10 Lessons in Crisis Management

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Transcript of 10 Lessons in Crisis Management

PowerPoint Presentation

110 lessons in crisis management

Good morning! My name is Iris Chung, and this is my colleague Dov Gardin were stepping in for our CEO Sean Murphy, who was originally slated to present, but unfortunately had some urgent client business to attend. So thanks for joining us - Were very excited to be here today!

2Presented byDov Gardin, LootokDov is a Director of Crisis Management at Lootok. Over the past decade, Dov has worked with clients in the public, non-profit, and private sector to advise them on risk, threats, security, incident/crisis management and business recovery. He has managed risk and business continuity programs for Fortune 500 clients in the pharmaceutical, manufacturing, financial and apparel industries; advised government agencies on risks and threats to their operating environments; trained hundreds of mid to senior level leaders in crisis management and business recovery; and developed custom incident and crisis management methodologies and strategies.

Iris Chung, LootokIris is Chief Marketing Officer at Lootok. As a strategic communications specialist, Iris draws from her experience in marketing and advertising to inspire compelling messages around resiliency and heighten audience engagement. She has served as a creative advisor for Fortune 500 companies, collaborating with Lootok's team of business continuity advisors to create awareness campaign materials, develop workshop activities, and facilitate executive training sessions for global business continuity programs.

Iris (1 min)1 of 105 min3AgendaWho is Lootok (5 min)? What happens in a crisis environment (5 min)?Lessons 1-10 (75 min)Bonus Lesson 11 (5 min)Q&A (15 min)

Iris (1 min)2 of 105 minToday - were going to share some lessons weve learned both through our experience in implementing CM programs with clients, as well as drawing upon some research on the way humans react and respond in a crisis environment. Well also explore ways to improve the effectiveness and overall cohesiveness of CMTs and the types of skills they need to help your organization take a more proactive approach to CM.

Copy of presentation, expanded version drop off your business card and Ill be happy to email you the link. You can also contact me at [email protected] do have 15 minutes of Q&A built in at the end, however, please do feel free to ask questions as they come up before then. We like to keep things dynamic, so dont hesitate4

Who is Lootok?Lootok is the Hopi word for The Day After Tomorrow.The organization was founded in 2006.Our mission is to be a change agent for business continuity & crisis management.

Iris (1 min)3 of 105 min

So before we begin, wed like to share a bit about ourselves. Lootok is a business continuity and crisis management advisory firm headquartered in New York City. Lootok is a Native American word from the Hopi tribe that means the day after tomorrow. And that word really embraces what Business continuity and crisis management are all about preparing for what may come tomorrow. Weve been around for almost nine years now, and we were very much founded to be a change agent for our industry.

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Visual thinking & problem-solvingCollaborative data & decision-making processParticipation by all stakeholdersBCM deserves a fresh perspective.

Iris (1 min)4 of 105 min

What we mean by this is that compared to the traditional industry approach, we do things a bit differently. We focus on building adoption and learning around the planning process in order to engage stakeholders and really help them understand what business continuity is, why its relevant to them and to the organization. Thats why we tend to teach concepts using activities, some of which youll experience today. We do this to help ingrain learning - All of this is designed to take people beyond just a simple document or a written plan to understand incident roles and practice decision-making skills.

_____We dont just use activities because theyre fun by making them more interesting, we increase their effectiveness. Actively doing something with information helps us better understand it and retain it.. These activities create experiences in which participants are engaged and develop a common understanding.

6Grow awareness and adoption.Demand ModelUnawareDrafteeEnlistedLoyalistEvangelistBarriersLack of awarenessLack of interestLack of timeLack of perceived valueLack of support

DriversInterest IncentiveDesire for successConsequenceDesire to belongIris (1 min)5 of 105 min

I mentioned our focus on building adoption the reason we believe this is so important is that adoption and awareness are critical for sustaining a BCM program. This is what we call our demand model, which depicts the journey that your average participant may experience during the course of the program. This model is based on the idea that it is futile to roll out a business continuity or crisis management initiative until people understand what it will do and want to do it. So participants typically enter the program unaware of what BCM is, and move up to draftee (focusing on compliance) and hopefully youre growing your programs community to eventually include some loyalists and BCM evangelists.

Its important to acknowledge the various barriers, or the challenges that describe participants at each stage, and highlight the incentives or drivers that can motivate participants towards adopting BCM (need for enrichment, incentive, belonging, desire for success, etc.).

