a crisis response framework: strategies for effective ......rendering accounting, business,...

A Crisis Response Framework:

Strategies for Effective Leadership

Mary E. Galligan

Director

Deloitte & Touche LLP

August 4, 2015

Managing a crisis

Copyright © 2015 Deloitte Development LLC. All rights reserved.

A crisis is…

“… a major catastrophic event, or a series of

escalating events, that threatens an organization’s

strategic objectives, reputation, or viability.

Crises typically exceed existing mitigation techniques and risk

management programs such as Business Continuity, Disaster Recovery,

Health and Safety plans, or Emergency Response.”


Crisis management in today’s world.

Papal Audience

2005 vs. 2013

Crisis response framework


Important to include cyber risks and other non-traditional crisis risks

Crisis Management Program coverage

Crisis Management Program Coverage

PandemicLabor

Issues/

Strikes

Ineffective

Crisis

Messaging

EarthquakeTerrorism

Inability to

provide

services

Active

shooter

Tornado

CrimeTheft

Fire

FloodEbola

Loss of

critical

data

Agency

data

Breach

Extended

Government

closure

Citizen

information

leakage

Cyber

attack

Data

privacy

Lost

LaptopsInsider

Threat Citizen

Trust

Sudden

increase

In costs

Safeguarding

citizens

Lack of

Data

Integrity

Cyber risks are an

important crisis risk to

invest in “covering”

Important to expand crisis risk

coverage beyond people, place

and technology

Today’s Crisis Management

Program

Important to have a “big umbrella”


Eleven elements needed to establish and sustain a program

Comprehensive crisis management program

Using tools to support the organization’s overall crisis management response

Governance

Organizational Structure Thresholds

Crisis Leadership Skills

Roles & ResponsibilitiesCurrent

Response Plans

LeadersManagement

Plans

Training and development

Technology

Logistics

Operating principals during a

crisis


Operating principles for managing a crisis.

1

2

3

4

5

Lead decisively

Continually frame the crisis

Actively communicate

Be ready for the unexpected

Drive towards

actionable

intelligence


Leaders set the tone


1. Lead decisively

• Act – taking no action is making a decision

• Always keep in mind your goals and objectives

• Focus on what you can control; accept what you cannot

• Avoid analysis paralysis – you will never have all the information

• Establish a clear, ongoing decision-making process

• Prioritize decisions based on their crisis impact

• Manage incidents locally, and crises as enterprise-wide

In a crisis, don't hide behind anything or anybody.

They're going to find you anyway.

- Paul “Bear” Bryant


2. Continually frame the crisis

• Quickly diagnose the crisis with the available information

• Think ahead – anticipate how the crisis might progress

• Reassess everyday – do not fall in love with the plan

• Do not let the incidents distract you from the crisis

It's a crisis if everybody calls it a crisis.

- Morgan Downey, Lasalle Global

(quote from Credit Crisis of 2007)


Communicating in the age of social media

Crash of Asiana Flight 214 at SFO 7/6/13

Timeline of Events – 6 July 2013

11.27am: Plane makes impact at SFO

11.28am: First photo from a Google employee boarding

another flight hits Twitter (within 30 secs!)

11.30am: Emergency slides deployed

11.45am: First photo from a passenger posted on Path,

Facebook and Twitter, re-tweeted by 32,603 users

11.56am: Norwegian journalists asks for permission to use

photo from first tweets. Several media requests follow

1.20pm: Boeing issues statement via Twitter

2.04pm: SFO Fire Department speaks to the press for first

time

3.00pm: NTSB holds press conference, and keeps

updating Twitter with photos

3.39pm: Asiana Airlines first statement released

3.40pm: White House releases statement

8.43pm: First Asiana Press release (6.43am Korea time)

The first tweet, posted within

30 seconds of impact.

https://twitter.com/kristaseiden/status/353581509984260099

https://path.com/p/1lwrZb

https://twitter.com/kristaseiden/status/353589048096468992


3. Actively communicate

• Own the story, don’t let the media tell it for you

• Be candid – communicate with honesty and personal commitment

• Convey consistent messages internally and externally

• Back your words with actions

• Control the narrative – communicate on a regular cadence

• Choose wisely who speaks – they will be the face of the organization

We get far more credit than we deserve when things go right

and too much blame when they don’t.

- Mel Karmizan, Former Viacom President


4. Be ready for the unexpected

• Know that individuals may act differently under extreme pressure

• Realize that normal organizational roles may not apply to a crisis

• Avoid relying on a single person for successful navigation in a

crisis

• Anticipate when and how external parties may steer the crisis

• Recognize your limitations – a crisis can test everyone’s

breaking point

• Prepare to work with limited (or no) technology / information

If anything can go wrong, it will

- Capt. Edward A. Murphy (“Murphy’s Law”)


5. Drive towards actionable intelligence

• Beware of confusing data and intelligence

• Focus on who needs to know what and by when

• Cast a wide net – important information can come from

anywhere

• Qualify your sources – misinformation is as prevalent as

information

• Recognize you will never have all the information

• Ramp up your ability to process data – do not let it bury you

• Record what you knew at the time of the decision

True genius resides in the capacity for evaluation of

uncertain, hazardous, and conflicting information.

- Winston Churchill


Chaos framework

Question and answer


Mary E. Galligan

Director, Cyber Risk Services

Deloitte & Touche LLP

[email protected]

Contact info

mailto:[email protected]


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