One of our core competencies has always been crisis planning and handling. Here is an article from the Jacksonville Business Journal quoting Simon and proving our expertise in this area.

Strategies, May 25-31, 2007, Page 19

In Case of Emergency…

As hurricane season approaches, crisis planning is best offense


By Dolly Penland, Correspondent

The theft of critical inventory, the death of a key manager, a natural disaster – all companies, large or small, will face a crisis at some point, but those with crisis management plans in place can handle whatever life throws at them better than companies that do not.

A 1997 Oxford University study found that while all catastrophes have an initial negative impact on a company’s value, those that manage a successful recovery from a crisis actually gained an average of 5 percent in net stock as opposed to corporations with an ineffective response to a large-scale emergency. Those companies lost an average of 15 percent in net stock value in the months following the crisis.

Small businesses are especially vulnerable to sudden upheavals. “The kinds of clients we work with are robust enough to rebound, but if [smaller companies] don’t handle a crisis effectively, you can lose everything for the sake of a little planning,” said Simon Keymer, CEO of the public relations firm, The Keymer Group. “You might lose your entire livelihood.”

The institute for Crisis Management reports that natural disasters, white-collar crime, class-action lawsuits, labor issues and mismanagement are the top causes of crisis. Poor management is responsible for more than half of serious problems at companies of all sizes, with employees – at 28 percent – and outside forces – at 19 percent – causing the remainder in 2005.

“Whether it’s a natural disaster or a man-caused disaster, recovery still involves the same steps,” said Doug Wilder, president of coaching firm, Wilder Business Success. “If you have a plan, you can quickly find out what [needs to be done to] salvage the situation and try to make it better.”

Wilder speaks from experience. In 2001, fire raged through his home and home office. “After that, we worked out of the La Quinta hotel,” he said. Being able to work under any condition is important to recovering from a crisis. “It’s fascinating because everything that was important the day before was no longer important after the fire, yet I still had to focus on my business” despite circumstances.

The foundation of any crisis plan is solid communication. That means being able to reach and be reached by employees, customers, vendors, suppliers, bankers, accountants, insurance agents and even the public, if need be.

Patsy Underwood, president of Atlantic Laser Office Products, lost everything in 1996 when a fire razed her business. She credits good communication with keeping her business going. “We made deliveries the day after the fire,” she said. “We didn’t miss a beat.”

Underwood said it is critical to work with professionals who understand your business, to not only help it run better in good times, but when problems arise. “We had excellent professionals who helped us recover,” quickly. She added it is critical to have all the company’s data backed-up and stored off-site. An emergency reserve account isn’t a bad idea either.

Any crisis plan should include several detailed potential scenarios. “It should be very specific on what happens and who does what,” said Zelda Fraden, president of Fraden’s Produce, which was slammed by a tornado caused by Tropical Storm Bonnie in 2004. The company was making scheduled deliveries the day after the storm.

“In an emergency, sometimes people panic and they don’t know what to do,” Fraden said. “If you have a written plan, everyone already knows what their responsibilities are. Have your staff help write that plan.”

Once a plan is in place, simulations can ensure things run smoothly in an actual crisis. “It’s like a fire drill,” Keymer said. For clients, “we can do everything, even hiring actors as hostile media; we try to be as realistic as possible. But it can be done at the desk, just to make sure the information goes to the right people. It doesn’t have to take a whole morning. They don’t have to take their eye off running their business. It’s just making sure everyone understands their priorities and how they act together as a team.”

Should disaster strike, don’t be afraid to ask for help from family, friends and even competitors. “We had an incredible outpouring of assistance,” Fraden said. “Our competitors allowed us to stay in their facilities as long as we needed. Establish good relationships with your competitors and practice the Golden Rule.”

Fraden’s Produce turned its crisis into an opportunity for growth. “We didn’t lose any customers and we’re now in a fantastic facility with room to grow, and we have expanded what we do,” Fraden said. “We feel lucky that we have survived and thrived.”

Atlantic Laser has also not only rebounded, but continues to grow as well. For Underwood, the most important element of a recovery is a positive attitude. “We adopted the tag line of ‘We’re all fired up,’” she said. “My daughter, Lisa Moore, our marketing director, [re]-designed our logo with flames coming up through it. You have to laugh and suck it up and move on.”

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