Where would you say most programs lie? Does anyone want to venture a guess? We find that most start typically at unaware/draftee how do you move people beyond mere compliance

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What happens in a crisis?

Dov (3 min)8 of 105 min

Before we jump into our 10 lessons for crisis management, lets consider what happens in a crisis. To consider this, were going to do an exercise designed to illustrate the difference between a typical day-to-day operating environment and a crisis environment. I would like everyone to take one minute to draw, on the paper provided, what you believe represents a linear environment.Lets go around the room and discuss what you drew and why it represents a linear environment. {Click}Well-ordered domains are structured and stable. We know what causes the effects we want to achieve. We can think systematically about well-ordered domains because we know how they work. We can calculate what decisions to make and how to predict the future. Unfortunately, the crisis environment does not allow us this luxury. Next, Id like you take another minute and draw a representation of a non-linear environment. Lets discuss what you drew and why it represents a non-linear environment.{Click}I would like to show you my visual of what a nonlinear environment looks like. Question: Tell me what you see? This is a nonlinear environment. If we had to draw what a crisis environment looks like, it might something like this. In a crisis environment, we are dealing with complex and non-linear domains, which are not as structured or stable as well-ordered ones. These situations may change rapidly and unexpectedly and we may have inadequate, missing, or incorrect information. We dont have a clear idea about cause and effect, which means we arent entirely sure what causes events to happen. On top of that, we have to deal with time-pressures and high stress. During a crisis, leaders must learn to operate in this environment to be a success. A second important point to make is that in a non-linear environment everybody sees the crisis differently. All of your drawings are different representations of the environment. This happens because we all have individual mental models based on our experiences. This kind of environment which is complex and subjectively understood - requires us to build build common ground for understanding the situation, and develop a common operating picture of the event. 8

Define what a crisis is12345678910 Define what a crisis is

Dov (3 min)11 of 105 min

Define what a crisis is.

First, define what a crisis means for the organization globally what does the head office consider a crisis, and what does it mean from a local perspective? What happens sometimes with global organizations is that everything is managed at the top level, without realizing that perception of risks may be completely different, say at a site in Mexico City compared to a site in Beijing. So how are threats defined and translated at a local, as well as global, level? Defining what a crisis is helps to formalize your organizational crisis management process and structure, such as determining the criteria for notifying the executive team and convening the crisis management team. In organizations that lack a predetermined, clearly defined criteria to determine what is or isnt a crisis, leaders will have different opinions about the potential impact of an event, and if and when the crisis management team should convene. This will lead to getting everyone in a room together and trying to figure out who you need and what to do off the cuff.Part of defining a crisis is establishing a common language among the team, in order to align everyones understanding of how certain words are defined by the organization. Different words can be understood differently by individuals. For example, a crisis might be defined as an event that requires the crisis management to convene, whereas an incident might be an event handled locally by the site. Without a common language and well-defined definitions, however, it is impossible for leaders to clearly communicate the situation and articulate criteria or steps for action. This is a critical step in formalizing a crisis management process and structure.

9Is this a crisis?Why, or why not?What is your criteria for determining this?

Understand the situationIs it a crisis? What do we need to know?What is our problem statement?

Visualize your end-stateWhat are your goals?Is there opportunity in this crisis?

rIris (8 min)19 of 105 min

In pairs, consider the scenario on your card and discuss the questions on the right. Well spend about five minutes doing this, and come back together.(Give groups about 5-10 min minutes to discuss; facilitators should walk around and help facilitate conversation for those that seem to be struggling. Then, reconvene as a large group).

Who would like to share their scenario?What did you decide?Did anyone else have this scenario?

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Start strategically345678910

21Iris (4 min)21 of 105 min

Easy to say, hard to do. Crisis Cards is a great activity weve done with senior executives. And this takes us to our second lesson, which is to make crisis management a part of the strategic process. Start at the top of the hierarchy in your organization and engage senior management so that their enthusiasm filters down to the rest of the organization. And for any of you whove been through the experience of trying to gain momentum for your program you know how much more challenging that is to do when you dont have your C-suite engaged.

If you dont have C-suite access, youve got to think of yourself as an entrepreneur in your organization, and find your own strategy for getting upstairs.Going back to the Crisis Cards activity, you may have had different responses, and that makes sense, given that youre coming from different organizations. However, you might be surprised by the types of responses youd get if you were to do this among your own team. Weve used this activity to get C-suite buy-in for a crisis management program. In a meeting, we showed one crisis card on screen, and then asked everyone to individually record their thoughts about two things: 1. if it was a crisis or not, and 2. the steps they believed the team should take in order to respond to the situation (whos in charge, immediate priorities, needed teams, etc.). Then debriefed as group to compare responses this quickly built internal demand for the initiative.

