In this essential episode, Michael Swenson, Founder of CrisisTrak, shares how to build crisis plans that safeguard your enterprise from disasters. If you struggle with blind spots that could erase years of value, you won't want to miss it.
You will discover:
- How to form a crisis team for rapid, organized response
- Why early planning protects customers, employees, and investors
- What Crisis Track automates to streamline your recovery
This episode is ideal for for Founders, Owners, and CEOs in stage 5 of The Founder's Evolution. Not sure which stage you're in? Find out for free in less than 10 minutes at https://www.scalearchitects.com/founders/quiz
Mike began his career in broadcast journalism as an on-air reporter as well as a director and producer. Following that, he spent five years as press secretary to Kansas Gov. John Carlin. Mike founded Barkley Public Relations in 1987. He built the firm into a national leader in crisis management, influencer relations, cause branding, and employee engagement. Mike became a nationally recognized leader in both crisis management and cause branding and served as Chair of IPREX, a global group of independent public relations firms. He believes that the earlier an organization includes crisis planning in their overall business planning, the better off they will be.
Want to learn more about Michael Swenson's work at CrisisTrak? Check out his website at https://crisistrak.com/
Mentioned in this episode:
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Hello, hello and welcome. Welcome once again
Scott Ritzheimer:to the start, scale and succeed podcast. It's the only podcast
Scott Ritzheimer:that grows with you through all seven stages of your journey. As
Scott Ritzheimer:a founder, I'm your host, as always, Scott Ritzheimer and I
Scott Ritzheimer:talk with a lot of founders, many of whom have finally built
Scott Ritzheimer:something real. These are very successful founder CEOs. They've
Scott Ritzheimer:got an executive team. Their company is running, well, maybe
Scott Ritzheimer:even a little too well, but that's another episode for
Scott Ritzheimer:another time, but it's a real enterprise, real value on the
Scott Ritzheimer:table. But one thing that I found is so many of them have a
Scott Ritzheimer:massive blind spot, and that is that they've never actually sat
Scott Ritzheimer:down and thought about what happens when a crisis hits.
Scott Ritzheimer:Their plan is basically, hey, we're smart. We'll figure it
Scott Ritzheimer:out. We always have. We always will. And this is especially
Scott Ritzheimer:true for those who are in the chief executive stage. But
Scott Ritzheimer:here's what makes us so dangerous at this level, and at
Scott Ritzheimer:this stage, is that you've spent years building this thing.
Scott Ritzheimer:You've got customers who now depend on you. You have
Scott Ritzheimer:employees who bet their careers on you. You might have investors
Scott Ritzheimer:who've entrusted you the family of all of these folks, there's a
Scott Ritzheimer:lot of people who count on you, and all of it, every bit of that
Scott Ritzheimer:value can evaporate in a matter of days if the right crisis
Scott Ritzheimer:catches you the wrong way. And so the irony of it is that you
Scott Ritzheimer:finally have the organizational maturity to build a real crisis
Scott Ritzheimer:system, but most founders at this stage don't do it because
Scott Ritzheimer:nothing bad has happened, at least not yet. They're
Scott Ritzheimer:protecting everything except the one thing that could take it all
Scott Ritzheimer:away. So we're not going to handle this alone. Today's guest
Scott Ritzheimer:has spent 30 years helping organizations prepare for and
Scott Ritzheimer:navigate their toughest storms. Mike began his career in
Scott Ritzheimer:broadcast journalism as an on air reporter as well as a
Scott Ritzheimer:director and producer. Following that, he spent five years as
Scott Ritzheimer:press secretary to Kansas Governor John Carlin. Mike
Scott Ritzheimer:Barkley public relations. Mike founded sorry Barkley public
Scott Ritzheimer:relations in 1987 he built the firm into a national leader in
Scott Ritzheimer:crisis management, influencer relations and cause branding and
Scott Ritzheimer:employee engagement. Mike became nationally recognized as a
Scott Ritzheimer:leader in both crisis management and cause branding, and served
Scott Ritzheimer:as the chair for i, p, r, e x, a global group of independent
Scott Ritzheimer:public relations firms. He believes that the earlier an
Scott Ritzheimer:organization includes crisis planning in their overall
Scott Ritzheimer:business planning process, the better off they'll be. And he's
Scott Ritzheimer:here with us today. Mike, welcome to the show. Excited to
Scott Ritzheimer:be here. This is a topic that we've all bumped into, but I
Scott Ritzheimer:don't know that we've ever addressed here on the show, so
Scott Ritzheimer:I'm really excited about that, and I want to jump in with this
Scott Ritzheimer:question. So I've heard you say somewhere in the research, as I
Scott Ritzheimer:was getting ready for this, that the crisis doesn't have to be
Scott Ritzheimer:your fault to impact your business. What do you mean by
Scott Ritzheimer:that? And why is it so important?
