Faculty
Professor John F. McGuire
Objectives
More and more we see companies, organizations, groups, and individuals facing disaster scenarios. These disasters may be triggered by external factors or internal ones (sometimes years of neglecting to take appropriate action early enough). Either way, disasters require urgent appropriate response as they can threaten the very existence not only of the organization itself, but also of others connected to it. Anticipation, risk management, mitigation, operations management, communication are all critical to the ultimate outcome. All too often, the management of these crises is ineffective and executive management is second guessed and criticized. And yet, the same leaders who are criticized for their management during disasters are often regarded as very capable, competent leaders in their organizations during normal times. For-profit businesses such as Exxon, government organizations such as FEMA, and not-for-profits such as the American Red Cross have all faced disaster situations and been found wanting. Very often the valuable lessons that disaster situations uncover for organizations are not noticed, understood or acted on; and thus these same organizations and others who could benefit from their experience do not improve.
Disasters need to be understood and managed with potentially different leadership skills than those that normal business operations require. This is true not only in organizational communications during a disaster, but also in the basic management concepts needed. And yet, an understanding of the skills can help not only outcomes in disaster situations, but also to strengthen the basic organization in normal times.
This course will focus on leadership and management principles that apply during, before and after disasters, and, where applicable, their relevance, or lack thereof, in normal business operations. While some discussion of communications and ethics during disasters may arise, this will not be a major focus of the course as it is covered in other courses. During the course we will explore such concepts as anticipating disaster, risk management, leadership in crises, corporate culture and crisis response, and long term organizational transformation based upon disaster.
Requirements
Materials
Materials will be either in the course packet or handed out in class. There is no text book.
POLICY GUIDELINES:
The following section is intended to clarify issues related to:
• Class Attendance
• Daily Class Preparation
• Examination
• Missed Classes for Non-emergencies
• Laptop Policy
A. Class Attendance:
Attendance and participation in class are very important. Please bring with you, and display, your name card prominently. If an emergency arises, please notify the professor as soon as possible.
It is Tuck School policy that missing a class for an interview is NOT an excused absence. It is your responsibility to work with recruiters and career services to minimize these kinds of disruptions. However, we recognize the importance of your job search and understand that in some cases, such conflicts are unavoidable. If you must miss a class session for an interview or other non-emergency, it is your responsibility to: (a) notify the Professor by e-mail in advance of class indicating the reason for the absence, and (b) submit in advance of class a one or two page memo with answers to the study questions that are assigned for the class you will miss. Failure to do either of these will result in a substantial penalty for your class participation grade.
B. Daily Class Preparation
As you prepare for class, you may work in groups and exchange ideas and recommendations. However, each student is expected to prepare each case fully and to contribute to the group discussion.
C. Examination
For this course there will be a take-home exam, which will be placed in your mailbox on the last day of class. The exam will be a case and you will be asked to answer a series of general questions similar to those in the course syllabus. You will have exactly 3 hours from when you unclasp the envelope to complete the exam and it must be turned in approximately five days from the date that it is distributed. The exam will be open book meaning you can use your notes, books, cases and other materials. You will also be able to use calculators, computers and software. The exam is to be done individually.
D. Missed Classes for Non-emergencies
Everyone is expected to attend and to prepare fully for each day. Failure to attend class can adversely affect your grade. If you must plan on missing a class, let your instructor know in advance in writing. If you miss class, you must hand in a one or two page memo within one week of the class which answers the study questions in the syllabus. This allows your instructor to verify that you have captured the important issues from that session. Please also consult with a classmate to get a copy of his or her class notes and any handouts.
E. Laptop Policy
If you use your laptop during class, it is only to be used for class activities such as taking notes or referring to a spreadsheet. You are not to connect the laptop to the network and should not be doing any non-class activities during class time. The Tuck Laptop Policy applies in all respects in this course.
Tuck Honor Code
The Tuck honor and social codes strictly apply to this course. Severe violations may jeopardize your grade in the course.
The following statements should further define role of these codes in this course:
You are encouraged to form study groups to prepare the assigned case for each day. However, you should not use any handouts or power points distributed in previous years or other sections of the course.
Disruption of the learning experience for others should be avoided, which means that each student should respect the opinions of others and the professor, even if cultural or national difference lead to conflicting views and ethics or political incorrectness from the American perspective.
Please report any suspected Honor Code violations to the Judicial Board. You should also feel free to ask the professor for clarification of “gray areas” without prejudice before infractions occur or to admit fault to the professor so that a satisfactory resolution can be achieved.
Grading
COURSE REQUIRMENTS AND GRADING:
Regular attendance and participation in class discussion and a final exam will all weigh in course grading. The grading weights are:
A. Class Participation 65%
C. Final Exam 35%
Final Examination
The final exam will be a case write up. The case will be given at the last class. Students may read and familiarize themselves with the case and any class or other background materials they desire prior to writing their examination paper. Once begun, the write up should stop in 3 hours and both the start and stop time should be recorded on the paper. Further information and study questions will be provided when the case is handed out.
