The Difference Between a Good Trainer and a Great Trainer

A-man-learning-with-a-trainer-in-an-office.

As I often get my inspiration from networking with other training professionals, I ran across a response to a question posted on LinkedIn. This question comes up for time to time, and it’s a good question: What is the difference between a good trainer and a great trainer? I found Avinash Naidu’s answer to be exactly what I was looking for so I rushed out and asked him if I could use his response.

Of course I didn’t fly all the way to Bangalore, India. I used e-mail, and he graciously gave me permission.

Avinash Naidu’s institution, Maarga Life Foundation, a premiere life skills institute in India, is transforming the lives of people by teaching them key skills that is helping them lead successful and happy lives. As you are reading this, he is out there solving emotional problems of people, mentoring, coaching and conducting training programs for corporations.

Avinash Naidu is impressive. He began the Maarga Life Foundation, one of India’s premier training organizations at age 24.

“There is very little to debate on while deciding between a good and a bad trainer (in the context of training). The problem arises when we have to choose between a good and a great trainer. Anybody who is passionate about training can deliver a good program, but only a selected few can combine passion, intelligence, commitment, and cutting-edge skills to deliver programs of lasting value.

“Here is a common misconception while judging the value of a training program. If the trainer is able to engage the attendees throughout the session, and is able to create a wow factor by the end of the program, he/she is usually considered to be a great trainer. But, nothing can be further from the truth. A training program’s real worth can only be judged based on the lasting value it is able to create. Almost all trainers, with a little effort, would be able to create that wow factor. Most companies fall into the trap of believing that an engaging program is a great program. I believe that if engagement is the most important criteria, then attendees are better off watching a meaningful two-hour movie than attending a day long training program! Great trainers have the ability to move beyond engagement levels to create programs of lasting value.

“Here is one way of delivering an outstanding program of lasting value. Firstly, even before starting the subject of discussion, powerful learning states have to be created by getting the attendees on to thinking, analyzing, learning and interpreting mode. This is absolutely necessary to move the attendees from a judgmental mode to an accepting mode. Secondly, the golden rule of communication has to be followed –that is, if you want to influence somebody, you already have to know what influences them.

“First few hours of the training program should be dedicated to understand more about the attendee’s interests, aspirations, beliefs and influencing factors. Once the basic rapport has been established, important ideas have to be conveyed and the attendees should be allowed to present their interpretations. This process has to be followed to convey all new ideas – build rapport, present the idea, accept the interpretations. Finally, the trainer should use this entire process to create strong, unforgettable mental images that the attendees can hold on to long after the training program has ended. The ability to artfully do this differentiates an ordinary trainer from an extraordinary one.”

For more resources about training, see the Training library.

If you would like more information on Avanish Naidu or his Foundation, click here.

As for Jack Shaw, his training blogs can be found on this site, and related blogs on other topics through his Actingsmarts website under What I Say. For a look at the human side of training from his Cave Man perspective, please check out his book, The Cave Man Guide to Training and Development. Happy training.

Managing Is Hard Work: Avoid These Four Mistakes

business-people-discussing-team-rolesw-in-a-meeting

Many are promoted into management positions because they do their present job well, perhaps better than others on the team.

Unfortunately, many new managers are just thrown in without training and then left to sink or swim. Some make it; some don’t.

Avoid these four mistakes that many new supervisors make. Included are comments from supervisors who are or have been in your shoes.

1. Not hiring the right people from the start.

  • “Hiring people who are too similar to me has been a mistake.”
  • “I didn’t pick up in the interview that they were exaggerating their experience and I got burned.”
  • “I encouraged a group manager to hire an internal candidate when an external candidate was better qualified.”

2. Letting poor performance go unchecked.

  • “I kept someone on who should have been let go.”
  • “I didn’t recognize that someone was in way over her head.”
  • “Keeping a person in a position where he failed was my biggest mistake.”