Michael Swenson:Well, there's three positions you own in a
Michael Swenson:crisis where you only can own one. You can be the victim. You
Michael Swenson:can be the villain, if you will, or you can be the bystander and
Michael Swenson:and by that, I mean nothing you did caused the crisis. There was
Michael Swenson:a situation where we had three of our clients involved in as
Michael Swenson:three of about three or 400 brands in the country, where a
Michael Swenson:company, a food product company, mishandled, how they they did
Michael Swenson:not handle their food well. They made peanuts. And, of course,
Michael Swenson:peanuts go into everything. This company had a horrible record of
Michael Swenson:food safety. They finally caused some problems. And they were
Michael Swenson:giving, you know, they're giving their product to, like I said,
Michael Swenson:three to 400 brands. We had three of them, and all of a
Michael Swenson:sudden, now our clients, through no fall of their own, other than
Michael Swenson:they bought their peanuts from this company. Now it's facing a
Michael Swenson:crisis, because we had to make sure that all of their customers
Michael Swenson:knew, hey, we've taken things off the shelf. We checked. We
Michael Swenson:don't the products we have that use those products, they're off
Michael Swenson:the shelf. I had to go through all that. And of course, then
Michael Swenson:they got to find new vendors. Vendors, you know, so it causes
Michael Swenson:a business disruption. So that's what I mean by it. I mean, this
Michael Swenson:is a company, and by the way, six months after this all
Michael Swenson:happened, that company was out of business, and they'd been in
Michael Swenson:business for decades. Wow, that's what can happen. And they
Michael Swenson:caused, as I said, three to 400 other companies to have to deal
Michael Swenson:with it. So you can be doing everything right and still have
Michael Swenson:a problem.
Scott Ritzheimer:Yeah, yeah. It's fascinating. So knowing
Scott Ritzheimer:that a big part of this may not even be your fault, how do you
Scott Ritzheimer:help your clients start to root out where their most for lack of
Scott Ritzheimer:a better term, critical crises may come the biggest risk. How
Scott Ritzheimer:do you help them assess that?
Michael Swenson:Well, we create created a process in the early
Michael Swenson:90s. We had a client to hire us. They were a fast food company.
Michael Swenson:They were in 15 states at the time. Now they are they are
Michael Swenson:national, but their head of PR approached me and we started
Michael Swenson:talking. She said, I'm really worried. So we're growing so
Michael Swenson:fast. I don't know. If we're going to be ready to handle a
Michael Swenson:problem. So first of all, there's somebody in the
Michael Swenson:organization looking out for the future, which hopefully
Michael Swenson:everybody listening to this has if they're if you're not doing
Michael Swenson:yourself as the head of the organization, hopefully got
Michael Swenson:somebody thinking about it. We put our teams in a room. We came
Michael Swenson:up with a simple process, and step two of that process after
Michael Swenson:you form your team. And so that's the most important thing.
Michael Swenson:Is that as a CEO, you need to pick the team of people that
Michael Swenson:represent a cross section of your company's functions, and
Michael Swenson:you need to select someone to run that team. And now you need
Michael Swenson:to instill in them the fact that this is not part of your job.
