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Effective crisis management: Tools and best practice for the new millennium
Caroline Sapriel,
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Caroline Sapriel, (2003) "Effective crisis management: Tools and best practice for the new millennium", Journal of
Communication Management, Vol. 7 Issue: 4, pp.348-355, https://doi.org/10.1108/13632540310807485
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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 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.
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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.
348 Journal of Communication Management Vol. 7, 4 348–355 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management
65%
by working in an integrated way.
Business contingency planning (Figure
3) gained momentum at the turn of the
Mana
Empl new millennium. The tragic events of 11th
Management
Employee
Other September, 2001 made it a reality. So how
Other does crisis management fit into BCP?
When the risk management process
Figure 2: Origin of crises in the 1990s addresses issues and is integrated with the
Source: Institute of Crisis Management issues management process in the
organisation, the crisis prevention
capability is noticeably enhanced. This is
embedded into the organisation’s particularly the case for the ‘smouldering
corporate management system. crises’ referred to above. Identifying and
Many organisations have existing crisis evaluating risks and issues is the first step,
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
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 348–355 Journal of Communication Management 349
Sapriel
but it is the management of the risks and crisis custodian is appointed with the task
issues which is critical and most challenging to assess, plan and implement a
for most organisations, especially when comprehensive and professional crisis
dealing with intangible issues. response system, bringing together key
Not all crises are preventable. However, business functions including operations,
having effective risk and issues human resources, legal, IT, health safety &
management processes in place will help environment, sales & marketing,
organisations foresee, plan scenarios, be communications and reputation security.
more proactive and decide on whether to A major oil company in Latin America
take, treat, transfer or terminate the risk. last year embarked on a six-month
Actual crisis management planning deals programme to completely overhaul its
with the loss, just as disaster recovery and existing crisis management plan. The
business continuity planning deal with the process began with an in-depth assessment
situation after the loss. Crisis management of its risk and issues management
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is about being prepared to handle adversity processes, emergency and crisis response
and minimise impact most effectively and plans and procedures, facilities, and
facilitating the management process during aptitudes and skills.
chaos. The findings generated comprehensive
recommendations to close identified gaps.
BEST PRACTICE An action plan with specific completion
This integrated and holistic approach (see targets was then formulated to revise,
Figure 4) is being adopted by expand and integrate processes, train
multinationals across various industries. A management and staff, and test.
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
350 Journal of Communication Management Vol. 7, 4 348–355 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management
Tier 3
Crisis
Disaster Tier 2
2-way communication
Tier 1
Emergency
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Monitoring and evaluation are critical to including the euro conversion and support
the success of the process. In this case, a of companies affected by 11th September.
number of tasks still need to be completed The system is ideally suited to this
before the company receives a ‘clean bill of institution which has various critical
health’ in the area of crisis management operations centres operating across
according to recognised criteria. This different time zones.
means that the organisation has the This three-tiered approach includes alert
processes, facilities, resources, competencies systems, activation procedures, escalating
and tools in place to prevent a crisis criteria and staff duty rosters.
wherever possible and to manage one
effectively. Thereafter, maintenance is key EXPANDING AREAS OF CRISIS
to staying ‘healthy’. RESPONSE
To organise the most effective response
structure to a crisis, adopting a tiered Managing next-of-kin communication
approach is advised. This enables the Another area of crisis response which has
organisation to activate its response been made a necessity by the event of 11th
mechanism quickly, yet not overreact or September is managing the human
over-deploy. dimension of a crisis. Indeed, managing
A leading international financial public, family and employee
institution reviewed its response structure communication is an increasingly
in 2000 and implemented a three-tier important component of overall business
system, similar to the model in Figure 5. contingency planning.
This approach empowers staff at key levels The US Federal Emergency
to tackle any extraordinary incident with Management Agency and other State and
the potential to escalate and bring it up to Federal bodies as well as NGOs like the
more senior echelons without delays American Red Cross activated support
according to defined criteria. In this case, mechanisms, funds, insurance and travel
the organisation has had the opportunity assistance for families of the victims.
to practise the model in real situations However, on the corporate level, while
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 348–355 Journal of Communication Management 351
Sapriel
the financial industry had insurance, risk evening, 150 buddies were flown in from
and IT contingencies, it was not prepared Singapore to assist families.
to deal with the impact of a crisis on Smaller carriers are embracing industry
employees, and their next-of-kin. best-practice as well. Dragonair, Hong
Louis Cauffman, psychologist and Kong’s second airline, last year embarked
director-owner of the Korzybski on creating a family assistance support
Foundation, an international training team (FAST). Ronnie Choi, General
institute in solution-focused brief therapy, Manager of Customer Service at
says: Dragonair, says:
‘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
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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.’3 capability on a continuous basis.’4
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’’ ’.5
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.
352 Journal of Communication Management Vol. 7, 4 348–355 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management
Managing a crisis by consensus does not sight of stakeholder perceptions, and work
work. Short time, threat and the surprise with a solid communication strategy based
elements of most crises imply that tough on corporate values and principles, which
decisions need to be made and made are best captured in a crisis mission
quickly. The crisis management team statement. This mission statement, which
(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
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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:
management by working through
scenarios. To enhance their strategic — preparedness
planning and proactive crisis management — a robust yet flexible strategy
skills, CMT members are taught to work throughout
with stakeholder and issues/risk-mapping — essential among corporate values &
processes. Crisis leaders must assign principles:
scenario planners on their team whose sole . honesty & integrity
responsibility it is to generate scenario . transparency
permutation based on the events and
potential stakeholder reactions. This
facilitates the decision-making process,
The external perceptual
helps prevent knee-jerk reactions and view of the event by the
generally promotes proactive and strategic public, the media and other
management. This reinforces the notion audiences
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 348–355 Journal of Communication Management 353
Sapriel
Assessments
Conducting a comprehensive assessment is office shelves gathering dust.
the starting point to identify gaps and
design an action plan. Facilities and equipment
On 11th September, business and
corporations including those with
Training headquarters in the vicinity of the World
Once processes have been developed Trade Center were unable to communicate
covering all key business functions, with anyone for several hours after the
competency needs to be tackled. This is attack.
best done in three stages: Companies must consider the tools best
suited to manage a crisis under different
(1) aptitude testing; scenarios and contexts. This includes
(2) training; and facilities and communication equipment
(3) practice. and back-ups.
Skills and experience at all levels of the CONCLUSION
crisis response structure are critical, from When considering effective crisis
the switchboard response to callers, to the management today, it is a far more
leadership and strategic planning skills of complex undertaking than putting your
the CMT, to the ability to provide support spokesperson in the front line to fend off
to next of kin and victims and, of course, the media. Organisations that are serious
to communicating with the media about being better prepared have made the
effectively and protecting reputation. decision to embed the function into the
Contrary to belief, the best CMTs are corporate management system and ensure
made according to suitability and not they have:
functionality.
— ongoing risk and issues assessment
Certification — sound and tested processes
With regular staff movement and job — training and practice
changes, downsizing and reorganisations, it — a strategic approach
is essential to have a solid plan in place, so
that training and retraining can take place Over and beyond this, however, nothing
systematically. Corporations are now can replace an organisation’s commitment
introducing crisis management to doing the right thing, having strong
354 Journal of Communication Management Vol. 7, 4 348–355 # Henry Stewart Publications 1363–254X (2003)
Effective crisis management
# Henry Stewart Publications 1363–254X (2003) Vol. 7, 4 348–355 Journal of Communication Management 355
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