1

team response: team response:

nikenike’’s processs process--driven driven

crisis crisis

communicationscommunications

Kate Willis, Nike, Inc.Kate Willis, Nike, Inc.

Global Business ContinuityGlobal Business Continuity

why crisis communications?why crisis communications?

• Biggest challenges in managing an incident:

– Communications 62%

– Tracking changing information 18%

– Geographically dispersed core recovery team

members 9%

– Capturing information for lessons learned 6%

– Other 6%

executivesexecutives’’ view of company riskview of company risk

19%

13%1%

67%

Increased Not Changed

Decreased Don't Know

How has the overall

level of risk faced by

companies changed over

the last 2-3 years?

Source: “Companies on Risk,” Ernst & Young, 2005; Treasury

Leadership Council; Communications Executive Council Research.

2

increasing effectiveness mandatoryincreasing effectiveness mandatory

71%

25%

4%

Far More Important

Somewhat More Important

Neither More Nor Less Important

Source: “Companies on Risk,” Ernst & Young, 2005; Treasury

Leadership Council; Communications Executive Council Research.

The importance of

communicating effectively

during crisis has grown in

recent years, a reflection of a

heightened sensitivity to risk

by senior management and

investors.

““stock shockstock shock””

• Compared to previous decades, in recent years markets

have been quick to punish companies for missteps.

0

10

20

30

40

50

60

70

80

90

197

0

197

2

197

4

197

6

197

8

198

0

198

2

198

4

198

6

198

8

199

0

199

2

199

4

199

6

199

8

200

0

200

2

Compared to previous decades, recent

years’ markets have been quick to punish

companies for missteps.

Source: “Companies on Risk,” Ernst & Young, 2005; Treasury Leadership Council; Communications

Executive Council Research.

need to evolve and accelerateneed to evolve and accelerate

Changes in the business, media

and stakeholder environments

are pushing the need for faster

identification of crisis,

streamlining access to crisis-

relevant information, and

accelerating the understanding

of the “crisis content” and how

stakeholders might respond.

3

eoc eoc ““information managementinformation management””

• Expanded Roles– Call Center

– GIS Information Store

– Media Monitoring

– Issue Resolution

• Expanded Vulnerabilities– 24/7/365 World

– “Immediate Media”

• Expanded Focus Areas– Issues Management

– HR Communications

– Operational Communications

– Executive Updates

expan

ded ro

les

exp

and

ed

vuln

era

bili

ties

traditional

issues mgmt

expanded focus areas

system characteristicssystem characteristics

Crisis communication systems may vary across

companies, but are characterized by three features:

• An information infrastructure for channeling critical information to the decision makers faster.

• Embedded “triggers” to set a crisis response in motion faster.

• A crisis knowledge base to bring the company’s experience to bear immediately and shorten the learning curve of those responding.

GlobalGlobal

Program Program

FrameworkFramework

Integrated Integrated

Response Response

Infrastructure Infrastructure

Activation Activation

Sensors and Sensors and

TriggersTriggers

Knowledge Knowledge

Capital and Capital and

Issues Mgmt.Issues Mgmt.

success factorssuccess factors

Process-Driven BackboneProcessProcess--Driven BackboneDriven Backbone

4

program frameworkprogram framework

crisis managementcrisis managementcrisis management

ObjectivesObjectives

StandardsStandards

TemplatesTemplates

ToolsTools

TrainingTraining

TestingTesting

MetricsMetrics

ReportingReporting

Business

Recovery

Programs

BusinessBusiness

Recovery Recovery

ProgramsPrograms

planningplanning

Business RecoveryBusiness RecoveryBusiness Recovery

Immediate ResponseImmediate ResponseImmediate Response

MinutesMinutes HoursHours DaysDays WeeksWeeks MonthsMonths

Immediate

Response

Programs

Immediate Immediate

Response Response

ProgramsPrograms

crisiscrisis

business continuitybusiness continuity

executionexecution

crisis management infrastructurecrisis management infrastructure

FACILITY TEAMS (IMMEDIATE RESPONSE AND BUSINESS RECOVERY)FACILITY TEAMS (IMMEDIATE RESPONSE AND BUSINESS RECOVERY)FACILITY TEAMS (IMMEDIATE RESPONSE AND BUSINESS RECOVERY)

