Simple Framework for a Crisis

While working with the Adobe Enterprise Team, I was introduced to Jacob Morgan, who consults to a number of companies (and has a good blog) about CRM.He recently wrote about a book called “The New Supply Chain Agenda,” by Reuben E. Slone, J. Paul Dittmann, and John T. Mentzer, and how it provides a ‘risk’ model that could also be used for evaluating ‘risk’ for a social business, produce or venture.The framework, which is highlighted in the book, is outlined below.Again, the key is that it is all about doing the work upfront, planning for a potential crisis, and evaluating your strengths and weaknesses. It’s a simply model, but it does add some structure to an often unstructured or forgotten practice. Financial and Insurance Risk Managers run models and build frameworks all the time. It’s just the other folks in the organization, who forget to plan.The first steps are to look at:

  • Severity
  • Probability of Occurrence
  • Probability of early detection

And then you score your ‘RISK’ with a simple probability index. One key point is that this is not done by a single group. It requires a cross-functional teamwork. At one of my clients, we built a ‘Center of Excellence’ to quarterback this process. Some companies have the Social Media Team do this. My only caution here is that this could put more of a marketing lens on things vs. looking at each area of the company: Finance, Legal, Privacy, Product Development, etc.The last two steps involve creating Recommended Actions and Responsibility.Recommended Actions are good, but I would probably make it stronger by saying “Action Plan.” I hate leaving things open for interpretation. Obviously during the crisis itself, the ‘owner’ has the flexibility to change the action plan a bit. Having an owner, someone who is ultimately responsible is important. And having a back up owner is important too.In the chart above, it lists different departments responsible for implementing an action plan. I prefer to assign the name of someone and their back up. Ownership is the key in preparing for and implementing ‘Risk Management.’One model for the ownership part is the DACI framework, where there is:

  • 1 Driver (D)
  • 1 Approver (A)
  • Multiple consultants, who help provide in put into the planning (C)
  • Multiple Informed people, who just need to know what is going on in case they are called upon and need to get up to speed quickly (I)

I will discuss the DACI model in more detail in a future post…

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