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Crisis Management Presentation(1)
Crisis Management Presentation(1)
Crisis Management Presentation(1)
HSEFILES.COM
Possible Macro Effects
Revenue
Production reduced or halted Companies, investors, and Q2 revenue is affected all over Due to mandated travel
Health care infrastructures are
due to lack of deliveries, an consumers are unsure of the the globe. Billions are lost in restrictions and social
impacted, due to the lack of
increase in sick leave, or future. Longer-term effects on sales for airlines, hotels and distancing within and between
manpower, equipment, space,
mandated teleworking. Supply markets can last for 12-18 restaurants. Other service sectors, countries, human activities are
and testing. This is system is
and production chains are months. Risk of global consumer goods, and industries limited even where there is
badly effected. Those who seek
affected. Shortages of some recession depends on the also suffer losses without clear will. Export and import of
treatment are not always
goods due to the slowdown in severity and effectiveness of picture of when sales will return goods and materials are delayed
afforded the opportunity to.
production. control of the pandemic. to normalcy. or more difficult.
05
CHALLENGE
03 04
What opportunities exist where the What trends or developments would lead to
company can gain competitive sales or profit deterioration in the absence
advantage or perform profitably ? OPPORTUNITIE of defensive action.
THREATS
S
Alternative delivery routes, Reduced capacity and resource in core Compliance Challenges and governments
Value chain, Standstill, areas, infrastructure and services. strict step towards economy, policies,
Delays, Contract disputes, Breakdown of entire locations business, health care systems & more
Effects on customers
01 03 05
02 04 06
Financial Impact Employee Stand-By Days Stand-By Days Daily Financial Impact Financial Impact
Name Used (Today) (Projected) Salary (Today) (Projected)
0
Current Projected
Cash Flow & Burn Rate
Operating Expenses ($150,000) Gross Burn Rate 10 months Operating Expenses ($120,000) Gross Burn Rate 8 months
Operating Profit ($50,000) Net Burn Rate 30 months Operating Profit ($60,000) Net Burn Rate 17 months
Teleworking Guidance
The coronavirus has forced many of us to make rapid adjustments at workplace. More and more employees are
working remotely, creating new challenges for companies. Organization around the world are adopting innovative
solutions for remote working.
04 05 06 Leadership
Employees should know how and when they can
reach their direct managers. This is to ensure that
employees feel secure about what they do and know
there’s always help.
Task Organizations
Provide information and tips on how to manage
working from home. Through management's
coaching and mentoring, employees have the
opportunity to grow.
Flexible Schedule
Mitigate the mental impact of crisis with
flexible hours if there are slow-downs or
contracts fail to materialize beyond
employees’ control.
Team Status Dashboard
30
In office 25
Full-time employees
teleworking 450 Telecommuting
15
telecommuting
10
28
Isolated and not
0
teleworking Finance Marketing Sales Product Operations Engineering Support
Furlough, Reduced Pay, and Lay-offs due to COVID-19 Absence count by branch location
35
30
25
20
15
10
0
Week 01 Week 02 Week 03 Week 04
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Healthy Office N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
Team Status Snapshot
5%
In office
75%
Teleworking
5%
Isolated
15%
Furlough
Due to the precarious nature of our business operations, project development status, and projected revenue for the rest of the fiscal year,
we’ve unfortunately had to place 15% of our workforce on furlough but welcome them to rejoin the team when the macro situation
demonstrates a more positive outlook. Since March, we’ve also mandated all employees to work from home, with the exception of those
whose job duties require them to be onsite.
Depts with Paused Hiring Depts with Pay Reduction
80% 80%
60% 60%
40% 40%
20% 20%
01 ½ month Form crisis management committee and perform detailed risk analysis and structure crisis mitigation plan.