FACILITY

EVACUATION

INTERNAL FIRST

RESPONSE

EXTERNAL FIRST

RESPONSE

FIRST DAMAGE

ASSESSMENTOTHER FUNCTIONAL AREA

DISTRIBUTION

CENTER

EXECUTIVE CRISIS MANAGEMENT TEAMEXECUTIVE CRISIS MANAGEMENT TEAMEXECUTIVE CRISIS MANAGEMENT TEAM

CORPORATE ECMTCORPORATE ECMT US; EMEA; APAC; Americas; and/or Sub ECMT

Footwear; Apparel; Equipment; and/or Golf ECMTIncident Management Communications Business Recovery

SITE (COUNTRY) CRISIS MANAGEMENT TEAMSITE (COUNTRY) CRISIS MANAGEMENT TEAMSITE (COUNTRY) CRISIS MANAGEMENT TEAM

Incident Management Communications Business Recovery

OPERATIONAL CRISIS MANAGEMENT TEAMOPERATIONAL CRISIS MANAGEMENT TEAMOPERATIONAL CRISIS MANAGEMENT TEAM

CORPORATE OCMTCORPORATE OCMT US; EMEA; APAC; Americas; and/or Sub OCMT

Footwear; Apparel; Equipment; and/or Golf OCMTIncident Management Communications Business Recovery

NIKE BOARD OF DIRECTORSNIKE BOARD OF DIRECTORSNIKE BOARD OF DIRECTORS

response infrastructure: peopleresponse infrastructure: people

OCMT Facilitator (Lead)

EOC Set Up & Support Team

Human Resources

Communications/Issues Mgt

Global Operations & Supply Chain

EOC Information Office

Global Information Technology

5

““activation sensorsactivation sensors”” –– our extended teamour extended team

Connected to our global

businesses, we monitor a

virtual radar screen 24x7 to

detect crisis signals as early

as possible.

Any event, issue or

threat which may cause

irreparable loss,

damage, or

impairment to the

human, physical,

financial

or brand assets of Nike.

TreasuryTreasury

Human ResourcesHuman Resources

Corporate

Responsibility

Corporate

Responsibility

Risk ManagementRisk Management

LegalLegal

Security/Brand

Protection

Security/Brand

ProtectionConsumer Affairs

Consumer Affairs

Internal AuditInternal Audit

Travel & EventsTravel & Events

Issues ManagementIssues Management

Investor RelationsInvestor Relations

Information TechnologyInformation TechnologyTreasury

Human ResourcesCorporate Responsibility

Risk Management

Legal

Security/Brand Protection Consumer Affairs

Internal Audit

Travel & Events

Issues Management Investor Relations Information Technology

many teams monitor & manage riskmany teams monitor & manage risk

leadership and issue sensitivityleadership and issue sensitivity

•Leading companies are broadening management understanding of the potential impact of seemingly isolated incidents and encouraging a heightened degree of responsibility for detection.

•Key goals are to provide issues management training and proactively set up processes that remove “choke points” in the information flow, so decision-makers can act quickly.

