1. Crisis Management A presentation by Bruce Hugman Consultant to the Uppsala Monitoring Centre Pretoria, September 2004

11. - Perpetrator was never identified - Future attempts cannot therefore be precluded - Swift reactions reinforced Company reputation for integrity - Stakeholders reported high degree of trust - Product did not suffer in long term TYLENOL TAMPERING - Long term costs were transferred to public - Delays in implementing clean-up leading to loss of wildlife. - Image management failed to fully recover the Company’s reputation in wider community - Financial losses were bearable - Costs relating to clean-up were less than pre-emptive costs - Image management recovered the Company’s reputation in business community EXXON VALDEZ Failure outcomes Success outcomes Incident

14. Crisis Management Model Antecedent conditions Intrinsic crisis Perceived crisis Immature crisis response Mature crisis management Review and Feedback

16. Existing conditions: Crisis-prepared or crisis-prone?

18. Crisis Management Model Antecedent conditions Intrinsic crisis Perceived crisis Immature crisis response Mature crisis management Review and Feedback

19. Immature crisis response: Instant and irrational (denial/shock/panic)

23. Crisis Management Model Antecedent conditions Intrinsic crisis Perceived crisis Immature crisis response Mature crisis management Review and Feedback

25. End of Part 1

27. Part 2: Planning for Crisis Management

28. Crisis Management Model Integration of learning Crisis Management Implementation Authorisation Procedures Technical Intelligence Crisis Management Planning Antecedent conditions Intrinsic crisis Perceived crisis Immature crisis response Mature crisis management Review and Feedback Crisis- prepared culture Emotional Intelligence

32. The first goal of crisis management is prevention

34. Assess risks

36. Acceptable High chance that public and media criticism will arise Recall of a defective batch of medication may lower consumer confidence and take-up rate Unacceptable Medium chance leading to severe health problems or death Medication in question could be mistaken for sweets by young children Evaluation Estimation I dentification

37. Priority actions to sensitively withdraw product whilst reassuring honestly and openly Acceptable High chance that public and media criticism will arise Recall of a defective batch of medication may lower consumer confidence and take-up rate Product needs to be re-designed to prevent the possibility Unacceptable Medium chance leading to severe health problems or death Medication in question could be mistaken for sweets by young children Planning Evaluation Estimation Identification

40. End of Part 2

42. Part 3: Crisis Communications

45. Dear Consumer Group You will understand that managing the nation’s drugs is a complex business. From time to time there are scares or crises which cause much concern to everyone. We are keen to discuss the handling of such events, and to plan jointly with you and others how we might best communicate with you in such circumstances. We’d like to establish one-to-one contact between a member of your team and ours…

53. Question Is there a specific risk to aged patients from the medicine in question ? Is the medicine known by any other trade names? Source / Date Regional Health Authority secretary by phone 1/2/02 Feature editor Daily News by phone 2/2/02 Line to take Patients over 65 and of frail health are considered to be high risk Action to trace other trade marks is urgently proceeding Source / Date Professor Chang letter dated 2/2/02 Crisis team leader document dated 1/2/02

58. X X Web Site X Mobile Offices X Enquiry Desks X X Emails X X Conferences X News Releases X X Interviews X Hotlines X X Telephone Access Transmission Primary Purpose Methods

59. Crisis Management Model Antecedent conditions Intrinsic crisis Perceived crisis Immature crisis response Mature crisis management Review and Feedback

60. Crisis Management Model Integration of learning Crisis Management Implementation Authorisation Procedures Technical Intelligence Crisis Management Planning Antecedent conditions Intrinsic crisis Perceived crisis Immature crisis response Mature crisis management Review and Feedback Crisis- prepared culture Emotional Intelligence

62. End of Part 3

64. Part 4: Communicating Risk

74. Thank you - and good luck! (though luck has nothing to do with good crisis management!)