Curso Crisis Management - 2011 - versão inglês

By
Milton Roberto de Almeida
mra.almeida@yahoo.com.br
1

Crisis Management

Be prepared!
Expect the Unexpected.

By Milton Roberto de Almeida 2

“When planning for a crisis, it is instructive to recall
that Noah started building the Ark before it started to
rain.”
Norman Augustine

COURSE OBJECTIVES
The purpose of the course is to:

• describe the principles and processes of
crisis and risk management

• give practical guidance on designing a
suitable framework for crisis management

• give practical advice on implementing
enterprise risk management


COURSE CONTENT

• About course

• Vision, Mission, and Quality objectives

• Crisis Management concepts

• Crisis Prevention and Response

• Teamwork Behavior and knowledge


Brief Overview of Crisis Management Literature

Etc.

A key difficulty and major concern is how to move from “the rhetoric of conflict
prevention to one of institutionalized practice” (Ackermann, 2003, p. 339).


Citation analysis is an effective process to identify seminal authors and key
areas of study within a field of literature.

Proposed Research Goals and Questions

The primary research goals of this thesis are as follows:

•Determine seminal authors within of crisis management

•Determine influential manuscripts, journals, books and book series.

•Identify key areas of crisis management literature

•Identify and classify key fields of study within crisis management literature
•Provide a mapping tool to display seminal authors with respect to their
specific field of study within crisis management
•Provide an all accessible, user-friendly interface available to researchers
and individuals interested in crisis management literature


Suggested bibliography

Crisis Management: Planning for the
Inevitable by Steven Fink (Jun 19, 2000)

Managing Crises Before They Happen:
What Every Executive and Manager Needs
to Know about Crisis Management by Ian I.
Mitroff and Gus Anagnos (Jun 5, 2005)

Crisis Leadership Now: A Real-World
Guide to Preparing for Threats, Disaster,
Sabotage, and Scandal by Laurence
Barton (Dec 20, 2007)


Atividade # 1

Meeting opener
exercise

Drawing


EMERGENCY, RISKS, AND CRISIS
MANAGEMENT

EMERGENCY AND RISK MANAGEMENT deal
primarily with NATURAL disasters.

CRISIS MANAGEMENT deals mainly with MAN-MADE
or HUMAN-caused crises, such as:

Computer hacking, environmental contamination,
executive kidnapping, fraud, product tampering,
sexual harassment, and workplace violence.

Ian Mitroff
Managing Crises Before They Happen

Unlike natural disasters, human-caused crises are not
inevitable.

They do not need to happen.

For this reason, the
public is extremely
critical of those
organizations that are
responsible for their
occurrence.

13

Crises are no longer an aberrant, rare,
random, or peripheral feature of today’s
society.

They are built into the very fabric
and fiber of modern societies.

All of us everywhere are impacted daily by
crises larger or small.

Ian Mitroff
Managing Crises Before They Happen

14

The vast majority of organizations and
institutions have not been designed
to antecipate crises or to
manage then effectively once they
have occurred.

Neither the mechanisms nor
the basic skills are in place
for effective Crisis
Management.

15

Most organizations still do not understand the “new management
and thinking skills” required to head off crises.

CM is broader than dealing with
crises alone.

It provides a unique and critical
perspective on the new
management skills and the new
types of organizations that will
be required in the 21st century.

Ian Mitroff
Managing crises before they happen

16

ORGANIZATIONAL DEFENSE MECHANISMS
By Ian Mitroff

(Denial)

• Crises only happen to others. We are
invulnerable.

(Disavowal)

• Crises happen, but their impact on our organization is small.

(Idealization)

• Crises do not happen to good organizations

17

(Grandiosity)

• We are so big and
powerful that we will
be protected from
crises.

(Projection)

• If a crisis happens, it must be because someone else is bad or
out to get us.

18

(Intellectualization)

• We don’t have to worry about crises
since the probabilities of their occurring
are too small.

• Before a crisis can be taken seriously,
one would have to measure precisely
its odds of occurrence and its
consequences

(Compartmentalization)

• Crises cannot affect the whole of
our organization since the parts
are independent one of another.

19

CONFORT TIME

RECOVERY

BUSINESS CRISIS: RESPONSE (If a business
DEVELOPMENT A rupture or is prepared for
changing crisis)
moment.

Webster’s defines a CRISIS as a BUSINESS DIES
“turning point for BETTER or
WORSE”; as a ‘decisive moment” or
“crucial time.”


DEFINING CRISIS MANAGEMENT

It is a discipline within the
Crisis management is the broader context of
process by which an management consisting of
organization deals with a skills and techniques required
major event that threatens to identify, assess,
to harm the organization, its understand, and cope with a
stakeholders, or the general serious situation, especially
public. from the moment it first
occurs to the point that
recovery procedures start.


