Australian Business Solutions: Implementing a crisis and recovery management plan across borders

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    060 AUSTRALIANBusiness Solutions

    International business

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    | By Barry Thomas |

    AUSTRALIANBusiness Solutions 061

    A corporate cri sis can st rike at an y moment and in any locat ion. Indeed,

    a crisis relates to an incident, human or natural, that requires urgent

    attention or action to protect life, property, environment or reputation.

    In the age of digital media, it can be business as usual one day and,

    without prior warning, the following day an international corporate

    crisis can be in full swing. With an almost immediate news cycle these

    days, increased scrutiny and the high expectations of consumers and

    company stakeholders alike, such a crisis can transform an international

    companys reputation overnight.

    Every organisation, irrespective of where it is situated, is different

    and faces unique risks to its ability to function. How well a business

    emerges from a corporate crisis is not related to where it is located on

    the map, but is usually reflective of preparations and the execution of a

    well thought out crisis management plan.

    When developing a crisis and recovery management plan across

    borders, there are four fundamental phases to consider:

    Planning: There Is No Excuse Not To And The Rewards Are

    Significant

    Some markets are inherently r iskier than others, and conducting

    a crisis management audit of each site is the f irst port of call

    to assess the organisations abil ity to respond to and recover

    Implementing A

    Crisis And RecoveryManagement PlanAcross Borders

    from a crisis. For example, it would seem prudent to consider

    a continuity plan in the event of an earthquake for Japanese

    operations. Equally, operations that include manufacturing

    capabil it ies wil l have a very different r isk profi le to off ice-based

    sales and marketing teams.

    Once the risk profile of a site is understood, effective crisis and

    recovery management requires a plan.

    The plan is a liv ing document, meaning it should be regularly

    reviewed and updated, and include as a minimum:

    instructions for activating the plan effectively;

    contact details for a crisis team and crisis media spokesperson;

    contingencies in the event members of the team are incapacitated ;

    the roles and responsibiliti es for each crisis team member;

    predetermined performance benchmarks for external support

    services such as a call centre or distribution centre;

    company policies and instructions to manage monitoring tools,

    media and local online properties; and,

    specific market considerations such as relevant regulatory

    requirements.

    When developing your plan and nominating your crisis team and

    spokespeople in each market, remember to consider language as different

    audiences, both internal and external, may have varying requirements.

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    next phase and when doing so, it is important

    to ensure that all messaging is communicated

    in a clear and concise manner.

    Monitoring is a fundamental component of

    crisis management. You may want to consideractivating monitoring tools and specialists to

    observe media and stakeholder discussions about

    the issue and evaluate what impact the crisis has

    had on your organisations corporate reputation.

    It would be nave to think that a crisis will not

    happen to you or your organisation and it is

    important to remember that a crisis is not over

    until you decide it is over. Once a global issue

    is underway you will need to assess how it is

    impacting each country, as again it will vary.

    The most important considerat ion is to b e able

    to evaluate how each market has managed the

    issue and to feel confident that it was done so

    with the highest level of integrity.

    Barry Thomas is the Vice President and APAC

    Managing Director of Cook Australia. Barry has more

    than two decades of international leadership and

    expertise in the pharmaceutical and medical device

    industries and he currently spearheads the worlds

    fastest growing region for Cook Medical. His current

    position sees him working to expand the opportunities

    for people in Asia to access Cook Medicals advanced

    and minimally invasive medical devices.

    Training: Putting The Planning Into

    Practice

    Now you have a suitable crisis and recovery

    management plan established in all of your

    sites, it is important to ensure those withresponsibilities identified in that plan are

    capable of performing their duties. Where

    necessary, incorporate regular training

    sessions to fill any capability gaps. These

    sessions should be tailored for each country

    to address local risk factors, for example local

    regulatory procedures, social media protocols,

    compliance issues and safety procedures. The

    media is also unique in every market, so it

    makes sense to ensure the local spokesperson

    is trained to get your organisations key

    messages across effectively.

    Exercise: Test And Review Your Processes

    Each sites ability to respond to a crisis situationshould be regularly tested and reviewed. The

    organisation should assess performance

    criteria for incident preparedness and achieving

    operational continuity at each site and tailor an

    appropriate management system for it.

    One way to do this is to facilitate a simulation

    exercise, which is an incredibly effective

    method to test how things will be managed

    in a real life situation. Depending on your

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    organisations size and budget, simulations

    can be desktop exercises or full-scale

    emergency scenarios in conjunction with local

    emergency services. Each simulation should

    involve a typical local scenario based on therisk profile of the site. As language, operational

    procedures and regulatory requirements will

    vary from market to market, it is important to

    ensure each simulation is tailored accordingly.

    This wil l add to cost, but it wil l ensure a

    realistic simulation and an effective outcome

    in terms of preparedness.

    Managing The Crisis: As It Happens

    Once the crisis and continuity plan is activated,

    it is up to the crisis team leader to decide the

    extent to which the crisis team needs to meet

    and where. When the crisis is underway, there

    are four key stages:

    Information gathering and assessing thecrisis situation is the frst phase. This intelligence

    is needed to evaluate the impact of what has

    happened and coordinate next steps appropriately.

    Decision making involves how the issue

    will be handled, what key actions need to be

    taken and how the information is going to be

    communicated both internally and externally.

    Communicating crisis specific messages

    for internal and external stakeholders is the

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