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May Day Precautions and Prevention Lessons
I will never forget last year’s May Day protests. My wife Barb and I were in New York City and sat in Bryant Park watching protesters peacefully march with signs around the Big Apple. The New York City Police were out in force, looked serious about their jobs, and everyone stayed cool, calm, and collected. We never felt like we were in danger, nor felt fearful. Imagine our surprise when we returned to our hotel and saw our very own Seattle on the news. May Day riots were out of control in the downtown area with protesters smashing windows and setting cars on fires. I couldn’t believe what I was seeing. Here I was safe and sound in one of the biggest cities in the world, and my relatively small hometown was being ravaged.
This year, things are different. The police have already started preparations and are sure not to be caught flat-footed again. In addition, businesses are being much smarter. I just saw a push notification on my phone indicating that US Bank in downtown Seattle was closing up shop at 3 pm due to the expected protests. They made a decision in the best interest of their customers and employees. While they might not be able to prevent damage to their building, they do have control over the people they serve and employ. While it might be a slight disruption for customers, my guess is that it pales in comparison to anyone being injured.
The lesson for you as a business owner is this…
You need to learn from history. I can’t tell you how many times in my years as an insurance agent and consultant, where I have seen business owners ignore history and trends to their detriment. For example, if you have a fleet of cars that continually racks up rear-end accidents, and you take no preventative action to educate and/or discipline your drivers, you will fall victim to larger self insurance costs, higher premiums, and loss of production and revenue. In this case today, US bank knows it’s located right in the heart of the rally. They know that banks are a target. They saw what happened last year. They made a decision to avoid calamity in the places they can control. Kudos to them.
You need to be skilled at spotting trends. If you have a strong, professional relationship with your insurance agent, they should help you. This is an area that consultants are invaluable. The net result of learning from history is that you don’t repeat the bad stuff; only the good stuff! At least one business in downtown Seattle has figured it out. Have you in your business?
© 2013 Dan Weedin. All Rights Reserved
Crisis Case Study – Rutgers University
I was in New Jersey this past week for a couple of speaking events when the Rutgers University Men’s Basketball debacle hit the national headlines. For those of you who
Rice – Rutgers
missed it, Head Coach Mike Rice was shown in videos of practice verbally and physically abusing players. He was throwing basketballs at them; punching and shoving them; using gay slurs; and literally acting like a maniac. The video was made available to Athletic Director Tim Pernetti back in November, 2012. At that time, rather than fire Rice, he tried to rehabilitate him through a $50,000 fine, suspension for 3 games, and mandatory anger management treatment. Next thing you know, ESPN’s Outside the Lines program is showing the world the actions of a coach gone mad. The reaction from the sports world was harsh to say the least, and also drew the ire of New Jersey Governor Chris Christie. Rutgers is New Jersey’s most prominent state school, and this was a crisis that was spreading like a wildfire.
In the following days, Rice was fired; his assistant coach resigned; AD Pernetti resigned; and the President is under fire. As I write this, I am listening to the press conference by the president. According to Pernetti in his letter of resignation, they followed advice from the University’s Human Resources Department, Legal team, and outside counsel. He regrets now the decision of rehabilitation over dismissal. He wishes he had it to do over again because he would change his decision. Hindsight tells us that he should have known these tapes would be leaked. In today’s world, things like this never stay silent. But, that’s hindsight. Let’s use a little foresight for you.
Crisis doesn’t have to come in the form of a windstorm, fire, or data breach. Your reputation as a business or organization is priceless, and may be more impactful to
your bottom line than those other examples. For Rutgers University and its President, board, and leadership, this is a train wreck. Now, all eyes are on them on how they diffuse and react to the situation. It gives us a chance to learn from them.
Here are a few tips and suggestions on lessons learned…
- Understand plainly that electronic and written communications and information rarely will stay private. What is written in emails even securely (see David Petraeus) can and will come to light, and is usually damning to you and your organization.
- Poor behavior of employees and leadership will be held to account by your clients, prospects, investors, key stakeholders, community, and the media. You need to be prepared to respond to it publicly.
- You should have behavior clauses in your employment agreements regarding poor behavior, including what might be done or written on social media.
- Silence after a crisis like this is bad. You need to be proactive early. In the Twitter and Facebook world we live in, public opinion can be swayed and determined very quickly.
- Practice for events like this. Role play mock interviews and press conferences and hope you never have to perform them live. At least with practice, you can work on your game.
- Respect and have empathy for those who have been injured in the debacle – whether physically or mentally. The wost thing you can show is arrogance or indifference. Contrary to what you might have heard, apologies are not only acceptable, but necessary if they are warranted.
- Do the right thing. Legal and HR have value, but if the right thing to do is fire someone because their actions were intolerable, then you fire them.
