october 18th, 2006: the board's role in crisis management
TRANSCRIPT
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CORPORATE CRISIS:ANTHRAX AND THE
U.S. POSTAL SERVICE
John NolanFormer Deputy Postmaster General
October 18, [email protected]
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Anthrax and the USPS
USPS was experienced in dealing with disasters
What’s the same?
What’s different?
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Situation: September, 2001
USPS Business Model in Jeopardy (GAO)
Internet/Recession/Competition/Negative Legislation
Volume/Revenue Dropping
9/11 Impact on Ops/Service
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Pre-October, 2001Scientific Community Determination:
Anthrax will not escape sealed envelopeLittle or no risk to employeesNo contamination to other mail
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Anthrax Attack in the MailLEAD NEWS STORY FOR ONE (1) MONTH PERIODICALLY FOR TWO (2) MORE MONTHS
Four (4) LettersTen (10) postal workers with anthrax and two (2) die
Eight (8) others with anthrax and two (2) die
Canadian scientists’ video changes everything284 facilities tested; 23 test positive; 2 closed for almost 3 years17,400 employees on antibioticsSince attacks, 25,000+ incidents requiring facility closures for short periods . . . no anthrax found in anyAdvertising Mail volume initially plummets
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Key ActionsPR firm utilizationTask Force implementation . . . with unionsReaching out to industry CEO’s / expertsTesting DC plant (despite assurances)Media and internal communications strategiesMaintained control of crisis command centerDetermination of exact size and scope of exposureClosure of 2 centers (but not others!)Meeting with Canadian terrorism experts
No amount of planning will ever replace dumb luck
RELIANCE ON OUR CRISIS MANAGEMENT PROCESS!
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J&J Tylenol / USPS Similarities:J&J
Plan for worstEarly admissionTake responsibilityEmpathy, responsibility, actionMessage from topDeny blameCreate pictureMake sacrifices
USPSPlan for worstEarly notificationReliance on expertsEmpathy, responsibility, actionMessage from topControl team; deny blameCreate pictureMake sacrifices
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Crisis Communications Strategy, Timing, Control of Story
Seek to understand and be understood
Build trust and bank itMedia, public, customers, investors
“Could USPS be the first major business casualty of the war on terrorism?” Washington Post
“Anthrax assurance as threat to public trust – officials insisted mail was safe but now wonder.” L.A.Times
“Amid Anthrax, businesses sour on U.S. Mail and seek alternatives.” WSJ
“Polls find Americans not panicking over anthrax” Gallup/USAToday
“72% Happy With Government Handling Of Problem” CBS News/NY Times
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Anthrax AftermathEmployee healthEmployee moraleManagement-Labor relationsHealth of the businessOrganizational credibility
GovernmentMediaIndustry
Future crisis readiness Biohazard detection capability
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The Board’s Role: Before, During, After Ensured sound process and plans in place Culture of timely and open communicationCorporate Governance rules still appliedOffered experience and supportLet management manage (While assessing performance)
Listened: Were “consumers”/ investorsEvaluated: sought to improve readiness