Crisis management is
defined as helping avert crises
or more effectively manage
those that occur.


Crisis Management Objectives
General objectives of any interorganizational crisis response
network:

PREPARATION
Providing the
planning, RESPONSE WISDOM
training, and Actually Learning
ANTICIPATION implementing tpgether from
collective
A commitment the collective the event in
responsibilities
to analyzing, resolution arm order to prevent,
prior to a crisis.
attempeting to when a crisis lesson the
predict, occurs. severity of, or
forewarn, and improve upon
steer clear of responses to
emerging future crises.
crises.

23

Crisis Management framework

CRISIS

Prevention Response Recovery

OBJECTIVES - DOCTRINES
LEADERSHIP Rules to follow ORGANIZATION
Responsibility Structure and Processes
Performance
Architecture
CULTURE TRAINING
Values, behaviours RESOURCES Learning
People, Money, Equipments


Crisis Management

Five-phase sequence describes how crisis are handled among
“best case” organizations or networks.

1 – Signal detection phase

2 – Preparation

3 – Damage containment

4 – Recovery

5 - Learning

25

Crisis Variables
Intensity

Refers to the number of problems evident in a particular crisis. Intensity
measures the number, not the variety of types, of problems encountered.

Complexity

A crisis’s complexity rating measures the number of dimensions that a
crisis crosses. Complexity is concerned with the different types of
problems in the same emergency.

Familiarity

The familiarity rating of a crisis is determined by the frequency of
occurrence of the particular crisis in the resolution network.

Michael J. Hillyard
Public Crisis Management
26

WHY CRISIS ARE INEVITABLE AND
PERMANENT FEATURE OF
MODERN SOCIETIES
Changes never stop.
We live in a world:
•Political
•Volatile.
•Economic
•Uncertain.
•Military
•Complex •Social

•Ambiguous. •Technology
•Environment


THREATS


Sudden Crisis
A sudden crisis is defined as:

A disruption in the company's
business which occurs without warning and
is likely to generate news coverage,
including fires, explosions, natural
disasters and workplace violence and may
adversely impact:

•Employees, investors, customers, suppliers or other
publics
•Offices, plants, franchises or other business assets
•Revenues, net income, stock price, etc.
•Reputation--and ultimately the good will listed as an
asset on the balance sheet


Sudden Crisis

A sudden crisis may be:

a. A business-related accident resulting in significant
property damage that will disrupt normal business
operations

b. The death or serious illness or injury of a manager,
employee, contractor, customer, visitor, etc. as the result
of a business-related accident

c. The sudden death or incapacitation of a key executive

d. Discharge of hazardous chemicals or other materials
into the environment


Sudden Crisis

e. Accidents that cause the disruption of
telephone or utility service

f. Significant reduction in utilities or vital
services needed to conduct business

g. Any natural disaster that disrupts
operations, endangers employees

h. Unexpected job action or labor
disruption

i.. Workplace violence involving
employees/family members or customers


Smoldering Crisis

A smoldering crisis is defined as:

Any serious business problem
that is not generally known
within or without the company,
which may generate negative
news coverage if or when it goes
"public" and could result in fines,
penalties, legal damage awards,
unbudgeted expenses and other
costs


a. Sting operation by a news organization or government
agency
Examples of the
types of b. Safety violations which could result in fines or legal action
smoldering
business crises c. Customer allegations of overcharging or other improper
that would conduct
prompt a call to
the Crisis d. Investigation by a federal, state or local government
Management agency
Team would
include: e. Action by a disgruntled employee such as serious threats
or whistleblowing

f. Indications of significant legal/judicial/regulatory action
against the business

g. Discovery of serious internal problems that will have to be
disclosed to employees, investors, customers, vendors and/or
government officials.


In some instances crisis situations may be either sudden or smoldering,
depending on the amount of advance notice and the chain of events in the
crisis. Examples would include:

Anonymous accusations

Competitive misinformation

Confidential information disclosed

Equipment, product or service sabotage

Misuse of chemical products

Industrial espionage

Disgruntled employee threats

Investigative reporter contact

http://www.crisisexperts.com/crisisdef_main.htm
34

Employee death or serious injury
Sexual harassment allegation
Employee involved in a scandal
Special interest group attack
Labor problems
Strike, job action or work
Extortion threat stoppage
Security leak or problem Terrorism threat or action
False accusations Illegal or unethical behavior of an
employee
Severe weather impact on
business Major equipment malfunction
Incorrect installation of Nearby neighbor, business
equipment protest

http://www.crisisexperts.com/crisisdef_main.htm

35

Myths in Business Crisis Management
The stereotype of business crises is industrial accidents, oil spills and
bizarre crimes like terrorist bombings or the Tylenol incident. ICM's analysis
of business crises since 1990 indicates these 'no-warning' crises are the
minority. The majority are smoldering crises. In other words management
knows about them before they go public.

