Lecture 13 CRISIS PHASES 1

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? 2

--- 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? 3

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 4

Signals TypesEconomicReputational InternalExternal Tech People ???? ???? 5

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

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 7

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? 8

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 9

The 6 Phases of CM Probing/Prep aration Signal Detection Damage Containment Business Recovery No-Fault Learning Damage Containment Formal Reviews? Near Misses? No Blame? Generalize Learning? 10

The 6 Phases of CM Probing/Prep aration Signal Detection Damage Containment Business Recovery No-Fault Learning Redesign Damage Containment Actually Implement Changes? 11

The 6 Phases of CM Probing/Prep aration Signal Detection Damage Containment Business Recovery No-Fault Learning Redesign Damage Containment PROACTIVE REACTIVE INTERACTIVE 12

Root Causes Crisis system CRISIS YSTEMS

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

Critical Issues 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? 17

Human Factors Three-Mile Island Amtrak Mental-Map Conferences? KNOWLEDGE-BASED Designers, Operators, Maintenance? 18 OK NOT

ORGANIZATIONAL CULTURE Dangerous Rationalizations 19 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 20

The Impact of Culture 21 CM Preparation Number of Dangerous Rationalizations Crisis Prone = 7 X Crisis Prepared !!

Affected Parties Stakeholders 22

Stakeholder Analysis INTERNATIONAL CORE EXTERNAL NATIONAL INTERNAL BELIEFS POWER VALUES RESOURCES INFLUENCE CULTURAL I 23

Crisis Stakeholders Crisis Stakeholders Organization Organization Employees Competition Top Management Media Special Interests Governments Power/ Reputation Information Resources Influence BanksUnions 24

Stakeholder Analysis Least Important Most Important Certain Uncertain Scientific Reputation Employee Loyalty Sister Organizations 25

Stakeholder Analysis Least Important Most Important Certain Uncertain Scientific Reputation Sister Organizations Employee Loyalty WRONG! 26

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 27

Summary The 6 phases of CM Types of signals Crises system The impact of culture Stakeholder Analysis 28

Thank You 29