Bert van walbeek master of disaster

Master of Disaster :

How to become one !

Copyright The Winning Edge

10 lessons to learn :
1 We love crises
2 Definition of crisis
3 We are not prepared
4 Be prepared : Do or Die
5 Manage your risks
6 Anatomy of a crisis
7 Leadership as the key
8 Lessons from the past
9 Lessons for the future
10 Crisis prevention

It can happen to you too …………

Political
Financial
crisis
crisis

Terrorism
Medical crisis crisis
Oil crisis

Lesson 1 :

We love
crises


We love crises ….

Crisis
junkies

We love crises ….

We shoot
ourselves
in the
head to
stop the
headache

We love crises ….
Man is something that
should be overcome.
Zarathustra !

Industry
leaders
Academics Press

Experts
Politicians NTO Copyright The Winning Edge

Lesson 2 :

Definition
of crisis


Definition of crisis :
A crisis is when you can’t
say :
“ let‟s
forget
the
whole
thing ”

Nothing new on the horizon ……..
history repeats itself

Danger/Problem Opportunity

A crisis can be defined as :
“ Any situation which has the potential to
affect long term confidence in a
destination, or an organization and its
products, which can interfere with its
ability to continue operating normally.
Cassedy 1991


Lesson 3 :

We are not
prepared


We are not prepared :
Are you prepared ?
Do you look left and right
when you cross the street ?

Do you check this building„s fire escape ?

What is the emergency number here ?

What is your bloodtype ?

Do you have an I.C.E. number in your mobile ?

The essence of risk management

Risk
Crisis
Disaster

Challenge no. 1

Global Uncertainty


We are not prepared :

Conclusion

Expect the

unexpected

Lesson 4 :

Be prepared
:
Do or Die


Be prepared, Do or Die :

The optimist sees
opportunity in every
danger, the pessimist
sees danger in every
opportunity
Winston Churchill



By the time the
rules of the
game are clear,
the windows of
opportunity
have closed
Santhanam Shekar



Die :
We thought
it wouldn’t
happen to
us ….

Tourism product
providers
CM Plan in your operational
Policy & Procedures ?

Tourism product
buyers
CM as part of your needs
and demands ?

Lesson 5 :

Manage
your risks


Manage your risks :
Man-made
 Aircraft crash
 Assault
 Building fire/collapse
 Civil/political unrest
 Cruise ship / ferry disaster
 Hijacking
 Hostage situations
 Surface transport accident
 War

Natural
 Earthquake
 Fire
 Hurricanes
 Medical epidemic Copyright The Winning Edge

Manage your risks :
Webster's definition of risk:
Risk is the possibility of suffering loss.

 assess continuously
what can go wrong (risks).
 determine what risks
are important to deal with.
 implement strategies
to deal with those risk.


Manage your Wheel of crises
risks : Ivan I.Mitroff
Murat C. Alpaslan
HBR, April 2003

Normal Abnormal
accidents accidents

Natural accidents Copyright The Winning Edge

KPMG’s Risk Preparedness Framework

Risk Evaluation Matrix
High
Treat Terminate
risk risk

Tolerate Transfer
risk risk
Low

Severity
Low High

The Tourist Health and Safety Continuum :
Severity and frequency of incidents
Natural disaster

Terrorism
Morbidity ( death )
Medical ailments,
hospitalization
Crime
Minor illness
Loss of personal affects
Minor incidents


Initiate brainstorms
on risk awareness
Stop saying : “ that is not my job ! “

5 “ safety belts ” you could apply :

1. Where is your computer back-up located ?
2. Do you carry an emergency contact card ?
3. Do you have an life insurance policy ?
4. When was your last medical check up ?
5. Do you have an “ emergency fund “ ?

Create a “crisis” and see what happens !

Initiate brainstorms
on risk awareness

It won‟t happen to us …

If you don‟t
control the
risks, the risks
will control you !

