Being prepared for when disaster strikes with crisis plan
In a time when social media gives new meaning to news ‘‘spreading like wildfire’’, it is increasingly critical to have a good crisis management plan in place.
Nestle Australia chairwoman Elizabeth Proust was head of human resources for ANZ when one of the bank’s executives was on board a hijacked plane on Christmas day in 1999.
Mobile phones were not as prevalent and something as small as the contacts list was outdated. ‘‘There was a lot of scrambling there to deal with that issue,’’ Proust says.
Her example highlights a need for all companies to have a current crisis management plan that deals with all those small things.
With the use of social media, it is critical that crisis management plans include social media as a matter of course.
Crisis management is an issue Proust spoke about when she visited Auckland recently for an Institute of Directors event.
She says a thorough crisis management approach includes prior testing and simulation of different scenarios and a set of steps in place to deal with potential crises.
It might seem like a lot of effort for something that may not happen but Proust says it is important for companies’ reputations and to keep businesses running when in crisis mode.
There is no necessary link between availability of resources and crisis management either, with Fonterra’s botulism scare in 2013 a prime example. The incident prompted a review of New Zealand’s food safety system but at the cost of New Zealand’s international reputation.
The Pike River mine disaster of 2010 led to the passing of the controversial health and safety reform bill this year but at a price that was undoubtedly too high, she says.
‘‘Twenty-nine people did not need to die. People shouldn’t be injured or killed at work and directors have onerous responsibilities because of it. You’d like to think [law reforms] could be in place without death and injury but with human nature being what it is, finding time in a crowded legislative programme often requires a crisis.’’
No matter how much people prepare, it is difficult to predict what is coming around the corner and that is why having good governance and senior management is equally as important as having a good crisis management plan. Managing director of social media marketing company Socialites Wendy Thompson says social media has increased the speed and reach of bad news getting to the public.
Without the luxury of time to respond before a problem hits mainstream media, a crisis can cause damage to a company instantaneously.
As well as a solid crisis management plan, Thompson recommends businesses build a social media presence and invest in social media ‘‘listening tools’’, which help keep track of what is said about a company’s brand and key topics of interest on the internet. ‘‘When a crisis plan goes to plan you won’t hear about it,’’ Thompson says.