Michael Swenson:It's just as important a part as what I hired you originally to
Michael Swenson:do. But now you're now you're part of this team. Then we take
Michael Swenson:that team and to your question, we put them in a room, and we
Michael Swenson:ask them to come with a little bit of homework, come in with a
Michael Swenson:list of things that you think can go wrong. So usually six to
Michael Swenson:eight people, it's a nice size. Depending on the size your
Michael Swenson:organization, it can be fewer. I wouldn't have more than eight,
Michael Swenson:but all of a sudden, if you and I are part of that team, Scott,
Michael Swenson:you're going to bring in your list. I'm going to bring in my
Michael Swenson:list, and six other people bring in their list, and some of our
Michael Swenson:crises will overlap, but I'm going to have stuff you didn't
Michael Swenson:have. You're going to have stuff I didn't have. And all of a
Michael Swenson:sudden, we would always ring the room old school with the poster
Michael Swenson:notes not on the screen on a computer. I want that room
Michael Swenson:filled. Because now everybody's looking around the room going,
Michael Swenson:oh, boy, okay, I get it. Now, there's 103 things that can go
Michael Swenson:wrong. So that's, that's where you begin the process of just
Michael Swenson:simply identifying what can go wrong. And if you've done that
Michael Swenson:step, you're now halfway home, because you're now on the board,
Michael Swenson:you can start thinking about, wait a minute, are there things
Michael Swenson:we can be doing to prevent some of these from ever happening, or
Michael Swenson:at least mitigate them from from being worse than they could be.
Michael Swenson:So now you're doing what we call real crisis management, because
Michael Swenson:now you're you're looking at your organization saying, wait a
Michael Swenson:minute, if we change this policy or change that approach, we
Michael Swenson:might mitigate that from ever happening and and we can maybe
Michael Swenson:take it off the list of things and go wrong. So now, before you
Michael Swenson:even have a crisis, you're beginning to think about, what
Michael Swenson:can we do to make sure it doesn't happen again? So that's
Michael Swenson:that was why that was such an important part of the process,
Michael Swenson:was just getting people to simply identify what can go
Michael Swenson:wrong,
Scott Ritzheimer:right, right? So important, when you're
Scott Ritzheimer:putting together a team like this, I would imagine most folks
Scott Ritzheimer:listening don't have a team in place, and one of the things
Scott Ritzheimer:they might be thinking is, who would lead something like that?
Scott Ritzheimer:So how do you go about picking a leader, most importantly, and
Scott Ritzheimer:then helping them staff the right people from around the
Scott Ritzheimer:organization?
Michael Swenson:Well, you know, you look at your organization
Michael Swenson:and let's say you've got six divisions or six departments,
Michael Swenson:let's say, well, you'd want a representative from every key
Michael Swenson:function of the company. Let's use the word function. Every key
Michael Swenson:function should have one person representing and then out of
Michael Swenson:that, I think, then the CEO, that's one of the things you're
Michael Swenson:getting paid for, is to, you know, who can, who can be the
Michael Swenson:person who can corral this group? And keep in mind, all
Michael Swenson:these people have day jobs. This is now, we're just adding this
Michael Swenson:to their list, and because, because we know that they will
Michael Swenson:be in a time of crisis, the people that that can help us get
Michael Swenson:through it. So you just pick the best person. I think you're
Michael Swenson:looking for somebody, obviously, with leadership skills, good
Michael Swenson:communication skills, able to manage up and down. They're able
Michael Swenson:to take tell the CEO, wait a minute. That's not a good idea.
Michael Swenson:When the CEO comes up, maybe we should do this. You'd have
Michael Swenson:somebody who can manage up and say, No, that's not, that's not
Michael Swenson:a good reason, a good thing to do and and so that's what you're
Michael Swenson:looking for, is a good leader who can do that. And sometimes
Michael Swenson:that is maybe your Head of Communications. You know,
Michael Swenson:they'll be part of the team, and that may be the person, just
Michael Swenson:because of the role they play already.
Scott Ritzheimer:Right. Some folks might be forgiven for
Scott Ritzheimer:mistaking this for their strategic planning process. How
Scott Ritzheimer:is this different from strategic planning?
Michael Swenson:Well, it's it's it, I would consider it a subset
Michael Swenson:of strategic planning. So anytime you're going into a
Michael Swenson:strategic plan, there should be a line item of crisis planning.
