The role of the Executive and the Trustees in a crisis Robin Swinbank

1. The role of the Executive and the Trustees in a crisis Robin Swinbank

2. The Counsel House An independent ‘virtual’ consultancy providing interim management, consultancy and crisis management services. Provides senior management with access to a team of some of the UK’s most experienced independent consultants. Our consultants have worked in airlines, banking, charity, engineering, IT, professional services, railways, etc. Handled a number of high-profile issues and crises for major public sector organisations and FTSE-listed companies. The role of the Executive and the Trustees in a crisis

3. What is a crisis? A crisis is something that can result in: • a boycott of your company’s products or service • loss of consumer confidence • damaged trade relations • a dramatic fall in share price • low staff morale / inability to recruit • major lawsuits • reduced credit ratings • immeasurable damage to the company's reputation • demands for resignations • the loss of a license to operate • possible closure of part or all of the company The role of the Executive and the Trustees in a crisis

4. What is a crisis? It can happen to any organisation, large or small: • BP oil spill • $11.2 billion clean-up bill • $20 billion compensation fund for victims • US DoJ investigation pending - potential lawsuits • At its worst, 30% + drop in share value. • Care home 'abuse' caught on film • Four arrests after patient abuse caught on film • Undercover reporter 'haunted' by abuse of patients The role of the Executive and the Trustees is a crisis

5. What is a crisis? Crisis management is different for a charity • Two-tier reporting and involvement are required • Needs both the commitment and involvement of the trustees and the executive • In some cases, a corporation can afford to be seen as a ‘bad boy’ whilst a charity cannot • A reputation lost in the voluntary sector maybe harder to regain than in the commercial sector • The management teams in the voluntary sector are probably less likely to have been prepared to face a crisis The role of the Executive and the Trustees is a crisis

6. What can the Trustees do in a crisis? • Provide gravitas, experience and advice • Offer a ‘sounding board’ for the executive • Review and approve crisis plan (plus media statements) • Offer the objective opinion, both to the executive and to the media • Act as the senior spokesperson / figurehead • Mentor the executive • Bring in external expertise if required • If appropriate, remove or replace a dysfunctional executive The role of the Executive and the Trustees is a crisis

7. What can the Executive do in a crisis? • Develop and execute a crisis management plan • Identify and communicate with ALL the stakeholders that matter • Act as frontline spokesperson for the organisation • Respond to enquires and issue statements • Monitor what is going on • Keep the team ‘onside’ • Report to the Trustees • Go when ‘the game is up’ The role of the Executive and the Trustees is a crisis

8. Crisis management – the strategy The overriding strategy is to set out to be in a better position after the crisis dies down than the one you were in before the crisis arose. The role of the Executive and the Trustees is a crisis

9. A ten-step plan for crisis management: • Be prepared • Start to take the initiative • Develop a sympathetic persona • Set your own agenda • Make the media your ally and not the enemy • Create effective channels of communication • Know your target audiences • Front up your own defence • Find objective and authoritative allies • Don’t reinvent the wheel The role of the Executive and the Trustees is a crisis

10. Six case studies in the voluntary sector: • Child-protection charity chief executive convicted • Charity boss falsely accused of sexual abuse • Care worker accused of stealing from a service user • Teenage welfare charity accused of letting children in its care take drugs • Care charity who had child with learning difficulties in its care involved in a fatal accident • Nursery boss accused with child abuse The role of the Executive and the Trustees is a crisis

11. “The Chinese use two brush strokes to write the word 'crisis.' • One brush stroke stands for danger; the other for opportunity. • In a crisis, be aware of the danger • - But recognise the opportunity.” John F Kennedy The role of the Executive and the Trustees is a crisis

12. Or being door stepped at home by a media pack… Imagine being interviewed on Newsnight by Jeremy Paxman …and they ask you a question… What is it like being caught in the media spotlight? The role of the Executive and the Trustees is a crisis

13. … ‘Tell me, is it true, have you stopped embezzling your charity yet?’ • Now try and answer the question without incriminating yourself! The role of the Executive and the Trustees is a crisis

14. Welcome to the world of crisis management • Although you are completely innocent … • Answer ‘yes’ and it implies you have been embezzling funds. • Answer ‘no’ and its implies you are continuing to embezzle funds! The role of the Executive and the Trustees is a crisis

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16. Thank you for listening Your Logo For more information, contact us at: 07831 364744 robin@thecounselhouse.com www.thecounselhouse.com Conference House Ltd. 24 St. Clements Passage, Huntingdon, Cambs. PE29 3TP