- You better be good at public speaking. When issues related to bad behavior in your business pop up, you can bet you will have to address them to the media. You’d better have some skill in this area. If you don’t feel like you’ve “got game” in that area, now is a good time to change that…or delegate it!
I’m not hear to throw Rutgers under the bus. The leadership has acted pretty swiftly for an organization like this. The post event decisions seem to be good. This
article is more about what you can learn as a business owner, executive, or organizational leader. Now, some of you might be thinking, “This stuff doesn’t happen to me. I’m just a small business owner.” That’s where you may be tragically wrong. You may not end up on ESPN or CNN, but a bad report in your local paper or television station can be just as devastating. Don’t think it happens? Spend some time reading your paper.
Bottom line – Bad behavior happens all the time in many organizations. You need to be prepared as the leader to prevent it through education and consequences; mitigate damage if it does happen; and bring your team together to move forward after it’s calmed down.
© 2013 Dan Weedin. All Rights Reserved
Crisis Prevention, Planning, and Response
I just got done speaking to a tremendous group of women business owners and executives in New Jersey. They just went through a devastating storm last October that was unprecedented in its impact to communications, transportation, and power loss. We spoke about that storm, as well as other crises that can impact their businesses like – loss of power, data breach, and employee issues.
Here is what I heard loud and clear from them…
- They want to improve their ability to communicate to employees and customers in a crisis. That means setting up layers of redundancy in case of loss of power, email, cell phones, or whatever other methods are being used.
- They want a plan that is in place to deal with any crisis that comes around the bend. It must be something that is repeatable, intentional, and practiced.
- Speaking of practice, most business owners and executives rarely set out practice plans (i.e. fire drills or corporate war game scenarios). How do you know it works if you never practice?
My recommendation is to set up a 3-step process for disaster planning…
Step 1 – Set a budget to include insurance premiums, outside consulting help, technology, and internal controls. This will be different for everyone due to insurance premiums, number of employees, and perils.
Step 2 – Go through disaster and crisis prevention response and planning. Allocate at least 8 hours out of an entire year to do this and re-commit annually.
Step 3 – Buy the insurance, monitor your plan, then relax and do what you do best in your business.
You can drive yourself crazy and easily drift into analysis paralysis if you allow yourself to. Make the process simple and move forward. The problem for most businesses is that they never spend the fraction of the time they need to prepare. Doing this little process by itself may save you tens of thousands of dollars, if not more.
© 2013 Dan Weedin. All Rights Reserved
‘Til the Landslide Brought Me Down…
These lyrics from Stevie Nicks are from her popular song, “Landslide.” For the people living in Coupeville, WA ( near my hometown of Oak Harbor), these are all too frighteningly real.
Houses perched atop a beautiful bluff overlooking the water are now dangling perilously over the edge after a landslide tore apart the hillside. The topic of insurance has been raised as many of these homes find themselves uninsured due to a common exclusion that isn’t fully understood by the average insurance buyer.
Everyone knows about earthquake insurance and they know it’s excluded on the homeowners policy. If you live in an area that needs it, you will pay a hefty price tag to carry the coverage. Many go without it for natural reasons. Newer homes built out of frame and not in a slide area are low risk. Why pay a lot of money on insurance when the chance of ever needing it is so low and the cost of the insurance and your deductible are so high? In many cases, that is a valid argument and I have often recommended a client NOT purchase the coverage because I didn’t see a huge exposure.
That is different for these poor folks with a house on the edge…
You see, the exclusion in your homeowners policy does not say “Earthquake.” It says, “Earth Movement.” On the standard homeowners policy, insurance carriers are not going to pay for damage done by either earthquake or earth movement. Earth movement is much more likely. Heavy rains cause earth movement. Changing conditions cause earth movement. Natural disasters (other than earthquake) cause earth movement. And, because many of these folks are not worried about earthquake, they eschew the coverage called “earth movement.”
Here is the deal…
If you own a home near or on a bluff, hillside, cliff, or ledge, you need to purchase earthquake insurance. Your real risk is more likely to be earth movement and this insurance policy picks that up, too. Take a look at your property. If you believe your house can be damaged by some earth movement because the direction it moves causes it to fall off the side of the word, it’s in your best interest to buy the coverage. Don’t be tricked by the mane of the policy. Earthquake insurance protects for more than just the big shaker. It protects the value of your home if it slip slides away.
My heat goes out to these folks, whether they have insurance coverage or not. We pray that the houses avoid going down the hillside. For those of you watching from afar, use it as a lesson. Look at your home and the concern related to earth movement. If you are even at all worried, you need to talk with your insurance agent and find out what the cost is. It may end up being the best insurance you ever buy.