Lesson 6 :

Anatomy
of a crisis


Anatomy of a crisis :

1. The Reduction stage :
detecting early warning signals
2. The Readiness stage :
preparing plans and
running exercises
3. The Response stage :
executing operational and
communication plans
4. The Recovery stage :
returning the organization to
normal after a crisis

Anatomy of a crisis :
The 4 phases :
1.1 Crisis Awareness
1 . Reduction
1 1.2 Political awareness
1.3 Standard Operating Procedures

2.1 Crisis Management Plan
2 Readiness
2. 2.2 Tourism planning
2.3 Health and safety measures

3.1 Emergency response procedures
3.2 Investigation
3 Response
3.
3.3 Family assistance
3.4 Communication

4.1 Business Continuity Plan
4 Recovery
4. 4.2 Human Resources
4.3 Debriefing


Crisis Management
It won‟t happen to us ….

Reduction
Phase 1
The Reduction Phase
Crisis Awareness
Political awareness
Standard Operating Procedures


Reduction

A crisis puts 4 important assets at risk :

Tangible : Employees / Guests
Office / Hotel / Coach
Intangible : Corporate reputation
Brand Image


Anatomy of a crisis
Phase 1 :

Reduction

1.1.1 Identify risk & hazards
1.1 Crisis Awareness 1.1.2 Identify possible impacts
1.1.3 Intelligence collection

1.2.1 Secure political cooperation
1.2 Political awareness 1.2.2 Increase political involvement
1.2.3 Link Tourism and Peace

1.3.1 Anticipate problems
1.3 Standard Operating Procedures 1.3.2 Revise procedures
1.3.3 Enhance staff awareness


Reduction 1.1 Crisis Awareness

1.1.1 Identify risk & hazards

1.1.2 Identify possible impacts

1.1.3 Intelligence collection


Reduction 1.2 Political Awareness

1.2.1 Secure political cooperation

1.2.2 Increase political involvement

1.2.3 Link Tourism and Peace


Reduction 1.3 Standing Operating Procedures

1.3.1 Anticipate problems
1.3.2 Revise procedures
1.3.3 Enhance staff awareness


Crisis Management

Readiness
Phase 2
The Readiness Phase
Crisis Management Plan
Tourism planning
Health and safety measures


Anatomy of a crisis
Phase 2 :

Readiness

2.1.1 Establish Crisis Management team
2.1 Crisis Management Plan 2.1.2 Crisis Management Plan
2.1.3 Simulation Exercises

2.2.1 Create awareness among industry
2.2 Tourism planning 2.2.2 Train staff
2.2.3 Advance decision making

2.3.1 Establish local network
2.3 Health and safety measures 2.3.2 Emergeny services
2.3.3 Hazards handling systems


Lessons to learn
Phase 2 :
"Being Ready"
Businesses
need to evaluate their crisis exposure
develop Strategic Plans,
Operational & Media Action Plans
regularly audit those plans
conduct crisis response exercises
acquire crisis management skills
Managers and staff need
to be psychologically prepared for the impact
and stresses that crisis events impose upon
them

Readiness 2.1 Crisis Management Plan

2.1.1. Establish CM team

2.1.2. Crisis Management Plan

2.1.3. Simulation Exercises


Readiness 2.2 Tourism Planning

2.2.1. Create awareness among industry

2.2.2. Train staff

2.2.3. Advance decision making


Readiness 2.3 Health and Safety measures

2.3.1. Establish local network

2.3.2. Emergency services

2.3.3. Hazards handling systems


Readiness

Crisis Management Planning
A Crisis Management Plan will allow to

 Predict problems

 Categorize steps prior to crisis
 Empower Crisis Management Team
 Allocate specific responsibilities
 Focus on communication,
internal & external
 Make critical decisions beforehand
 Give time to think in tranquility


Crisis Management

Response
Phase 3
The Response Phase
Emergency response procedures
Family assistance
Communication


