Generic planning lays the planning basis for possible situations. The aim of generic planning is to determine fundamental requirements and potentials. In addition, the ensuing planning stages should be simplified and speeded up. In this sense, generic planning is rough contingency planning, in which the specific scenarios for the crisis situations remain purposely vague and determinants are consciously left unspecified. Besides, it is in many cases impossible to predict all those determinants (WEU, 1995).
Questions related to the organizational structure of the company as well as to the workflow organization are as much the objects of the planning process as the results are influenced and determined by it.
6.1.1 Determination of structures and responsibility
A fundamental part of generic planning is determination of responsibility and authority. Subsystems for planning and future executive functions within crisis management are, as a rule, set up within the organization. Since these subsystems plan, and in the case of crises, manage highly important processes, they are usually located at the highest management level or directly assigned to them.
It is commonly agreed that a project organization can best face the challenges that are timely, limited and irregular. In concrete realization, these are either organic sub-unit ‘working groups’, which have no authority to give instructions, or crisis committees, which are composed of representatives from several departments, but do not form a department on their own.
It is particularly advantageous to have an advisory group that should do the groundwork for management when it concerns the elaboration of different contingency-planning measures. By being assigned to top management and thus breaking free of the specific interests of different parts of the organization, distorted exertion of influence is avoided. As from the moment of a negative event, if not before, the limited legitimization to put their ideas into action will be problematic. A call is, therefore, often made to increase the authority of such advisory groups to allow them to impose their will.
However, this makes an advisory group become more like a crisis committee.
In addition to members of management, a crisis committee is also made up of other relevant decision- makers such as a marketing manager, legal advisor, press spokesperson, etc. The composition is easy to vary depending on the type of event. In this way, not only is the specialist’s knowledge of the members used, but it is also ensured that the decisions reached will be implemented by the people responsible under normal circumstances. This form of functional similarity in cases of crisis and in normal situations has proved to be an important factor of successful crisis management (Höhn, 1974; Mileti and Sorensen, 1987).
Advisory group
Crisis committee
Example 38: Lufthansa’s Crisis Management
They can be called experienced or well prepared, but airlines have, like no other sector, done a lot already to prepare for the unlikely possibility of an airplane accident. The high emotional judgment when it comes to flying but also the companies’ interest to demonstrate their compromise with quality and service, even in those exceptional situations, were the major forces that led to establishing a well-thought crisis management concept and team.
In the case of the Star Alliance Partner Lufthansa, crisis management has played an important role for many years. Their case is thought to explain how such a system of strategic and functional responsibilities works.
Lufthansa defines the responsibilities and the organizational structure in its Emergency Response and Action Plan (ERAP). This plan is prepared and updated under the supervision of the Manager for Crisis Management Planning, a permanent position, which in the event of a crisis becomes the Head of the Special Assistance Team Centre. Under him, the different departments of importance in times of a crisis, as for example, Medical Services, Communications, Personnel, Governmental Affairs and Security, etc., deliver their specific input to this ERAP.
The organization of crisis management at Lufthansa
In the event of a crisis, the so-called Crisis Management Team (CMT) is assembled. This Team is led by a high-ranking manager who represents the Board of Directors and is responsible for the overall Crisis Management of the company. He is assisted by the different departments
Departments
Head of Crisis Management Team Crisis Management Team
Medical Special Assistance Team Center
Service (SAT-C)
Corporate- Special Assistance Teams
Communications (SAT)
Governmental Affairs/ Telephone Enquiry Center (TEC)
Security Service Teams
Personnel Relief Team
(Cockpit / Cabin)
Logistic Team Accident-
Commission Passenger Team (G0 TEAM)
Client Site Team
Services
Hotel Team Hospital Team
participating in the ERAP, which send a previously designated representative to the Crisis Management Team’s room, based at Frankfurt’s Rhein-Main Airport. Special Advisors, who are selected according to the specific needs of the situation, join the Crisis Management Team. The main functions of the Crisis Management Team are the pooling of information, the situation analysis and strategic decisions.