© 2013 Dan Weedin. All Rights Reserved
Foresight 20/20 Video Series: Episode #2 – Lost in Cyberspace
Cyber crime is a huge peril that often gets overlooked by business owners and executives. This episode will focus on steps you can take to prevent a crisis dealing with the volatile world of technology.
© 2013 Dan Weedin. All Rights Reserved
Extra Points – Leadership in Crisis
Leading in Crisis.
I am currently the president of the school board in my community. We find ourselves in the unenviable position of closing an elementary school. As with most “business” decisions, the reasons surround lack of funding, declining enrollment, and buildings not operating at capacity. In a normal business situation, the answer is easier to make and implement. When you’re dealing with such an emotional issue as one’s school, it turns into an excruciatingly emotional and arduous decision.
As you might imagine, there is a diversity of opinion and emotions run deep. The concern for divisiveness and bitterness are very real and likely. As a board, we receive emails, phone calls, letters to the editors, anonymously posted blog comments, and public hearings. There is an equal number on every side of the issue. Not everyone is or will be happy. And so goes leadership in a crisis situation.
If you’re in a leadership position, whether with your own company, non-profit group, or civic organization, you will face crisis. You will be judged, praised, mocked, misunderstood, and misquoted. How do you deal with it?
Ultimately, you must make the best decisions you can with the information you know; be empathetic to those who are adversely affected; keep a professional demeanor; seek opportunities, and communicate clearly. But the most important thing you can do in any crisis situation is to keep perspective and stay calm. You’re the leader, and although not everyone will agree with you and your decisions, you still must guide the ship through the storm. In the end, how you take care of your people is your role. How well you do it will determine your success.
(Note – this is in tribute to the 43 men who have served as President of the United States on this President’s Day)
© 2013 Dan Weedin. All Rights Reserved
This week’s quote -
“You don’t lead by hitting people over the head – that’s assault, not leadership.”
~President Dwight D. Eisenhower
Webinar: Create Your Own Crisis Prevention Plan for Business – February 22 Register
Register today for Alan Weiss Almost Free Event in Seattle on May 2nd. It may be his final visit to the Pacific Northwest. You won’t want to miss it! Register
Avoiding the Dreaded Nose in the Rear
A funny thing happened on the way to the living room.
My mother occasionally uses a wheelchair to move back and forth from the bathroom to the living room, and I’m the chauffeur. As we took the straightaway down the hall, Captain Jack and Bella burst in front of the wheelchair and made a beeline to the living room, obviously in a hurry to claim their favorite spots.
Bella was in front with Jack in close pursuit. As the entry into the living room came up, Bella put on the breaks to make the corner. Jack was following too closely and couldn’t stop. BANG! Captain Jack’s nose smacked Bella right in the rear and catapulted her about half a foot and she skidded into the living room. Jack shook off his nose and as he entered the living room, Bella greeted him with an indignant WOOF and a right cross (which narrowly missed the good Captain).
Funniest thing I’ve seen in awhile. I wish I could have captured it in video, but those things rarely do. My first thought – following too closely and road rage!
Rear end accidents happen every day on our roads, and the main reason is following too closely. If you’re business includes sending people out into the roadways driving huge machines with the capability of destruction and your company name on the side, then you’d better do your due diligence on prevention…
- Make sure you consistently train your employees on safe driving practices. Yes, they will get tired of hearing it but who cares. Keep pounding in the message and make sure they sign off that they heard it.
- Run Motor Vehicle Reports every year on any driver – both personal and commercial. If your driver has a Commercial Drivers License, they are required to tell you if they pick up any ticket, even one when driving on personal time.
- Set up a mentoring program for new drivers. Use veterans to ride with them, observe them, and mentor them. Offer incentives to the mentors based on results. Now everybody has skin in the game and you are the benefactor.
Bottom line – you CAN prevent auto accidents. You CAN avoid all the hidden costs that come with accidents. And, if you overlook this part, its more your fault when accidents occur.
If you take the time to committing to your drivers proactively, you will save tens of thousands of dollars because the accident just simply never occurs. You can’t measure that, but take my word for it. You’d rather not have accidents and keep the money in your pocket.
© 2013. Dan Weedin. All Rights Reserved
Foresight 20/20 Episode #1 – Who Do You Love?
© 2013 Dan Weedin. All Rights Reserved
Crisis Case Study: The Shot in the Dark
This is in the category of the “You never know what can happen” in your business.
The local news led off with a story about an assisted living facility in a small rural area north of Seattle having a shooting on site. It seems that a facility manager got in an argument with an 86-year old resident. The elderly man went back to his room, got a gun and went and shot the manager in the stomach. It appears that the manager, who was immediately rushed to the hospital, will survive. The 86-year old is in jail. A tragic story for all involved.
