Crisis can strike any organization at any time, whether it is a natural disaster, a cyberattack, a reputational scandal, or a regulatory breach. As a board member, you have a crucial role in ensuring that your organization is ready to respond effectively and minimize the damage. In this article, you will learn how to prepare your board for a crisis by following these six steps:
The first step is to identify the potential sources of crisis that could affect your organization, such as operational, financial, legal, environmental, or social risks. You should also evaluate the likelihood and impact of each risk, as well as the existing controls and mitigation strategies. This will help you prioritize the most critical risks and allocate resources accordingly.
First thing is to put in place is governance structure from critical functions. Brain storm to collate all critical business risks. Apllying risk assessment matrixs risks in each area. Their consequences. Action plan to reduce, mitigate, eliminate risks on priority. Reviews with Team for their progress.
I firmly believe in a super structured updated real time business plan which encompasses all aspect of MBA principles over 100 plus years. Simply put why would I just know better than 100 years of experience. So…feed off in, make it practical in your industry on the business landscape. O and one final point….drop the pose, be real and be practical. We managed Covid because of that like a breeze…
Here's my point of view on crisis management: 1.Zoom out see the big picture 2. Create scenarios 3. Create action plans 4.Create communication platforms 4. Think true the communication impact 5. Change the mind set 6. Bring out the best from it. Zoom in and do the same.
Debe aplicar las 4T. Definir qué tipo de riesgos es capaz de Tolerar, cuáles serán Tratados con medidas de mitigación, cuáles puede Terminar a través de ciertas acciones rápidas y cuáles puede Transferir a terceros a través de la contratación de seguros. Luego asignar impactos y definir el plan de acción. Este mapa de riesgos debe ser revisado regularmente en la Junta Directiva y debe ser gestionado por un comité de riesgo en conjunto con los ejecutivos de la empresa.
Assemble a virtual crisis team that can be assembled quickly with the expertise and the responsibility to respond to any given crisis and to assemble both internal and external communications plans.
The second step is to clarify the roles and responsibilities of the board and the management team in a crisis situation. You should establish a clear division of authority and accountability, as well as a communication protocol and escalation process. You should also designate a crisis leader, a spokesperson, and a backup for each position. This will ensure that everyone knows what to do and who to report to in a crisis.
En el tiempo cada organización no está exenta de una crisis y la forma como el equipo directivo gestione la misma está en función de la visión y orientación del negocio o servicio, quizá no se podrá prevenir una crisis, pero si se podrá preparar al equipo directivo y a toda la organización para hacerla frente y superarla. Por ende, el definir los roles, las responsabilidades y las funciones de cada uno, acompa?ados del liderazgo y basados en una gestión de comunicación estratégica, garantizarán el qué hacer, el cómo hacer y para qué hacer.
This is key. There are some excellent tools like “RACI” or “RASIC” from Six Sigma methodology to identify whose Responsibility, whose Accountability, who to Consult, and who to Inform for each task/process.
Con el paso de los a?os ninguna entidad pública o privada independiente del sector o tama?o se puede creer que no es susceptible de estar en crisis en mayor o menor medida y en esos momentos más que nunca su equipo directivo y sus colaboradores marcaran la diferencia entre salir fortalecidos o sucumbir a ella. Como tal es fundamental identificar los roles y funciones de cada profesional a través de una buena comunicación para el éxito final con un buen equipo de RRHH.
A clear governance is key to effectively respond to an incident. It is important to define who needs to participate and under which circumstances; as well as who can make what kind of decisions so the matter can be effectively escalated in case it is necessary. Establishing a formalized (even dedicated) communication channel is also a best practice so the right prority is given to crisis and communication is not lost amongst other emails/phone calls, etc.
Hay que ser cuidadoso al designar el rol de cada persona ante una nueva estrategia, sobretodo porque el personal se escapa de su zona de confort al tener roles distintos a los habituales ante una crisis, recomendación: el directivo de la estrategia deberá ser el que mejor responda bajo presión.
The third step is to develop comprehensive and realistic plans for dealing with different types of crisis scenarios. You should include the objectives, actions, timelines, resources, and contingencies for each plan. You should also align the plans with the organization's mission, vision, values, and stakeholder expectations. This will help you navigate the crisis with a clear direction and purpose.
1. Scenario Planning: Engage in thorough scenario planning sessions to anticipate potential #crises and develop #proactive #strategies. 2. Crisis Communication Training: Equip board members with #effectivecommunicationskills to manage and mitigate the impact of crises on stakeholders. 3. #RiskAssessment: Conduct regular risk assessments to identify #vulnerabilities and implement preventive measures to minimize crisis potential. 4. Designated Crisis Management Team: Establish a dedicated crisis #management team with defined roles and responsibilities for swift and coordinated response.
Debernos además, ser permeables, es decir, ante situaciones de crisis, es importante estar organizados, estructurados, con ideas claras, pero precisamente lo que tienen estas crisis es que se puede generar una vuelta de timón en cualquier momento y el equipo ha de ser flexible, permeable, y adaptativo.
