Crisis management and HR's role

HR Magazine, Feb, 2006 by Susan Meisinger

Modern technology has made great strides in tracking hurricanes, but, as the damage inflicted by Katrina, Rita and Wilma demonstrates, knowing where and when these storms are likely to strike can't prevent catastrophes. And as for the predictability of tsunamis, earthquakes, acts of terrorism ...

In addition to the personal tragedies that result from these and other disasters, the damage to communities, businesses, and local, regional and national economies can be staggering. Recovery--if even feasible--may take years.

The Sept. 11, 2001, terrorist attacks instilled a sense of urgency in many organizations and created a heightened focus on crisis management. But there is cause for concern: The SHRM 2005 Disaster Preparedness Survey Report indicates that only slightly more than half of organizations created or revised disaster preparedness plans after Sept. 11, and 45 percent did not.

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More recent catastrophes--the Gulf Coast hurricanes, for example--illustrate the folly of failing to plan for the "worst-case scenario." Does an "it won't happen here" mind-set prevail? Have other competing priorities undermined crisis management efforts? Or are many organizations unaware of the extent of the potential risks?

While geography may reduce the risk of damage by hurricanes, tsunamis or earthquakes, it can't isolate organizations from a myriad of other threats: power blackouts, fires, workplace violence, cyber crime (including computer viruses), bomb threats, sudden loss of leadership through unexpected death or illness, product tampering (remember the Tylenol case?), financial failure from poor or unethical management, social unrest and, yes, terrorist attacks.

An effective crisis management plan--incorporating emergency response, disaster recovery, communications, business continuity and other programs--can help organizations be better prepared to react quickly and flexibly when an unforeseen, potentially catastrophic, event occurs.

In an emergency, the case for crisis management and business continuity comes into focus: protection of every aspect of the organization--including people, intellectual property (e.g., company records) and physical facilities. Since one of the primary objectives is to protect an organization's human capital, HR professionals assume a central role in crisis management activities. HR has the responsibility to develop a viable crisis management framework, including an emergency communications infrastructure, a directory of crisis resources, safety and security training programs, and leadership succession plans.

No one can accurately predict the future. But HR professionals, by assuming a leadership role in crisis management, can help their organizations prepare for it--whatever it brings.

Online Resources

For a link to the December 2005 SHRM Research Quarterly on HR's role in crisis management, see the online version of this column at www.shrm.org/hrmagazine/06February.>

COPYRIGHT 2006 Society for Human Resource Management

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