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Business Crisis and Continuity
Management (BCCM)
Class Session 18
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Crisis Characteristics
Threats to major values.
Time urgency. Ambiguity or uncertainty.
Surprise or uniqueness.
Source: Post, Jerrold M. 1993. The Impact of Crisis-Induced Stress on Policy Makers, in
Avoiding Inadvertent War, edited by A. George. Boulder, CO: Westview Press. Page 472.
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CRISIS SITUATIONS AND
INFORMATION MANAGEMENT
Crisis situations are novel, unstructured and outside of an
organizations or individuals typical operating
framework
Crises require nonprogrammed decision responses
Crises are highly uncertain and complex situations
Crises are characterized by an overload of incomplete,
conflicting information
The process of perceiving, selecting, and processing this
information is critical to effective crisis management
Source: Reilly, A.H. 1993. Preparing for the Worst: The Process of Effective Crisis
Management. Industrial and Environmental Quarterly. Vol. 7, No. 2. Page 118. 18 - 3
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CRISIS
ATTRIBUTES
PROBLEM
SENSING
PROBLEM/THREATDIAGNOSIS
DECISION
RESPONSE
EXTERNAL
INFORMATION
FLOW
RESOURCE
MOBILIZATION
RESPONSE ACTIONS
INTERNAL
INFORMATION
FLOW
CRISIS
OUTCOMES
DECISIONS
AND ACTIONS
EVENT
PERCEPTION
CRISIS MANAGEMENT
Environment
THE ROLE OF INFORMATION
IN CRISIS MANAGEMENT(Source: Reilly, A.H. 1993. Preparing for the
Worst: The Process of Effective Crisis
Management.Industrial and EnvironmentalQuarterly. Vol. 7, No. 2.)
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The Three Rights of Information to
Support Crisis Decision Making
Get the right information
to the right people at the right time.
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Layered Functions
5. Organizational Memory 6. Group Processes
4. Values
3. Filtering
2. Data Validation
1. Connectivity
Source: Hale, Joanne. 1997. A Layered Communication Architecture for the Support of Crisis
Response.J ournal of Management Information Systems. Vol. 14, No. 1.
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Tasks of the Crisis Decision Maker
Define the main elements of the situation
Maintain receptivity to new information
Identify and adequately consider the major values, interests, and
objectives to be fulfilled
Search for and evaluate alternative courses of action Estimate probable costs and risks of alternatives
Search for new information relevant to assessment of options
Discriminate between relevant and irrelevant information
Consider problems that arise in implementing options Assess the situation from the perspective of other parties
Resist both defensive procrastination and premature closure
Monitor feedback from the developing situation
Make adjustments to meet real changes in the environment 18 - 7
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Characteristics of Defective Decision
Making in Crisis
A truncated time span, with major attention being devoted to the immediate
and diminished attention to long-range consequences of the action;
A perceived requirement for decisional closure, which may in turn lead to
premature action or, conversely;
In searching for certainty, a tendency to irrational procrastination;
Cognitive rigidity, a tendency to maintain a fixed mind-set and not be open to
new information;
A tendency to reduce cognitive complexity and uncertainty;
A reduction of the range of options considered;
In considering options, a tendency to bolster, - that is to upgrade factors infavor of the favored action prescription and downgrade factors militating
against;
Source : Post, Jerrold M. 1993. The Impact of Crisis-Induced Stress on Policy Makers, in
Avoiding Inadvertent War, edited by A. George. Boulder, CO: Westview Press. Pages 475.
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Characteristics of Defective Decision
Making in Crisis (Contd)
A tendency to view the present in terms of the past;
A tendency to seek familiar patterns, to relate the critical events to
mental schemata or scripts;
Diminished creativity;
A tendency toward the fundamental attribution bias to see the
others actions as being precipitated by internal (psychological) causes
rather than external circumstances (example: my adversarys actions
show he is malevolently out to destroy us, rather than that he is
protecting himself from external threats); and A corresponding tendency to fall into the actor-observer discrepancy
that is, to see the external situation as the cause of ones own behavior
without attending to ones own internal psychological motivations.
