidance and regular
functional working. We recommend a core team overseen by the communications. Review your travel rules, HR policies, first aid
CEO (usually drawn from HR, legal and comms, but every plans and create safe ways to exercise the arrangements. The
company is different) to provide the framework and strategic working environment should also be considered so that you can
guidance, supported by an extended team to address the specific continue to provide a safe place for employees and visitors to
actions needed to get through the crisis. work as intended.
CASE STUDY 2: STEPS HEALTHCARE FACILITIES CAN TAKE NOW TO
PREPARE FOR CORONAVIRUS DISEASE 2019 (COVID-19)
HTTPS://[Link]/CORONAVIRUS/2019-NCOV/HEALTHCARE-FACILITIES/[Link]

 The true impact of a COVID-19 outbreak in a U.S. community cannot • Create an emergency contact list. Develop and continuously
be predicted. However, all healthcare facilities can take steps now to update emergency contact lists for key partners and ensure the lists
prepare for such an outbreak and protect both their patients and staff. are accessible in key locations in your facility. For example, know how
to reach your local or state health department in an emergency.
 Be prepared:
 Communicate with staff and patients:
• Stay informed about the local COVID-19 situation. Know where to
turn for reliable, up-to-date information in your local community. • Communicate about COVID-19 with your staff. Share information
Monitor the CDC COVID-19 website and your state and local health about what is currently known about COVID-19, the potential for
department websitesexternal icon for the latest information. surge, and your facility’s preparedness plans.

• Develop, or review, your facility’s emergency plan. A COVID-19 • Communicate about COVID-19 with your patients. Provide
outbreak in your community could lead to staff absenteeism. Prepare updates about changes to your policies regarding appointments,
alternative staffing plans to ensure as many of your facility’s staff are providing non-urgent patient care by telephone, and visitors. Consider
available as possible. using your facility’s website or social media pages to share updates.

• Establish relationships with key healthcare and public health

partners in your community. Make sure you know about healthcare
and public health emergency planning and response activities in your
community. Learn about plans to manage patients, accept transfers,
and share supplies. Review any memoranda of understanding
(MOUs) with affiliates, your healthcare coalition, and other partners to
provide support or assistance during emergencies.
CASE STUDY 2: STEPS HEALTHCARE FACILITIES CAN TAKE NOW TO
PREPARE FOR CORONAVIRUS DISEASE 2019 (COVID-19)
HTTPS://[Link]/CORONAVIRUS/2019-NCOV/HEALTHCARE-FACILITIES/[Link]

 Protect your workforce:  Protect your patients:

• Screen patients and visitors for symptoms of acute • Stay up-to-date on the best ways to manage patients with
respiratory illness (e.g., fever, cough, difficulty breathing) COVID-19.
before entering your healthcare facility. Keep up to date on
the recommendations for preventing spread of COVID-19
on CDC’s website. • Separate patients with respiratory symptoms so they are
not waiting among other patients seeking care. Identify a
separate, well-ventilated space that allows waiting patients and
• Ensure proper use of personal protection equipment visitors to be separated.
(PPE). Healthcare personnel who come in close contact with
confirmed or possible patients with COVID-19 should wear the
appropriate personal protective equipment. • Consider the strategies to prevent patients who can be
cared for at home from coming to your facility potentially
exposing themselves or others to germs, like:
• Conduct an inventory of available PPE. Consider conducting
an inventory of available PPE supplies. Explore strategies • Using your telephone system to deliver messages to incoming
to optimize PPE supplies. callers about when to seek medical care at your facility, when to
seek emergency care, and where to go for information about caring
for a person with COVID at home.
• Encourage sick employees to stay home. Personnel who
develop respiratory symptoms (e.g., cough, shortness of breath) • Adjusting your hours of operation to include telephone triage and
should be instructed not to report to work. Ensure that your sick follow-up of patients during a community outbreak.
leave policies are flexible and consistent with public health
guidance and that employees are aware of these policies. • Leveraging telemedicine technologies and self-assessment tools.
CASE STUDY 3: CITRIX COMMITMENTS DURING THE COVID-
19 CRISIS
HTTPS://[Link]/BLOGS/2020/03/08/CITRIX-COMMITMENTS-DURING-THE-COVID-19-CRISIS/