3. Not realizing the importance of employee recognition.

  • “I didn’t give credit when it was due to individuals who made major contributions.”
  • “I failed to acknowledge someone who needed to be rewarded. I have regretted that for years.”
  • “I didn’t give enough praise to someone who turned out to be one of my best employees and she left.”

4. Not pay attention to what’s going on with staff.

  • “I didn’t pick up on signals from disgruntled employees.”
  • “I regret not seeing the signs that someone was going to leave.”
  • “I failed to clearly understand an employee’s situation and ended up losing him.”

Management Success Tip:

Many new managers fail to reach out for help thinking they have to be all-knowing. Soon they find themselves dealing with one crisis after another. This can lead to a failed project or, even worse, the loss of their job. So, don’t be the Lone Ranger. Quickly acknowledge what you don’t know or are uncertain about. Then find those around you who have the experience or knowledge to guide you. This accomplishes two things: It recognizes them for their expertise and gets them committed to your success.

Readers, what success tips do you have for new supervisors or managers?

Do you want to develop your Management Smarts?

Leading Innovation

A-development-team-working-immensely-in-an-office

Innovation is a hot topic these days. From what I have seen, organizations have been outsourcing innovation for the last 10-15 years. It began with a reliance on ad agencies and then shifted to “design” companies like IDEO and JUMP. Now the business airwaves and media announce the need for more innovation, faster and more radical than ever before, and the literature of full of “how to innovate” books and articles.

It seems easy to say we want to innovate, but it feels like going over Niagara Falls in a barrel, you are leaving all you know behind for a visit to Chaos. Confronted by all the mystery and disorder that precedes innovation, our challenge as leaders is to help people make meaning of the journey. As Dee Hock describes, “Making good judgments and acting wisely when one has complete data, facts, and knowledge [control] is not leadership. It’s not even management. It’s bookkeeping. Leadership is the ability to make wise decisions, and act responsibly upon them when one has little more than a clear sense of direction and proper values; that is, a perception of how things ought to be, an understanding how they are, and some indication of the prevalent forces driving change.” In this sense, innovation is the end product of a disruptive cycle of Adaptive Change.

To innovate is to intentionally let go of the “way things are” and welcome “the way they could be.” Breakdown is the first step toward innovation, an intentional release of established habits of thought, expectations, assumptions, and beliefs in order to embrace “not knowing”. The concept of surfing the “edge of chaos” sounds exciting until you get there and leave control at the door. In Adaptive Change we call this the Fall.

Fortunately, Breakdown doesn’t last. As we confront the mess, we naturally make meaning of it, allowing order and Breakthroughs to emerge – the “ah-ha” moments that we love to experience. The journey from Breakdown to Breakthrough, the Cauldron of Change, is a period of stress (high enough to motivate and mobilize, and potentially immobilize), uncertainty, and unpredictability. There is no clear way forward, we are reduced to trial-and-error experimentation. This is a period that requires a rapid and straightforward learning cycle, one that encourages experimentation and taking smart risks as you learn your way forward. Sense-Test-Adapt, a biomimetic cycle that is just what it says, propels you forward as order emerges from the chaos. The faster you cycle the faster you learn.

Breakthroughs get you out of Chaos and into Complexity – you are half way home but you are still not “in control”. Complexity requires Imagination, which takes you beyond creativity and taps into mystery. Mystery allows us to explore “things in our environment that excite our curiosity but elude our understanding. [1] In the complex domain hunches and ah-has pull us forward by removing extraneous information and linking up ideas to form a system of inquiry. In this way novelty is morphed into a myriad of possibilities.

With all these possibilities we begin to follow our hunches to their logical conclusions, picking one or two and applying all our knowledge, know-how, technology, etc. to understand them. In this way we make the imagined “real”, manifest as products, programs, services, and art. Making “manifest” is the phase I call Innovation. Innovation without the journey through chaos and mystery is evolutionary at best, incremental most often. Innovation as the conclusion of the full cycle is revolutionary, tapping into our most creative spaces and pulling forth something remarkably different from where we started.