http://www.crisisexperts.com/myths_main.htm


Another fallacy is that most crises are caused by employee errors or natural
disasters. The reality is that most newsworthy business crises are the
results of management decisions, actions or inaction.

http://www.crisisexperts.com/myths_main.htm 37

Crisis Categories Compared 1990 – 2009 (% of total crises each year)
1990 2002 2005 2009
Catastrophes 5.5 4.0 14.0 7.0
Environmental 7.8 2.0 2.0 2.0
Class Action Lawsuits 2.2 20.0 13.0 7.0
Consumer Activism 2.8 2.0 7.0 9.0
Defects & Recalls 5.4 13.0 3.0 8.0
Discrimination 3.3 3.0 3.0 3.0
Executive Dismissal 1.3 1.0 2.0 1.0
Financial Damages 4.2 3.0 4.0 5.0
Hostile Takeover 2.6 1.0 1.0 0.0
Labor Disputes 10.3 11.0 9.0 8.0
Mismanagement 24.1 11.0 9.0 16.0
Sexual Harassment .4 1.0 1.0 1.0
Whistle Blowers 1.1 1.0 1.0 1.0
White Collar Crime 20.4 14.0 18.0 18.0
Casualty Accidents 4.8 4.0 7.0 11.0
Workplace Violence 3.8 11.0 3.0 4.0

http://www.crisisexperts.com/myths_main.htm

The accident had a large influence
on the industry, particularly in the
area of communication.

Less experienced flight crew
members were encouraged to
challenge their captains when they
believed something was not correct,
and captains were instructed to
listen to their crew and evaluate all
The Tenerife airport disaster occurred decisions in light of crew concerns.
on March 27, 1977, when two Boeing This concept would later be
747 passenger aircraft collided on the expanded into what is known today
runway of Los Rodeos Airport (now
as Crew Resource Management.
known as Tenerife North Airport) on the
Spanish island of Tenerife, one of the CRM training is now mandatory for
Canary Islands. With a total of 583 all airline pilots.
fatalities, the crash is the deadliest
accident in aviation history.


TEAM RESOURCES MANAGEMENT
The offshore oil industry has traditionally functioned
with a teamwork culture and many operations are
managed by crews, shifts and groups working
together.

This course is based in a particular type of crisis
management and operational philosophy and team
training called crew resource management (CRM)
which was developed by the aviation industry for
flight deck crews but which is now being used in
other domains, such as in merchant navy ships (e.g.
Braathens-SAFE) and hospital operating theatres.

CRM now is called, for several industries, TRM –
Team Resources Management


A US Airways jetliner crashed into the frigid Hudson River after a collision
with a flock of birds disabled both its engines, sending more than 150
passengers and crew members scrambling onto rescue boats. Flight 1549
had just taken off from LaGuardia Airport en route to Charlotte, N.C., when
the crash occurred in the river near 48th Street in midtown Manhattan.
Miraculously, there were no deaths or serious injuries.

Was this luck? Was God
looking over the crew and
patients on board? Maybe.
But why did this event have
a happy ending? Crew
Resource Management.


According to Wikipedia, Crew (or Cockpit) Resource Management
(CRM) training originated from a NASA workshop in 1979 that focused
on improving air safety.

The CRM training approach has been
adapted for use in industrial settings
such as nuclear plants and offshore oil
installations, particularly in control
rooms and emergency command
centres.

In essence, CRM involves enhancing
team members' understanding of
human performance, in particular
the social and cognitive aspects of
effective teamwork and good
decision making.


CRM beyond aviation
Further evidence of the success of CRM comes from the Danish
company Maersk,. They introduced Crew Resource Management for
their mariners in 1994, and have been running Rig Crew Resource
Management since 1997 (Byrdorf, 1998). Incidents and accidents in
Maersk shipping company have decreased by a third from one
major accident per 30 ship years in 1992 (before the introduction of
CRM training) to one major accident per 90 ship years in 1996 (after
the introduction of CRM training).

In addition, at the beginning of 1998 all insurance premiums were
lowered by 15 percent. They attribute this reduction in accidents and
incidents to combined use of CRM and simulator training. CRM
training has been adopted by a number of other professions
including anaesthetists (Howard et al., 1992), air traffic control, the
nuclear power industry (Harrington & Kello, 1991), and aviation
maintenance (Marx & Graeber, 1994).

SENSE OF MISSION

WORKER

PROFESSIONAL PERSONALITY
KNOWLEDGE

BEHAVIOR


THE
CRISIS-
READY
COMPANY


Is your company
prepared for crises?

Only 6% survived after a disaster.

Are you prepared?


Crisis and Organizational Resilience

NORMAL SITUATION

CRISIS SITUATION

50

CRISIS FORECASTING
“Everyone talks about the weather, but no one does anything
about it” - Mark Twain

What are the five worst things that could
happen to your organization?

