•          “If we have a crisis that prevents us from operating, our customers will have to get their products elsewhere.”

•          “We would have to reveal proprietary processes that might become known outside the company. So we will deal with any business interruption or crisis once it occurs.”

A true crisis is not a government inspection, a load of questionable milk getting into our silos, a short-term utility interruption or even a product recall. I’m talking about what a company does when it does not have all of the resources and technical capability to address and solve the crisis in the short term. Crisis management is a process of transformation where the old system can no longer be maintained.

Let me define the issues:

1. Problem: A situation (or people) that blocks or limits the ability to reach a solution, need, goal or position. An unresolved problem can escalate into an emergency. Examples include a temporary loss of electrical power or a positive drug residue test on an incoming raw milk tanker.

2. Emergency: A situation that poses an immediate risk to health, life, property or environment and requiring urgent intervention to prevent a worsening of the situation. This has a high probability of escalating to cause immediate danger to life, health, property or environment. Examples include a limited plant fire or an ammonia leak.

3. Crisis: Any event that has or will lead to a dangerous situation affecting an individual, group, community or whole society. Crises have four defining characteristics. They are unexpected; they create uncertainty or destabilize physical, social or emotional norms; they are or are perceived to be a threat to the continued existence of a company, community or society; and they demand change in order to end the crisis.

Crisis events usually can be grouped into five categories:

•          Natural disasters and weather-related (earthquakes, hurricanes, blizzards, floods)

•          Work-force related (wide-spread illness, union strikes, civil disruptions, transportation infrastructure breakdown, criminal acts on-site)

•          Plant infrastructure failures (roof collapse, significant equipment failure without back-ups)

•          Utility-related (electrical, water or sewer service interruptions lasting more than three days)

•          Supplier-related (transport failures, supply disruptions caused by the four events listed above, contagious animal disease outbreaks preventing delivery of adequate raw milk volumes, etc.)

4. Disaster: A natural or man-made crisis that either is improperly managed or becomes unmanageable, causing significant physical or economic damage, destruction, loss of life, or a drastic change to the environment. While a disaster can be understood to be uncontrollable, manmade disasters are the result of inappropriate preparation.

A true business continuity plan addresses what to do in the case of a crisis or disaster. Elements of a good plan are:

•          Appointing a management team with 24/7 access (including multiple means of contact); specific responsibilities; annual response testing; a legal advisor; and a media advisor.

•          Building a contact list with information about the local, county and/or state emergency management committees/agencies, police, fire and first responder service. You need to familiarize them with your operation and business continuity plan.

•          Having at least two alternative plans to deal with each of the “crisis events” listed above.

•          Creating a “dark” (not-yet-published) website that has information for customers, the media and consumers about your company and how it has prepared for a crisis.

•          Evaluating all property protection and liability insurance to have a clear idea of your plant’s exposure and financial risk.

•          Conducting a mock crisis annually and evaluate the ability of the team to operate and complete their responsibilities.

Remember this: the Japanese Fukushima nuclear plant disaster had two back-up plans to keep the nuclear fuel rods cool. Both plans failed. The BP Deep Water Horizon blow-out in the Gulf of Mexico had two back-ups. The first fail-safe and the two back-ups failed.

To better prepare your company, see the Center for Food Safety & Regulatory Solutions website, www.cfsrs.com, or the Dairy Response Center site, www.dairyresponse.com.  

Allen R. Sayler is vice president of the Center for Food Safety & Regulatory Solutions, Woodbridge, Va.