The Special Assistance Team Centre (SAT-C) is supporting the CMT (as a working group) and is assembled simultaneously in rooms prepared at Frankfurt’s Rhein-Main Airport. The SAT-C manages and coordinates the different Special Assistance Teams.
Tasks and responsibilities of the Special Assistance Teams
The Special Assistance Teams (SAT) are the operational arm within the company’s crisis management and reflect the typical operations an airline may be confronted with in times of crisis. These teams, which are available worldwide, are only activated in case of a crisis but they can also be easily deployed to the place of emergency. The SAT members are volunteers who are recruited from different departments within the company, trained for their emergency function and activated on demand. The responsibilities of the Special Assistance Teams (SAT) are defined in a Special Assistance Team Centre (SAT-C) manual.
Telephone Enquiry True and complete information for the external enquiries Center (TEC) • Handling of communication
Service Teams • Telephone service for families, friends, and relatives of the victims
Passenger Team Caring for air passengers, relatives, persons at the site, (GO TEAM) persons affected
• Listen
• Inform
• Help
Relief Team Support to the station concerned
• Take-over of routine activities
• Maintenance of station service
• Management of tasks assigned by the local head of station Logistic Team Handling of administrative tasks
• Air tickets for relatives
• Hotel reservations
• Providing financial support
• Answering further administrative problems
Example 39: TUI’s Crisis Management
Crisis management has already become for some tour operators part of their overall quality strategy. That includes the establishment of departments exclusively responsible for crisis management and called accordingly. However, the management of extreme situations is not a new field for most tour operators and is often one of the reasons why holidaymakers decide to choose a package holiday. The European tour operator TUI for instance is managing some 200 cases of death and 1000 difficult health cases such as strokes among all their guests every year.
The organization of crisis management at TUI
TUI has a department permanently headed by the Manager for Crisis and Event Management.
He is responsible for the corporate planning and operational activities of TUI’s emergency and crisis management. He is also in charge of establishing and maintaining a wide network with all relevant areas within the company, as well as with governmental institutions and associations. He reports directly to the Management of TUI Germany Ltd.
The Crisis Committee is assembled in the event of a crisis. Besides, the already designated members from the departments of communications, sales, quality management, product
Care Team
GAST / EPIC
Hotline Call Center Information
about a crisis situation from the destination/
media
Management TUI Germany Ltd.
Head Crisis Committee
The crisis committee is comprised of permanent members from the following areas:
Communications Sales Quality management Product management
Transportation
Further areas depending on the situation Decision making / agreement on common message
Communications Departments
Destination Operators Operators Europe
TUI Corporation TUI Germany Central Europe West and North
Public relations Transportation Corporate crisis
Sales management
Further areas Corporate legal
department
management and transportation, other members are requested to join the group depending on the needs of the situation.
The crisis management activities are centralized and managed from TUI headquarters in Hanover (Germany). Actions are always coordinated and consulted with the affected areas / destinations but only the members of the Crisis and Event Management department have the necessary market overview and competence to decide on special flights for evacuation, ambulance services, etc.
The TUI crisis management comprises several core activities. In the first place, it includes the
development of contingency plans for typical situations resulting from negative events. In those plans, the field of duties, responsibilities and rules of conduct are defined and, information and decision procedures are also determined. The contingency plans are updated continuously.
Furthermore, typical important data such as names of key personnel, telephone and fax numbers are also kept permanently up-to-date. Another important result of this planning is the preparation of checklists for evacuations and aircraft accidents. Those checklists are standardized and do not focus on the specific details of a destination.
In addition, special rooms are kept available. This includes the air traffic control centre which is open all year-round, 24 hours a day, and monitors and coordinates all air traffic related to the company. Furthermore, there is a crisis management centre equipped and prepared for running a crisis situation. Client contacts, an increasingly vital factor during times of crises, can be handled with their own resources for situations of the extent of an airplane accident. In addition, TUI is as a member of the GAST/EPIC centre (see also Example 40) allowed to use the GAST/EPIC installations at Munich airport (Germany).