Michael Swenson:And if you've, if you've put our process into place, called, we
Michael Swenson:call it crisis track, if that's in place, then then your part of
Michael Swenson:your strategic planning is just to go back and make sure that
Michael Swenson:everything's up to date. Are there new risks that can occur
Michael Swenson:that we haven't thought of before? Are there again
Michael Swenson:reviewing? Are the things we could be doing to help mitigate
Michael Swenson:any of these things from happening. So to me, that's part
Michael Swenson:of your strategic plan. Should just be a review every year or
Michael Swenson:every X, however long however you do it, but usually every
Michael Swenson:year, a review of your crisis planning process. It's just part
Michael Swenson:of your strategic plan because they think about it, all the
Michael Swenson:positive stuff you're doing, all of the investment you're making
Michael Swenson:in promoting your company, promoting your products, your
Michael Swenson:services, everything you're doing takes a hit if a crisis
Michael Swenson:happens and you're not ready. So to me, if it's not part of your
Michael Swenson:strategic plan as a core element, I think you're you're
Michael Swenson:missing it.
Scott Ritzheimer:So on the other side of this, I think an
Scott Ritzheimer:interest. Challenge once you start to get into it is you get
Scott Ritzheimer:those sticky notes all over the room. It can be a little
Scott Ritzheimer:overwhelming, right? There's a lot of things that can go wrong.
Scott Ritzheimer:There's a lot more things that can go wrong than go right, to
Scott Ritzheimer:some extent, right? It's probably an infinite number of
Scott Ritzheimer:both. So I don't know that that's mathematically correct,
Scott Ritzheimer:but I can see it, especially over time, getting easy to to
Scott Ritzheimer:get a little disillusioned by all the things that can go
Scott Ritzheimer:wrong, or to get a little worried about all the things
Scott Ritzheimer:that can go wrong. How do you help folks to strike was it
Scott Ritzheimer:Collins talked about productive paranoia. How do you keep this
Scott Ritzheimer:to being a productive part of the planning process?
Michael Swenson:Well, it gets into, then into the once you've
Michael Swenson:established what can go wrong that the next step that that we
Michael Swenson:would encourage those teams to take is to now identify a recent
Michael Swenson:situation, you had crisis. And, you know, sidebar here, crisis,
Michael Swenson:everybody think, here's the word crisis. You think something big,
Michael Swenson:it doesn't have to be, it can be something that's just kind of a
Michael Swenson:small, more silent crisis, but it still can, can snowball so
Michael Swenson:but, but a recent situation, and walk through it from the time
Michael Swenson:the crisis began till the time you solved it and it was ended.
Michael Swenson:And what were the steps that you took all the way through?
Michael Swenson:Whatever inevitably happens when we take go through that part of
Michael Swenson:the that process is we learned that there are steps that were
Michael Swenson:two three people were doing the same thing. Two or three things
Michael Swenson:didn't get accomplished as soon as they should have, and it all
Michael Swenson:caught. It all resulted in maybe the crisis going on longer than
Michael Swenson:it needed to. So so we set that aside as and then we say, Okay,
Michael Swenson:now let's map out how we want to handle crises going forward, and
Michael Swenson:let's pick out the steps. Every crisis will be different, but
Michael Swenson:there are a certain number of things that you're going to do
Michael Swenson:regardless, and let's get a list of those things we absolutely
Michael Swenson:have to do. A lot of those revolve around early
Michael Swenson:communication with key audiences. A lot of those will
Michael Swenson:revolve around making sure that you know the team is activated,
Michael Swenson:making sure you have a backup team that's taken over the roles
Michael Swenson:of the crisis team in their regular job so your business
Michael Swenson:doesn't suffer while the crisis is going on. You got to keep the
Michael Swenson:keep the trains moving. And so those are all steps we put in
Michael Swenson:place. And now we've got a map of, okay, these are 10 things
Michael Swenson:we're going to do when the crisis hits. The next step is we
Michael Swenson:create a message. Go back to our risk. Create three or three to
Michael Swenson:five key messages for every risk. So now to getting back to
Michael Swenson:your question is we're getting off of defense and on to
Michael Swenson:offense. So now, yes, we've realized there's a lot of things
Michael Swenson:that go wrong, but now we're putting things steps in place of
Michael Swenson:what we're going to do. We have messages ready to go so that we
Michael Swenson:don't have to sit in the room for two hours thinking of what
Michael Swenson:we're going to say. We got we can get a message out the door
Michael Swenson:like that to all of our key audiences. And now we're on
Michael Swenson:offense and and once you're on offense in a crisis, and you
Michael Swenson:stay on offense, it's going to end faster, I guarantee you, and
Michael Swenson:it's going to end better than it might have if you weren't
Michael Swenson:prepared. And that's what gets back to me, being part of your
Michael Swenson:overall strategic plan is just this. You need to have this in
Michael Swenson:place all the time.