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The Impact of Crisis-Induced Stress on
Decision Makers
Stimulus
situation
Perception
of threat to
values
Anxiety or
fear
Coping
Pattern
Impact on
information
processing
Choice of
decision or
policy
Effects of stress on leadership decision-making
Source:Post, Jerrold M. 1993. The Impact of Crisis-Induced Stress on Policy Makers, inAvoiding Inadvertent War, edited by A. George. Boulder, CO: Westview Press. Page 475.
Stress
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Source:Post, Jerrold M. 1993. TheImpact of Crisis-Induced Stress on
Policy Makers. in AvoidingInadvertent War, edited by A. George.Boulder, CO: Westview Press. Page
474.
PERFORMANCE/STRESS CURVE
Stress
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The Compulsive Personality
Under Crisis Induced Stress
Folie du doute - paralyzed by indecision.
Tendency to irrational procrastination because of search for
certainty; fear of making a mistake.
Once decisional closure, difficult to reopen. Comfortable with applying set policies and procedures to
solve problems.
Sensitive to position in hierarchy.
Overly responsive to superiors, competes with peers anddominates subordinates.
Source:Post, Jerrold M. 1993. The Impact of Crisis-Induced Stress on Policy Makers, inAvoiding Inadvertent War, edited by A. George. Boulder, CO: Westview Press. Pages 477-479.
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The Narcissistic Personality
Under Crisis Induced Stress
Self centered, egocentric, and self-absorbed.
Seek constant reassurance of self-worth.
Primary loyalty to self; acts to promote own position.
Can shift positions easily.
Believe that they are principled and scrupulous individuals.
Seek advisors who prop up their self-esteem.
Source:Post, Jerrold M. 1993. The Impact of Crisis-Induced Stress on Policy Makers, inAvoiding Inadvertent War, edited by A. George. Boulder, CO: Westview Press. Pages 479-481.
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The Paranoid Personality Under Crisis
Induced Stress
Surrounded by enemies - extreme suspiciousness.
Difficulty trusting own subordinates.
Fixed conclusion in search of evidence.
Do not accept information and advice that runs
contrary to own conclusions.
Source:Post, Jerrold M. 1993. The Impact of Crisis-Induced Stress on Policy Makers, inAvoiding Inadvertent War, edited by A. George. Boulder, CO: Westview Press. Pages 481-483.
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Unconflicted adherence
Unconflicted change
Defensive avoidance Hypervigilance
Vigilance
Five Basic Patterns of Decision
Making
Source: Fink, Steven. 1986. Crisis Management: Planning for the Inevitable. New York:Amacom. Pages 133150.
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Tasks of the Crisis Decision Maker
Define the main elements of the situation Maintain receptivity to new information
Identify and adequately consider the major values, interests, and
objectives to be fulfilled
Search for and evaluate alternative courses of action
Estimate probable costs and risks of alternatives
Search for new information relevant to assessment of options
Discriminate between relevant and irrelevant information
Consider problems that arise in implementing options
Assess the situation from the perspective of other parties
Resist both defensive procrastination and premature closure
Monitor feedback from the developing situation
Make adjustments to meet real changes in the environment 18 - 16
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Decision Making Patterns
Vigilance follows a methodical, high-quality process to objectively collect
available information, thoroughly consider it, search for other possible
options, and make a well reasoned decision.
Unconflicted adherence continuing with the current situation.
Unconflicted change following the last advice received.
Defensive avoidance avoiding decision making.
Hypervigilant vacillating approach.
Source: Fink, Steven. 1986. Crisis Management: Planning for the Inevitable. New York:Amacom. Pages 133150.
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A Definition of Groupthink
a mode of thinking that people engage in when they are
deeply involved in a cohesive in-groupmembers striving
for unanimity override their motivation to realistically
appraise alternate courses of action a deterioration of
mental efficiency, reality testing, and moral judgement that
results from in-group pressures.
Source: Neck, C.P., and Manz, C.C. 1994. From Group Think to Teamthink: Toward the
Creation of Constructive Thought Patterns in Self-Managing Work Teams. HumanRelations. Vol. 47, No. 8. Derived from Victims of Groupthink, by I.L. Janis (Boston:Houghton Mifflin. 1972). Page 9 in Groupthink.
