Society for Healthcare Strategy and Market Development

Society for Healthcare Strategy and Market DevelopmentAnnual Educational Conference - Dallas, September 3-6,2003Before, During & After the Crisis - Frederick C. Bagg, ABC, APR, Dan Pyle Millar, Ph.D., APR

Before, During & After the Crisis

Before, During & After the Crisis

Fred Bagg, ABC, APR, Fellow PRSAFred Bagg, ABC, APR, Fellow PRSA

Dan Pyle Millar, Ph.D., APR Dan Pyle Millar, Ph.D., APR

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The Chinese character for crisis is made up of two different ideograms or

characters...

The Chinese character for crisis is made up of two different ideograms or

characters...


...one for danger, and......one for danger, and...


...one for opportunity!...one for opportunity!


Preparation is the MOST important component!

Preparation is the MOST important component!


DefinitionsDefinitions


Wilson:

“Moment to moment intense experience”

Wilson:

“Moment to moment intense experience”


Institute for Crisis Management:Institute for Crisis Management: Significant business disruptionSignificant business disruption Extensive news coverageExtensive news coverage Extensive public scrutinyExtensive public scrutiny Adverse affect on normal Adverse affect on normal

operationsoperations Exceeds the normal capacity of Exceeds the normal capacity of

the organization to respondthe organization to respond


Think of crisis as a waveThink of crisis as a wave


...And Crisis Communication as a second wave

...And Crisis Communication as a second wave


Preparation:Preparation:

Eliminate or reduce the Eliminate or reduce the probability of occurrence, process probability of occurrence, process for informing audiencesfor informing audiences

D


Impact and Crisis ResponseImpact and Crisis Response

““Prepare Relentlessly”Prepare Relentlessly”

Rudy GuillianiRudy GuillianiLeadership, 2003


Definition of a Business CrisisDefinition of a Business Crisis A significant business disruption

which results in extensive news media coverage and public scrutiny

Different types of business crises Sudden Smoldering Perceptual Bizarre


What to Expect in a CrisisWhat to Expect in a Crisis

SurpriseSurprise Insufficient informationInsufficient information Escalating flow of eventsEscalating flow of events Loss of controlLoss of control Increased scrutinyIncreased scrutiny


Adverse Business ImpactAdverse Business Impact• • Loss of sales and profitsLoss of sales and profits• • Increased litigationIncreased litigation• • Loss of jobsLoss of jobs• • Decreased employee moraleDecreased employee morale• • Loss of reputationLoss of reputation• • Decreased competitive strengthDecreased competitive strength• • Increased government interventionIncreased government intervention

• • Increased consumer activismIncreased consumer activism• • Decreased trust in managementDecreased trust in management


Crisis ResponseCrisis Response

ImmediateImmediate OpenOpen HonestHonest AccurateAccurate Clear Message PlatformClear Message Platform FocusedFocused


Crisis Response PlanCrisis Response Plan

Need to have a communication Need to have a communication plan INDEPENDENT of the plan INDEPENDENT of the organization’s operational crisis or organization’s operational crisis or disaster plan!disaster plan!


The Elements of a Crisis Response Plan The Elements of a Crisis Response Plan Criteria/categoriesCriteria/categories Crisis team and responsibilitiesCrisis team and responsibilities Basic message points / platformBasic message points / platform Contacts and media listContacts and media list Crisis command post and media Crisis command post and media

centercenter Guidelines, checklists & formsGuidelines, checklists & forms


HEALTHCARE CRISES1990-----1995-----2000


catastrophescatastrophes 0%0% 1.1%1.1% 2.2%2.2% casualty accidentscasualty accidents 12.8%12.8% 9.6%9.6% 6.5%6.5% environmentalenvironmental 3.3%3.3% 1.1%1.1% .8%.8% class actionclass action 2.5%2.5% 7.0%7.0% 14.8%14.8% consumer actionconsumer action 6.6%6.6% 2.1%2.1% .4%.4% defects/recalldefects/recall 2.9%2.9% 5.9%5.9% 15.2%15.2% discriminationdiscrimination 2.1%2.1% 3.2%3.2% 2.2%2.2% executive dismissalexecutive dismissal 1.7%1.7% 1.6%1.6% 2.2%2.2%




financial damagesfinancial damages 2.5%2.5% 3.2%3.2% 5.8%5.8% hostile takeoverhostile takeover 2.1%2.1% 0%0% .4%.4% labor disputelabor dispute 20.7%20.7% 15.5%15.5%