Agree with all the comments! I will like to add that it is very important to keep the #visibility to the rest of the areas/stakeholders, not only for the board or the team involved on this. Sometimes the rest can see and provide great inputs that maybe we missed #colaboration. Additional review and keep udpated the plan #tracking, sometimes it is very old and if all is good we never look into it but if something happen then we discover it is not accurrate with what it is needed in that moment. Always do/define timelines for fixed checkpoint with all the people involved.
Es wird unm?glich sein für jede Art der Krise einen ganz genauen Plan zu definieren. Wichtig ist, dass die groben Punkte umrissen sind und man wei?, welche Werte in der jeweiligen Situation vertreten werden sollen. Diese bestimmen ma?geblich die Art und Weise wie kommuniziert wird und was kommuniziert werden darf. Dies gilt nicht nur für Krisensituationen. Eine gute Kommunikation ist immer werteorientiert und passt zur Vision und Mission des Unternehmens. In Krisenzeiten wird diese Werteorientierung aber noch wichtiger, da Menschen eine Konstante brauchen, etwas auf das sie auch in Krisenzeiten vertrauen k?nnen.
El plan que se aplique debe tener la característica que pueda ser implementado en toda la operación, aunque suponga diversas condiciones geográficas, operativas y de recurso humano.
The fourth step is to test the plans regularly and rigorously through simulations, drills, exercises, or audits. You should involve the board, the management team, and the relevant external parties, such as customers, suppliers, regulators, or media. You should also evaluate the performance, feedback, and lessons learned from each test. This will help you identify and address any gaps, weaknesses, or errors in the plans.
Make sure to practice what you have put in place. Dont assume everyone gets it. It is never obvious. Practicing the plan for various potential will make sure everyone is ready.
A well-crafted & delivered exercise is the most powerful way to mature a team. Always ask the question, why are we doing this? Focus on their concerns & fears - select a narrative that delivers just that. Use design teams to create a specific narrative. Avoid delivering the narrative by slides – that isn’t how it happens in a crisis. Make it feel real with the narrative and injects delivered by the usual people. If rep & brand are a big concern, make it “public,” so they must respond. If possible, create news videos to make it feel real. Avoid advancing the clock too much; they never have to make any decisions or suffer from what they did decide. Leave a good amount of time for the debrief to discuss what worked & what needs improvement.
#Regular Simulations: Conduct frequent simulations, drills, or exercises to test the effectiveness of crisis plans. Involve the board, management team, and external parties, including customers, suppliers, regulators, and media. #Comprehensive Evaluation: Assess the performance, feedback, and lessons learned from each test. Identify any gaps, weaknesses, or errors in the crisis response plans. #Inclusive Testing: Ensure the involvement of all relevant stakeholders for a holistic evaluation. Incorporate insights from diverse perspectives to enhance the plans' robustness. #Continuous Improvement: Use test results to refine and enhance crisis response strategies. Implement corrective measures and updates based on lessons learned.
Zur Sicherstellung der Funktionsf?higkeit der Pl?ne sind nicht nur planm??ige Tests und Simulationen nach bestimmten zeitlichen Intervallen vorzusehen, sondern auch situationsbezogene au?erplanm??ige Tests. Das kann dann erforderlich sein, wenn beispielsweise ein gr??eres anorganisches Wachstum erfolgt ist oder das Onboarding eines neuen Teams durchgeführt wird und der Zyklus bis zum n?chsten regelm??igen Test bzw. Simulation noch zu lang ist. Insoweit geh?rt die Einbindung in das unternehmensinterne Krisenmanagement zum einem guten Onboarding-Prozess mit dazu.
Los planes de crisis deben ser probados regularmente mediante simulacros y ejercicios de mesa. Esto ayuda a identificar fallos y áreas de mejora en los planes y en la preparación de la junta. La prueba de los planes también debe considerar la capacidad de la empresa para operar con recursos limitados o en condiciones adversas.
The fifth step is to update the plans periodically and promptly based on the changing internal and external environment. You should monitor the emerging trends, threats, opportunities, and best practices in your industry and sector. You should also incorporate the insights, recommendations, and improvements from the tests and the actual crisis experiences. This will help you keep the plans relevant, current, and effective.
Ante un mundo globalizado y dinámico , es importante que todas las áreas involucradas en la estrategia de la empresa, estén dispuestas a cambiar rápidamente ante cualquier eventualidad; y esto debe ser promovido por la alta dirección , de esta manera la empresa lo instaurará como cultura. Las empresas que logran adaptarse a los cambios y rompen paradigmas, son las que actualmente triunfan.
Siempre hay que estar preparados ante una situación de crisis porque estamos en un mundo cada vez más global y donde el contexto internacional es cada vez más complejo. Es fundamental realizar análisis DAFO periódicos. Dado el contexto económico e internacional ya no sirven los DAFO anuales. Y a esto se le une la importancia de la comunicación y de contar con expertos en gestión de comunicación de crisis
#Continuous Monitoring: Regularly monitor the internal and external environment for emerging trends, threats, and opportunities. Stay informed about best practices in the industry and sector. #Incorporate Insights: Integrate insights, recommendations, and improvements from tests and actual crisis experiences. Actively gather feedback from stakeholders to enhance plan effectiveness. #Timely Adjustments: Promptly update plans based on changing circumstances. Ensure flexibility to adapt to evolving situations and maintain relevance. #Dynamic Response: Foster a culture of adaptability, allowing plans to evolve within the organization. Align plans with the latest industry standards and the organization's evolving needs.