Anatomy of a crisis
Phase 3 :
Response
3.1.1 Leadership
3.1.2 Crisis response
3.1.3 Internal - External communications
3.1 Emergency response procedures
3.1.4 External suppliers handling
3.1.5 Hospital(s)
3.1.6 Morgue(s)

3.2.1 Crime
3.2.2 Legal & Political
3.2 Investigation
3.2.3 Insurance

3.3.1 Information handling
3.3.2 Transportation
3.3 Family assistance
3.3.3 Accommodation
3.3.4 On site support

3.4.1 Media
3.4.2 Hospital(s)
3.4 Communication 3.4.3 Morgue(s)
3.4.4 Investigation
3.4.5 Government

Response

Crisis Response is dedicated to :
the immediate aftermath of the event,
the response to the impact of a crisis
the sustained efforts during
the course of the emergency.

The emphasis is on:
saving lives,
controlling the situation, and
minimizing the effects of the disaster.
logistics of : rescue teams to the scene
getting medical care
food, water, shelter

Response Response structure

Media Communication
Challenges :
 Better informed than you
 Can create anxiety / panic
 Speculate, report rumors and lay blame
 Cause you to divert from your primary focus
Advantage
 Be a source of information
 Help to get across information
 Reassure the stakeholders
 Portray your position


Media Communication
 Assign press area
 Appoint one main spokesperson
 Have additional expert spokespersons

 Break the news as fast as possible
 Establish the facts early
 Tell the truth

 Be human
 Regular briefings
 Contest rumor


Media Communication guidelines

• Tell it all,
Tell it fast,
Tell the truth.
• Pity,
Praise,
Promise


The Stakeholders wheel
The Role of the Public Sector

Destination Risk & Crisis
Management Plans

The role of the Private Sector

Organization‟s Risk & Crisis
Management Plans

“ Food for thought “

Crisis Management

Recovery
Phase 4
The Recovery Phase
Business Continuity Plan
Human Resources
Debriefing


Anatomy of a crisis
Phase 4 :

Recovery

4.1.1 Rehabilitation
4.1 Business Continuity Plan 4.1.2 Normalization
4.1.3 Expansion

4.2.1 Impact of reduced labor needs
4.2 Human Resources 4.2.2 Motivation and training
4.2.3 Increase crisis awareness

4.3.1 Thank all involved
4.3 Debriefing 4.3.2 Follow up with victims
4.3.3 Update Crisis Management Plan


Recovery

The ultimate assessment can be made
from four measures of recovery :
1. the speed with which an organisation
regains or continues full business
operations
2. the degree to which an organisation
recovers
3. the amount of organisational and
operational improvement added during
recovery
4. the amount of crisis-resistance added
since the crisis arose

Skillful risk & crisis handling

www.pata.org icca@icca.nl

Copyright PATA & ICCA

Lesson 7 :

Leadership
as key ….


Leadership as key :
The Role of Leadership in a Crisis
“ I care, and I am accountable "

Effective leaders during
a crisis must be able to :
 tolerate confusion and hostility,
 structure the decision problem,
 separate what is important
and what is background noise.

Leadership as key :
Crisis Management,
why reinvent the wheel ?
Negative examples Positive
examples

1988

1982 & 1986

1989


Leadership as key :
Team - Coordination
Leader - Supervision

- Spokesperson Operations - Production
CEO issues
- Decisions Director
- Security

Legal - Liability
Marketing - Sales & Distribution
Counsel Issues Issues
Director
- Marketing Issues
- Customer Relations

- Financial
CFO Relations
Public - Media Relations
Relations - External
Communications
Director - Government
- Staff Issues Relations
Personnel - Community Issues
Director - Internal
Communications

Lesson 8 :

Lessons
from the
past


Egypt,
1990 - 1991
The world‘s oldest
travel destination

Reach consumer ?
Advertising ?
Too expensive
Public Relations !
Expensive !