1 _______________________
2 _______________________
3 _______________________
4 _______________________
5 _______________________


THINKING FAR OUTSIDE OF THE
BOXES


Exercício

X
Adicionando UMA LINHA, transformar o X
em...

53

ASSESSING YOUR CRISIS RISK


SITUATIONAL AWARENESS


PERCEPTION AND STRATEGIC THINKING

PERCEPTION Like a filter, mental processes
build a perception of reality

Experience, Education,
Values, Culture,
Organizational rules,
Strategic thinking,
Quality of information

Ex.: Ciclone Catarina
REALITY


Do you see the old or the young
woman?
57

The wheel is
moving, isn’t it?


Wrong perceptions may kill people. There are no
threats.
O Ciclone ou Furacão Catarina

29/Março/2004 – O ciclone extratropical Catarina, que
atingiu a região sul do país, o fez com a intensidade
de um furacão. Segundo autoridades locais, sua
passagem deixou pelo menos 3 mortos e 100 mil
casas destruídas.

(...)

Segundo a GloboNews, a Defesa Civil de Torres
havia proposto a evacuação da cidade, mas o
Ministro Ciro Gomes, da Integração Nacional, não
autorizou, dizendo que os ventos seriam mais
fracos que o previsto. Não foram.

Fonte: www.apolo11.com/furacao_catarina.php


Wrong
perceptions may
kill you.

LOOK OUT!


TEAM, TEAMWORK AND
LEADERSHIP


TEAMWORK

The notion that effective
teamwork is an essential
component of organizational
performance has now
pervaded management
practice, and teams, of
different types and varying
degrees of competence, can
be found in abundance from
the shopfloor to the
boardroom.


LEADERSHIP

Leadership has been
considered one of the
most important
elements affecting
organizational
performance.


Leadership as an
influence process
Influence may be defined as the
ability of one person to alter the
behavior of another person.

This influence may be formal or
informal (not prescribed by the
organization in terms of position
or authority.


Toxic leaders kill “I’m tired of being the only one who does
teams and anything!”
“You’re incompetent.”
organizations! “If you make me look bad again, I’ll make your life
miserable.”
“You’re not a team player.”


DECISION MAKING


Planning Framework:
a decision aid
Situational
Awareness Doctrine

Organization
Company
Resources
Training

Leadership
Scenarios

Materials

Strategic or Personnel
Operational
Decision Facilities


COMMUNICATION

Communication is considered
as na interpersonal process
that results in the exchange of
information.

Communication is necessary
for effective decision making.
It is fundamental to the
implementation of decisions.


ASSERTIVENESS


There are four communication styles that exist along a continuum from which
you can choose no matter the situation. Each style honors different parties’ rights
and each brings about a different outcome.

1.Passive: Not standing up for yourself, or ineffectively doing so that your rights
are easily violated; you allow others' rights to be more important than your own
and cave in to others’ wants and needs denying your own;

2.Aggressive: Standing up for yourself in a way that violates the rights of
others; you’re concerned with getting what you want without concern about others
getting what they need;

3.Passive-aggressive: The indirect expression of anger or frustration; it
appears passive and non-hostile but you sabotage the other person; you’re too
indirect to assert your own needs so communicate in a manipulative way, like
through gossiping in a covert attempt to defend your rights;

4.Assertive: Standing up for yourself in a way that respects the rights of others;
you’re direct, honest and appropriate in expressing your feelings and opinions;


Assertive people accept
others’ rights are as
important to them as
yours are to you.

When rights collide the
assertive assumption is
that you'll negotiate in a
way that helps everyone
get their most important
needs met and their
rights respected, which is
easier said than done.


RESILIENCE AND FIRST
RESPONDERS


STRESS


SIMULATIONS
A simulation can take many forms, from
real-life case studies to an engine failure
on a passenger jet.


TABLETOP EXERCISES - TTX
A tabletop exercise simulates an
emergency situation in an informal, stress-
free environment. The participants can be
either people on a decision-making level,
veterans of the organization, or new
members, who gather around a table to
discuss general problems and procedures
in the context of an emergency scenario.
The focus is on training and familiarization
with roles, procedures, or responsibilities.
No plan? No tools? No problem! A TTX is
also a great way to build a response plan
based on input from the exercise and can
be accomplished with some basic
preparation (just like a lesson plan) and
without any special equipment.


Designing a TTX is Simple!

There are eight simple steps you can use to design a TTX:

Assess your needs

Define the scope

Write a statement of purpose

Define TTX objectives

Compose a narrative

Write major and detailed messages

List expected actions

Prepare messages


AAR – AFTER ACTION REVIEW


http://www.armystudyguide.com/


BEST PRACTICES DISCUSSION
GROUPS


Never


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