Ceo Can't Afford to Panic

A disaster can strike at any time, but a crisis can only occur if one is not prepared. When a subway bombing occurs, CEO Gerald Smarten is faced with making an executive decision on behalf of Kaspa Financial Services and the community. However, he is not professionally or personally prepared for the challenge of deciding whether to allow their lobby to be used as a triage center and temporary morgue. In the event of an emergency, each organization should have a step-by-step contingency disaster-recovery plan and each leader should have the skills and training to implement emergency management. A step-by-step contingency disaster-recovery plan is specifically designed to assist financial institutions in the decision making process during an emergency or disaster. A plan might include: How to begin the process of assessing damage, taking inventory and measuring the impact on the business, and utilizing an emergency file backup system that would protect any internal records and recover data that might otherwise be lost (Kelly & Peckham, 2002). In the case of Kaspa Financial Services, Mr. Smarten and the executive staff used this type of plan when they reorganized their staff and their duties, assessed the company’s financial risks and dedication to their clients, and transferred their financial operations calls off site. When Mr. Smarten and his executive team are asked to consider Kaspa’s lobby for a triage center and temporary morgue, they would again go through the process of assessing the situation and reorganizing their staff. However, this time they will also have to rely on their ability to lead others toward what they believe would be the right thing to do. As a financial institution, I feel that Kaspa does have an obligation to their investors and customers. However, Mr. Smarten and his staff also have a responsibility to evaluate what is morally and ethically right. Therefore, I believe that Mr. Smarten should allow the lobby to be used as a triage center based on a “level three” type of leadership that includes modeling a caring and respectful attitude and service to others (Clawson, 2012, p. 134). This process would include an evaluation of what is expected of them, what others would want them to do, and what they want to do based on individual values and the value of the organization (Clawson, p. 134). Once a decision is made, the executive team could then move forward to determine what they are capable of doing based on liability risks, their skills, and available resources. This situation presents an ideal opportunity for Mr. Smarten to implement emergency management techniques that demonstrate the value of following through on one’s moral obligations and beliefs. Emergency management allows the leader to use creative and innovative approaches in solving problems through the implementation of specific principles. These are often based on education, training, experience, ethical practices, and public stewardship, and they are designed to stand behind the mission and vision of an organization while protecting the community (EM Public Safety, Public Trust, 2007, p. 4). If Mr. Smarten can effectively explain the reasons behind this decision, this would then allow the other staff members to see beyond the situational “what ifs” and legalities that often paralyze organizations into poor decision making (Clawson, 2012, p. 231). The following plan is an example of how Mr. Smarten and his executive staff could reduce the risk of liability, make immediate business and financial decisions, and meet the needs of the community through the effective use of their available staff and resources:

1. Comprehend and Assess the Situation.

Safety and evacuation procedures would include assessing structural damages, personal injuries, and any other immediate needs of the employees. In this case, they are advised to “sit tight” due to the possibility of simultaneous attacks and lack of complete information (McNulty, 2010, p. 2). 2. Organize and Reassign Duties and Responsibilities of the Work Force. Kaspa will need to maintain adequate communication between their investors, customers, and their trading desks, and they do move most of their business off site. Communication between the Kaspa staff, the media, and emergency personnel will also be critical. Specific people should be assigned to gather information and report back on a consistent basis. For example, sending a person from the human relations department would an excellent choice for knowing what staff is missing and to communicate with outside personnel or emergency staff. As CEO, Mr. Smarten would likely be the one to handle any media questions and interviews. A small subset of employees would need to handle any remaining in house business and technical issues. First aid stations would be set up in house or by outside emergency personnel. 3. Executive Team Collaboration Including a Liability and Risk Assessment. An initial liability and risk assessment should be done through a lawyer or the person who could offer legal advice before any decisions are made. This reduces the impact a disaster can have on an organization. Although Kaspa’s attorney states that they “should be covered by the Good Samaritan laws,” he implies that using the lobby as a triage center or temporary morgue could open them up to a lawsuit and cause damage to their reputation (McNulty, 2010, p. 3). Because of this statement, he seems uncertain about where the liability lies and where his values fit in. The executive team should base their decision on knowledge, education, training, experience, ethical practices, and public stewardship. I agree with Clawson when he states that an organization can quickly redistribute power and structure when change is necessary provided the employees recognize the value of receiving, processing, and making decisions based on all of the information available at the time (2012, p. 47). If Mr. Smarten elects to have his staff “help in any way that they can” they will need to use this process and focus on helping the community and the importance of that role (McNulty, p. 2). 4. Design and Implement a Recovery Plan.