This blog post has nothing to do about gun control, the response by the staff, mental health, or elderly care. It solely is a study that you can never know what unbelievable event can occur at your business. Who could imagine an 86-year old man going back to his room after an argument to get a gun and shoot his adversary? That only happens with inner city gangs, right? Wrong.
Have you trained your employees to be prepared for any event that could suspend operations, involve a 911 emergency call, or damage the company reputation? If you haven’t, you’re not alone. However, the company you keep is dangerous to your health. Not being prepared to deal with a crisis will cost your business huge revenues, loads of stress and anxiety, bad media coverage, and reduced morale. I estimate that even a minor crisis will cost the average small business $75,000 in hidden costs. That means even if you have insurance, this comes straight out of your pocket! It pays to be prepared…
I have an upcoming webinar to help small businesses anticipate, prevent, and be prepared to respond to crisis. It’s a small investment to make to arm your business with the strategy and techniques it needs to avoid a crisis and respond when one does occur. The webinar will be recorded so even if you can’t make it live, you will gain the benefit of the tools.
Click here to join us on February 22nd.
© 2013 Dan Weedin. All Rights Reserved
Crisis Case Study: When The Lights Go Out in the Stadium…
In the biggest stage of the year, one of the worst possible things that could happen did. Someone leaned up against the light switch panel and turned off the lights to the Mercedes Superdome.
This was a crisis for many different groups. With millions of people tuned in from around the world; with advertisers spending millions of dollars on commercials; and with your reputation on the line for future events; how exactly do you deal with the situation?
Here is my report card for the major players involved…
The Superdome staff (A-) – To go from lights out to lights on in less than 35 minutes is actually pretty good. To do so with the pressure of the world watching is remarkable. Certainly, a power failure was a known peril for the facility management leadership. This is an area that they are trained on and have protocol. You’d think it would be a no-brainer, right? Not so fast. People are trained at CPR yet having to respond in the heat of the moment is another matter entirely. This staff had to deal with coaches yelling at them, television crews freaking out, 80, 000 patrons, and hundreds of social media bloggers making fun of them. I wasn’t there to watch it unfold nor know all the details of communications. Bottom line is that they went from crisis to game on in the amount of time a pizza could be delivered to your house for the 2nd half. That’s a win.
CBS Sports (C+) – Lead broadcasters Jim Nantz and Phil Simms were part of the block of lights that went blooey ( a technical crisis term), so they were off the grid. Based on not hearing sideline reporter Solomon Wilcots, I’m guessing he was down, too. That left the other sideline reporter Steve Tasker with the task of pulling it together as they got the studio guys miked up and ready. Tasker was a little like the deer in the headlights at first, basically telling us things we already knew, like the lights were out. I’m guessing he hasn’t been overly prepped in being creative in the pinch, and he was adequate. The studio team was worse. They should have been better able to talk us through the delay as they are the ones being paid the big bucks. They were okay, but boring. My guess is they were busy eating some Cajun cuisine after watching Beyonce entertain at halftime That’s not good enough from them and Tasker being adequate kept them from falling to a lower grade. I have to believe that loss of power must be discussed as a crisis strategy by network big wigs. It didn’t appear that they were as well prepared as they could have been.
The Teams – Baltimore (D), San Francisco (A) – In the span of about 7 football minutes, the Ravens went from being up 28-6 to being up 28-23. It’s like when the lights flipped back on, so did the 49′ers. The Ravens ended up winning the game, but it took them a long time to find themselves again. One of the things an announcer did say was that these guys are professionals and it shouldn’t affect them. Wrong. I doubt that NFL players are prepared for this and let’s face it, most of these guys are pretty young. The momentum the Ravens did have dissipated quickly and the 49′ers players took a deep breath and charged on. Baltimore needed every bit of that lead to overcome what they lost mentally in that 34 minutes. Maybe they had ordered pizza and champagne for their celebration and forgot there was still a half of football to play!
What’s this mean for you? If you own or run a business, you need power and connectivity. And you need it almost always. If the Superdome can lose power during the Super Bowl, you can lose power at a most inopportune time, too. How is your team trained to handle it?
- Will they rise to the occasion like the Superdome staff and get back to full operations immediately?
- Will your partners who handle utility services and disaster recovery be able to help you where you can’t help yourself?
- Will they be like deer in headlights or will they take charge? How do you know?
- Will they respond like the Ravens and come out flat and bewildered or be like the 49′ers who found opportunity in the midst of chaos?
The only way to be sure is to have a plan, practice and test it, and continually monitor and strive to improve it. That’s how you build a championship team in any situation.
© 2013 Dan Weedin. All Rights Reserved
