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Crisis Management - Introduction
Prithwi Tilak [email protected]/0776660888
Before During After1. Crisis Types2. Crisis Mechanisms3. Crisis Systems4. Crisis Stakeholders Expose Weaknesses Build Capabilities Enact Capabilities Learn Redesign To Enact Is NOT To React To Enact Is To Be Proactive
1. Crisis Types1. Crisis Risks
The Managers Crisis Index :The Lukaszewski GroupPotential Crisis SituationsAAbortionAccidentsAdverse Government ActionsAIDSAnonymous AccusersWWhistleblowersOver 120 items & the list seems endless!!Situation Hopeless??
CRISIS FAMILIESEXT ECON ATTACKSEXT INFO HR / REP PSYCHOOCCUP-HEALTHMEGA-DAMAGEORG / SOCTECH / ECONBREAKS CRIMINALLEGALNATURAL DISASTERSGOVT REGULATORY
Breaks
Loss of Key Equipment, Plants, SuppliesBreakdown of Key Equipment, PlantsLoss of Key FacilitiesMajor Plant Disruption
Psycho/Criminal
Product TamperingKidnappingHostage TakingTerrorismWorkplace Violence
Economic
Labor StrikesLabor UnrestLabor ShortageMajor Decline in Stock Price and FluctuationsMarket CrashDecline in Major Earnings
Human Resource
Loss of Key Executives, Personnel Rise in AbsenteeismRise in Vandalism and AccidentsWorkplace Violence
Informational
Loss of Proprietary and Confidential InformationFalse InformationTampering with Computer RecordsLoss of Key Stakeholder Information
Natural
EarthquakesFiresFloodsExplosionsTyphoonsHurricanes
Reputation
SlanderGossipSick JokesRumorsDamage to Corporate ReputationTampering with Corporate Logos
CRISIS FAMILIESEXT ECON ATTACKSEXT INFO HR / REP PSYCHOOCCUP-HEALTHMEGA-DAMAGEORG / SOCTECH / ECONBREAKS CRIMINALLEGALNATURAL DISASTERSGOVT REGULATORYTFNORMALABNORMAL
CRISIS FAMILIESEXT ECON ATTACKSEXT INFO HR / REP PSYCHOOCCUP-HEALTHMEGA-DAMAGEORG / SOCTECH / ECONBREAKS CRIMINALLEGALNATURAL DISASTERSGOVT REGULATORYTFNORMALABNORMALNS
Which Family Is Planned For Most and Why?
CRISIS FAMILIESEXT ECON ATTACKSEXT INFO HR / REP PSYCHOOCCUP-HEALTHMEGA-DAMAGEORG / SOCTECH / ECONBREAKS CRIMINALLEGALNATURAL DISASTERSGOVT REGULATORYTFBREAKSNORMALABNORMALNS
Which Family Is Planned For Least and Why?
CRISIS FAMILIESEXT ECON ATTACKSEXT INFO HR / REP PSYCHOOCCUP-HEALTHMEGA-DAMAGEORG / SOCTECH / ECONBREAKSLEGALNATURAL DISASTERSGOVT REGULATORYTF PSYCHONORMALABNORMALNS CRIMINAL
2. InterventionsCrisis Mechanisms2. CRISIS PHASES
The 6 Phases of CM Signal DetectionSDMs for:Any Crises?Build on Existing Data Bases?Integrated?Types of Signals, Noise?Blockers?Transmitted to Whom?Actions?Internal Assassin Team Exercise?
------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?
Types of SignalsExternalInternalPeopleTechnicalCommunitiesSpecial InterestsMediaConsumersRemote SensingGovernment MonitoringIndustryScientific ResearchGossip / RumorsPersonal NetworksThe CulturePersonal Data BasesPCsIT
SignalsTypesEconomicReputationalInternal External Tech People Tech People ????????
The 6 Phases of CM Probing/ Signal DetectionMandatory?Formal Failure Analyses?Rewarded?Blame the Messenger?Organizational Status?Preparation
The 6 Phases of CM Signal Detection Damage Containment Damage ContainmentMaintained? Updated?APPROPRIATE TYPES? Physically Contain? Buffer? Wall Off? Disperse? Decay? Neutralize? Treat? Convert? Dilute? Reduce Concentration? Deflect? Redirect? Probing/Preparation
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?
The 6 Phases of CM Signal Detection Damage ContainmentBusiness Recovery Damage ContainmentBusiness ContinuityMinimum Services?Most Important Stakeholders?Off-site, On-Site?Backups?Hot/Cold Sites? Probing/Preparation
The 6 Phases of CM Probing/Preparation Signal Detection Damage ContainmentBusiness RecoveryNo-Fault Learning Damage ContainmentFormal Reviews?Near Misses?No Blame?Generalize Learning?
The 6 Phases of CM Probing/Preparation Signal Detection Damage ContainmentBusiness RecoveryNo-Fault Learning Redesign Damage ContainmentActually Implement Changes?
The 6 Phases of CM Probing/Preparation Signal Detection Damage ContainmentBusiness RecoveryNo-Fault Learning Redesign Damage ContainmentPROACTIVE REACTIVEINTERACTIVE
3. Root Causes3. CRISIS SYSTEMS
SYSTEMS1. Technology5. Top Mgt Psychology4. Culture3. Human Factors2. Org Structure12345
Critical Issues1. Technology Complexity Design Knowledge Age / Standardization Controls / Risks2. Org Structure Layers Rewards Jobs Information Channels Business Strategies4. Org Culture Safety : Crisis Prepared Crisis Prone3. Human Factors Operator Interface Org Interface5. Top Mgt Psychology Decision Styles Risk Conflict Styles Family History Education
The Systems Dynamics of BHOPALInitial Crisis: -$Poor DesignPoor MaintenanceLow MoralePoor Safety StandardsPoor InfrastructurePoor SafetyThe Final CrisisCost-Cutting
Organizational Issues Well-Trained CM Team?Appropriate Functions?Facilitate?Conflict Management?Org Flexibility?Share Resources?
ORGANIZATIONAL CULTUREDangerous Rationalizations
Our size will protect us.Excellent companies dont have crises.Our location will protect us.Certain crises only happen to others.If a crisis happens, someone will rescue us.CM is someone elses responsibility.Each crisis is so unique that it is pointless to prepare.OVER 30 KEY RATIONALIZATIONS!!!
Shared Freudian Defense Mechanisms1. Denial2. Disavowal3. Idealization4. Grandiosity5. Projection6. Intellectualization7. Compartmentalization1. Invulnerability2. Impacts Negligible3. We Dont Have Problems4. Were Big & Powerful5. Someone Else to Blame6. Probabilities Small7. Cant Affect the Whole System
IndividualOrganization
The Impact of CultureCM PreparationNumber of Dangerous Rationalizations
4. Affected Parties4. STAKEHOLDERS
Stakeholder AnalysisINTERNATIONALCOREEXTERNALNATIONALINTERNALBELIEFSPOWERVALUESRESOURCESINFLUENCECULTURALIIIIIIIIV
Crisis Stakeholders OrganizationEmployeesCompetitionTop ManagementMediaSpecial InterestsGovernmentsPower/ ReputationInformationResourcesInfluenceBanksUnions
Stakeholder Analysis
Least ImportantMost ImportantCertainUncertainScientific ReputationEmployee LoyaltySister Organizations