Do’s for leading innovation

  • Foster an environment of imagination, exploration, acceptable risk, and “what ifs.” Meet the Devil’s Advocate at the door and refuse them entry.
  • Give people time to think, toys to spark off, and diverse partners to play with. The resource needs and costs of Innovation rise over time. Resources that drive early innovation, Breakdown, Breakthrough, and Imagination, are mainly emotional and psychological support. No leader can afford to ignore these intangible costs for the foreseeable future.
  • Relax when things seem out-of-control, it is part of the process and can’t be skipped. Focus people on moving their “crazy ideas” forward and making sense of them.
  • Apply the innovation cycle to your leadership development…hummm, now that’s a thought!

[1] Roger Martin, The Design of Business, p9.

Don’t Settle for One Network, Build Three

A-business-woman-trying-to-get-new-investors-for-her-business

three different career networksOne career success strategy we have all heard is to build, maintain and leverage your network.

But a recent Harvard Business School article, states it important to develop three separate ones. Yes, you read right….three separate ones. Before thinking that’s way too much work, take a look at the rationale.

1. Your operational network
It’s comprised of the people you rely on to get work done: your peers, direct reports, bosses, and external contacts. Often times you don’t choose these folks, but you still need to cultivate them or you won’t succeed in your job.

2. Your developmental network
It is a group of individuals whom you trust and to whom you can turn to for advice. Select people who bring a diversity of perspectives. They can be from different industries or different professional backgrounds. These are your coaches , your mentors and your confidants.

3. Your strategic network
It helps you prepare for and succeed in the future. In this group, include people who work and live at the edge of your current world and can help you see what’s on the horizon. This is the one that we tend not to create because we’re so busy with today’s challenges that we forget about tomorrow.

Evaluate Your Network

  • Do you have one big network or do you segment your network into different categories?
  • Who is in your network and what roles do they play – operational, developmental or strategic?
  • Who is counting on you to play these different roles and do you give them what they need to succeed?

Career Success Tip

Think about networks as having multiple functions throughout your life and career. Having a powerful network with wide range of links in all your different “worlds” is important. Equally important is to be the person whom others want to help and have in their network. So it’s not just the number of contacts you have but the breadth of those contacts. If you have a diverse and strong network, you then can tap into a wide variety of resources and information.

How well are you networked? Is it time to expand your networks?

Do you want to develop Career Smarts?

Mentoring: Ripe for Training

A-trainer-with-his-students-in-a-training-hall.

Today mentors can and should provide expertise to protégés (males) or protégées (females)–essentially less experienced individuals to help them advance their careers, enhance their education, and build their networks. While mentoring is an important aspect to leadership training, it does not hold to a typical training environment or process; however, its tradition has existed even longer than traditional training.

Wikipedia always comes to the rescue when you need immediate clarification and not too much depth. It describes “mentoring” as a process that always involves communication and is relationship based, but its precise definition is elusive. There are two basic types of mentoring involving the training and development process that we are concerned with in this forum:

  1. the new-hire mentor. In this case, a more experienced person, not necessarily one of the people high up in the company heirarchy but high enough “sponsors” a new employee, giving them a polite tour of the corporate culture and then there is
  2. the high-potential mentorship. Usually, when we think of mentoring, we think of this kind–where especially selected employees are offered the opportunity to develop a relationship with a senior leader.
The new-hire mentor, as a mid-level employee, has nothing to lose and everything to gain if he treats his own mentee to real training, and guides him or her in the same way as the higher-level mentor; and his mentee would be a fool not to accept it.

Both fit Wikipedia’s general definition: “Mentoring is a process for the informal transmission of knowledge, social capital, and the psychosocial support perceived by the recipient as relevant to work, career, or professional development; mentoring entails informal communication, usually face-to-face and during a sustained period of time, between a person who is perceived to have greater relevant knowledge, wisdom, or experience (the mentor) and a person who is perceived to have less (the protégé).”