Egypt,
1990 - 1991

Result :
Business back to
normal by June 91

Egypt,
Long term effect :
Emergency PR program on
stand-by
Ready to “go“ within hours

Luxor : Valley of the Kings

Thailand,
May 1992

Blueprint
Back to normal
Press inspections

T C
h o
a n
i s
l u
a m
n e
Clear Thai
d image trips
r
Retailer
Come, See
& Tell

Results :
7,326 articles traced around the world
Air and Hotel part big success,
tour and shopping not
Booking trends back to normal
by August 92
Grateful wholesalers, who
appreciated the support very much
Various awards for the program


Lesson 9 :

Lessons for
the future


We have to face the risks :

“ I have a dream …..”
T ogether
E ach
Nobody is
A chieves perfect,
M ore but a team
can be !

What about SARS ?


W.H.O
Question / challenge authority
CYA bureaucracy
No cooperation with tourism
Perception of illness
99,999999 % of population
free of SARS
99 die of flu in USA everyday
Killer virus : 94 % recovery rate

People :

Panic, Fear, Hysteria and Sensation

What happened
December 26, 2003 ?

In the Bam area ( IRAN ) more
than 30,000 people killed,
30,000 injured, 85 % of buildings
damaged or destroyed and 90 %
infrastructure damaged

Lessons from Indian Ocean Tsunami ?

A role, and
opportunity, for
education and
training

Lesson 10 :

Crisis
Prevention


Crisis Prevention :
Newest Marketing Tool


THE ELEMENTS OF MARKETING PLANNING AS
A CUSTOMER SATISFYING ACTIVITY
PLANNING TO
DEMAND
RECOGNIZING
DEMAND
MEET DEMAND
SATISFYING
DEMAND
STIMULATING
PACKAGING SERVICE

PROMOTION CUSTOMER PRODUCT
PUBLICITY INTELLIGENCE RANGE PLAN
DELIVERY

NEW PRODUCT
FORECASTING
ADVERTISING DEVELOPMENT
DISTRIBUTION

MARKET MARKET SEGMENTATION
PRICING
RESEARCH
SELLING PLANS

CUSTOMER
CUSTOMER
RESEARCH
PRICING
PLANS SELLING
MARKET
MARKET SEGMENTATION

DISTRIBUTION
DEVELOPMENT ADVERTISING
FORECASTING
NEW PRODUCT

DELIVERY
RANGE PLAN INTELLIGENCE
PUBLICITY
CUSTOMER
PRODUCT PROMOTION

DEMAND
SERVICE PACKAGING
STIMULATING
MEET DEMAND
SATISFYING RECOGNIZING
DEMAND
PLANNING TO
DEMAND A CUSTOMER SATISFYING ACTIVITY
THE ELEMENTS OF MARKETING PLANNING AS


Crisis Prevention !


Crisis Prevention !

www.apec.org


Crisis prevention

Newest Marketing Tool
Crisis Management

Crisis Prevention

Reputation Management


Newest marketing tool
Facing the Fear Factor
Destinations
and
Suppliers
Guests, and
customers !

To fear the worst
often cures the worse
Shakespeare

We have to face the risks :


If you don‟t
control the
risks, the risks
will control you !

10 lessons learned :
1 We love crises
2 Definition of crisis
3 We are not prepared
4 Be prepared : Do or Die
5 Manage your risks
6 Anatomy of a crisis
7 Leadership as the key
8 Lessons from the past
9 Lessons for the future
10 Crisis prevention

The bottom line !
If you don't know
where you are going ….
… you will
probably
end up
somewhere
else !!!!

The bottom line !
You are today where
your thoughts have
brought you …..
You will be
tomorrow where
the thoughts of this
lecture take you !

The bottom line

Accentuate
the positive


Our goal is simple …
to help you reach yours !
The Winning Edge :
473, Soi Uahwatanasakul 3
Pattanakarn 58 Road
Bangkok, 10250
Telephone : 0 2321 0522 - 3
Fax : 0 2722 7195
E-mail : bert@twe-winningedge.com
Web site : www.twe-winningedge.com


Bert van walbeek master of disaster

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