integrated crisis
management:
building a framework
for unified response
How to Create the Most Resilient
Team in Crisis Management
Kristen Hartwigsen, Nike Inc.
Global Business Continuity
objectives
• Overview the Nike Global Business Continuity
Program framework
• Define Integrated Crisis Management
• Outline internal integration
• Outline external integration
• Integrate testing and training in the culture
nike mission statement
To
To bring
bring inspiration
inspiration and
and innovation
innovation to
to every
every
athlete
athlete in
in the
the world.*
world.*
*If
*Ifyou
youhave
haveaabody,
body,you
youare
arean
anathlete.
athlete.
• Blue Ribbon Sports (BRS) was founded in January, 1964 by Bill
Bowerman and Phil Knight.
• In 1972, BRS introduced a new brand of athletic footwear and
changed the company name to Nike, named for the Greek
winged goddess of victory.
• In 1973, Steve Prefontaine becomes the first major track athlete
to wear Nike brand shoes.
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nike, inc. statistics
Nike WHQ
Beaverton, Oregon
• FY 06 Revenue: $15 billion
• Employees: 25,000 Worldwide
• Headquarters: World - Beaverton,
OR; Europe - The Netherlands
• Major Distribution Centers:
Memphis, TN; Belgium; Japan;
Korea
• Retail Stores: Niketowns; Nike
Factory Stores; NikeWomen
• Subsidiaries: Cole Haan, Nike Bauer,
Hurley, Converse, Exeter, and Nike
IHM
a matrix organization
categories
footwear
footwear
apparel
apparel
equipment
equipment
subsidiaries
subsidiaries
americas
americas
asiapacific
pacific
asia
EMEA
EMEA
Every department at Nike
reports to two business units
– the category and the
regional management.
US
US
regions
VP, APAC Equipment
reports to
Global Equipment
APAC Region
golf
golf
importance of integration
• International Coal Mine Tragedy
– “A top coal company official expressed regret Wednesday that the
families of the 12 dead miners were mistakenly led to believe for three
hours that their loved ones were alive.”
• Hurricane Katrina
– “The Federal government should work with its homeland security
partners in revising existing plans, ensuring a functional operational
structure - including within regions - and establishing a clear, accountable
process for all National preparedness efforts.”
• Kim Family Rescue
– “The
duties of OSP and the duties of involved Sheriff’s Offices were not
clearly understood… OSP took the lead in the coordination of
investigation information…this was appropriate until the search area
could be defined…at that point, the Josephine County Sheriff’s Office
should have assumed operational control for the search mission.”
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program history
inception
inception
purpose
purpose
strategy
strategy
The
TheGlobal
GlobalRisk
Risk
Management
Managementdepartment
department
began
beganNIKE’s
NIKE’sbusiness
business
continuity
continuityprogram
programinin
June,
June,2005
2005under
underthe
the
sponsorship
sponsorshipofofthe
theCFO.
CFO.
The
Thepurpose
purposewas
wastoto
formalize
formalizeNIKE’s
NIKE’scrisis
crisis
management
capabilities
management capabilities
and
andtotoensure
ensure“tested
“tested
recoverability”
recoverability”for
forNIKE’s
NIKE’s
most
mostcritical
criticalfacilities
facilitiesand
and
global
functions.
global functions.
The
Thestrategy
strategywas
wastotodevelop
develop
aasimple
simpleframework,
framework,
capitalize
capitalizeon
onexisting
existing
resources,
resources,and
anddrive
drive
standards,
standards,starting
startingwith
with
NIKE’s
global
NIKE’s globalcrisis
crisis
management
managementinfrastructure.
infrastructure.
program scope
planning
execution
crisis
Objectives
Standards
Templates
Tools
Training
Testing
Metrics
Reporting
Business
Business
Recovery
Recovery
Programs
Programs
business continuity
Immediate
Immediate
Response
Response
Programs
Programs
Business
Business Recovery
Recovery
crisis
crisis management
management
Immediate
Immediate Response
Response
Minutes
Hours
Days
Weeks
Months
impact to stockholders
InIntoday’
’s global,
today
today’s
global,
24x7
24x7economy,
economy,
an
anerror
errorinincrisis
crisis
management
management
could
couldlead
leadtoto
devastating
devastating
financial
financialeffects.
effects.