Besides, Care teams have been established. These teams are already known from the airline industry where they have been used for several years to look after those affected by an incident and their relatives. Since the beginning of 2002, TUI counts on some 230 staff who volunteer to help in crisis situations. After the selection of staff, which focussed on mental strength, tact, understanding and talent for organization, they are trained in a three-day basic course with special emphasis on psychology for crisis situations. Annual one-day courses aim at keeping the state of readiness high.
TUI’s Care teams can be moved and have occasionally been sent in the past to destinations (usually one-person missions). However, trained members of the care team are ideally already working in other main functions in the destinations. To improve the situation even further, TUI aims now at extending these staff in double-functions in all destinations.
Picture: TUI. The crisis manual is available in all main departments and destinations
The crisis management centre of TUI
Picture: TUI
While determining the structures of crisis management, ideally detailed job descriptions of all those persons involved in crisis management are produced. That way, duties and responsibilities are defined clearly, at an early stage. Replacements are made easier through a clear definition of duties and responsibilities and, the need for further training becomes clear. This not only helps to fill the posts in the first place but is also of benefit to find the adequate replacement if the incumbent is temporarily or no longer available. For instance, the post description of a head of communications could cover the following points:
Diagram 33: Job description (head of communications)
As the above-mentioned job description already indicates, the different fundamental meetings should be determined as well as their time and those who will be participating. Fixing this basic working rhythm at an early stage also sets the framework for internal and external communications and the control mechanisms. This allows an immediate start of the activities, defines the workflow and the coordination systems and is a helpful way to make use of the ‘lessons learned’ especially for people new to this process.
1. Ensures the designation of the first and only official spokesperson 2. Coordinates communications with public authorities, associations, etc.
3. Monitors the public opinion 4. Prepares press conferences
5. Prepares press releases for discussion with the head of the crisis committee 6. Organizes and chairs telephone conferences after the occurrence of a negative event 7.
Participates in the morning meeting of the crisis committee (if possible, at 7.30 a.m. for a short briefing)
8. Participates in the meeting of the department heads (8.00-8.30 a.m.)
9. Holds daily press conferences (together with the head of the crisis committee) at 11.00 a.m.
10. Participates in meetings of the crisis reaction centre (if possible, 1.00 p.m.) 11. Gives press briefings to management
12. Participates in meetings of the stakeholders or sends a deputy (at least once a week) 13. Is responsible for internal communications
14. Appoints deputy
Diagram 34: Daily Communication Advisory Meeting
Title: Daily Communication Advisory Meeting
Purpose: Daily forum, to examine facts and background information of the event. Determination of essential communication objectives and uniform wording for internal and external communications
Activation: As soon as possible, after the head of the crisis committee ordered the activation Head of the communications department informs the participants
Time: 8.00-8.30 a.m. (after presentation to the crisis committee)
Report to: Crisis Committee
Permanent members: Head of communications, head of concerned region, head of quality management, head of call centre, head of library
Other members: On invitation by head of communications
Receive information from: Daily report from the press office, exceptional event report from the call centre, stakeholders meetings, library
Instruments: Morning press-clippings, overnight reports of the situation room Objectives: Forward findings to the head of the crisis committee
Identification and determination of essential communication objectives and uniform wording up to the press conference at 11.30 a.m.
Output: Agreement on common message for press conference (by the head of communications) at 11.30 a.m.
Report of important news to the head of crisis committee Meeting place: Room 2005, communications department
6.1.2 Use of external experts
A further aspect of generic planning must deal with the fundamental willingness, whether, when and to what extent the company will fall back on external experts in a crisis. The basis of this considerati- on is the fact that handling a crisis, on the one hand, is an exceptional situation, but, on the other hand, coping with it successfully requires experience and specialist knowledge. Although for the most part the latter is available today, getting access to this information is still very difficult. Accessing personalized knowledge in the form of experts is usually preferred. Experts can either be part of the organization or brought in from outside.
The number of companies offering crisis management services has constantly increased in the past years. Most of these companies offer their services for business travellers in crisis situations or assist destinations, tour operators or other service providers in their crisis communication efforts.