11.7%11.7% mismanagementmismanagement 26.0%26.0% 16.6%16.6%

10.9%10.9% sexual harassmentsexual harassment 1.2%1.2% 3.7%3.7% 1.3%1.3% whistle blowingwhistle blowing .08%.08% 6.4%6.4% 6.5%6.5% white collar crimewhite collar crime 11.6%11.6% 19.8%19.8%

14.3%14.3% workplace violenceworkplace violence 3.3%3.3% 3.2%3.2% 4.3%4.3%


Most Crisis-prone industries : 1990sMost Crisis-prone industries : 1990s 1. Banking & 1. Banking &

Depository Depository InstitutionsInstitutions

2. Stock & Bond 2. Stock & Bond BrokeragesBrokerages

3. Insurance3. Insurance 4. Motor 4. Motor

VehiclesVehicles 5. Oil & Gas 5. Oil & Gas

ExtractionExtraction

6. Aerospace6. Aerospace

7.Telecommunicati7.Telecommunicationsons

8. Air 8. Air TransportationTransportation

9. Computer 9. Computer SoftwareSoftware

10. 10. PharmaceuticalsPharmaceuticals


Harsh Realities of CrisisHarsh Realities of Crisis Most crisis situations can be PREDICTED and

PREVENTED; those that can’t be avoided can be minimized.

Serious business problems don’t become a “crisis” until the PROBLEM ESCAPES THE ORGANIZATION.

The LONGER A CRISIS GOES ON, the GREATER THE DAMAGE to sales, earnings, stock price, morale and competitive position.

MANAGEMENT DENIAL is the biggest obstacle to effective crisis management.

The primary concern in crisis communication management is the COURT OF PUBLIC OPINION not the court of law.


CRISIS RESPONSE TEAMWORK

Audiences Responsibilities

•Employees and families

•Key government officials

•Stakeholders

•Opinion leaders

•Communication policy

•Crisis team tie breaker

•On-site overview remarks

•One-on-one with movers and shakers

•News media

•Outside experts

•Principal briefing spokesperson

•Interface with crisis participants

•Liaison with outside experts

•Interview gatekeeper

•Media coverage intelligence

•Majority of phone interviews

•General spokesperson

TopMgmt

Operational and

Staff Experts

Media and Community Relations Staff

• •Top management• •Crisis participants• •Journalist• •Agency PIOs


ICM approach to managing sudden crisesICM approach to managing sudden crises 1. Have a Crisis Communications Plan 1. Have a Crisis Communications Plan

that can be implemented immediatelythat can be implemented immediately

2. Base EVERYTHING you say on 2. Base EVERYTHING you say on factual, confirmed informationfactual, confirmed information

3. Notify your management and 3. Notify your management and communications people ASAPcommunications people ASAP

4. Anticipate the news media reactions 4. Anticipate the news media reactions and be ready to respond and be ready to respond

5. Coordinate your communications with 5. Coordinate your communications with government agencies government agencies


ICM approach to managing sudden crisesICM approach to managing sudden crises

6. Line up additional manpower for 6. Line up additional manpower for the first 48 hoursthe first 48 hours

7. Manage the aftermath as 7. Manage the aftermath as effectively as the initial crisis itselfeffectively as the initial crisis itself

8. Document everything you are 8. Document everything you are doing during the crisisdoing during the crisis

9. Debrief everyone on how well the 9. Debrief everyone on how well the crisis was managedcrisis was managed


Message Points• First words FRAME the story

• “what you’re about the see may surprise and shock you”

• “the comment that we have at this time is ‘no comment’”

• “our employees are our most important asset”

• ‘we are dedicated to the safety of our employees and neighbors”

• First words should be YOURS• shape your perspective on the event

• emotional connection to publics; compelling

• frame for future statements

• platform for future actions


Contacts and Media ListContacts and Media List

Keep Local media in mind /up to Keep Local media in mind /up to datedate PrintPrint Electronic(including broadcast, Electronic(including broadcast,

internet)internet) National Media (up to date)National Media (up to date) Trade Press (Modern Healthcare, Trade Press (Modern Healthcare,

etc.)etc.)


