leadership in time of crisis: the human factor

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Leadership in Time of Crisis:The Human Factor


There is no greater honor and no greater responsibility than to be

there on the worst day of someone’s life.

We must do it well.

More than a Job


Why?

• It’s the right thing to do.

• Do the right thing and it’s good for business.

– Litigation– Ongoing coordination with the family– Message sent to staff – Reputational risk within the community and

marketplace– Return to productivity


Business Continuity and RecoveryThere is no business recovery without people who:

• Are healthy enough to return to work and be productive

• Are assured enough of their safety to not feel afraid to return to work

• Have had their trust in the leadership established so that they desire to return to work

• Have had their loyalty rewarded so they remain employees over the short haul and the long haul


Employer Concerns• Fulfilling Duty to provide a safe workplace• Protecting Brand & Other Assets• Assuring Public that they are safe• Responding to Regulatory Agencies• Identifying Cause and taking action• Resuming Operation ASAP due to Productivity

Pressures• Controlling Losses• Demonstrating Care for their Employees

The High Cost of Workplace TragedyHuman and Financial Costs


Physiological/Neurological Response

• Fight!

• Flight!

• Freeze!


World View Self-View


• Darn! Wrong place. Wrong Time vs. They picked me because I’m weak.

• Whew! Grateful to be alive vs. This kind of stuff always happens to me.

• Normal reaction to an abnormal event vs. I’m a weak wimp.

Self-View Predicts Outcome


My View of My Employer Predicts Outcome

• We are the Hokies vs. We are the Victims

• This company cares about me vs. I’m just a number.

• My boss knows her stuff vs. My boss is clueless.


Sources: Ursano, 2002; Institute of Medicine, 2003

Believe in Resilience

Fear and DistressResponse

Behavior Change

PsychiatricIllness


Insurance Claims Handling Values the Impact of Immediate Response• Recent studies show a significant increase in total claims

cost on claims reported late. When comparing the average claim cost to claims reported late (4 days or more), costs were from 30%-40% more than claims reportedly timely. Each week of delay results in about a 10% increase in costs.

Liberty Mutual reported: Report Lag Impact on Average Claim Costs 4-7 days 3% 8-14 days 6% 15-21 days 15% 22-28 days 26% 29+ days > 40%

*Based on Liberty Mutual Group dataReporting Workers’ Compensation Claims – 2011 –

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leadership in time of crisis: the human factor

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