 Citrix Employee Travel Restrictions and Work-From-Home Advisories transitioned them all to work from home within 24 hours. We are
pleased to report that throughout this remote-work response, our
employees in these areas have remained safe and connected, and
 Global travel restrictions. Effective immediately, we are suspending their productivity and customer service levels remain unchanged.
non-business-critical travel to locations around the world. These new
business-critical travel restrictions, which include travel within the
U.S. and Europe, are added to our previous restrictions of any travel  Restructuring of events. Out of an abundance of caution for the
to Italy, Mainland China, and the Republic of Korea. safety of our employees, customers and partners, we are, like many
organizations, restructuring our scheduled events and doing what we
do best: leveraging technology to connect people and information
 Extended work-from-home policies. Effective immediately, we are virtually from wherever they happen to be. Our Citrix Converge
encouraging those employees who have the ability to work-from- developer conferences set to take place in Prague and Bangalore at
home to do so in Washington State, Oregon, and California through the end of the month, for instance, will now be held online. And our
the end of March. This is in addition to previous work-from-home Customer Advisory Council and Executive Advisory Board meetings
policies in China. Our Global Security Risk Services team is monitoring will be virtual, as well.
the situation daily, and we will adjust the scope of this guidance and
consider expansions in other high-risk areas, as necessary.
 Related to our work-from-home policies in California and Washington
State, with a reduced need for on-site support from certain Citrix
 Voluntary work-from-home policies as required. In Hong Kong SAR, hourly workers, we recognize the financial burden that creates. As
Italy, Japan, Republic of Korea, Nanjing and Beijing in Mainland China, such, we will continue to pay our hourly service employees during
and Singapore, we have instituted a voluntary work-from-home this period.
policy. Our internal IT teams are prepared to expand work-from-home
capabilities to employees in any area needed as the situation
continues to evolve.

 Leveraging our technology in work-from-home scenarios. In high-risk

areas like China, Republic of Korea and Japan, Citrix has leveraged our
own virtualization and workspace solutions to rapidly mobilize our
entire employee population — which includes engineering, customer
support, sales, finance, marketing, and human resources — and
CASE STUDY 4: CRISIS MANAGEMENT
LEAD YOUR BUSINESS THROUGH THE CORONAVIRUS CRISIS
HTTPS://[Link]/2020/02/LEAD-YOUR-BUSINESS-THROUGH-THE-CORONAVIRUS-CRISIS

 12 lessons for responding to unfolding events, communicating, and extracting available externally that they don’t need to do anything additional. We have found,
and applying learnings. however, that creating and widely sharing a regularly updated summary of facts and
implications is invaluable, so that time is not wasted debating what the facts are — or
worse, making different assumptions about facts.
 1) Update intelligence on a daily basis.
 4) Use experts and forecasts carefully.
 Events are unfolding with astounding speed, and the picture changes on a daily basis. Only
several days ago, it looked like the outbreak was mostly confined to China and was being
brought under control. More recently, a number of fast-growing epicenters of infection  Experts in epidemiology, virology, public health, logistics, and other disciplines are
have sprung up beyond China, signaling a new phase and potentially necessitating new indispensable in interpreting complex and shifting information. But it’s clear that expert
strategies of mitigation rather than containment. Our team initially decided to opinions differ on critical issues like optimal containment policies and economic impact,
communicate updates every 72 hours, but we moved to a daily cycle, not only for updating and it’s good to consult multiple sources. Each epidemic is unpredictable and unique, and
data, but also for reframing our overall perspective. we are still learning about the critical features of the current one. We need to employ an
iterative, empirical approach to understanding what’s going on and what works — albeit
one guided by expert opinion.
 2) Beware of hype cycles / news cycles.
 5) Constantly reframe your understanding of what’s happening.
 News organizations often focus on what’s new rather than the big picture, and they
sometimes don’t distinguish between hard facts, soft facts, and speculation. Yesterday’s
news is likely to frame how your organization thinks about the crisis today. When exposed  A big-picture synthesis of the situation and a plan to deal with it, once captured on paper,
to fast changing information, be it a new technology or an emerging crisis, we have a can itself become a source of inertia. A Chinese proverb reminds us that great generals
systematic tendency initially to overlook weak signals, then to overreact to emerging issues should issue commands in the morning and change them in the evening.
before we eventually take a more calibrated view. As you absorb the latest news, think
critically about the source of the information before acting on it.
 But large organizations are rarely so flexible. Managers often resist disseminating plans
until they are completely sure, and then they are reluctant to change them for fear of
 3) Don’t assume that information creates informedness. looking indecisive or misinformed, or of creating confusion in the organization. A living
document, with a time-stamped “best current view” is essential to learn and adapt in a
rapidly changing situation.
 In our connected world, employees have direct access to many sources of information.
Leaders might reasonably conclude that there is so much information and commentary
CASE STUDY 4: CRISIS MANAGEMENT
LEAD YOUR BUSINESS THROUGH THE CORONAVIRUS CRISIS
HTTPS://[Link]/2020/02/LEAD-YOUR-BUSINESS-THROUGH-THE-CORONAVIRUS-CRISIS