Crisis Command Post & Media CenterCrisis Command Post & Media Center The organization should have The organization should have

BOTH a crisis command post AND BOTH a crisis command post AND a separate, but close by, media a separate, but close by, media centercenter


Crisis Command PostCrisis Command Post

SecureSecure Fully equippedFully equipped Access to top managementAccess to top management Legal, other “support”Legal, other “support” Link to “Operational” responseLink to “Operational” response


Media CenterMedia Center ““Away” from crisis BUT accessible to Away” from crisis BUT accessible to

people, pictures, activitypeople, pictures, activity Not in Emergency Room, but in conference Not in Emergency Room, but in conference

room down the hallroom down the hall EquippedEquipped

Electrical, Electrical, Phone jacksPhone jacks Lectern/podium (well lit)Lectern/podium (well lit)

Interview room Interview room


Guidelines, Checklists, Letters of Agreement & Forms

Guidelines, Checklists, Letters of Agreement & Forms

DisclosureDisclosure Media PolicyMedia Policy Advertising (e.g. pull product ads in Advertising (e.g. pull product ads in

case of product recall crisis)case of product recall crisis) Checklists for media, management Checklists for media, management

calls, equipment, media center, calls, equipment, media center, Letters of Agreement for vendors, Letters of Agreement for vendors,

supplies, additional people, etcsupplies, additional people, etc Form statements, media lists, Form statements, media lists,

timetables, casualty list, etc..timetables, casualty list, etc..


Technologies used in Crisis planningTechnologies used in Crisis planning Web sitesWeb sites CD RomCD Rom PDA’sPDA’s Portable memory for computer(s)Portable memory for computer(s) Equipment agreementsEquipment agreements


Use your Web site Four basic strategies:Four basic strategies:

Present and maintain Present and maintain accurate perception accurate perception of the organizationof the organization

Present timely, Present timely, accurate, up-to-date accurate, up-to-date informationinformation

Facilitate the work of Facilitate the work of the mediathe media

Manage negative Manage negative publicitypublicity


Use your Web site Source for Source for

background infobackground info Hidden/ghost page Hidden/ghost page

SwissAir modelSwissAir model Media uses itMedia uses it Reduces repeat calls Reduces repeat calls

from reportersfrom reporters Crosses time zonesCrosses time zones Gets ahead of Gets ahead of

rumorsrumorsMedia.stfrancishospitals.org


Lessons from Sept. 11, 01 and Aug. 15, 03Lessons from Sept. 11, 01 and Aug. 15, 03

““COMMUNICATION is VITAL” reinforcedCOMMUNICATION is VITAL” reinforced1. Cell phones, e-mail 1. Cell phones, e-mail

• • Instant communicationInstant communication• • Interactive DURING and AFTER the crisisInteractive DURING and AFTER the crisis

2. Web2. Web• • Information dissemination, rumor Information dissemination, rumor controlcontrol• • Monitoring - response & investigationMonitoring - response & investigation

3. You can’t count on power3. You can’t count on power• • Generators, batteries, car batteriesGenerators, batteries, car batteries


CD ROMCD ROM

BackgroundersBackgrounders Electronic “media kits”Electronic “media kits” Photo archivesPhoto archives Pre-prepared statements, formsPre-prepared statements, forms Etc.Etc.


PDAsPDAs

Organization Organization contact list(s)contact list(s) Media contact listsMedia contact lists Community & Gov’t contact listsCommunity & Gov’t contact lists E-version of the “plan”, E-version of the “plan”, Downloadable information gatheringDownloadable information gathering Infrared transfer of informationInfrared transfer of information


Equipment AgreementsEquipment Agreements

Cell phonesCell phones Computers(Laptops)Computers(Laptops) CopiersCopiers FaxesFaxes Pre-arranged 800 or 888 numbersPre-arranged 800 or 888 numbers Etc.Etc.


SPOKESPEOPLE NEED MEDIA TRAININGSPOKESPEOPLE NEED MEDIA TRAINING

BeforeBefore a crisis strikes, pick a a crisis strikes, pick a spokespersonspokesperson

Train and prep from message Train and prep from message platformplatform

Hearing firsthand from you Hearing firsthand from you can diffuse the issuecan diffuse the issue


The steps to crisis responseThe steps to crisis response BeforeBefore DuringDuring AfterAfter

1. Call for Help

2. Bend over, grab your knees and ...

3. Pray...


Preparation for a CrisisPreparation for a Crisis

Have it written downHave it written down Be flexibleBe flexible Rehearse, rehearse, rehearseRehearse, rehearse, rehearse Prepare for the things you KNOW Prepare for the things you KNOW

will happen so you can free up will happen so you can free up your time for the unanticipated!your time for the unanticipated!