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Fly the plane, or fix the problem 31245678910

Iris (2 min)30 of 105 min

One of the real learnings from this is Fly the plane, or fix the problem.The driving philosophy behind this statement is that in a crisis, youre either running the business or solving the crisis - but not both. Top leadership should not be both running the daily operations of the business while trying to mitigate a crisis. Effective crisis management involves delegation of tasks to work efficiently, and must train their leadership teams to know their individual roles so that members can be focused on their roles - this helps to avoid uncertainty about who will lead and execute certain actions.

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Create a culture for escalating issues41235678910

Dov (3 min)33 of 105 min

Create a culture for escalating issues.

Its critical for any executive team to know that issues will be escalated. In order to facilitate this process, however, leadership must first create a culture of trust within the organization so that escalation of an issue is perceived as a non-threatening act. The level of communication that senior management has with associates can develop a type of open company culture in which individuals feel rewarded (instead of penalized) for calling attention to certain issues.

In a company that doesnt have a clear escalation/notification structure, there may be some overcompensation on the part of executives that they want to know about every little thing (e.g., so instead of executives flying planes, theyre fixing problems. Ideally, they should have the confidence in knowing that the important issues will be brought to them as an example.A culture of transparency where bad news is good news can also be more easily created when employees have a clear understanding of when and what types of issues should be escalated and communicated up. This can prevent associates from providing either not enough or too much information when an incident happens at a local or lower level. Therefore, the executive team should establish clear guidelines for when and what types of issues should be escalated (or what it is they want to know), and to whom within an organization.

___http://www.istockphoto.com/stock-photo-15365897-the-subway-of-moscow-russia.php?st=36a378f

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Follow a framework, not a prescription51234678910

Dov (3 min)36 of 105 min

Follow a framework, not a prescription.

Plans and procedures work best in well-ordered situations, but our decision-making takes on different forms when we face ambiguous, complex, and unpredictable situations such as a crisis. For this reason, good leaders understand the limitations of plans and procedures in the event of a disaster.

Many organizations focus too heavily on the plan itself, leading people to blindly follow sequential steps or rely on a formulaic plan and expecting it to work for all cases. In most instances, a fixed plan will fail, as reality doesnt follow a script, but requires adjustment and active problem solving. A linear, set plan that dictates a companys actions can be nothing more than a starting point or a tool to help provide preliminary information and initial points of contact; a guide that helps us make decisions.

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The bug is round. It has eight legs. Two are longer than the others. The bug has eyes and antenna.It has wings each with a spot on it. Each foot has feelers.

Lets draw a bug! Dov (5 min)41 of 105 min

To illustrate the level of detail that may or may not be in plans, lets do an activity. Id like you to grab another sheet of paper, and take one minute to follow the instructions on the slide and draw a bug.(After one minute)Lets see what everyone drew please pass your bug around to the person sitting next to you. Take a look at your neighbors bugs do they look the same, or are they different?(Wait two minutes)Was this enough information to accomplish what was asked? The answer is, It Depends. It depends on how important 1) Accuracy + 2) Context. The more accurate we need to be, the more prescriptive we need to be. The more we must take the context of the situation into account, the more we must rely on frameworks and intelligence/situational awareness. Lets look at two ends of the spectrum: IT Recovery & Crisis Management.

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Know each BCM competency requires a different kind of planningDov (3 min)44 of 105 min

This is an activity that we did with the executive team in soliciting support for formalizing our crisis management process and the development of our crisis management plan.

The purpose of this activity is to illustrate the type of planning and plans we are doing. Each BCM competency requires a different kind of planning and plan. Think about the type of planning we are doing for Crisis Management. We are planning for an unknown event that is going to occur at an unknown date and time, with an unknown impact. This unknown event will occur in the future, so it will be a future current state which gives us limited transparency. There are a lot of unknowns we are trying to prepare for.

