Corporate Social Responsibility and Crisis Communication: Nike
team response: nike ’s process -driven crisis communications · nike ’s process -driven crisis...
Transcript of team response: nike ’s process -driven crisis communications · nike ’s process -driven crisis...
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team response: team response:
nikenike’’s processs process--driven driven
crisis crisis
communicationscommunications
Kate Willis, Nike, Inc.Kate Willis, Nike, Inc.
Global Business ContinuityGlobal Business Continuity
why crisis communications?why crisis communications?
• Biggest challenges in managing an incident:
– Communications 62%
– Tracking changing information 18%
– Geographically dispersed core recovery team
members 9%
– Capturing information for lessons learned 6%
– Other 6%
executivesexecutives’’ view of company riskview of company risk
19%
13%1%
67%
Increased Not Changed
Decreased Don't Know
How has the overall
level of risk faced by
companies changed over
the last 2-3 years?
Source: “Companies on Risk,” Ernst & Young, 2005; Treasury
Leadership Council; Communications Executive Council Research.
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increasing effectiveness mandatoryincreasing effectiveness mandatory
71%
25%
4%
Far More Important
Somewhat More Important
Neither More Nor Less Important
Source: “Companies on Risk,” Ernst & Young, 2005; Treasury
Leadership Council; Communications Executive Council Research.
The importance of
communicating effectively
during crisis has grown in
recent years, a reflection of a
heightened sensitivity to risk
by senior management and
investors.
““stock shockstock shock””
• Compared to previous decades, in recent years markets
have been quick to punish companies for missteps.
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Compared to previous decades, recent
years’ markets have been quick to punish
companies for missteps.
Source: “Companies on Risk,” Ernst & Young, 2005; Treasury Leadership Council; Communications
Executive Council Research.
need to evolve and accelerateneed to evolve and accelerate
Changes in the business, media
and stakeholder environments
are pushing the need for faster
identification of crisis,
streamlining access to crisis-
relevant information, and
accelerating the understanding
of the “crisis content” and how
stakeholders might respond.
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eoc eoc ““information managementinformation management””
• Expanded Roles– Call Center
– GIS Information Store
– Media Monitoring
– Issue Resolution
• Expanded Vulnerabilities– 24/7/365 World
– “Immediate Media”
• Expanded Focus Areas– Issues Management
– HR Communications
– Operational Communications
– Executive Updates
expan
ded ro
les
exp
and
ed
vuln
era
bili
ties
traditional
issues mgmt
expanded focus areas
system characteristicssystem characteristics
Crisis communication systems may vary across
companies, but are characterized by three features:
• An information infrastructure for channeling critical information to the decision makers faster.
• Embedded “triggers” to set a crisis response in motion faster.
• A crisis knowledge base to bring the company’s experience to bear immediately and shorten the learning curve of those responding.
GlobalGlobal
Program Program
FrameworkFramework
Integrated Integrated
Response Response
Infrastructure Infrastructure
Activation Activation
Sensors and Sensors and
TriggersTriggers
Knowledge Knowledge
Capital and Capital and
Issues Mgmt.Issues Mgmt.