Before -Before -

Assess the vulnerabilitiesAssess the vulnerabilities ScenariosScenarios Have a plan & prepare Have a plan & prepare

managementmanagement


Assessing your VulnerabilitiesAssessing your Vulnerabilities Understanding organization’s history/ Understanding organization’s history/

skeletons in the closetskeletons in the closet Quick & dirty Quick & dirty

GridGrid Formula sheetFormula sheet


Human

Technical/Natural

RoutineSevere

CAUSE-SEVERITY GRID

tornado

sabotage

data entry error

explosion/fire

thunderstorm

blizzard

flood

computer virus

terrorism

boycott

workplace violence

discrimination

failure to report problem

toxic spill

harassment

class action lawsuit

equipment failure

failure to follow procedures

major defect


Assess the VulnerabilitiesAssess the Vulnerabilities

Develop a list based on categoriesDevelop a list based on categories E.g. Category: Natural disaster: E.g. Category: Natural disaster:

FloodFlood TornadoTornado EarthquakeEarthquake Etc.Etc.

Sort by Likelihood and UrgencySort by Likelihood and Urgency



Establish priorities based on Establish priorities based on combination of Likelihood, combination of Likelihood, urgency as well as level of impact urgency as well as level of impact on the organizationon the organization

One book urges a 5 point system One book urges a 5 point system for each characteristic, applied to for each characteristic, applied to likelihood, urgency, and impactlikelihood, urgency, and impact



Category Likelihood Urgency Impact Total

Tornado 4 3 5 12

Mercy Killer 2 3 5 10

MedicareFraud

5 4 4 13


Assessing your VulnerabilitiesAssessing your Vulnerabilities Understanding organization’s history/ Understanding organization’s history/

skeletons in the closetskeletons in the closet Quick & dirty Quick & dirty

GridGrid Formula sheetFormula sheet Monitor media, trendsMonitor media, trends

Vulnerability study with consultantsVulnerability study with consultants Communication auditCommunication audit


Scenario planningScenario planning

Tied to vulnerabilitiesTied to vulnerabilities Worst caseWorst case

What ifWhat if Prepare for “worst case”Prepare for “worst case” Multiple scenarios Multiple scenarios


Sample ScenarioSample Scenario

The lights and all power goes out The lights and all power goes out all over the East Coast and you’re all over the East Coast and you’re advised that power won’t be advised that power won’t be restored for two-three days. restored for two-three days.

Day 2…You’re running out of fuel Day 2…You’re running out of fuel for your emergency generators, for your emergency generators, pumps don’t work and water is pumps don’t work and water is being rationedbeing rationed


Preparing ManagementPreparing Management

Attitude of opennessAttitude of openness Honest, verifiable or confirming, not Honest, verifiable or confirming, not

necessarily “tell everything”necessarily “tell everything” Identified and trained Identified and trained

spokespersonsspokespersons Pre-approved statements, Pre-approved statements,

processes, policiesprocesses, policies

F


DuringDuring Centralize the information flow (script)Centralize the information flow (script) Inform affected publics in the most effective Inform affected publics in the most effective

formform Respond to media openly, quickly & Respond to media openly, quickly &

informativelyinformatively Treat all media fairlyTreat all media fairly Keep everyone informed as the crisis evolvesKeep everyone informed as the crisis evolves Monitor Media (Internet, TV, print or other Monitor Media (Internet, TV, print or other

“instant” media)“instant” media)


Technologies used in Crisis ResponseTechnologies used in Crisis Response

Web site /Intranet siteWeb site /Intranet site Hot Lines/800 numbersHot Lines/800 numbers PagersPagers Broadcast Fax /Targeted FaxBroadcast Fax /Targeted Fax VoicemailVoicemail Cell PhonesCell Phones E-mailE-mail


Technologies used in Crisis ResponseTechnologies used in Crisis Response Technology in control center / Technology in control center /

media centermedia center Walkie/TalkieWalkie/Talkie Cellular phonesCellular phones IR capable computersIR capable computers Internet linked computersInternet linked computers T1 linesT1 lines


Technologies used in Crisis ResponseTechnologies used in Crisis Response Technology in control center Technology in control center

/media center/media center TVs & VCRsTVs & VCRs RadiosRadios Teleconferencing hardwareTeleconferencing hardware Data projectorsData projectors Electronic message centerElectronic message center Etc. Etc.