Scott Ritzheimer:I may get this quote wrong. I think it was
Scott Ritzheimer:Dwight Eisenhower who said, plans are meaningless, but
Scott Ritzheimer:planning is everything and and so I think there's a certain
Scott Ritzheimer:benefit of this, at least in my experience, of just the process
Scott Ritzheimer:of walking through thinking about what the crisis might be.
Scott Ritzheimer:I'm not hearing you say you need to know what every crisis is and
Scott Ritzheimer:have a plan for every single potential crises. No right but,
Scott Ritzheimer:but I correct me if I'm wrong. But I think a big part of the
Scott Ritzheimer:value of doing this planning is just getting the reps on
Scott Ritzheimer:thinking through how would we respond to a crisis that came
Scott Ritzheimer:up? Would you agree?
Michael Swenson:Totally agree, and to hammer home, your point
Michael Swenson:is, it's not about a plan for each crisis. It's about a plan
Michael Swenson:to manage any crisis. Because again, you know, again, it comes
Michael Swenson:back to not thinking about one thing that can go wrong is going
Michael Swenson:to take us south, but it's about any of these can happen, but as
Michael Swenson:long as we now know the our first 10 steps, we know what
Michael Swenson:we're going to say, we've got a team in place that's managing it
Michael Swenson:now, every step of the way, the CEO is engaged with the team.
Michael Swenson:And now you got, you know, and then it becomes part of your
Michael Swenson:ongoing operations. That's what I love. I want see founders and
Michael Swenson:CEOs to think about. You know, it's just like your marketing
Michael Swenson:plan. It's just like your your communications plan. It's like
Michael Swenson:your sales plan. You have plans in place, and people running
Michael Swenson:those. This is the crisis team, and they're running the crisis
Michael Swenson:when it happens, and you need to be engaged from the standpoint
Michael Swenson:of making sure you're hearing what everything that's going on.
Michael Swenson:But you let them manage it, and they bring you the solutions.
Michael Swenson:Okay, we've here's the next step we need to take and get the CEO
Michael Swenson:to sign off, and so it becomes just like you would with any
Michael Swenson:other team within the organization, just treat it,
Michael Swenson:treat it normally. And that gets back to your point of it's not
Michael Swenson:about worrying about it. It's about staying on offense and.
Michael Swenson:And understanding that we're now way ahead of the game and and
Michael Swenson:here's what everybody has to understand, is everybody's
Michael Swenson:looking on. I mean, if this is something that's out in the
Michael Swenson:media now, everybody's looking on. Your employees are looking
Michael Swenson:on, how you know, people are involved directly, but they're
Michael Swenson:looking on, how are we handling it? They go home at night and
Michael Swenson:their neighbors saying, what the hell's going on over at your
Michael Swenson:place, you know? We want them to be prepared. We have we give
Michael Swenson:them the key messages. Yeah, here's what we're doing, your
Michael Swenson:key customers, all of your customers, but certainly your
Michael Swenson:key customers may get the special treatment of the phone
Michael Swenson:call or the, let's take a cup of coffee over, and I'm going to
Michael Swenson:tell you what's going on. You've got prospects you've been
Michael Swenson:calling on. They're looking on, you know, and if they see an
Michael Swenson:organization managing their way through a difficult situation,
Michael Swenson:they're going to be that much more inclined to continue doing
Michael Swenson:business or want to do business with you.
Scott Ritzheimer:So good. It's so good. Mike, there's this
Scott Ritzheimer:question that I ask all my guests. I'm interested to see
Scott Ritzheimer:what you have to say, especially with this background. But what
Scott Ritzheimer:would you say is the biggest secret that you wish wasn't a
Scott Ritzheimer:secret at all. What's that one thing you wish everybody
Scott Ritzheimer:watching or listening today knew?