success factorssuccess factors
Process-Driven BackboneProcessProcess--Driven BackboneDriven Backbone
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program frameworkprogram framework
crisis managementcrisis managementcrisis management
ObjectivesObjectives
StandardsStandards
TemplatesTemplates
ToolsTools
TrainingTraining
TestingTesting
MetricsMetrics
ReportingReporting
Business
Recovery
Programs
BusinessBusiness
Recovery Recovery
ProgramsPrograms
planningplanning
Business RecoveryBusiness RecoveryBusiness Recovery
Immediate ResponseImmediate ResponseImmediate Response
MinutesMinutes HoursHours DaysDays WeeksWeeks MonthsMonths
Immediate
Response
Programs
Immediate Immediate
Response Response
ProgramsPrograms
crisiscrisis
business continuitybusiness continuity
executionexecution
crisis management infrastructurecrisis management infrastructure
FACILITY TEAMS (IMMEDIATE RESPONSE AND BUSINESS RECOVERY)FACILITY TEAMS (IMMEDIATE RESPONSE AND BUSINESS RECOVERY)FACILITY TEAMS (IMMEDIATE RESPONSE AND BUSINESS RECOVERY)
FACILITY
EVACUATION
INTERNAL FIRST
RESPONSE
EXTERNAL FIRST
RESPONSE
FIRST DAMAGE
ASSESSMENTOTHER FUNCTIONAL AREA
DISTRIBUTION
CENTER
EXECUTIVE CRISIS MANAGEMENT TEAMEXECUTIVE CRISIS MANAGEMENT TEAMEXECUTIVE CRISIS MANAGEMENT TEAM
CORPORATE ECMTCORPORATE ECMT US; EMEA; APAC; Americas; and/or Sub ECMT
Footwear; Apparel; Equipment; and/or Golf ECMTIncident Management Communications Business Recovery
SITE (COUNTRY) CRISIS MANAGEMENT TEAMSITE (COUNTRY) CRISIS MANAGEMENT TEAMSITE (COUNTRY) CRISIS MANAGEMENT TEAM
Incident Management Communications Business Recovery
OPERATIONAL CRISIS MANAGEMENT TEAMOPERATIONAL CRISIS MANAGEMENT TEAMOPERATIONAL CRISIS MANAGEMENT TEAM
CORPORATE OCMTCORPORATE OCMT US; EMEA; APAC; Americas; and/or Sub OCMT
Footwear; Apparel; Equipment; and/or Golf OCMTIncident Management Communications Business Recovery
NIKE BOARD OF DIRECTORSNIKE BOARD OF DIRECTORSNIKE BOARD OF DIRECTORS
response infrastructure: peopleresponse infrastructure: people
OCMT Facilitator (Lead)
EOC Set Up & Support Team
Human Resources
Communications/Issues Mgt
Global Operations & Supply Chain
EOC Information Office
Global Information Technology
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““activation sensorsactivation sensors”” –– our extended teamour extended team
Connected to our global
businesses, we monitor a
virtual radar screen 24x7 to
detect crisis signals as early
as possible.
Any event, issue or
threat which may cause
irreparable loss,
damage, or
impairment to the
human, physical,
financial
or brand assets of Nike.
TreasuryTreasury
Human ResourcesHuman Resources
Corporate
Responsibility
Corporate
Responsibility
Risk ManagementRisk Management
LegalLegal
Security/Brand
Protection
Security/Brand
ProtectionConsumer Affairs
Consumer Affairs
Internal AuditInternal Audit
Travel & EventsTravel & Events
Issues ManagementIssues Management
Investor RelationsInvestor Relations
Information TechnologyInformation TechnologyTreasury
Human ResourcesCorporate Responsibility
Risk Management
Legal
Security/Brand Protection Consumer Affairs
Internal Audit
Travel & Events
Issues Management Investor Relations Information Technology
many teams monitor & manage riskmany teams monitor & manage risk
leadership and issue sensitivityleadership and issue sensitivity
•Leading companies are broadening management understanding of the potential impact of seemingly isolated incidents and encouraging a heightened degree of responsibility for detection.
•Key goals are to provide issues management training and proactively set up processes that remove “choke points” in the information flow, so decision-makers can act quickly.