Even so, can you train mentors and mentees to maximize the benefit and miss the formality imposed by training?

I think it’s possible, but there has to be some structure–points that focus and provide opportunities for mentees to learn important points of interpersonal and public communication, problem-solving/leadership techniques, company technical expertise and time management.

The only difference here and regular training is that the mentor is the trainer. Once the mentor is aware of the need for this focus, most leaders/senior management understand the need for training, and some would even welcome some structure to a system that is still sorting itself out.

Let’s face it: a mentor with a plan–that’s training. The new-hire mentor, as a mid-level employee, has nothing to lose and everything to gain if he treats his own mentee to real training, and guides him or her in the same way as the higher-level mentor; and his mentee would be a fool not to accept it. In the case of a high-potential mentorship, the bigger problem may actually be the trainee, the protégé or protégée–better known as the mentee who feels entitled to special treatment.

In this situation, we simply can’t train for the mentee position; someone has to be anointed–which, by the way, is not intended to be a negative sense. By virtue of being in that prime position, we may have someone who will only take direction from his or her mentor. That is why it is the mentor that must “do” the training.

To be one of the “anointed ones,” someone has to be noticed–having those qualities perceived by the the company or its leaders as “the right stuff” to be a leader of the future. That being said, it is important to note that Tom Wolfe’s novel, The Right Stuff, about the early space program is not about those men who do, in fact, have “the right stuff” defined by what is needed to fly a rocket into space, but rather what is perceived by the public as “the right stuff.” We know now that the Mercury astronauts were not selected for their ability to fly jets, but rather their reputation, and physical ability to take the rigors of space. Monkeys and dogs did sit in the same place and perform the same functions.

Unlike Wolfe’s message, which was not one of promise or fulfillment, the mentor program of today–just like the mentor program of days long past–still strive to select the very best and make it work. No one will argue the importance of such a program to the retention of key personnel and corporate knowledge.

A mentor will sometimes see himself or herself in an employee and decide this person with their guidance and wisdom can one day run the company. To make the mentoring process work, there has to be a deliberate effort to mold and shape an individual. Shadowing alone is not enough. Training mentors to train their mentees may be one way. Mentors who take the job seriously stand to do great things for a company’s future and much for their own legacy.

Mentoring in Europe has existed since at least Ancient Greek times. It’s really only since the 1970s that mentorism has spread in the United States, mainly in leadership training contexts. It has been described as “an innovation in American management.” If done well, the mentoring process will indeed serve the individual by providing the necessary exposure to the reality, the best training an employee can have, i.e., the experiential training needed to do the job.

For more resources about training, see the Training library.

For a look at the human side of training from my Cave Man perspective, please check out my book, The Cave Man Guide to Training and Development. Happy training.

Capital Campaign Cost Accounting

Capital Campaign Cost Accounting

A reader indicated that she was, “trying to find accounting literature that defines whether we can capitalize the cost of a capital campaign consultant and the project management time provided by development staff who worked on the campaign,” and she asked, are “these costs usually capitalized with the new building or building expansion as project costs?”

1. The technical/accounting answer comes from Christine L. Manor, CPA
( clm@clmanor.com, who wrote “QuickBooks for Not-for-Profit Organizations”) referencing Financial Accounting Standards Board (FASB) guidelines:

In terms of accounting for fundraising costs, refer your accountant to 13.08 Per FASB ASC 958-720-25-4, costs of fundraising, including the costs of special fundraising events, should be expensed as incurred, and costs are considered to be incurred when the item or service has been received.

Fundraising costs incurred in one period, such as those made to obtain capital campaign counsel, compile a list of prospective campaign donors, or actually solicit commitments to a campaign, may result in contributions that will be received in future periods. These costs should be expensed as incurred.

