Loss,Senior,Management,The,sud business, insurance Loss of Senior Management

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The sudden departure of a company's top managers, whether under positive or negative circumstances, can create a lot of concern amongst the audiences used to dealing with and relying on those individuals. Themes of this case history, although focused on a retirement community, are repeated daily at organizations worldwide.PrologueThe offsite owners of a 100-bed independent and assisted living community had been quietly investigating the management practices of that facility's top manager, the executive director, and her director of sales. There appeared to be questionable accountability for funds, sales practices that were legally risky, and other issues that might have eventually led to the employees' dismissal or other sanctions. Mid-way through the investigation, however, both individuals suddenly quit.Whatever their business practices may have been, the two women were dearly loved by staff, residents, their families and referral sources -- i.e., all of the community's most important audiences. Immediate reaction from all four audiences was shock, dismay, and anger (directed at the owners, a national company). The departing managers had dropped "hints" that they quit because the parent firm was trying to impugn their reputation, and they were believed.The owners, legally, could not state the allegations against their former employees. Families were threatening to move their loved ones to other communities and were talking about picketing. Local media had not yet become involved. There was no crisis communications plan in place providing guidelines about what to do in such a situation.Crisis Management BeginsA crisis management team was created. The "internal" component of team was the parent company's CEO, director of human resources, director of operations, director of marketing and legal counsel. External resources included outside counsel plus a crisis management consultant. After rapid fact-finding and strategy sessions, the following activities were conducted:·    A site visit was made by the CEO and director of operations during which they met personally and individually with EVERY resident and then in small groups with family members and their resident loved ones. Messages communicated included "We understand how much you loved (names of departed execs). We're sure you understand that sometimes things just don't work out between employers and their staff, but we want to tell you that we are PERSONALLY making sure that there is absolutely no interruption in your quality of care here. Each of us will remain 100% on call to you during this time of transition, should you have ANY questions." They remained on site for two full weeks and left behind contact numbers thereafter.·    The CEO called or met with the "first tier" of important referral sources and the director of operations met with the rest. They delivered messages such as, "We can't talk about why our managers might have left due to legal restrictions, but we encourage you to talk to senior staff and referral sources at our other facilities if you have any concern about our company." They then handed out a list of references.·    The CEO met with all employees to assure them that their jobs were not at all at risk and that if they wished to apply for the vacant positions, their applications would be considered. He also asked for their help in reassuring all other audiences.·    Outside counsel informed counsel for the departed managers that if his clients said ANYTHING about why they departed to ANYONE else, that his client would feel obligated to continue its investigation, wherever it might lead, and to consider slander charges.·    A resident/family advisory group was immediately formed to help the parent company select the successors for both former employees.·    Contingency statements were prepared to disseminate to the media which mirrored the messages being given to other audiences.Results·    There was only one resident move-out by someone who was already in the "disgruntled for reasons beyond our ability to fix" category. There was no loss in average "beds filled."·    While referrals slowed for approximately one week, referral sources did not send residents elsewhere because they had been quickly informed of the CEO's or director of operations' plans to meet with them.·    Most families and residents liked all the attention they were getting and expressed willingness to "give new managers a chance." They particularly liked being part of the selection process -- it gave them a sense of "ownership."·    The prompt appearance and activities of the CEO and director of operations, combined with the "gagging" impact of legal counsel's warning, dissuaded anyone from going to the media, who never learned of the situation.Does your organization or clients' organizations know, today, what THEY would do if there was a sudden loss of senior management at a corporate or facility level? Planning can be done NOW, to include preparation of probable key messages, contact lists and tactics.