6

process: activation triggersprocess: activation triggers

• Minor Brand impact

• Local public disclosure only, if any

• Product recall not likely

• Market share loss not likely

• Minor legal impact

• Small claims likely

• Demands likely

• Minor reach of law or regulation

• Minor impact to environment

• Localized cleanup required

• No impact to local community

• No EPA/ Government involvement

• Minor facility damage

• Relocation not required

• Minor repairs required

• Disruption up to 1 week

• No fatalities

• Minor injuries

• Range of $___ to $___

• Not a material event

• No disclosure required

• Moderate Brand impact

• National/local public disclosure only

• Product recall possible

• Market share loss possible or probable

• Moderate legal impact

• Lawsuits likely

• Damages likely

• Breach of law or regulation

• Moderate impact to environment

• Some cleanup required

• May impact to local community

• No EPA/ Government involvement

• Moderate facility damage

• Partial relocation possible

• Substantial repairs required

• Disruption up to 4 weeks

• Single fatality

• Serious injuries

• Range of $___ to $___

• May be material event

• May require earnings disclosure

• Major to Catastrophic

• Brand impact

• Global/Regional public disclosure

• Product recall likely

• Market share loss in specific categories

• Major legal impact

• Class action lawsuits

• Lawsuits possible

• Major damages possible

• Significant breach of law or regulation

• Major impact to environment/ environmental disaster

• Significant cleanup required

• Impact to local community

• EPA/ Government involved

• Significant facility damage

• Temporary or permanent relocation required

• Rebuilding required

• Disruption > 3 months

• Multiple fatalities

• Multiple serious injuries

• Greater than $_____

• Material event

• Requires earnings disclosure or pre-announcement

BRANDLEGALENVIRONMENTPROPERTYHUMANFINANCIAL

process: activation launch process: activation launch Leverages Existing CERT SolutionsLeverages Existing CERT Solutions

Level 2Level 1

intake process: multiple filtersintake process: multiple filters

Level 3

Knowledge-driven Decision-drivenProcess-driven

7

intake process: a deeper viewintake process: a deeper view

External Incoming Call

ConsumerRelated Call?

Call Routed to Consumer AffairsOR Consumer

V-Mail Message *

Customer/ RetailerRelatedCall?

Call Routed toCustomer Service OR Consumer

V-Mail Message *

EOCCall CenterOperational?

Routed toCentral

Voicemail Box *

ConsumerV-Mail

Message *

MediaV-Mail

Message *

EmployeeV-Mail

Message *

Call Routed toEOC Call Center

ExistingProcedure,Statement,or Policy?

Call to Level 2to address

issue

Reception Operational?

Call Routed toOCMT forProcedure,

Statement, orPolicy creation

Is issueresolved?

Report resolution asappropriate

EOC StatusReport

EmployeeVoicemail

Website

Y

Y

YY

YY

NN

N

N N N

Process-driven

Knowledge-driven

Decision-driven

process: level 1 process: level 1

• Company Intake

• Tactical

• Process-driven

Leverages reception, call centers, and other existing company intake capabilities

process: level 2 process: level 2

• EOC Intake

• Operational

• Knowledge-driven

Leverages company knowledge capital, problem-solving skill sets, and adaptation of existing knowledge management tools

8

process: level 3process: level 3

• OCMT Processing

• Strategic

• Decision-driven

Leverages executive decision-making and complex issues management capabilities for high-impact enterprise events

process level 3:process level 3:Leverages functional expertiseLeverages functional expertise

OC

MT

(Q

uo

rum

)

HR

GIT

Communications

Operations

Cri

sis

HR

GIT

Communications

Operations

OCMT

SCMT

Joint Call

CORP

OCMT

Impact

OCMT

SCMT

Facility

CORP

OCMT

Impact

OCMT

SCMT

Facility

OCMT

SCMT

Joint Call

OCMT

SCMT

Joint Call

Process-Driven BackboneProcessProcess--Driven BackboneDriven Backbone

process level 3 is multiprocess level 3 is multi--layeredlayered

• Site

• Operational

• Executive

9

response infrastructure: toolsresponse infrastructure: tools

Automated

Notification System

Crisis Management

Dashboard

Standardized Crisis

Management Playbook

integrating people & tools through process integrating people & tools through process

Integrated Integrated

ToolsTools

People and People and

TrainingTraining

Vision and Vision and

Standards Standards

GlobalGlobal

Program Program

FrameworkFramework

Process-Driven BackboneProcessProcess--Driven BackboneDriven Backbone

BUSINESS CONTINUITY

kate williskate willis

global business continuity managerglobal business continuity manager

nike, inc.nike, inc.One Bowerman Drive

Beaverton, OR 97005

503.671.4710

kate.willis@nike.com