Surviving a Crisis through Partnerships Workshop

Definition of crisis Types How to prepare Video Vision/Mission/Core Values Goals/Objectives Financial Operational Communication Strategies Partnerships Identify opportunities Case Study Exercise Conclusions Agenda

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“When written in Chinese the word crisis is composed of two characters. One represents danger and the other represents opportunity.” -- John F. Kennedy

Crisis is a major, unpredictable, undesirable event that threatens to harm an operation, staff, customers, reputation or the legal and financial status of an organization Let’s Define Crisis

 Operational crises – day-to-day, minor crises of running the organization and serving individual customers.  Sudden crises – events that occur unexpectedly and have a major effect on the organization. These include: Natural disasters Pandemics Sabotage Terrorism Types

 Potential crises – serious problems that grow larger over time and become critical if they are not addressed. They include: Declining sales, profits and share prices Failure to respond to new competition Investigations by regulators Financial difficulties Systemic failures Types

“By failing to prepare, you are preparing to fail.” -- Benjamin Franklin

PM Video Clip

1.Define: Vision Mission Core values Samples Prepare…

2.Defining clear g oals and objectives: a.Financial Stability – Capital Ratio Positive cash flow Cost controls Income/Revenue Prepare (Cont.)

b. Operational Redundancy – Alternative computer and communication systems Off-site backup of vital records Contact information Sample of Critical Functions Table c. Human Factor Capacity Building Prepare (Cont)

d.Communication Plan – Customers Suppliers Employees Business partners Media Stockholders Prepare (Cont)

3.Develop strategies – Establish alliances and/or partnerships: a.Internal: Volunteers, staff, members b.External: CUs, CU System/WOCCU, third party providers, government Prepare (Cont.)

 Lending  Savings  Cross Selling  Other Identify Opportunities

Exercise  What is the crisis?  Diagnostics of the crisis: Its impact Best/worst case scenario  Assessment Available resources Financial Operational Human

Southwest Airlines Case Study

Southwest Airlines’ Mission  Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

Southwest Airlines’ Vision  To provide the best service and lowest fares to the short haul, frequent-flying, point-to-point, non-interlining traveler

Southwest Airlines’ Values Fun Family Fairness Simplicity Low Cost

Southwest Airlines Challenges  Crisis that affected the travel industry after 9/11: Passengers wanted to cancel or change travel arrangements Airlines were charging fees for new arrangements 16% of airlines’ workforce were getting laid off

The Decision Supported SWA Culture…  Not to charge for changes or cancellation  Offered full refunds if requested Providing the highest quality of customer service  Avoided layoffs Caring for its employees

Conclusions

Questions?

Thank you!! Carlos Calderon 