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Conduct active threat intelligence61234578910

Dov (3 min)50 of 105 min

Conduct active threat intelligence.The actual plan is created at time of event, based on the situation and context; however, this can only be done through acquiring credible and timely intelligence and intelligence, and apply judgment to available information. Often in a crisis, unclear information and processes can make it difficult for everyone to be on the same page for how to respond, particularly in complex and non-linear environments. What many organizations lack is a way to evaluate the information they have in order to define the problem theyre having, and a process for getting into the context of a crisis. Many organizations also take a narrow view of risk, believing the most significant disruptions and threats lie within the boundaries of their industry or geography. A critical component of proactive crisis management capabilities is the ability to predict and prepare for negative events before they happen. This requires developing systems to track, monitor, and report external forces that make organizations vulnerable to threats. Therefore, organizations must build threat intelligence capabilities for sensing, analyzing, and acting upon information in the most optimal way possible.

Therefore, organizations must build threat intelligence capabilities for identifying, analysing, monitoring, and acting upon information in the most optimal way possible. Threat intelligence plays a critical role in developing the organizations resilience by creating capabilities that equip an organization to monitor, manage and respond to threats, and detect them before they become a crisis. Ultimately, threat intel empowers leaders to make better, more informed decisions.

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Build tacit knowledge71234568910

Iris (2 min)52 of 105 min

Dov spoke about the importance of having threat intelligence and having critical info to drive decision-making. And to effectively manage a crisis, we also need individuals who know what to do with that information- you need team members with tacit knowledge. Tacit knowledge is expertise, or a combination of with knowledge and experience, which a plan is never a substitute for. Plans contain the critical information you need and a good deal of the procedural knowledge. But they cannot replace expertise, or tacit knowledge the unwritten knowledge that is gained through experience and through applying your knowledge to different situations. Its a deep knowing about something gained from years of experience.

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Establish a common operating picture 81234567910

Dov (2 min)56 of 105 min

Establish a common operating picture.

This is extremely important because crisis management decision making is not an individual activity. The decision making processes take place in multidisciplinary teams: crisis decisions are therefore based on a combination of individual mental models. Because we all have individual mental models based on our past experiences, everyone sees a crisis differently. Thats why its important for us to build common ground and develop a common operating picture of the event. If team members are not aligned in their understanding and response, it can be difficult to make effective and efficient decisions.

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Read your clues (dont show them to anyone!).

Partner up and discuss (but dont share your clues). What you would guess the situation is?

Share one of your statements with your partner. Does your view of the situation change?

Share one of your statements with the table.

Apply judgment to available informationIris (10 min)66 of 105 min

Lets illustrate the concept of common ground with an activity. We have a bunch of statements that together describe a situation; however, the hints will be divided between you. DO NOT SHOW YOUR HINTS TO EACH OTHER!

ACTIVITY INSTRUCTIONS: 5 Minutes (Facilitators hand out statements to group 3 per person)

When I say GO, read only your statements and try to figure out what the situation is. Do not share your statements with anyone else.Turn to someone sitting to the left or right of you, and take turns stating what you think the situation is but DONT share your statements. Share one of your statements with your partner by placing it on the table. Once youve read the new statement, discuss with your partner and guess what the situation might be. [Allow another minute or two to study the clues, and another minute to guess.]20

Factor in the human element 91234567810

Iris (2 min)71 of 105 min

What we often miss the human aspect of a crisis. The fact is, Crisis Management Team can be a bit of an oxymoron. Its important to keep in mind that your crisis management team is an ad-hoc working group meaning its members typically dont interact on a day-to-day basis, but only convene and work together in the event of a crisis. Interpersonal dynamics affect team effectiveness just as much as technical skills and in the context of crisis management. We all have our individual preferences for how we receive information and make decisions, so its important to have an understanding about how a CMT team will and should work.

Just to get a sense, has anyone ever performed an assessment of their crisis management team? To give you a taste Interaction Styles based on MBTI (Myers Briggs). Typically supplemented by a trained facilitator who observes the dynamics of the team.Each question is followed by four choices. Select the one that you identify with the most and make sure to jot down your response.A word of caution: We all tend to act a particular way based on our roles. For the purposes of this survey, you should be making selections based on your most natural self independent of the various roles you fill.