Christine emphasized that, “even though you may lump all the planning and construction costs into a capital campaign asset account, you can’t put the fundraising costs there. Fundraising costs must be charged directly to a fundraising expense account.”

113.43 Per the FASB ASC glossary, fundraising activities are activities undertaken to (prepare to) induce potential donors to contribute money, securities, services, material, other assets, or time…

2. Even though the question seemed to focus on accounting practices, regulations and requirements, let me add that my experience has been that most nonprofits build campaign costs into their overall campaign goals.

So, even though the actual costs of a campaign have to be “accounted for” in the period in which they were accrued, those costs can be recouped by adding the anticipated total amount of the expenses to the campaign goal.

But, caution, those costs must be listed as such in any campaign budget or literature that includes a breakdown of what the campaign is designed to accomplish. Anything else would be unethical.

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting, evaluating or expanding your fundraising program? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.

Is “Free” Really Free?

Young man looking focused thinking in a thoughtful pose

When you hear the word “Free”, do you think, “Oh really? What’s the catch?”

When sellers are indeed offering buyers a bonus, “free” is a powerful draw. But when companies use “free” as a deceptive come-on, they can find themselves in legal hot water.

Fast-talking Telemarketers – Not so Free

Law enforcement actions by the Federal Trade Commission (FTC) highlight the importance of caution when using the word “free” in advertising. In a case brought with the Kentucky Attorney General, the FTC alleged that the defendants – claiming to be calling from major retailers or the consumer’s credit card company – offered what they said were “free” gift cards or resort vacations. The defendants then used a variety of shady tactics to trick people into saying the word “yes,” which the defendants then used as their purported billing authorization.

In some cases, the defendants told consumers they had to confirm their acceptance of the free products. In other instances, they asked people to listen to a “pretend” telemarketing pitch, answer “yes” when prompted, and then rate the caller’s sales skills. According to the FTC, fast-talking telemarketers raced through the pitch so rapidly that many consumers didn’t realize they’d agreed to buy products. To add legal insult to financial injury, the defendants charged consumers’ credit cards or debited their bank accounts without permission and never sent the “free” goods as promised. The upshot? Settlements with all but one defendant, tough injunctive terms, and a $5 million performance bond.

“Free Sample” Case Example

In two other FTC actions, dietary supplement marketers lured consumers to their websites by offering “free” samples of products for weight loss or to treat sexual dysfunction. According to the FTC, to get the samples, consumers had to give a credit card number to cover shipping and handling. Once the defendants had the account numbers, they enrolled unsuspecting consumers in continuity programs, charging them for additional unauthorized shipments. In addition to injunctive provisions, the settlements impose judgments totaling $10.3 million and require the companies to disgorge more than $600,000 in cash.

What tips can marketers take from these cases?

  • “Free” means free. Don’t make an unqualified “free” claim when you really mean “free for now, but we’ll bill you later” or “free, plus additional fees.”
  • Dial back on deception. The Telemarketing Sales Rule outlines specific requirements for “free” offers made by phone. Read Complying with the Telemarketing Sales Rule, available at business.ftc.gov, to keep your claims compliant.
  • Negative (option) feedback. Whether you call it a continuity program, a free-to-pay conversion, or advanced consent marketing, take particular care to explain the terms of negative option plans before you seal the deal. Promoting a product as “free” and then burying the details in a fine-print footnote or through an obscure hyperlink is likely to draw customer ire and law enforcement attention. Check out Negative Options, an FTC staff report, to find out how to do the deal right.

Do you have examples to share?

(Thanks to Lesley Fair – an attorney in the FTC’s Bureau of Consumer Protection.)

——————

For more resources, see our Library topics Marketing and Social Networking.

.. _____ ..

