At some point in time, nearly every construction business will face a crisis that results in serious injuries, death or significant property damage and has the potential to cause public or media concern.
When a crisis occurs—whether it’s a jobsite fatality, a bomb threat, a major automobile accident or a building fire—it’s important to act immediately. Businesses must know what to do, when to do it and who should be involved.
Businesses that are proactive in crisis management may be able to protect lives, prevent damage and destruction to property, and save hundreds of thousands of dollars by reducing the likelihood of lawsuits and diminished productivity.
Crisis Management Planning A crisis management plan that can be used during and immediately following a crisis consists of the following objectives:
- it maximizes the safety of employees and the public;
- it minimizes the potential damage to both real and personal property;
- it lowers the likelihood of litigation; and
- it minimizes any negative publicity.
While the actual crisis management planning process differs depending on the type and size of a business, some basic steps should be considered.
First, establish a crisis management team. In general, consider the following potential team members:
- president;
- vice president(s);
- director of loss control and safety;
- director of media relations or public relations consultant;
- human resources manager;
- risk manager;
- director of finance;
- legal advisors; and
- external crisis management consultant.
The crisis management team should hold a brainstorming session to identify potential crises, risk factors and hazards. Although it’s virtually impossible to establish a contingency procedure for all potential crises, certain events are more likely to affect a company than others. For each crisis identified, specific policies and procedures should be developed and agreed upon.
Second, it’s critical for crisis management team responsibilities to be established and assigned, as follows.
- Team leader: Coordinates the crisis management team, and in some cases serves as the team’s spokesperson.
- Crisis spokesperson: Presents official, accurate information to the media on behalf of the company.
- Safety coordinator: Investigates accidents or events, takes statements from witnesses, and photographs and preserves evidence.
- Department leadership: Provides the crisis management team with immediate expert information about the cause of the crisis. They also can play a vital role in identifying potential crisis scenarios involving their departments.
- Team secretary: Screens all calls and walk-in visitors, including reporters, photographers and others, only providing information approved by the spokesperson. The secretary also keeps a log of all calls and media visitors, including: contact name; title and organization; name of newspaper, magazine or radio/TV station; contact number; and reporter’s deadline.
- Security personnel: Secures the situation to protect against any future or additional accidents, as well as to preserve evidence.
- Human resources: Communicates with injured parties, their families and other staff.
- Legal counsel: Participates in the planning process and advises the crisis management team during a crisis.
Team members should undergo training to understand their specific roles. In addition, each role should have a backup staff member.
Finally, it’s important to review the crisis management plan on a regular basis. Companies change, and so do their exposures to loss.
Basic Crisis Plan
Among other things, a basic crisis plan depends on a business’ type, location and size, but it always should include eight key elements.
- Policy: The company’s position on how crises are handled and documented.
- Procedures: Assignments of who does what, where and when during a crisis.
- Role definitions: Individual team members’ responsibilities during a crisis.
- Emergency contacts: All phone, cell and pager numbers and email addresses.
- Communications plan: How to notify employees and families of a crisis situation.
- Public relations plan: Guidelines on what information will be disclosed, to whom and by whom.
- Professional resources: Internal and external professional resources available to assist before, during and after a crisis.
- Physical plan: How the organization will handle setting up a crisis management staging area, repairing and restoring a physical location, and repairing or replacing equipment.
An effective crisis management plan is a critical component of a company’s overall risk management program. Experience has shown that a company’s chances of managing a crisis increase significantly with the amount of preparation, planning and training done before a crisis strikes.
DO designate a corporate spokesperson. The corporate spokesperson should be the only one authorized to release information to the public. The company must speak with one voice.
DO tell the truth. Be honest and accurate; don’t speculate.
DO take control. If there is bad news, the company should release it first.
DO respond quickly. If not, the wrong story may be told, which can be difficult, if not impossible, to erase.
DO explain rather than stonewall. Say “We are still investigating” instead of “No comment,” which often implies guilt.
DO emphasize the positive. Explain good safety measures, the minimal damage because of good teamwork by employees, and what the company is doing to minimize the effect of the emergency on the community.
DON’T talk about who is responsible, as it may become part of a legal issue. Avoid commenting on liability issues.
DON’T make any accusations.