02 ¾ month Active communication with employees regarding status quo and implementation of mitigation plan
04 Evaluation of employee performance, product market fit, and projected revenue 1 month
05 Evaluate effectiveness of crisis management plan and cut costs where necessary 1 month
+ Case
Scenario A
Positive best
case scenario
Scenario B
Trend scenario
Scenario C
Worst case
Time scenario
- Case
Plan Opex
22 18 12 8
months months months months
Scenario Planning
-10% Opex
Runway Matrix 24
months
22
months
16
months
12
months
-30% Opex
28 26 22 18
months months months months
-50% Opex
32 28 22 22
months months months months
Scenario Responses
Workers return to offices by May and
business closures are halted. Supply Best Case
chain and demand for our products
returns to old norm.
Revenue Decreased but overhead Decreased but steady Slowed down but am to
Target now lower progress hit goal
Workers don’t return to offices until next
year and most of our projects are
Worst Case
Maintain for at Maintain for at Steady and maintain as
cancelled/paused indefinitely. More layoffs Runway least 18 months least 3 years usual
and revenue suffers.
Macro Scenario Matrix
Irrespective of circumstance and whatever you believe the future holds, employing this approach will make the consequence of the decisions
clearer. The act of planning is more useful than the plan itself. After using this framework, you should update your strategy every few
weeks. Circumstances are changing rapidly;
Phase 01 Phase 02
Organizational Crisis
Threat of Viability
Liquidity Crisis
Crisis Management Matrix
Organizational Crisis
Revenue Crisis
Liquidity Crisis
Insolvency Crisis
FOUR PHASES: Potential Crisis Imminent Crisis Acute but Manageable Acute and Unmanageable
Crisis Management Process
• Identify the corporate crisis • Review and assess the situation • Plan objectives • Clarify responsibility • Supervise projects
• Accept the crisis and consequences • Reassess goals • Train crisis team & plan crisis • Create detailed resource plan • Review projections/key figures
• Overcome fear , anxiety and • Verify resources workshop • Allocate tasks & implement • Lead by example
Management •
frustration Supplier & customer evaluation, measures • Evaluate & adapt measures
develop scenario • Create schedule • Create a feeling of accomplishment
• Map milestone & phases • Create a feeling of accomplishment • Learn from lessons
01 02 03 04 05 06
Identification Initiate crisis Perform a general Define immediate Creation of a Implement and
of crisis management analysis measures restructuring plan monitor
Identify the crisis & Create crisis management plans & strategies, Data analysis & Steer, implement,
damaging activities define objectives strategic measures adapt & evaluate
Stages of Crisis Management
Stakeholder Crisis Organizational Crisis Product / Sales Crisis Threat to Viability Liquidity Crisis Insolvency
• Inadequate communication • Unclear market positioning • Decline in demand for • Profit loss • Insufficient cash flow • Negative survival prognosis
products or services
• Heterogeneous stakeholder • Bad investments or • Liquidity and solvency can • Overdue payments to • Imminent insolvency
structure miscalculations regarding • Decline in sales volume, still be maintained suppliers
• Excessive debt
technological developments prices, and / or margins
• Complex, flawed
• Insolvency
organizational and financing
structures
01 02 03 04
• Risk management and analysis • Crisis organization planning • Notify emergency organization • Return to normalcy
• Risk communication • Networks/partnerships • Create crisis unit • Standard procedure for workflow and
• Early warning systems • Crisis communication • Crisis communication plan processes
• Identify critical processes implementation • Technical tasks • Operational documentation
• Identify relevant links to other • Reporting system • Information management • Evaluation meetings
company divisions • Staff & training plans • Operational documentations • Final Report
Crisis Management Cycle
01 02 03 04
• Risk management and analysis • Crisis organization planning • Notify emergency organization • Return to normalcy
• Risk communication • Networks/partnerships • Create crisis unit • Standard procedure for workflow and
• Early warning systems • Crisis communication • Crisis communication plan processes
• Identify critical processes implementation • Technical tasks • Operational documentation
• Identify relevant links to other • Reporting system • Information management • Evaluation meetings