ABOUT Lisa M. Chapman:

Ms. Chapman’s new book has a name change! The Net-Powered Entrepreneur – A Step-by-Step Guide will be available very soon. With offices in Nashville Tennessee, but working virtually with international clients, Lisa M. Chapman serves her clients as a business and marketing coach, business planning consultant and social media consultant. As a Founder of iBrand Masters, a social media consulting firm, Lisa Chapman helps clients to establish and enhance their online brand, attract their target market, engage them in meaningful social media conversations, and convert online traffic into revenues. Email: Lisa @ LisaChapman.com

Still Worrying? Let Go and Let God

A-businessman-frustrated-over-a-tragedy

Protect me, O God, for in you I take refuge Psalm 16:1

Some of you may be going through a period where your worries are large, such as a job loss or company restructuring. Simple breathing meditations don’t cut it as worry turns into fear of what lays ahead. It’s hard to calm the monkey mind chatter, the ‘what if’s’, the ‘awfulizing’ that keep you up at night. I’ve gone through times like that and it’s not fun.

As I’ve grown in my faith, I’ve come to trust there’s a bigger picture unfolding than I can see. In allowing my Higher Power to be in charge of my life, rather than my mind and will, I trust God (Spirit, the Holy Presence, Mystical Force) to resolve or clarify what’s happening. I find comfort in Letting Go and Letting God. During several job transitions, lost in confusion and doubt, I’ve wanted clarity and direction, yet nothing seemed to be forth coming. I’d get to a point where I knew that there was nothing left for me to do but turn over what’s going on to a Higher Power and trust that things will work out somehow. It can feel grueling getting to that place of emptying ego, having to completely surrender. Yet I’ve found from that pace of surrender and emptiness, new opportunities emerged.

As I step forward in faith, I know I may not be able to control what’s happening around me, but I can always shift how I show up in the world. I’ve learned that my outer world changes as I respond differently to it. Sometimes just letting go of the struggle and resentment of what is happening helps shift my energy and I feel lighter. I work to release or shift my thoughts, projections, judgments, and move into acceptance of what is. I acknowledge how I want to shift, affirming that as I let go I allow new energy and form to appear.

In those few really challenging times when I just don’t have the energy to keep moving forward, I’ve used a God Box to contain those thoughts and worries that I know I need to release and transform. I’ll write out things that I’m tired of worrying about and absolutely don’t want to hold on to any longer. I put the thoughts in a box for my angel guides to handle. I mentally detach any chords of attachments to these thoughts, or energy that I’m still hanging on to, and need to release. Inevitably something shifts and I see progress on the issue.

I’m reminded of this quote by Rumi:

Something opens our wings. Something makes boredom and hurt disappear. Someone fills the cup in front of us: We taste only sacredness.

May you find the guidance and transformation you need during your times of worry. Ask for assistance and stay open to what messages, support or direction you receive over the next few weeks.

Let Go and Let God move through you.

******************

For more resources, see our Library topic Spirituality in the Workplace.

——————

Linda is an author, speaker, coach, and consultant. Go to her website www.lindajferguson.com to read more about her work, view video clips of her talks, and find out more about her book “Path for Greatness: Spirituality at Work” The paperback version is available on Amazon. NOW NEW!!! the pdf version of Path for Greatness is available for download from her website. ALSO, Linda’s new book, “Staying Grounded in Shifting Sand” is now available on her website.

Learner-Centered Training Part 4

A-student-studying-in-a-classroom
If you have been following the series on Learner-Centered Training, you have already read about the first two steps in creating this environment. The third step is the practice phase. This is a crtical step in the training as it is where learning transfer takes place. It is also critical in this phase to remove the roadblocks to successful transfer and application. Below are a few examles:
  • No immediate need to apply the learning on the job.
  • No support system to reinforce the learning.
  • Lack of cultural support for the new learning.
  • Lack of reward for applying new learning.
  • Lack of consequences for failing to apply new learning.
Only 5% of classroom learning is retained without reinforcement and coaching  There a number of ways that you can take to esnure successful transfer or integration of the learning. It is important to reinforce the learning during and after the training session.
Building Integration that Removes Barriers During the Session