Schedule
Session 1 - Thursday
January 8
LECTURE / DISCUSSION
READING: A Crisis Survival Guide, HBR (3361)
Study Questions:
What is different about disasters?
What challenges do disasters present?
What is the CEO’s role?
How critical is the importance of knowing / understanding your organization?
Session 2 - Friday
January 9
CASE: Mount Everest – 1996, HBR (9-303-061)
Study Questions:
Was this a disaster? Or was it simply the nature of the risk involved? Why?
What could Hall and Fischer have done differently? Why didn’t they?
If you were the CEO of a company engaged in commercial expeditions of any kind, what lessons does this experience give you? What actions would you consider for your organization?
Session 3 - Wednesday
January 14
CASE: New Orleans Chapter, American Red Cross – Hurricane Katrina
READING: Leadership Under Fire, HBR (R0612H)
GUEST: Kay Wilkins, Executive Director, New Orleans Red Cross
Study Questions:
What leadership skills did Kay Wilkins exhibit that helped her deal with the
Katrina Hurricane event?
Which decisions or actions did Kay Wilkins take that were necessary for dealing with the disaster, but may not normally be good management? Why
Do you think she did this?
How prepared was the New Orleans Chapter for Hurricane Katrina?
What could Kay and the Chapter have done differently/better?
What actions should Kay take once the emergency is over?
Session 4 - Thursday
January 15
CULTURE AND LEADERSHIP
CASE: Johnson & Johnson: The Tylenol Tragedy, HBS (9-583-043)
READ:
Johnson & Johnson (A) : Philosophy and Culture, pgs. 1-7, HBS (384-053)
James Burke: A Career in American Business (A), pgs. 13-25, HBS (9-389-177)
VIDEO:
The Chairman, James Burke
Study Questions:
Why did Jim Burke remove Tylenol from the market?
What role did the J&J culture play in the decision?
Why do you think the Credo document has become a culture?
Was J&J simply lucky or are there sound crisis management principles
behind Jim Burke’s decisions? If yes, what are they?
Session 5 - Thursday
January 22
CASE: Crisis and Response: Sexual Abuse Allegations in the Boston, Archdiocese (A), HBS (9-904-048)
READING: Managing A Crisis, Harvard Management Update Article (U0508D)
Study Questions:
What exactly is the organizational culture of the church?
What cultural aspects of the Church impacted the situation?
Why did it take so long for action to be taken?
Were the actions taken sufficient? If not, what else needed to be done?
If so, how effective have they been?
Session 6 - Friday
January 23
CASE: Fritidsresor Under Pressure (A): The First 10 Hours, HBS, (9407007)
READING: Crisis Communications: Lessons From 9/11, HBR, (R0212H)
Study Questions:
How well prepared was Fritidsresor?
Was Fritidsresor good or just lucky?
How would you rate:
a. Fritidsresor planning?
b. CEO’s performance?
c. Organizational response?
What should Fritidsresor change/add to its preparation now?
Session 7 - Wednesday
January 28
CASE: Yu’s Tin Sing Enterprises: Proactive Risk and Crisis Management, ACRC (HKU350)
READ: Queen Mary Hospital: Fighting the SARS Crisis, ACRC (HKU402)
Study Questions:
How good a leader was Paul Yu in the situation? Why?
Were there factors that made the crisis for Paul Yu more difficult than they needed to be? What were they? Could Paul have anticipated them? Will they continue to exist in the future?
How were these factors different for Paul Yu than for the staff at Queen Mary Hospital?
Given these factors and the cultural aspects of Paul Yu’s employees, what actions should Paul take to be better prepared for future threats?
Session 8 - Thursday
January 29
CASE: Brookfield Properties: Crisis Leadership Following
September 11th, 2001, Ivey (902C65)
VIDEO: Relying on Strong Values In A Crisis,
Marilyn Carlson Nelson, Chairman and CEO of Carlson Co.
Study Questions:
How well was Brookfield positioned to manage during the 911 disaster?
What issues arise for Brookfield that are NOT typical during normal times?
What actions would you recommend Brookfield take in its action plan and
How would you implement them?
How well did Brookfield’s normal culture function?
Session 9 - Wednesday
February 4
CASE: Subprime Meltdown American Housing and Global Financial Turmoil, HBS (708042)
Study Questions:
How well was this situation recognized as a pending disaster?
How well did individual sectors and organizations manage the disaster?
What actions could have been taken
* by - commercial banks
* by - investment banks
* by - governments
prior to March of 2007 to protect and prepare for the coming disaster?