 6) Beware of bureaucracy. information they need. Many of these needs will be locally specific, requiring a multi-tiered
approach to policy making.
 Controversial, sensitive, or high-profile issues will typically attract review by senior
management, corporate affairs, legal, risk management, and a host of other  Travel: Make sure that travel policies are clear in terms of where employees can travel to,
functions. Each will have suggestions on how to best craft communications, leading for what reasons, what authorizations are required and when the policy will be reviewed.
to an overly generalized or conservative perspective and a slow, cumbersome
process.
 Remote work: Be clear on your policies — where they apply, how they will work, and when
they will be reviewed. Home working is rare in some geographies, like China for example,
 Assembling a small trusted team and giving them enough leeway to make rapid and the need for additional explanation should be anticipated.
tactical decisions is critical. Overly managing communications can be damaging
when each day brings significant new information to light. Use the clock speed of
external events as a guideline for pacing the internal process, rather than starting  Supply-chain stabilization: Attempt to stabilize supply chains by using safety stocks,
with the latter as a given. alternative sources, and working with suppliers to solve bottlenecks. Where rapid solutions
are not possible, co-develop plans, put in place interim solutions, and communicate plans
to all relevant stakeholders.
 A living digital document can enhance speed by avoiding the rigamarole of issuing
and approving multiple documents, and also reduces risk, since it can easily be
updated or withdrawn as necessary. Furthermore, distinguishing clearly between  Business tracking and forecasting: It’s likely that the crisis will create unpredictable
facts, hypotheses, and speculations can help in communicating a fuller and more fluctuations. Put in place rapid-reporting cycles so that you can understand how your
nuanced picture. business is being affected, where mitigation is required, and how quickly operations are
recovering. A crisis doesn’t imply immunity from performance management, and sooner or
later markets will judge which companies managed the challenge most effectively.
 7) Make sure your response is balanced across these seven dimensions:
 Being part of the broader solution: As a corporate citizen you should support others in
 Communications: Employees will likely be exposed to conflicting information and feel your supply chain, industry, community, and local government. Consider how your
anxious or confused about the best course of action. Be sure to communicate policies business can contribute, be it in health care, communications, food, or some other domain.
promptly, clearly, and in a balanced manner. Furthermore, communicate contextual Focus on the intersection between acute social needs and your specific capabilities — in
information and the reasoning behind policies so that employees can deepen their own other words, live your purpose.
understanding and also take initiative in unanticipated situations, such as employee
holidays in a restricted location or how to handle contractors.

 Employee needs: Restrictions on travel and congregation will trigger employee needs for
access to education, health care, daily provisions and the like. You should anticipate and
develop solutions to these and create an information hub where employees can find all the
CASE STUDY 4: CRISIS MANAGEMENT
LEAD YOUR BUSINESS THROUGH THE CORONAVIRUS CRISIS
HTTPS://[Link]/2020/02/LEAD-YOUR-BUSINESS-THROUGH-THE-CORONAVIRUS-CRISIS

 8) Use resilience principles in developing policies. • Evolvability: Systems can be built for optimization and peak efficiency or
they can be built for evolvability — constant improvement in the light of new
opportunities, problems, or information. Responses to dynamic crises like
 Efficiency reigns in a stable world with no surprises, and this mindset is Covid-19 put a premium on evolvability. There is no knowable right answer,
often dominant in large corporations. But the key goal in managing dynamic and any predetermined answer is likely to be wrong or to become obsolete
and unpredictable challenges is resilience – the ability to survive and over time. But it is possible to iterate and learn towards more effective
thrive through unpredictable, changing, and potentially unfavorable events. solutions. While many lessons will be learned in retrospect, doing
Our research on resilient systems shows that they generally have six something now, seeing what works and remobilizing around the results is
common characteristics which should be reflected in crisis responses. likely to be most effective strategy in the short term.