21DirectorsMotivatorsPlannersSynthesizersIts worth the risk to go ahead and act or decide.Its worth the effort to think aheadto reach the goal.Its worth the energy to involve everyone and get them to want to do it and believe in it.Its worth the time to integrateand reconcile many outputs.Know the dynamics of your teamIris (4 min)82 of 105 min

How many folks identified mainly as red? Yellow? Green? Blue?RED: Getting things accomplished; Focused on results, preferably as quickly as possibleBLUE: Having a course of action to follow, Focused on knowing what to do and keeping everyone on trackGREEN: Persuading and involving others, Focused on interaction and outcomes that involve and engage everyoneYELLOW: Focused on understanding other viewpoints and working to create a shared outcome

The survey can be used for getting a sense of initial interaction styles for each CMT member, but youll want to supplement these survey results with observing your CMT to determine how they function and interact as a team. A trained observer can come in and analyze how individuals fit and function within the team to validate the survey results and help you consider whether or not associates are in the right role, if they need additional training as a team, and how to leverage team members natural skillsets and tendencies; or work with other styles based on the composition of the team.

E.g., a team with no RED or GREEN CMT (only yellow and blue) members indicates that they may have trouble taking the lead and quickly making decisions, critical traits for effectively managing a crisis. Furthermore, effective crisis management requires the ability to influence others to take action based on decisions made using limited or incomplete information. Both BLUE and YELLOW members are able to do this, but in very different ways. BLUEs tend to give clear direction that involves telling, asking for, or urging action. YELLOWs tend to try to motivate others to take action, rather than directly requesting it. This conflict in communication and interaction styles, combined with weak decision-making skills, indicates that the team may have difficulty effectively managing crises.)

_________________________________REDThe theme for REDs is getting things accomplished through people. Individuals of this style focus on results, often taking action quickly. They often have a driving energy with an intention to lead a group to the goal. They tend to make decisions quickly to keep themselves and others on task, on target, and on time. They dislike wasting time and having to back track. Mentoring, executing actions, supervising, and mobilizing resources are all ways they get things accomplished. They notice right away what is not working in a situation and become painfully aware of what needs to be fixed, healed, or corrected.Strengths in a group: supervise, marshal, execute, mentor, mobilizeBLUEThe theme for BLUEs is having a course of action to follow. Individuals of this style focus on knowing what to do and keeping themselves, the group or the project on track. They prefer to enter a situation having an idea of what is to happen. They identify a process to accomplish a goal and have a somewhat contained tension as they work. The aim is to plan itself, but to use it as a guide to move things along toward the goal. Their informed and deliberate decisions are based on analyzing, outlining, conceptualizing or foreseeing what needs to be done.Strengths in a group: plan (logistics), conceptualize, analyze, foresee, monitor progressGREENThe theme for GREENs is persuading and involving others. They thrive in facilitator or catalyst roles and aim to inspire others to move to action, facilitating the progress. Their focus is on interaction, often with an expressive style. They get things going with upbeat energy, enthusiasm, or excitement, which can be contagious. Exploring options and possibilities, making preparations, discovering new ideas, and sharing insights are all ways they get people moving along. They want decisions to be participative and enthusiastic, with everyone involved and engaged.Strengths in a group: facilitate, brainstorm, persuade, make things easy, explore, discover, shareYELLOWThe theme for YELLOWs is getting the best result possible. Individuals of this style focus on understanding and working with the process to create a positive outcome. They see value in many contributions and consult outside inputs to make an informed decision. They aim to integrate various information sources and accommodate differing points of view. They approach others with a quiet, calm style that may not show their strong convictions. Producing, sustaining, defining, and clarifying are all ways they support a groups process. They typically have more patience than most with the time it takes to gain support through consensus for a project or to refine the result.Strengths in a group: support, define, produce, clarify, reconcile inconsistencies

22DirectorsMotivatorsPlannersSynthesizersFeeling out of controlNothing is being accomplishedNot knowing what is likely to happenNot seeing progressNot being part of whats going onFeeling disliked or unacceptedNot enough input or creditPressed to decide too quicklyUnderstand the causes of stressIris (2 min)84 of 105 min

Now during stressful periods like a crisis, we have a tendency to leave our developed interaction styles (which weve grown through our roles at home or work) and automatically revert back to our most natural styles. Understanding the triggers and causes for stress for each interaction style can help you understand what to anticipate when working with the team, and how to help others.(click)These are some ways each interaction style acts when stressed.So far example, Reds have a tendency to become more demanding, check out of the situation, or have outbursts of anger or blame. This makes sense because red interaction styles are focused on getting results and seeing action being taken. So to help with stress, reds needs to be told the reasons for things, that something is being done, and when it will be complete.

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Watch out for cognitive traps10123456789

Dov (2 min)86 of 105 min

Watch out for cognitive traps.

