VIEWPOINTS : In Case of Emergency . . .

The tragic fire that seared the 62-story First Interstate Bank tower earlier this month demonstrated once again that businesses large and small are vulnerable to unexpected--and potentially devasting--crises.

It also demonstrated the importance of comprehensive crisis management planning. First Interstate Bank reported the day after the fire, for example, that extensive contingency plans it had developed for an earthquake helped it deal with the impact of the fire.

Predesignated command posts were activated, emergency communications links were quickly established and back-up computer systems instantly began humming. As a result, most customers apparently have noticed little disruption and bank losses will be minimized.

But too many companies fail to plan adequately for a crisis. Some become caught in the “it can’t happen here” syndrome. Others acknowledge the risk, but assert that they can’t possibly plan for “every little thing.”

A survey of a sampling of Fortune 500 chief executives completed in 1986 found that 90% believe that crises are inevitable, but only half said they have any crisis management plan. More important, the survey also found that crisis-stricken companies with crisis management plans recovered from the acute stages of their crises and returned to business as usual 2 1/2 times faster than the others.

Some lessons we can draw from this:

Don’t be myopic. It is short-sighted to believe that preparing for a crisis requires the ability to predict the future in specific detail. In planning for a crisis, cast the widest possible net. Don’t become bogged down trying to predict everything that could happen. It’s self-defeating, psychologically damaging and well nigh impossible. Simply assume the worst in business interruption scenarios in the broadest possible terms.

For example, assume you can’t get into the office or the building for a period of time. Knowing the reason why you or your people can’t get to work isn’t essential right now. How long can you afford to be out of the office? Where will you set up shop in the interim? How long can you operate without important records and files? Do you have back-ups of records or computer systems? In short, what is your overall plan for staying afloat? And, most important, have you tested it to make sure it will work?

Meet at Joe’s. Certain essential elements of the plan can be quite simple. Assume, for example, the bank fire happened during morning rush hour, just as you and your co-workers were driving to work. You’re not affiliated with the bank, but your business is in the building. What do you do? Where do you go? Who do you look to for leadership?

Make provisions now for all employees to meet at a specific location close to work: a restaurant or a hotel or even a client’s office. Choose some place where you have access to telephones, news and food.

Set up communications to eliminate uncertainty. Regardless of the crisis, you’ll need to immediately establish communications channels with major clients or customers and the media to let them know you’re still in business and how you can be reached.

Some companies use national 800-number service bureaus with inbound and outbound telemarketing services. By retaining such services in advance, inbound 800-numbers can quickly be set up to receive calls for you. Outbound services can telephone customers, clients, distributors and other crucial business connections to alert, inform and reassure them.

A crisis of public perception can be as debilitating as the actual crisis. If business has been interrupted, you need to candidly convey that fact to customers and others concerned. But even if it’s only a perception that you’re in trouble, be prepared to correct that impression before your competitors swoop down to try to snare your customers.

You can lead a boss to trouble but you can’t make him blink. If almost 9 out of 10 surveyed CEOs agreed that a crisis is inevitable, why were fully half unprepared without any plan? Perhaps the reason is denial, overconfidence (“If it happens, I can handle it”) or indecisiveness. Most likely, it is a matter of penny wise, pound foolish economic reasoning (“I can’t afford it”).

Yet First Interstate Bank spent $1.5 million on its crisis management plan, far less than 1% of its annual gross income. In those terms, it’s a relatively small price to pay to ensure that you stay in business after a crisis hits.

Look for Prodromes. Prodromes (from the Greek, meaning “running before”) are warning signs that indicate trouble is ahead. If you can spot a prodrome and act in time, you may avert a crisis. The First Interstate Bank fire is a prodrome for every business.

In other words, if a giant such as First Interstate can suffer a potentially devastating crisis, so can you. Your company could be a primary victim, or caught in the ripple effect of someone else’s crisis. Could your business survive being displaced for months? With a plan--even a simple one--you can improve its odds.