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process: activation triggersprocess: activation triggers
• Minor Brand impact
• Local public disclosure only, if any
• Product recall not likely
• Market share loss not likely
• Minor legal impact
• Small claims likely
• Demands likely
• Minor reach of law or regulation
• Minor impact to environment
• Localized cleanup required
• No impact to local community
• No EPA/ Government involvement
• Minor facility damage
• Relocation not required
• Minor repairs required
• Disruption up to 1 week
• No fatalities
• Minor injuries
• Range of $___ to $___
• Not a material event
• No disclosure required
• Moderate Brand impact
• National/local public disclosure only
• Product recall possible
• Market share loss possible or probable
• Moderate legal impact
• Lawsuits likely
• Damages likely
• Breach of law or regulation
• Moderate impact to environment
• Some cleanup required
• May impact to local community
• No EPA/ Government involvement
• Moderate facility damage
• Partial relocation possible
• Substantial repairs required
• Disruption up to 4 weeks
• Single fatality
• Serious injuries
• Range of $___ to $___
• May be material event
• May require earnings disclosure
• Major to Catastrophic
• Brand impact
• Global/Regional public disclosure
• Product recall likely
• Market share loss in specific categories
• Major legal impact
• Class action lawsuits
• Lawsuits possible
• Major damages possible
• Significant breach of law or regulation
• Major impact to environment/ environmental disaster
• Significant cleanup required
• Impact to local community
• EPA/ Government involved
• Significant facility damage
• Temporary or permanent relocation required
• Rebuilding required
• Disruption > 3 months
• Multiple fatalities
• Multiple serious injuries
• Greater than $_____
• Material event
• Requires earnings disclosure or pre-announcement
BRANDLEGALENVIRONMENTPROPERTYHUMANFINANCIAL
process: activation launch process: activation launch Leverages Existing CERT SolutionsLeverages Existing CERT Solutions
Level 2Level 1
intake process: multiple filtersintake process: multiple filters
Level 3
Knowledge-driven Decision-drivenProcess-driven
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intake process: a deeper viewintake process: a deeper view
External Incoming Call
ConsumerRelated Call?
Call Routed to Consumer AffairsOR Consumer
V-Mail Message *
Customer/ RetailerRelatedCall?
Call Routed toCustomer Service OR Consumer
V-Mail Message *
EOCCall CenterOperational?
Routed toCentral
Voicemail Box *
ConsumerV-Mail
Message *
MediaV-Mail
Message *
EmployeeV-Mail
Message *
Call Routed toEOC Call Center
ExistingProcedure,Statement,or Policy?
Call to Level 2to address
issue
Reception Operational?
Call Routed toOCMT forProcedure,
Statement, orPolicy creation
Is issueresolved?
Report resolution asappropriate
EOC StatusReport
EmployeeVoicemail
Website
Y
Y
YY
YY
NN
N
N N N
Process-driven
Knowledge-driven
Decision-driven
process: level 1 process: level 1
• Company Intake
• Tactical
• Process-driven
Leverages reception, call centers, and other existing company intake capabilities
process: level 2 process: level 2
• EOC Intake
• Operational
• Knowledge-driven
Leverages company knowledge capital, problem-solving skill sets, and adaptation of existing knowledge management tools
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process: level 3process: level 3
• OCMT Processing
• Strategic
• Decision-driven
Leverages executive decision-making and complex issues management capabilities for high-impact enterprise events
process level 3:process level 3:Leverages functional expertiseLeverages functional expertise
OC
MT
(Q
uo
rum
)
HR
GIT
Communications
Operations
Cri
sis
HR
GIT
Communications
Operations
OCMT
SCMT
Joint Call
CORP
OCMT
Impact
OCMT
SCMT
Facility
CORP
OCMT
Impact
OCMT
SCMT
Facility
OCMT
SCMT
Joint Call
OCMT
SCMT
Joint Call
Process-Driven BackboneProcessProcess--Driven BackboneDriven Backbone
process level 3 is multiprocess level 3 is multi--layeredlayered
• Site
• Operational
• Executive
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response infrastructure: toolsresponse infrastructure: tools
Automated
Notification System
Crisis Management
Dashboard
Standardized Crisis
Management Playbook
integrating people & tools through process integrating people & tools through process
Integrated Integrated
ToolsTools
People and People and
TrainingTraining
Vision and Vision and
Standards Standards
GlobalGlobal
Program Program
FrameworkFramework
Process-Driven BackboneProcessProcess--Driven BackboneDriven Backbone
BUSINESS CONTINUITY
kate williskate willis
global business continuity managerglobal business continuity manager
nike, inc.nike, inc.One Bowerman Drive
Beaverton, OR 97005
503.671.4710