Do you have a corporate "major calamity"
damage control plan? |
The
law requires everyone to have an emergency response plan, but is
silent about what happens the day after.
Contributed by David Berman, Rochester, New York
I was safety officer for a medium-sized stainless steel container
manufacturer, when we suffered a serious and tragic disaster.
A welder was completing a minor repair within an enclosed cylinder
when it suddenly flashed over and engulfed him in flames. He was
not killed immediately, but died of his burns about three weeks
later. His partner, who tried to free him, also suffered third degree
burns to his face, chest and arms and was to spend the next two
years in hospital undergoing painful debridement, followed by extensive
reconstructive surgery.
The explosion resulted in a fire, causing equipment and structural
damage that was only extinguished when the fire department arrived.
All work came to a standstill, and we were able to return to limited
production only about four weeks later.
Everyone in the plant, including management, and I must confess
myself, were plunged into a state of shock and paralysis by the
incident. The human and financial costs were massive, and continued
for many months.
The ongoing devastation caused by our calamity left a lasting impression
on me, and I have since drawn on what resources I
could find, to prepare contingency plans to be able to cope more
effectively with the fallout of an occurrence like this. I hope
never again to undergo such an experience, but if I do, I believe
that the damage control plans I have helped to formulate will give
my company a better chance of bouncing back.
Curiously, there is a great deal more literature on how not to react
to a disaster, including much anecdotal information on companies
that have responded poorly, than on how to respond effectively.
How would you respond to a major calamity?
Imagine there is an overnight fire at the plant, or a flood, or
a major accident causing serious injuries—even deaths.
The media are on the phone, or perhaps cameramen are already at
the gates; employees immediately affected are calling in to find
out what happened, and to ask if they should report to work; employees
throughout the organization are wondering how it will affect them
or even if they still have a job; plant and equipment must be found
to replace lost facilities and to maintain production; the bank
manager wants all sorts of information and reassurances before extending
desperately-needed credit; shareholders demand an explanation; customers
are calling about urgent shipments that are not getting through;
suppliers want to know if they should send in raw materials—or
if they are going to be paid.
Everyone is confused, upset and not doing
their jobs
The time to plan a response to a tragedy is not the day it occurs.
The issues all pour in at once, there is no time to decide carefully
what to do first, whom to talk to, what to say, where to look for
answers. Everyone is consumed with the event, and everything can
quickly spiral out of control.
Day one—the event
You are completely absorbed in dealing with the immediate fall-
out, whether it be clean-up, rushing an employee or employees to
medical treatment, (literally) putting out fires. Production falls
to zero. Depending on the severity of the calamity, this absorbs
all the human resources of the company for all or most of the day.
Day two—time to take stock
What are your priorities? Who assigns priorities? Who talks to the
media? . . reassures customers? . . Talks to the bank?
. . placates shareholders?
What damage assessment is needed? Who should make the assessment?
What resources does the organization have to help it return quickly
to an even keel?
Days three and subsequent days—the
road back
What must be done to reduce the impact of the calamity? Who helps
employees cope with the shock they are feeling, their sense of loss,
their concern for their jobs?
Who takes charge of finding the resources the organization will
need? Who is charged with returning productivity to normal? Who
makes sure that existing contracts and obligations are fulfilled?
Who will measure the rate at which the organization returns to 'business
as usual'?
Don't expect any of this to happen on
its own
Major corporate decisions will have to be made, as well as many
minor ones. In the absence of planning, all these decisions
will devolve on distracted upper managers—who will find questions
being flung at them from a hundred different directions. Management
may be frustrated and baffled that nothing seems to be happening
on time, that nothing works any more as it is supposed to.
Damage-control
I urge every organization to appoint, in advance of any accident,
a damage control team, to look at all the issues that will need
to be addressed, and to draw up contingency plans.
The damage control plan goes beyond the immediate requirements of
an emergency response plan, which deals with
the physical concerns of getting everyone to safety. The damage
control plan is the plan of what to do next.
Here are some of the issues to cover in your plan:
The plan should address all the contingencies
(with alternatives) and assign personnel to deal with them Immediate
and positive response is essential, as is visibility of higher managers.
But these company officers will not be able to respond effectively
if they are drowned in a mass of detail. Upper managers need to
be free to deal with the press, shareholders, sensitive customer
relations. If the details are handled competently by others, upper
management is free to deal with the larger issues, and the fallout
will be proportionately less.
The damage-control team must identify
major concerns
that should be addressed by the president and upper management,
and list administrative actions and decisions that others can take
care of
Roles must be assigned: people must know their specific responsibilities
and be able to make decisions and take action within their assignments.
Early morning meetings of the damage-control team must be scheduled
for each day, commencing on day two.
The damage-control plan must cover every facet of the organization's
activities. Plans must be made and roles clearly assigned to contact
employees, suppliers and customers, for instance. Contingency production
plans must be in place.
The plan should include management at
all levels
It must cover every manager and supervisor. Managers and supervisors
should not be left wondering how they are going to explain the occurrence
to their immediate crew. They should be able to expect a clear communiqué
issued by a knowledgeable management person acting for top management.
If the president or facility manager
is not involved directly in the damage-control team, he or she should
see its report and approve the final plan
If upper management is involved in the plan, it will have greater
credibility.
Communication lies at the heart of the
plan
Copies must be circulated among all personnel affected by it. The
plan should be discussed, and everyone must know and understand
their assigned roles. The better everyone can play their parts,
the faster the organization can return to normal.
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