Disaster-Resource.com

The Human Resource Professional's Role in Crisis Management

By Geary W. Sikich

Introduction

Market research indicates that only a small portion (5%) of businesses today have a viable crisis management plan, but virtually 100% now realize they are at risk. By seizing the initiative and getting involved in all the phases of crisis management Human Resource (HR) professionals facilitate the development and implementation of processes that can mitigate or prevent major losses. The role of HR professionals in many organizations is being overshadowed by outsourcing, complex new regulatory initiatives and globalization, to name just a few of the challenges facing HR professionals.

HR's Crisis Management Role

Traditionally, HR has had a limited role in crisis management activities. This role has been mainly to address "Humanitarian Assistance" aspects of crisis response. However, when we start to rethink the role that HR should play in today's global environment we see that HR's crisis management role is much harder."

HR professionals should focus on a comprehensive structuring of initiatives designed to establish and maintain resilience between and among all the touchpoints of the enterprise. This can be executed on three levels as depicted in the graphic below:

Each organization must develop its own variations on the model depicted in the graphic. Every organization must have an intimate understanding of the three human sides of crisis management - Interest (others' assets and capabilities can affect your courses of action), Influence (your assets and capabilities can affect the courses of action of others), and Responsibility (your organization's mission, vision and values) - to create resilience. A plan will not provide resilience; resilience is realized only through the sustained, collective actions of an organization's human resources — who must respond to, manage, recover from, and restore the organization's capabilities when a crisis strikes. Below, in summary form, is a list of practices, tools, and techniques that can be adapted to a variety of situations. Using these as a guide, HR professionals can begin to engage the entire organization in the crisis management process.

1. Focus on "human factors" systematically. Any crisis creates "people issues." Dealing with these issues on a reactive basis puts the organization at risk. In order to be successful, communications channels must be responsive. This requires data collection, analysis, collation, and effective distribution of information, to inform and enable strategic decisionmaking.

2. Top down - bottom up. Because crises are inherently unsettling for people at all levels of an organization, CEOs and their leadership teams must speak with one voice. The executive team also needs to understand that communication also comes up through the organization and this chain consists of individuals who are going through stressful times and need to be supported. Seamless vertical and horizontal communications consisting of common terminology and clearly defined goals are critical.

3. Engage every level. As a crisis progresses, it affects different levels of the organization and the "value chain". HR personnel can be instrumental in assisting management to identify leaders throughout the company to ensure that the appropriate crisis response is implemented to prevent "crisis cascades" through the organization.

4. Establish a "Value Proposition".

Despite the acknowledgement of corporate management that having a comprehensive program or business continuity is a worthwhile expense, most organizations have not dedicated the resources to developing and maintaining such a program. Articulating a formal case for a comprehensive program provides valuable opportunities to create alignment at all levels in the organization and with external partners. Three steps should be followed: First, confront reality. Second, provide a road map to guide behaviour and decision making. Third, communicate to nternal and external audiences, in terms that matter to the individuals.

5. Make it a "way" of doing business not an "adjunct" to the business.

Creating ownership and internalizing the processes for crisis management must become a way of doing business instead of an adjunct to the business. This requires creating a critical mass among the work force; more than mere buy-in or passive agreement. Ownership by leaders willing to accept responsibility for making continuity an integral element of their sphere of influence is often best created by involving people in identifying problems and crafting solutions.

6. Communicate commitment. Top down and bottom up, means that leaders make a commitment to ensuring that others understand the issues and see the direction as clearly as they do. HR professionals can reinforce core messages through regular, timely communications targeted to provide employees with the right information at the right time and to solicit their input and feedback.

7. Assess the cultural landscape. It is critically important to understand culture at each level of the organization. Assessing organizational culture can have major benefits in internalizing crisis management processes and reducing resistance to change. The sphere of responsibility; the corporate mission, vision, and value statement is a driver for this element, defining an explicit desired culture.

8. Prepare for the unexpected. No crisis management or business continuity program ever goes completely according to plan. In a crisis people react in unexpected ways. HR professionals need to communicate to the organization that we are no longer able to merely think about the plannable or plan for the unthinkable, but we must learn to think about the unplannable. Whether a natural or human induced disaster, surprise is the key element in an organization's failure to anticipate effectively; effective communications through HR can facilitate the organization's willingness and ability to respond to crisis situations supported by solid decision-making processes.

9. Personalize the message. Crises affect both the organization as a whole and the individual on a very personal level. People will react to what they see and hear around them, and need to be involved in the crisis management process. People matter; people are the key factor in an organization's success or failure in a crisis situation. It can be very tempting to focus on the planning process, rather than address critical human issues. But, involving HR as an integral element of the crisis management program can facilitate successful internalization of the program; making it more responsive and less reactive.

Conclusion

Enabling effective business continuity processes across geographically dispersed operations and myriad "value chain" touchpoints requires that HR professionals become an integral part of the process and implement formal performance measures needed to assure internalization of continuity plans and processes often distributed across diverse organizations, lines of business, groups, departments, geographies, and "value chain" touchpoints. This requires extracting, analyzing and communicating information, internalizing processes, and exercising controls to enable a 360-degree, three-dimensional view of organizational performance when crisis strikes.

Geary W. Sikich is the author of "It Can't Happen Here: All Hazards Crisis Management Planning," "Emergency Management Planning Handbook" available in English and Spanish-language versions and, "Integrated Business Continuity: Maintaining Resilience in Uncertain Times," www.Amazon.com. Mr. Sikich is the founder and a principal with Logical Management Systems, Corp. (www.logicalmanagement.com). He has extensive experience in management consulting in a variety of fields and consults on a regular basis with companies worldwide on business-continuity and crisis management issues. He has a Bachelor of Science degree in criminology from Indiana State University and Master of Education in counseling and guidance from the University of Texas, El Paso.
Copyright © Geary W. Sikich, 2004. World rights reserved.
Published with permission of the author.