Crisis Management

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Crisis Management

• Lessons from the Storm

Gary Garfield Vice President, General Counsel
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1. Get Ready

• Most companies will have some type of crisis.
• Get prepared now
• Identify a spokesperson.
• Get an experienced media consultant, and get PR
  training.
• Organize a crisis management team, including the
  CEO, GC, PR, Sales/Marketing, and QA.
• Establish and maintain strong government
  relations.
• Have reliable outside counsel who know the
  company well.

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2. Recognize the Growing Storm

• Media stories
• Blogs
• Agency inquiries
• Whistleblowers
• Customer complaints

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3. Dont Make it Worse

• React with cautiona poor reaction can be worse
  than the underlying act.
• Freeze memos and controls to preserve documents,
  email, backup tapes, etc.
• Educate management on obstruction of justice,
  perjury, misleading investigators, etc.

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4. Get the FactsYesterday

• Speak with one voice, endorsed by all.
• The outside counsel investigation
• Document collection and review
• Interviews
• The white paper
• Consider the impact of retaining an independent
  outside counsel for an investigation
• Control
• Lack of familiarity with the company may cause
  delays and/or mistakes
• Liability road map
• Possible loss of privilege
• Enormous expense and disruption

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5. Organize Yourself

• Have a clear leader.
• Conduct mandatory Internal Crisis Management Team
  meetings
• Designate counsel responsibility
• Inside counsel who will be the lead for product
  liability cases, class actions, congressional
  investigations, criminal investigations, etc.
• Outside counsel who will be the lead for
  discovery, settlements, trial, etc.
• Recognize the importance of well-connected local
  counsel.

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6. Do the Right Thing

• Dont try to hide anything (assume it will all
  come out).
• Take your medicine.
• Avoid finger pointing, if possible.
• Recognize that each situation is
  differenttheres no one remedy.

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7. Cant Feed It Enough

• Recognize the medias agenda its all about the
  story.
• Beware of a standard recommended media
  approachi.e., apologize/take responsibility.
• One size does not fit all.
• You will live with it for a very long time.
• You may create a blood in the water effect.
• Attempt to preserve the privilege.
• Keep it simple, but realize no comment will not
  suffice.

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8. Understand the Politics

• Recognize the importance of positive government
  relations.
• Understand their agendas.
• Prepare yourself to deal with
• Congress
• Congress and the attorney client privilege
• Attorneys General
• Regulators

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9. Dont Overplay Your Hand

• Arrogance will kill you.

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10. Know the Importance of Leadership

• Leadership directly affects employee and customer
  morale.

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Ten Steps to Surviving the Storm

• Get ready
• Recognize the growing storm
• Dont make it worse
• Get the factsyesterday
• Organize yourself
• Do the right thing
• Cant feed it enough
• Understand the politics
• Dont overplay your hand
• Know the importance of good leadership