  • Job Related Simulations
  • Problem-Solving cases using real business issues
  • Evaluation of learning-tests, quizzes, demonstrations, etc.
  • Have participants create detailed action plans of how they can use the learning on the job
  • Have learners create job aides for their new learning
  • Schedule follow-up conversations or coaching sessions to review transfer on the job.
After the Session

  • Set up group follow-up sessions with learners to share their experiences implementing the learning (can be done remotely if needed)
  • Partner learners with a mentor
  • Use tip of week reminders that can be delivered in any media format
  • Start a blog or wiki following the training for learners to post best practices and success stories
  • Involve and train managers and leaders to support the learning
  • Reward managers who support training and participants who demonstrate the skills and knowledge
  • Use metrics and evaluations to determine results

What other ideas do you have? What can you share?

Sources

http://www.bowperson.com/

http://www.alcenter.com/

For more resources, See the Human Resources library.

Sheri Mazurek is a training and human resource professional with over 16 years of management experience, and is skilled in all areas of employee management and human resource functions, with a specialty in learning and development. She is available to help you with your Human Resources and Training needs on a contract basis. For more information send an email to smazurek0615@gmail.com or visit www.sherimazurek.com. Follow me on twitter @Sherimaz.

 

 

 

Honest Insurance?

a-consultant-discussing-with-her-employers

Is it an oxymoron?

We consistently pound on the fact that the best way to handle a crisis is to confront it head on by admitting the mistakes that caused it. The thing is, this advice often clashes with the advice your insurance company would issue after say, a car crash involving a company vehicle.

What do you do then, when your need to act with transparency and honesty clashes with someone else’s bottom line? That was the question posed by “Mr. Media Training,” Brad Phillips, in a recent article. A quote:

Let’s be clear. Insurance companies care primarily about two things: reducing payouts and increasing profits.

On the other hand, crisis communications professionals care about your company’s long-term reputation, your personal reputation, employee morale, your ability to attract and retain employees, your professional relationships with vendors and lenders, and the long-term financial consequences of the crisis.

So what are you supposed to do when you know you should apologize and move on, but can’t out of fear that your insurance contracts will be voided? Here are three ideas:

1. Find an Insurance Company That “Gets It”

Jonathan Bernstein, President of Bernstein Crisis Management, says there are some far-sighted companies out there: “AIG (surprisingly) is one of the more progressive insurance companies in this regard.”

Bernstein adds, “In my experience, more and more insurance companies are aware that settlements tend to be lower, even when an organization is factually liable, if the court of public opinion is engaged in accordance with crisis management best practices.”

2. Find a Carrier That Offers a Crisis Management Policy

According to Bob Sobel, Vice President of Sales for Oxford Insurance, “There are some errors and omissions insurance contracts that have a crisis management component. The insurance companies would normally send you to one of their own pre-approved crisis management vendors.”

Still, analyze the language in your policy carefully. Although some plans may allow you to use a crisis management firm to help you notify customers of a breach of credit card information, for example, they may not allow you to admit responsibility for other types of crises.

3. Go It Alone

If the potential payout is relatively low but the risk of inaction is high, you might consider going it alone. Read your policy to see whether this would void the contract altogether, or whether the insurance company would void it only for that one event. This decision is risky, so consult a professional before making your final choice.

All of these solutions have something in common – they seek ways to avoid sacrificing your integrity as an organization while maintaining the insurance that’s required to run a business.

Remember, your associates’ behavior reflects on you as a company as well. Make sure those that provide a service to you are on the same page in terms of ethics and behavior, or risk a reputation crisis.

——————————-
For more resources, see the Free Management Library topic: Crisis Management
——————————-

[Jonathan Bernstein is president of Bernstein Crisis Management, Inc. , an international crisis management consultancy, and author of Keeping the Wolves at Bay – Media Training.]