company divisions • Staff & training plans • Operational documentations • Final Report
Crisis Management Cycle
01 02 03 04
• Risk management and analysis • Crisis organization planning • Notify emergency organization • Return to normalcy
• Risk communication • Networks/partnerships • Create crisis unit • Standard procedure for workflow and
• Early warning systems • Crisis communication • Crisis communication plan processes
• Identify critical processes implementation • Technical tasks • Operational documentation
• Identify relevant links to other • Reporting system • Information management • Evaluation meetings
company divisions • Staff & training plans • Operational documentations • Final Report
Crisis Management Cycle
01 02 03 04
• Risk management and analysis • Crisis organization planning • Notify emergency organization • Return to normalcy
• Risk communication • Networks/partnerships • Create crisis unit • Standard procedure for workflow and
• Early warning systems • Crisis communication • Crisis communication plan processes
• Identify critical processes implementation • Technical tasks • Operational documentation
• Identify relevant links to other • Reporting system • Information management • Evaluation meetings
company divisions • Staff & training plans • Operational documentations • Final Report
Crisis Management Matrix Levels
Low
Strategic crisis Threat to viability Liquidity crisis Insolvency
Time
Diagnosis at Early Stage
Risk level 1
Innovations 8 Do you have any new products or services?
Risk level 2
Revenue 5 Is your revenue increasing?
Crisis
Creditworthiness 2 Will your bank still offer credit?
Turning Point
End Point
Time
The Crisis Curve
Intensity of threat & need for action
Time
Kübler-Ross Model
The Kübler-Ross Model of dealing with grief and losses can translate into teams’ reaction and responses to crisis in a corporate
setting. In cases where acute crises arise, it is important to have a blueprint of feasible plan that allows for future bounce back –
both in terms of business operations and of team morale.
Anger Acceptance
Withdrawal Agreement
Bargaining
Time
Crisis Management Phases
Intense, real
destructive effect
Need for early warning
Need for
crisis management
Potential for
crisis management
Prevention Needed
Destructive Effects
Time
Strategies & Responses
ADAPTING
Ensure that all those in positions of Keep the media and stakeholders Social Media channels are just as Well-prepared, transparent and structured
responsibility have the same level of informed as comprehensively, consistently important as traditional means of crisis communication protects against
information required. & truthfully as possible. communications. conjecture.
01
03
04
01 03 05 07
02
04
06
02 04 06 08
Flexibility and Limit the chaos phase Risk analysis & Target groups
adaptability as possible early warning and contacts
Crisis management must always Have clear procedures & structures for Increase your chances of identifying Define target groups for crisis
include the willingness to adapt and crisis and communication in order to keep latent crises and prevent them from comm internally and also maintain
improvise on it. initial phase short escalation contacts with media
Crisis Communications Guidelines (cont.)
Where procedures and structures, capability, Should be convened as soon as possible to A good early warning system allows you Following up after crisis is important part
responsibilities, functions, process etc. are monitor information on the crises and release to keep the chaotic initial phase as short of process & basically starts during actual
summarized news when needed. as possible. crisis management
01
03
04
09 11 13 15
02
04
06
10 12 14 16
This is essential to maintain a good level Point out and explain any area of Reduce fear anxiety and risk perception The task of risk comm. Is to ensure
of trust and to safeguard your company’s uncertainty and explain. Develop & by publishing trustworthy and credible dialog in both direction & to take all
reputation. publish recommendations. info. interest groups into account.
Crisis Communications
Target Groups
Crisis MGMT
Federal, states, or municipal governments,
Participants
ministries, authorities, and other official
organizations.
STAY
HEALTHY,
STAY CALM
We wish you and your family good health during this
precarious time. We are confident that this too shall pass
and we look forward to seeing everyone together in the
office soon.
THANK YOU
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