Wednesday, May 26, 2010

Major Crisis Management Mistakes

Lessons From Recent Ongoing Crisis Management & Catastrophe Management Mistakes
  1. Failure to Put the CEO in Charge of the response—visibly and operationally—or, in the alternative, failure to put a competent CEO in charge of the response.
  2. Information Delayed Is Information Withheld: Get those dark sites ready and dashboards operating. Disclose, explain, and apologize.
  3. Litigation Denial: Catastrophes cause litigation tsunamis. Put attorneys who have settled catastrophic cases in charge immediately. They’ll be opposed by a global horde of extremely experienced and collaborating plaintiff’s attorneys.
  4. Save the Boss a Nickel: Throw a net over the finance department and watch out for the well-meaning penny pinchers as they try to save the boss a nickel or a dime. These people will cost the boss his or her job, and an extra billion dollars.
  5. Create More Victims: Job #1 is to resolve the victim issues now, and for the next generation or more.
Biggest Current Mistakes:
  1. BP trying to preserve the well rather than stop the oil flow.
  2. Johnson & Johnson thinking it can still hide behind the urban legends of its 1982 Tylenol performance.
  3. Toyota continuing to underestimate the media-driven American Congressional paranoia about dangerous cars.

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