• Redundancy: Access to additional manufacturing capacity can help smooth• Prudence: We cannot predict the course of events or their impacts for
supply-chain fluctuations. In the short term, companies may need to look Covid-19, but we can envision plausible downside scenarios and test
beyond normal sources for solutions, but in the longer term, redundancy can resilience under these circumstances. We can run scenarios for a
be designed in. widespread global epidemic, a multi-regional epidemic, and a rapidly
contained epidemic, for example. Now that the focus has shifted from
containment of the Covid-19 epidemic in China to preventing its
• Diversity: Having multiple approaches to fulfillment can be less efficient but establishment in new epicenters overseas, we have arrived at another
more flexible and resilient in crisis situations. Equally a diversity of ideas inflection point, with very high uncertainty. It would be prudent for
can greatly enhance solution development. Put together a cognitively companies to take a fresh look at worst-case scenarios and develop
diverse crisis management team that will have more ideas about potential contingency strategies against each.
solutions, especially if the corporate culture encourages expression of and
respect for diverse perspectives. Beware of treating the crisis in one-
dimensional manner — as a financial or logistical problem only, and staff • Embeddedness: Companies are stakeholders in wider industrial,
your crisis team accordingly. economic, and social systems which are also under great stress. Those who
fail to look at their supply chains or ecosystems holistically will have limited
impact. Solutions that solve for an individual company at the expense of or
• Modularity: Highly integrated systems may be efficient, but they are neglecting the interests of others will create mistrust and damage the
vulnerable to avalanches of knock-on effects or even total system collapse if business in the longer term. Conversely, support to customers, partners,
disturbed. In contrast, a modular system — where factories, organizational health care, and social systems in a time of adversity can potentially create
units or supply sources can be combined in different ways — offers greater lasting goodwill and trust. A key element of dealing with economic stress is
resiliency. When a key brake valve supplier for Toyota was burned to the to live one’s values precisely when we are most likely to forget them.
ground some years ago, supply was restored in just days because of the
ability to swap production between suppliers, even of very different
components. Ask how you can rewire your supply system in a modular
manner both in the short and longer term.
CASE STUDY 4: CRISIS MANAGEMENT
LEAD YOUR BUSINESS THROUGH THE CORONAVIRUS CRISIS
HTTPS://[Link]/2020/02/LEAD-YOUR-BUSINESS-THROUGH-THE-CORONAVIRUS-CRISIS

 9) Prepare now for the next crisis. Rapidly evolving situations expose existing organizational weaknesses, like
an inability to make hard decisions or an excessive bias towards
consensus, which constitute opportunities for improvement.
 Covid-19 is not a one-off challenge. We should expect additional phases to
the current epidemic and additional epidemics in the future. Our research on
the effectiveness of organizational responses to dynamic crises indicates  For example, airline safety is one of the most effective global learning
that there is one variable which is most predictive of eventual success – systems we have in this respect. Each time there is an incident from minor
preparation and preemption. Preparing for the next crisis (or the next phase mishaps to tragic accidents resulting in lives lost, root causes are
of the current crisis) now is likely to be much more effective than an ad hoc, investigated in forensic detail according to pre-agreed protocols, and
reactive response when the crisis actually hits. binding recommendations are made. It’s not surprising that flying has
become one of safest forms of travel, thanks to cumulative learnings and
adaptations from previous misfortunes.
 10) Intellectual preparation is not enough.
 12) Prepare for a changed world.
 Many companies run scenarios to create intellectual preparedness for
unexpected situations. Scenarios must be updated and customized,
however, in the light of the most material risks to a business at any given  We should expect that the Covid-19 crisis will change our businesses and
time. Those risks have shifted even over the last few days, with the rise of society in important ways. It is likely to fuel areas like online shopping,
new disease epicenters. online education, and public health investments, for example. It is also likely
to change how companies configure their supply chains and reinforce the
trend away from dependence on few mega-factories. When the urgent part
 Intellectual preparedness alone is not enough, however. Something can be of the crisis has been navigated, companies should consider what this crisis
well understood but unrehearsed as a capability. Scenarios should therefore changes and what they’ve learned so they can reflect them in their plans.
ideally be backed up by war gaming to simulate and learn from behaviors
under stress. A war room set-up, with a small dedicated team empowered to
decide and execute, can cut through organizational complexity.

