Presentation on theme: "The role of the Executive and the Trustees in a crisis Robin Swinbank."— Presentation transcript:
The role of the Executive and the Trustees in a crisis Robin Swinbank
The Counsel House An independent ‘virtual’ consultancy providing interim management, consultancy and crisis management services. Provides senior management with access to a team of some of the UK’s most experienced independent consultants. Our consultants have worked in airlines, banking, charity, engineering, IT, professional services, railways, etc. Handled a number of high-profile issues and crises for major public sector organisations and FTSE-listed companies. The role of the Executive and the Trustees in a crisis
What is a crisis? The role of the Executive and the Trustees in a crisis A crisis is something that can result in: a boycott of your company’s products or service loss of consumer confidence damaged trade relations a dramatic fall in share price low staff morale / inability to recruit major lawsuits reduced credit ratings immeasurable damage to the company's reputation demands for resignations the loss of a license to operate possible closure of part or all of the company
What is a crisis? The role of the Executive and the Trustees is a crisis BP oil spill $11.2 billion clean-up bill $20 billion compensation fund for victims US DoJ investigation pending - potential lawsuits At its worst, 30% + drop in share value. Care home 'abuse' caught on film Four arrests after patient abuse caught on film Undercover reporter 'haunted' by abuse of patients It can happen to any organisation, large or small:
What is a crisis? The role of the Executive and the Trustees is a crisis Two-tier reporting and involvement are required Needs both the commitment and involvement of the trustees and the executive In some cases, a corporation can afford to be seen as a ‘bad boy’ whilst a charity cannot A reputation lost in the voluntary sector maybe harder to regain than in the commercial sector The management teams in the voluntary sector are probably less likely to have been prepared to face a crisis Crisis management is different for a charity
What can the Trustees do in a crisis? The role of the Executive and the Trustees is a crisis Provide gravitas, experience and advice Offer a ‘sounding board’ for the executive Review and approve crisis plan (plus media statements) Offer the objective opinion, both to the executive and to the media Act as the senior spokesperson / figurehead Mentor the executive Bring in external expertise if required If appropriate, remove or replace a dysfunctional executive
What can the Executive do in a crisis? The role of the Executive and the Trustees is a crisis Develop and execute a crisis management plan Identify and communicate with ALL the stakeholders that matter Act as frontline spokesperson for the organisation Respond to enquires and issue statements Monitor what is going on Keep the team ‘onside’ Report to the Trustees Go when ‘the game is up’
Crisis management – the strategy The role of the Executive and the Trustees is a crisis The overriding strategy is to set out to be in a better position after the crisis dies down than the one you were in before the crisis arose.
A ten-step plan for crisis management: The role of the Executive and the Trustees is a crisis 1.Be prepared 2.Start to take the initiative 3.Develop a sympathetic persona 4.Set your own agenda 5. Make the media your ally and not the enemy 6. Create effective channels of communication 7. Know your target audiences 8. Front up your own defence 9. Find objective and authoritative allies 10. Don’t reinvent the wheel
Six case studies in the voluntary sector: The role of the Executive and the Trustees is a crisis 1.Child-protection charity chief executive convicted 2.Charity boss falsely accused of sexual abuse 3.Care worker accused of stealing from a service user 4.Teenage welfare charity accused of letting children in its care take drugs 5.Care charity who had child with learning difficulties in its care involved in a fatal accident 6.Nursery boss accused with child abuse
The role of the Executive and the Trustees is a crisis John F Kennedy “The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - But recognise the opportunity.”
The role of the Executive and the Trustees is a crisis What is it like being caught in the media spotlight? Imagine being interviewed on Newsnight by Jeremy Paxman Or being door stepped at home by a media pack… …and they ask you a question…
The role of the Executive and the Trustees is a crisis … ‘Tell me, is it true, have you stopped embezzling your charity yet?’ Now try and answer the question without incriminating yourself!
The role of the Executive and the Trustees is a crisis Welcome to the world of crisis management Although you are completely innocent … Answer ‘yes’ and it implies you have been embezzling funds. Answer ‘no’ and its implies you are continuing to embezzle funds!
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