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crisis management framework
NIKE
NIKE BOARD
BOARD OF
OF DIRECTORS
DIRECTORS
EXECUTIVE
EXECUTIVE CRISIS
CRISIS MANAGEMENT
MANAGEMENT TEAM
TEAM
Incident
Management
CORPORATE ECMT
Communications
US; EMEA; APAC; Americas; and/or Sub ECMT
Footwear; Apparel; Equipment; and/or Golf ECMT
Business
Recovery
OPERATIONAL
OPERATIONAL CRISIS
CRISIS MANAGEMENT
MANAGEMENT TEAM
TEAM
Incident
Management
CORPORATE OCMT
Communications
US; EMEA; APAC; Americas; and/or Sub OCMT
Footwear; Apparel; Equipment; and/or Golf OCMT
Business
Recovery
SITE
SITE CRISIS
CRISIS MANAGEMENT
MANAGEMENT TEAM
TEAM
Incident Management
Business Recovery
Communications
FACILITY
FACILITYTEAMS
TEAMS (IMMEDIATE
(IMMEDIATE RESPONSE
RESPONSE AND
AND BUSINESS
BUSINESS RECOVERY)
RECOVERY)
Facility
Evacuation
Internal First
Response
External First
Response
First Damage
Assessment
Other
Distribution
Center
Functional Area
CORP
OCMT
CORP
OCMT
Human Resources
USSC
OCMT
Human Resources
USSC
OCMT
Communications
OCMT
SCMT
Joint Call
Crisis
OCMT (Quorum)
integrated process flow
Communications
OCMT
SCMT
Joint Call
OCMT
SCMT
Joint Call
SCMT
Operations
SCMT
Operations
Facility
GIT
Facility
GIT
Time
integrating with communications
• Determine web strategy
and craft initial statements
before the crisis.
• Ensure that all front-facing
employees have an initial
statement and are provided
with subsequent statements.
• Establish a method to receive
information into the Crisis
Management Center (CMC.)
• Determine the process for
analyzing and presenting
information to crisis
management teams.
• Distribute CMC statements on
a established timeline.
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integrating with human resources
• Determine and drill on
life safety and headcount
procedures regularly.
• Formalize incident policies
and procedures beforehand, as
possible:
– Pay Policies
– Extended Benefits
– Alternate Work Plans
– Child Care
– Time Off
– Reassignments
– Next of Kin Notification/
Death Benefits
integrating with operations
• Determine metrics to use
in order to assess overall
impact to the business.
• Pre-determine the range of
solutions that can be used to
recover operations over time.
• Understand ramp-up times for
business recovery solutions
and accommodate during the
immediate response phase.
• Develop damage assessment
and salvage processes.
• Halt stock trading as a means
of protecting shareholder
value in the event of a really
catastrophic event.
integrating with government
• Establish relationships
with local public response
organizations.
• Participate in government
emergency response
exercises; involve these
organizations in corporate
simulations.
• Give responders access to
corporate facilities to learn
floor plans.
• Train government responders
on corporate crisis
management processes.
• Ensure corporate teams are at
familiar with the ICS/NIMS
structure.
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integrating with other businesses
• Participate in local,
geographic organizations.
• Create focus groups with
other companies based on
size, industry, or corporate
cultures.
• Exchange information with
business partners on corporate
crisis management processes
and work together to create
viable business recovery
plans.
OREGON CONTINGENCY
PLANNERS ASSOCIATION
• Leverage relationships
with existing business
partners to include Crisis
Management.
a responseresponse-throughthrough-recovery model
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Stabilize the
Mobilize and
Activate
Restore All
Transition to
Situation
Restore
Critical Plans
Functions
Normal
Immediate
Response
Business
Recovery
Business
Recovery
Business
Recovery
Business
Recovery
testing the framework
• In September, 2007 the Nike Crisis Management
Simulation was built to
– Validate crisis management notification systems and
procedures; and
– Exercise the abilities of the Corporate and USSC OCMTs to
effectively coordinate a unified command structure.
• The scenario included a 6.8 earthquake which affected
the Wilsonville, OR DC. Fatalities, Injuries, and 80%
facility damage occurred.
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simulation response timeline
8:12 am
8:30 am
8:31 am
8:35 am
Wilsonville (W)
Immediate Response
Team Activated
W Incident
Commander Calls
SCMT Lead
W SCMT Activated;
Incident Commander
Calls 671-OCMT
W SCMT Calls
OCMT Lead
8:40 am
8:45 am
9:17 am
9:46 am
Corporate OCMT
Lead Quorums –
OCMT Activated
Corporate OCMT
Meets at EOC; USSC
OCMT Activated
First Call Corporate
OCMT/USSC
OCMT/W SCMT
Memphis SCMT
Self-Activates
10:52 am
11:10 am
11:37 am
12:14 pm
Call Adjourns
Functional Areas
Break Out
Second Conference
Call; Updates from
Functional Areas
USSC OCMT Begins
Reciprocal Strategy
Analysis
Simulation
Concludes
training is key
• Create global quick-reference materials for team
members to carry at all times.
• Implement the same team structure, processes, and
tools in every area of the business.
• Ensure facilitators are the experts in the Crisis
Management process and link different levels of crisis
management teams together
• Know the corporate resources throughout the
organization
• Incorporate more teams into testing as the program
matures
some final advice
• Athletes spend a lifetime
training for an event that
may not occur.
• In competitive running,
every step is critical to a
successful finish.
• The faster sprinters are not
always the best on the relay
team.
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BUSINESS CONTINUITY
kristen hartwigsen
senior business continuity analyst
nike, inc.
One Bowerman Drive
Beaverton, OR 97005
503.532.2779
kristen.hartwigsen@nike.com
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