One of the ways stress impacts our ability to successfully respond to an incident is through cognitive traps, or which can impact our decision-making abilities. If our stress level has crossed over into the too high zone, it will be difficult to think rationally, and in stressful incidents we wont have the information, time or mental capabilities to use our typical reasoning processes.

One manifestation of this impact to decision-making ability is known as Cognitive Lock-In. Since our ability to intake information is reduced when under stress, our more complex reasoning capabilities decrease. This results in a tendency to make an initial decision, and stick with it, despite later information indicating a better course of action. In a state of intense concentration, decision-makers desperately want to solve problems; new information or evidence that distracts from what has already been decided as a good solution is sometimes treated as distracting or annoying for causing cognitive dissonance, and we may disregard important new information after we have locked in to our early decision (Rouse and Morris 1986).

Task Saturation

Another way decisions are often affected is by what is known as task saturation, or a focus on solving small problems and losing sight of the big picture (Drner 1997). A strong desire to solve problems in a crisis can manifest in a tendency to hyper focus on smaller problems or find relief in manual labor that can create a feeling of contributing to a solution. While small problems and physical problems are important, we have to keep sight of the big picture.

Group Think

A third common way we rush to decisions when forced to make decisions under stress is known as Groupthink. Groupthink references a condition where group members are more eager to come to an agreement and minimize group conflict than to come to the right decision (Kamau and Harorimana 2008). It has a tendency to happen in close groups when put under stress, and people may censor themselves or refute contradictory evidence to maintain the decision of the group.

Confirmation bias is a tendency for people to favor information that confirms their preconceptions or hypotheses, regardless of whether the information is true. As a result, people gather evidence and recall information from memory selectively, and interpret it in a biased way. people are biased towards confirming their existing beliefs. Confirmation biases contribute to overconfidence in personal beliefs and can maintain or strengthen beliefs in the face of contrary evidence. Hence they can lead to disastrous decisions, especially in organizational and social contexts.

Risk perception (risk shrink)

_______The Garden Path Model states that early decisions are determined by a small set of fixed principles, whose purpose is to increase the speed and efficiency with which the syntactic representation of sentences is built during real-time processing in order to reduce computational load.

24Find opportunity in the crisis

"We reinvented security. The new A-Class."Iris (3 min)89 of 105 min

When we hear the word crisis, we tend to associate it with negativity and getting it over with as soon as possible. But for companies, a crisis is not just about weathering the storm its the moment of truth. Youve probably heard the expression, In every crisis, there is opportunity. This is much easier said than done, but maintaining situational awareness is what will help you find those opportunities and turn a negative into a positive. Id like to share with you a wonderful example of this, which is from Reputation Rules, a book by Daniel Diermeier.

In 1997, Mercedes came out with a new A-Class vehicle that was compact and affordable. The car was an instant success.. Suddenly, disaster struck. journalist had used an A-Class in a Moose Test which consists of rapid lane changes without braking. In the test, the A-Class had rolled over, causing minor injury to a passenger.

Because of the buzz about the A-Class, news spread rapidly through European media, forcing management to make a rapid decision. Mercedes engineers suspected almost any car would fail the test under the tests conditions, and attributed the failure to the tires supplied by Goodyear. So Mercedes truthfully reported what it had found: there was no flaw with the car, but with the test. By focusing on the technical details, Mercedes came across as un-empathetic, and the public reaction was.

Mercedes announced a recall of all A-class vehicles to be retrofitted with the brand-new safety system that was a standard feature on Mercedes luxury cars. Mercedes invited journalists to test the refurbished model. The car passed all driving tests, and the car became Germanys bestselling Mercedes model. By embracing the Moose Test, Mercedes transformed itself into the the maker of the Moose Car.

This story is remarkable because it involved a complete strategic reversal from Mercedes original position. One of the main lessons is that leaders need to focus on the main business problem and not get sidetracked by the overwhelming complexity of the challenge. By abandoning its focus on engineering issues, Mercedes concentrated on the main challenge of rebuilding trust with its customers.

This is exactly why having a strategy map, and having a clear understanding of your goals is so important. Maintaining understanding is a dynamic ability; situational understanding changes as an operation progresses. After recognizing the problem as one of brand reputation, Mercedes completely reversed its approach and focused on the more fundamental challenge of defending its brand and rebuilding trust with customers.

25Questions?Lootok228 Park Avenue South #25440New York, NY [email protected]

Q&A (15 min)90 of 105 min

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