Crisis management - the capability gap

Crisis management ‘the capability gap’

Presented by Gareth Jones MSc, MBCI

6 November 2013

Today

World-class Accepted Limited Ad-hoc

• Leadership • Teams • Plan • Crisis

comms plan

• Notification • Rooms • Exercise • Some key

risk plans REACTIVE?

What percentage of major organisations and institutions have these

basics in place?

Accepted practice is not

good enough to meet todays environment?

– who is world class and what do they do?

What is the requirement?

What are the

trends, issues &

challenges?

Copyright Crisisinterface Limited 2013 Gareth Jones [email protected] 0044(0) 7880 313618

mailto:[email protected]

extinction, damaged, ‘zombies’, flourish, winners, losers,

investigation, review, safety committee, retrench, refinance, death spiral, job losses, public inquiry,

management change, step-down, people dismissal,

forced strategy change, forced spend, remediation, fines, penalty, legal, law,

apologies, insource, new risk management system, change PR

agency, head of comms sacked, social media arrangements, soul search, build bridges,

competitive advantage

Trends – post crisis



Trends – turbulence ahead

What makes the world seem riskier today are the ways in which interconnected risks can amplify, aggregate effects and the speed at which risks can spread throughout the world, disrupt tightly coupled systems, or become known immediately to millions of people or markets – almost instantaneously via the internet and broadcast media. Source: WEF: Global Risks to the Business Environment 2005

Source: WEF Global Risks 2013:



Trends – try our global shock

Issues – the big ones

Turbulence. More turbulence = requirement for effective CM in competitive environment more pressing? Turbulence & volatility = risk and opportunity

Effectiveness of crisis management arrangements. Most organisations not prepared. Current practice weak in delivering effective and reliable response mechanism to meet complexity of interconnected world

Experience gap. Modern management not experienced in crisis = gap between requirement and appetite to address crisis management as a basic or advanced business practice - unless been through a crisis! Value at risk not understood

Web 2.0 and new media complexity. There are significant implications on crisis management planning and how this changes requirements? Complexity and transparency expectations

Speed of everything. Pace of business fast and increasing. Unless detected - proactive intervention cannot take place – prompting need for rapid strategy generation supported by situation awareness, collaboration and decision support to meet the challenge



Acknowledgement. Recognise that crisis management requirement changed significantly

We need to understand value at risk and influence leadership to prepare effectively – this is about competition

Proactive. CM capabilities need to be more proactive to detect, intervene, generate possible strategies, collaborate and operate at a suitable cadence

Detection, thresholds, notification systems, learning organisation. New media capable

Speed. We need faster systems to alert, notify and enable communications with stakeholders

Intelligence systems, process design and implement of supporting technology and facilities for situational awareness and collaboration

Gain performance. To help executive management to be prepared to thrive in the new interconnected environment - to thrive and take advantage of the turbulent environment

Some executive management ‘get it’ – use them to help your case. Ultimately, you have to go into danger to achieve anything worthwhile. EXERCISE, EXERCISE, EXERCISE

Practioner challenges



some characteristics that differentiate world class: CEO/executive management ownership – THIS IS A BUSINESS STRATEGY ISSUE signal detection - regular review – intelligence, scenario planning - wider imagination – task forces resourced and quality learning and development approach - exercise - immersive training and use

of more sophisticated exercise programmes over multiple cycles sustainability - deliberate programme governance, resources process - decision making under uncertainty practised – planning and scenario planning resources built

into team arrangements advanced information sharing – shared awareness, recognised picture, virtual team,

communications stakeholder and interface analysis, information management and planning team. Facilities and technology to enable team and collaboration

support teams - have developed sub teams to support situation awareness and information management

‘go team’ – assistance team , humanitarian HR planning, investigation, leadership and intervention learning organisation - culture to become better – isomorphic learning advanced communication planning and means. being prepared to go outbound on new media ,

dark/micro site, social media pages, image/video handling, advertising, search terms, use of sophisticated call taking and feedback loops, advertising, customer handling post crisis to avoid contaminating business as usual systems

operating model designed to OPERATE AT SPEED FOR COMPETITIVENESS?

World-class Accepted Limited Ad-hoc

What marks out world class?



Board

Group Crisis

Management

Team (GCMT)

Leader

Leader

support

Communications

Leader

Business Facing

Leader

Planning

Leader

• Speed drives requirement for process and discipline – speed only achieved through experiential learning

• Planning capability is the critical differentiator

• Process = products against time

Understanding ‘interfaces’



Team

• Prepare • Diagnostic • Validate • Embed

Team

Operating environment – enabling corporate strategy or response to be evaluated

The Organisation

Leadership Team

Team Team Team

• Developing collective capability to perform

• Training • Coaching

• Developing capability

• Training • Coaching

Team Team

Team Team

knowledge, skills, attitude and behaviour

Learning and development



Mind the gap: new requirement



WEF – Global Risks Report 2013 (risk trends)

Future Global Shocks – OECD Reviews of Risk Management – June 2011 (interconnectedness)

WEF – Global Risks Report 2012 (risk mapping and interconnectedness)

BSI PAS 200 Crisis management (some accepted practice guidelines)

Report of the Heathrow Winter Resilience Enquiry – March 2011 (situation awareness)

Managing Uncertainty. The Economist Books 2012 (response to the financial crisis)

Continuity Magazine - March 2010. Article: design, experience, reflect and fix, exercise planning. Gareth Jones (exercise programmes)

Governing after crisis. Boin, McConnell, t’Hart. Cambridge 2008 (why some crises produce social change and why some do not)

Collinson. C and Parcell. G: Learning to Fly (learning organisation)

Draft BS11200 – guidance – crisis management – November 2013

Further reading