Reverting to external experts has the advantage that they only need to be around in an exceptional situation. The organization, therefore, only incurs costs for the duration of the possible service. In addi- tion, due to their extensive personal experience of dealing with such situations, external experts have developed a capability to reduce complexity that enables them to come to decisions more quickly and with more certainty. There is also the fact that they are not directly affected by the events and as such they can work more rationally.
Diagram 35: Checklist for the use of external experts
1. Analyse which areas should be strengthened during times of crisis and which are not covered through internal experts
2. Which handling strategy shall be adopted?
3. Is a generalist or a specialist desired?
4. Examine, whether this expertise is already available by means of existing partnerships like insurance companies, banks, (tourism-) associations, national or international institutions
5.
a) Examine possible external experts evaluating their qualification for points 1, 2 and 3
b) Consider in particular previous references for these activities. In case of unknown experts there is the additional risk that they may try to gain a reputation and promote themselves on account of the parties involved
6. Ask the expert to convince you why he is the right person for this job. If he fails now, it will be even more difficult for him at a later stage
7. Make sure that the corporate culture of the expert is not that different from that of your company or your destination
The use of external experts does, however, also bring disadvantages. Above all, this is true for those negative events that affect success factors or important areas of the business. In order to work effectively and to avoid long-term damage to the chosen competitive strategy, the not so obvious interrelations and facts must be known. External experts do not have such knowledge, as the specifications of the respective corporate culture are not fully known or,
indeed, not known at all. In addition to this, it must not be forgotten that external experts are not immediately available. This poses a considerable risk, in particular, in the case of fast developing crises.
It is clear that, on the one hand, using external experts presents an opportunity, above all in special areas, to fall back on knowledge and crisis-specific experience.
At the same time, giving external experts sole responsibility is risky and not sensible, when a successful crisis management should be guaranteed.
For this reason, timely decisions need to be made as to which areas should be strengthened by external experts, should the need arise. This includes availability analyses, establishing contact, as well as preliminary negotiations about remuneration and performance.
Considerations regarding a reinforced extension of computer-supported information systems seem sensible, since they can help to reduce complexity and pressure of time by preparing internal and external information suitable for the user.
The hidden expert
Although this function exists in many companies and destinations, the head of the library is seldom used or even considered to be useful when it comes to crisis management.
Librarians, who are more and more often also called information managers, are perfectly prepared to research facts, reports and other information. They know the sources where to find the information and the ways to retrieve it fast.
6.1.3 Measures in the area of infrastructure
There is also a high infrastructural component involved here as a result of how unusual the circumstances are. This covers special spatial requirements that come along with a crisis situation but also changed information technology needs.
First, the affected or responsible organization must consider the spatial requirements, which must satisfy two different needs. The respective management personnel must be able to gather together in a suitable place, that is, a management centre, so that they can manage the crisis from a central place. The rooms should be equipped with all command, control and communications means. In addition meeting rooms are becoming necessary where the advisory group or crisis committee can carry out discussions and take decisions. The demands differ from normal circumstances, in particular, in terms of the number of people involved, the necessity to work round-the-clock and additional security measures.
In addition, an information centre is required to deal with the multitude of outside contacts both within affected consumers or the media and those unaffected. The extent of this unit reaches an unusual size for the organization and is often underestimated. Like the management centre, the information centre must be prepared for a round-the-clock operation. This should reflect the necessary spatial requirements whilst at the same time making clear the number of staff required.
The concepts used in practice are geared towards a kind of ‘reserve concept’, whereby employees and other special staff like psychologists, police officers, pastors, etc., are trained and prepared for their role and, are only called into action at the time a negative event occurs.
Both infrastructural measures can also be implemented on an industry-wide level. Good examples of this are the EPIC and GAST crisis centres.
Management centre Meeting rooms Information centre
Meeting room of the crisis response centre of the German Ministry of Foreign Affairs
Picture: German Ministry of Foreign Affairs. Chancellor Schröder, Minister of Foreign Affairs Fischer and other representatives from the administration and the tourism industry during the Tsunami-crisis in 2004/5.
During the tsunami crisis in the Ministry
Picture: German Ministry of Foreign Affairs. The Crisis Management Centre.