 11) Reflect on what you’ve learned.

 Rather than heaving a sigh of relief and returning to normal routines when
the crisis subsides, efforts should be made not to squander a valuable
learning opportunity. Even while the crisis is unfolding, responses and
impacts should be documented to be later reviewed and lessons distilled.
 7 QUESTIONS TO ASK ABOUT YOUR ORGANIZATION'S
READINESS FOR THE WUHAN CORONAVIRUS CRISIS
HTTPS://[Link]/RESEARCH-KNOWLEDGE/ARTICLES/7-QUESTIONS-TO-ASK-ABOUT-YOUR-ORGANIZATIONS-READINESS-FOR-THE-WUHAN-CORONAVIRUS-CRISIS/

 The Wuhan Corona Virus is presenting virtually all organizations with unforeseen challenges. Is 4. Has a "war room" been identified and prepared with the necessary resources? This means
your organization ready to meet them? having a designated command post in a discrete, secure location that can be rapidly converted
for use by the crisis response team. Requirements include access to computer systems and key
lines of communication, contact information for key internal and external stakeholders, crisis
 Here are 7 questions to ask: management plans, etc. There also should be ready access to critical resource stocks to be
tapped if necessary. Examples include backup power generation, modest reserves of food and
1. Are you ready to shift to "war-fighting mode"? Decentralized organizations—which operate water, and medical supplies. Agreements should also be negotiated with external agencies to
well in normal times—often prove to be woefully in adequate in times of crisis. Why? Because provide specific resources in time of crisis, for example augmented communications support.
their responses tend to be piecemeal and incoherent. Effective crisis management demands
rapid, centralized responses and this, in turn, requires clear lines of command. Think of it as the 5. Are there designated communication channels and protocols? These are easily-activated
ability to shift into what the military terms "war-fighting mode." This means you should have a channels for reaching all or important subsets of employees, for example through use of email or
centralized command structure ready to be activated in times of crisis, including a designated intranets to make announcements. To the extent possible, there should be redundancy in these
crisis manager and a supporting response team who function as the crisis manager's staff. channels in case of loss, for example, of the mobile network. To speed things up, generic draft
messages can be composed in advance. Depending on the organization, there should be
2. Have you developed the right set of planning scenarios? It’s essential to create a set of crisis mechanisms for rapidly locating key staff (e.g. "check in" web pages, call-in lines).
scenarios that guide the development and execution of response plans. In the case of the Wuhan
Corona Virus, this should include scenarios concerning potential impacts on customers, 6. Do you conduct regular simulation exercises? The best plans are worthless if they exist only
suppliers, facilities, and employees. This need not be an exhaustive list of everything that on paper. There needs to be regular (at least biannual) exercises conducted by the crisis
possibly could happen, but it should represent a broad range of potential emergency situations response team, as well a regular testing of communication channels, inventorying of resources,
that your organization plausibly could face, for example an outbreak in a company facility or the etc. These tests should be done regularly, but not communicated in advance in order to test
closure of a key supplier's factory. speed of response.

3. Do you have a flexible set of "response modules"? Crisis response teams should be able to 7. Is there disciplined post-crisis review? Each crisis provides an opportunity for organizational
pull combinations of pre-set response “modules” off the shelf to deal with emerging scenarios. learning to occur and plans to be revised. But this learning only occurs if the mechanisms are in
This could include protocols, for example, for temporary closure of a facility. Modularizing the place to make it happen. A post-crisis review should be conducted by the crisis response team
elements of a crisis response plan provides the response team with the flexibility rapidly to deal after each significant event. The guiding questions should be: what went well and what went
with unexpected scenarios or combinations of scenarios. This is important because real crises poorly? What are the key lessons learned? What changes do we need to make to our
rarely evolve as you expect them to. If response options aren’t flexible, novel events or organization, procedures, and support resources?
combinations of events can yield ineffective or “brittle” responses.
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