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Antecedent Conditions for Groupthink Primary: Moderately or highly cohesive group.
Structural or administrative faults in the organization in which the
group exists including:
Insulation of the group.
The group leaders preference for a certain decision.
A lack of norms requiring methodical procedures for the group.
Homogeneity of the group members social background and ideology.
High stress from external threats with low hope of a better
solution than the leaders.
Low group self-esteem induced by the groups perception of
recent failures, excessive difficulty on current decision-makingtasks, and moral dilemmas (i.e., apparent lack of feasible
alternatives except ones that violate ethical standards).
Source:Neck, C.P., and Manz, C.C. 1994. From Group Think to Teamthink: Toward the Creation of Constructive ThoughtPatterns in Self-Managing Work Teams. Human Relations. Vol. 47, No. 8. Derived from Victims of Groupthink, by I.L. Janis
(Boston: Houghton Mifflin. 1972). Page 2 and 3. 18 - 19
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Symptoms of Groupthink
Direct social pressure placed on a member who argues against thegroups shared beliefs.
Members self-censorship of their own thoughts or concerns that
deviate from the group consensus.
An illusion of the groups invulnerability to failure.
A shared illusion of unanimity.
The emergence of self-appointed mind guards that screen out
information from outside the group.
Collective efforts to rationalize.
Stereotyped views of potential adversaries outside the group.
Unquestioned belief in the groups inherent morality.Source:Neck, C.P., and Manz, C.C. 1994. From Group Think to Teamthink: Toward the Creation of Constructive ThoughtPatterns in Self-Managing Work Teams. Human Relations. Vol. 47, No. 8. Derived from Victims of Groupthink, by I.L. Janis
(Boston: Houghton Mifflin. 1972). Page 3.18 - 20
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Symptoms of Defective
Decision-Making
Incomplete survey of alternatives.
Incomplete survey of objectives.
Failure to examine risks of preferred choices.
Failure to reappraise initially rejected alternatives.
Poor information search.
Selective bias in processing information at hand.
Failure to work out contingency plans.
Source:Neck, C.P., and Manz, C.C. 1994. From Group Think to Teamthink: Toward the Creation of Constructive ThoughtPatterns in Self-Managing Work Teams. Human Relations. Vol. 47, No. 8. Derived from Victims of Groupthink, by I.L. Janis
(Boston: Houghton Mifflin. 1972). Page 3. 18 - 21
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Antecedent Conditions of
Teamthink
Team beliefs and assumptions emphasizing the
positive.
Team self-talk - encouraging open discussion.
Team mental imagery - creating a common vision.
Thought patterns - optimism.
Source:Neck, C.P., and Manz, C.C. 1994. From Group Think to Teamthink: Toward the Creation of Constructive ThoughtPatterns in Self-Managing Work Teams. Human Relations. Vol. 47, No. 8. Derived from Victims of Groupthink, by I.L. Janis
(Boston: Houghton Mifflin. 1972). Page 57.18 - 22
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Symptoms of Teamthink
Encouragement of divergent views.
Open expression of concerns and ideas.
Awareness of limitations and threats. Recognition of members uniqueness.
Discussion of collective doubts.
Source:Neck, C.P., and Manz, C.C. 1994. From Group Think to Teamthink: Toward the Creation of Constructive ThoughtPatterns in Self-Managing Work Teams. Human Relations. Vol. 47, No. 8. Derived from Victims of Groupthink, by I.L. Janis(Boston: Houghton Mifflin. 1972). Page 7.
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Tasks of the Crisis Decision Maker
Define the main elements of the situation Maintain receptivity to new information
Identify and adequately consider the major values, interests, and
objectives to be fulfilled
Search for and evaluate alternative courses of action
Estimate probable costs and risks of alternatives
Search for new information relevant to assessment of options
Discriminate between relevant and irrelevant information
Consider problems that arise in implementing options
Assess the situation from the perspective of other parties
Resist both defensive procrastination and premature closure
Monitor feedback from the developing situation
Make adjustments to meet real changes in the environment18 - 24
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Myers Briggs
http://www.humanmetrics.com/cgi-
win/jungtype.htm
http://www.typelogic.com/
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