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Planning for and managing crisis Does your firm have a crisis plan? Here are some tips to create one so you can be ready if disaster strikes. O P I N I O N
A t some point, any A/E firm might face a serious crisis. The causes can range from an injury or death to environmental contamination, construction delays, or cost overruns caused by an actual or alleged design error. Additional risks arise from disputes with contractors or project owners, legacy exposures from a merger or acquisition, and even hacking incidents.
Mike Herlihy
Notify the team leader immediately and assemble your crisis team. Share information within your crisis team so every member is aware of any developments. Work with your legal and communications team members to implement your communications strat- egy, including timing and content of any messaging for employees, current and former clients, public officials, and the news media. Advise employees not to speak to the media or oth- ers outside the firm and to refer inquiries to the cri- sis team for response. Although crisis communications plans are developed in advance, messages and activities may have to be refined given the specifics of an event. Remain flex- ible. Depending on the circumstances, you may need to cooperate with emergency officials, law enforce- ment, first responders, and OSHA. (Identify these key contacts in advance.) DON’T IGNORE PROJECT-RELATED RISK. Much of the risk for design professionals arises from work conducted on specific projects. In addressing this risk, A/E firms might reinforce their process controls, in- cluding: Strengthening design services quality assurance and quality control; also, be sure to choose qualified consultants, particularly for structural, HVAC, and building envelope. “Today, sound risk management for design firms should include crisis planning, so, if an event occurs, the firm is in position to manage the situation, recover quickly, and limit potential reputation damage.”
Besides potentially substantial legal and business costs, a crisis that isn’t managed effectively can leave firms with enduring reputational damage that can negatively impact new business and hiring efforts. Today, sound risk management for design firms should include crisis planning; if an event occurs, the firm is in position to manage the situation, recover quickly, and limit potential reputation damage. IDENTIFY POSSIBLE RISKS AND CREATE A CRISIS PLAN. Effec- tive crisis planning starts with understanding your potential exposures and developing a plan to address them. Key components of a plan might include: Listing all potential exposures that could lead to a crisis (e.g., death of a principal, collapse or other ac- cident at a project site, significant cost-overrun). Establishing a crisis team with a designated team leader and members of your firm’s leadership, risk management, human resources, legal, communica- tions, finance, facilities/real estate, and any external providers for these functions. Include your outside legal counsel, insurance advisor, and insurance com- pany contacts. Developing a communications strategy for contact- ing and responding to inquiries from employees, current and former clients, the news media, regula- tory and legal authorities, and other key audiences. Prepare call trees with multiple contact details for all appropriate individuals. Consider including contact information for emergency management, OSHA officials, law enforcement, and first responders at current and former jobsites. Sharing the plan with all managers and profession- als who will be impacted or called upon to act in the event of a crisis. Direct all questions and other com- munication to the team leader. EARLY AND EFFECTIVE CRISIS RESPONSE IS KEY. The initial hours following an incident are extremely impor- tant for obtaining needed assistance, gathering information, and checking your strategy. Here are some keys to manage a crisis:
See MIKE HERLIHY, page 12
THE ZWEIG LETTER NOVEMBER 9, 2015, ISSUE 1127
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