Human Interaction in Crisis ResponseHuman Interaction in Crisis Response FoodFood FriendlinessFriendliness ““A Private Place”A Private Place” RestRest CommunicationCommunication

D


AfterAfter

Monitor broadcast, internet and Monitor broadcast, internet and print coverageprint coverage

Debrief & evaluateDebrief & evaluate Write a reportWrite a report Give yourself a “grade”/evaluation Give yourself a “grade”/evaluation

of how you didof how you did


AfterAfter

Identify audiences which need Identify audiences which need follow-upfollow-up

...and follow up!...and follow up! Recognize and reward outstanding Recognize and reward outstanding

performanceperformance


Technology used after the crisisTechnology used after the crisis Web siteWeb site CD RomCD Rom PowerPoint, video or electronic PowerPoint, video or electronic

reportreport TeleconferencingTeleconferencing Face-to-face (smile, thanks and Face-to-face (smile, thanks and

handshakes)handshakes)


ASSESSING THE FUTURE OF CRISIS COMMUNICATIONASSESSING THE FUTURE OF CRISIS COMMUNICATION

News media coverage of business crisis events News media coverage of business crisis events will continue to grow more pervasive and more will continue to grow more pervasive and more visualvisual

Traditional paper communications tools for Traditional paper communications tools for public relations professionals will become public relations professionals will become increasingly ineffective in a crisisincreasingly ineffective in a crisis

The crisis priorities between attorneys and public The crisis priorities between attorneys and public relations professionals will narrow significantlyrelations professionals will narrow significantly

The use of computer and wireless technologies The use of computer and wireless technologies will have an increasingly important role in crisis will have an increasingly important role in crisis communicationscommunications


ASSESSING THE FUTURE OF CRISIS COMMUNICATIONASSESSING THE FUTURE OF CRISIS COMMUNICATION

Legal, marketing, human resources and Legal, marketing, human resources and public relations will grow with the public relations will grow with the awareness of “smoldering crises”awareness of “smoldering crises”

The financial impact of a crisis will The financial impact of a crisis will become more apparent to top become more apparent to top management and they will look for management and they will look for answers to minimize itanswers to minimize it


A Crisis Communication PhysicalA Crisis Communication Physical1.1.What kind of management notification system do What kind of management notification system do we have in place for responding to emergencies we have in place for responding to emergencies during non-business hours? How good is it?during non-business hours? How good is it?

2.2.What’s our corporate emergency response plan What’s our corporate emergency response plan like and how sure are we that it will work in a like and how sure are we that it will work in a crisis? Has it ever been used or tested? Updated?crisis? Has it ever been used or tested? Updated?

3.3.Who would be our spokespersons and how good Who would be our spokespersons and how good would they be in responding to a mob of reporters would they be in responding to a mob of reporters and TV cameras?and TV cameras?

4.4.How much information would we be willing to give How much information would we be willing to give out? Who would decide what would be said?out? Who would decide what would be said?


A Crisis Communication PhysicalA Crisis Communication Physical5.5.How would we inform our employees, customers How would we inform our employees, customers

and other key audiences and how long would it and other key audiences and how long would it take?take?

6.6.What crises have your competitors had and how What crises have your competitors had and how well would we have done if it had been our well would we have done if it had been our business instead of theirs?business instead of theirs?

7.7.How well did we handle our most negative news How well did we handle our most negative news event that went “public?” What would we do event that went “public?” What would we do differently if we had it to do all over again?differently if we had it to do all over again?

8. How are we using technology? What new 8. How are we using technology? What new technologies would help us respond more technologies would help us respond more effectively in a crisis?effectively in a crisis?

F


ConclusionConclusion Interdisciplinary planning and Interdisciplinary planning and

preparation frees up professionals preparation frees up professionals to respond to those elements of to respond to those elements of the crisis that were unanticipatedthe crisis that were unanticipated

Most crises are “smoldering” and Most crises are “smoldering” and “internal”“internal”

Technology can help be a part of Technology can help be a part of crisis planning and responsecrisis planning and response


Remember -Remember -

One person’s crisis is another’s One person’s crisis is another’s opportunity!opportunity!


Successful Crisis Management

Successful Crisis Management

Questions ?Questions [email protected]@iquest.net

[email protected]@ssfhs.org


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