Again, part of the same, there should be short term plans aligned with the strategyc plans (3 Years) long term plans (10 years) obviously every process need to be updated with trends, macros and internal challenges, and this cycle planning should be the ongoing enabler to update the plans. Under some circumstances (e.g. COVID-19) you also need to have the agility to turn the sheep under time pressure. But this connect or should by having the right people in the right place
Keep in mind that not every board member is confident in crisis communications and public speaking. By making them fit in terms of content, you should also preparing them for proper communication, as well as correct appearance.
The sixth step is to educate the board continuously and consistently about the risks and the plans. You should provide the board with regular reports, briefings, trainings, and consultations on the risk and crisis management issues. You should also encourage the board to ask questions, challenge assumptions, and offer suggestions. This will help you build the board's awareness, confidence, and competence in a crisis.
By following these six steps, you can prepare your board for a crisis and enhance your organization's resilience, reputation, and performance.
one thing that I’ve observed and experimented with boards is that they are not always sure if the overall message that is being deployed is safe, they all want to minimize as much as possible negative remarks ( we all do) but you have to tell them there will always be detractors and have answers for this scenarios, this provides them with confidence.
Every Board member must have working knowledge of Conflict Prevention and Resolution. This is key in reputation management during crisis. Conflicts are likely to arise at this point due to the fact that it is easy for board members to begin pointing fingers at specific persons as being responsible for the crisis. However, prior knowledge of conflict prevention and resolution especially in crisis management would help each member see the need for dialogue. The best time to educate the board is when the company runs smoothly. This is because if such education takes place when the crisis is on, board members would naturally be defensive as they have some preconceived ideas that creates a veil making it impossible to take in new ideas.
En realidad considero que este punto debe de estar presente como un elemento fundamental en la planeación y desarrollo de la gestión empresarial. Esto implica recursos técnicos y relacionales para alienar y evaluar las acciones de la organización en donde sean los principales promotores de la comunicación y vivencia de la filosofía organizacional.
Hier wird ein wichtiger Punkt angesprochen. Die kontinuierliche und konsequente Aufkl?rung des Vorstands über Risiken und Pl?ne erfordert jedoch viel Fachwissen, Erfahrung und Phantasie, um alle Risiken und Krisen klar und verst?ndlich zu formulieren. Die Corona-Pandemie hat uns gezeigt, wie schwierig es sein kann, die Auswirkungen solcher unvorhergesehenen Ereignisse vorauszusehen und angemessen darauf zu reagieren. Sie unterstreicht die Notwendigkeit, flexible und robuste Krisenmanagementpl?ne zu haben, die auf einer Vielzahl von Szenarien basieren.
Dieses Vorgehen gelingt nur, wenn eine Vertrauenskultur im Unternehmen herrscht. Der Vorstand muss die ausgearbeiteten L?sungsvorschl?ge selbst aktiv unterstützen. Jeder im Team muss kritische Fragen stellen dürfen, die ggf. zur überarbeitung des gesamten Plans führen k?nnen.
Preparing for crises demands acknowledging the inherent unpredictability of unforeseen events. It's essential to recognize that the best-laid plans may need to be revised during a crisis. Boards can cultivate adaptability and resilience by engaging in stress testing for decision-making under pressure. Clear internal and external communication protocols are paramount for efficient information flow during turbulent times. Fostering a proactive learning environment and integrating lessons from past crises into future planning enhances collective preparedness. Acknowledging the inevitability of the unexpected enables boards to continually refine the crisis response procedures and foster a culture that thrives amidst uncertainty.
Las crisis anteriores nos han ense?ado, que ha pesar de nuestros esfuerzos por preveer no se puede tener un plan para todo, pero si que se puede educar para que todo el mundo tome decisiones y sea responsable de ellas. Este es un buen camino para avanzar.
Similar to how the foundation of a house defines how a home will handle an earthquake, much of a board’s ability to handle a crisis is defined in its own foundation — interpersonal dynamics. For example, investing time and resources into the relationships within the board, fostering collaboration, and uniting around a common vision are incredibly valuable assets for strengthening and preparing a board even before the earthquake warning has a chance to reach their phones.
The board should also consider the importance of effective communication during a crisis, both internally and externally. This involves not just the dissemination of information but also listening to stakeholders' concerns. Furthermore, the board should be aware of the legal and regulatory implications of crises and ensure compliance in their response.
The unspoken element of crisis management in this example is the board support for each other. A form of supervision/sounding board is absolutely necessary to ensure that the issues, challenges and common pitfalls are openly discussed, shared and mitigated before a consolidated approach is presented to the wider stakeholders. Otherwise, divisions can cause more issues and heap greater problems onto the initial crisis.