Michael Swenson:I wish they knew how simple it is to have a
Michael Swenson:crisis planning process in place. It's just that's that
Michael Swenson:easy. It's and and, you know, we you kind of alluded to it
Michael Swenson:earlier. You know, at the very beginning, you've never really
Michael Swenson:talked about this on your podcast. That's not surprising
Michael Swenson:to me. Unfortunately, that's not surprising because it's just,
Michael Swenson:it's always a back burner thing, you know, and because people put
Michael Swenson:it off, put it off, put it off, well, nothing's happened, and
Michael Swenson:when something does happen, we'll deal with it. If people
Michael Swenson:knew how easy it is to put this crisis track process in place
Michael Swenson:that we put in place and used on multiple you know, many of our
Michael Swenson:clients over the years that put in place a process for them to
Michael Swenson:to be ready. It's simple, and then then that 3am phone call is
Michael Swenson:going to be a lot better, because now you get the 3am
Michael Swenson:phone call, it's from your crisis team leader who says,
Michael Swenson:Yeah, we got a problem. Here's what we've already done. We've
Michael Swenson:got our messages ready to go out. And what? Here's what we
Michael Swenson:need you to do as the founder, CEO, we got a call list for you,
Michael Swenson:and now all of a sudden it's like, yeah, there's a problem,
Michael Swenson:but it's being managed, and I'm going to play my role as the
Michael Swenson:founder of making sure our most important customers and most
Michael Swenson:important prospects know that we are on top of it and and once
Michael Swenson:we're through with this, we're ready to go back to business.
Scott Ritzheimer:So good, Mike. There's some folks realizing
Scott Ritzheimer:this is an absolute essential. It's not something they have
Scott Ritzheimer:right now. If they're interested in implementing the crisis track
Scott Ritzheimer:system or just learning more about the work that you all do,
Scott Ritzheimer:where can they find out more?
Michael Swenson:Well, two places to go to my LinkedIn
Michael Swenson:profile. I think I'm MikeSwenson1, but just go on
Michael Swenson:LinkedIn and search. Mike Swenson and crisis and my site
Michael Swenson:will come up, and there's a there's a ton of content on
Michael Swenson:there that is just there for people to review and read and
Michael Swenson:hopefully gain some insights from regarding crisis
Michael Swenson:preparation and crisis management. And then at crisis
Michael Swenson:track.com, crisis. And then track is T, R, A, k.com, there
Michael Swenson:is a series of nine videos that you you can purchase, and I go
Michael Swenson:through in great detail how to build the crisis plan out and it
Michael Swenson:you can do it yourself. And if somebody gets involved, you
Michael Swenson:know, they take the time to purchase these videos, and they
Michael Swenson:run into a hurdle, just reach out to me on LinkedIn, and I'll
Michael Swenson:hop on a zoom with you, and we'll talk about it. We're
Michael Swenson:trying to make it as simple as possible. We created this
Michael Swenson:process in the 90s. We used it for 30 years, and I always had
Michael Swenson:in my contract I could take it with me when I retired, which I
Michael Swenson:did about five years ago, and I finally took took it off the
Michael Swenson:back burner myself, and started doing something with it, because
Michael Swenson:it's something I'm very passionate about. It. Passionate
Michael Swenson:about. It is the most important PR we did for any client is
Michael Swenson:helping them either get ready and prepare for crises in the
Michael Swenson:future or manage one that they're going through right now.
Michael Swenson:Because if we help them get through a crisis on the other
Michael Swenson:side, everything we did from a positive PR or advertising point
Michael Swenson:of view was saved, was preserved because of the work we did to
Michael Swenson:put them in the best light possible during a crisis.
Scott Ritzheimer:Fantastic, Well, Mike, it was a privilege
Scott Ritzheimer:having you on a real honor, having you here with us today.
Scott Ritzheimer:Thanks so much for joining, and for those of you watching and
Scott Ritzheimer:listening, you know your time and attention mean the world to
Scott Ritzheimer:us. I hope you got as much out of this conversation as I know I
Scott Ritzheimer:did, and I cannot wait to see you next time. Take care.