Note from Art: this intrepid reporter has spared no effort to observe at least three or four news reports on this topic. And note to executives and managers everywhere: get your act together on assessing, planning for and responding to customer catastrophes!
By now, most of us have seen or heard news footage of the Carnival Splendor stranded at sea after suffering an engine room fire and a subsequent loss of core systems including most power and importantly, the plumbing. Thankfully, no one was reported injured, but that’s about as good as the news gets in this situation.
The fact that something went wrong at sea on one of those floating Mall of Americas is not surprising to me. Thanks to my wife, I’m a veteran of a good number of these trips, and I’ve increasingly found myself looking beyond the surface trappings of the experience and wondering just what might go wrong. It’s a lot like making a mental note of where the fire exit is on your hotel floor, except the conclusion here is that if something bad happens, there’s no ground floor escape option.
What is surprising and disconcerting about the situation, is the apparent complete and utter lack of a risk response plan by the company that is in business to float people around on these palaces and feed them until they can barely waddle off the gangplank.
From the chronology indicated by the Carnival, it appears that fire took place in at 6:00 a.m. on Monday, with a subsequent loss of power and plumbing. The information indicates that by 8:15 p.m. that evening, toilet service was restored, as was cold running water. While I wasn’t a math or biology major, let’s look at the variables in this situation:
- 6:00 a.m. fire and plumbing failure
- 3,300 passengers well fed from the day before
- No bathroom service for 14 hours
Here’s hoping that the risk response plan included something really creative for this particular human issue.
Beyond the biological challenges, the Cruise Line required airlifting of Spam (the food, not the e-mail kind) by the U.S. Navy to feed the passengers and crew. Right about now, your olfactory senses should be battling with your gut to contemplate the smells on board this sweltering sweatbox sans air conditioning and plumbing, as well as the sight of sweaty meat or a meat-like substance being served in the sun.
Last and not least, one gets the impression that there was no clear idea on how to move the becalmed vessel from its stranded location to something resembling civilization. For a great while the ship just sat there while it appears that company officials scrambled for someone, anyone that could help them rescue their passengers from this Gilligan’s Island debacle.
What Part of the Risk Management Plan Didn’t Consider This Situation?
Much like we are hearing finally from BP (or at least its former CEO), it appears the oil company was not prepared for the calamity it faced at the Deepwater Horizon. We certainly are to be forgiven if we raise an eyebrow at Carnival’s response to their own Deepwater debacle and conclude that these people didn’t have a clue and a plan to deal with something as fundamental as a ship getting stranded.
The Bottom Line for Now:
There’s no doubt it’ a non-trivial task to deal with a floating object two times as large as Titanic with thousands of people aboard. However, given the nature of the firm’s business (entertainment, fantasy) it is reasonable to expect lightening fast effective response to a problem of this magnitude. To those of us viewing this via the media, the clueless and seemingly uncoordinated response seems all too familiar. We’ve seen this movie before and the ending sucks.
Are you prepared in your firm to respond effectively to catastrophes with your customers? You may be in the entertainment business, Carnival, but this is not the type of entertainment that will help your cause.
Art,
It continues to amaze me that with the 24-hour-a-day news cycle that companies don’t pay greater attention to crisis management planning. I guarantee the risk team at Carnival has planned their response to how they would deal with a flu outbreak onboard, or even something as simple as a guest slipping on a spilled drink at one of the on-board casinos — but not something as simple as “the propeller won’t turn, what should we do”?
For businesses of any size, considering your risks and having a basic plan of how you’ll respond can make or break the way you’re viewed by the public/current customers/prospective customers after the media feeding frenzy starts. Who will serve as the spokesperson? How often will you provide updates? Where can concerned customers/family members get their information?
Art, I think you’d call this “basic blocking and tackling.”
Chris, well said! Of course, I would expect nothing less from someone that not only is a great blocker and tackler, but a sound strategist! -Art
Art,
risk management is a bit like financial analysis. It has successfully prepare for ten of the last two crisises, and it missed the other one.
Risk management is a good idea, but if you tried to prepare for every possible risk when you went out for a drive, you’d never get out of your garage.
Taking reasonable precautions is important, but once you’ve fastened your seatbelt, made sure you have enough gas and that the brakes work, you’ve just got to start driving.
There have probably been a thousand cruise shipping touring somewhere since Gavin MacLeod took “The Love Boat” out for another run, promising something for every one in the 1970s.
Yes, Carnival will answer some questions, but one they probably won’t answer is how many times their risk management procedures prevented a problem from ever occurring. I wonder how high that number really is, as this is the first time I’ve heard of this problem?
Hey Art,
Have to weigh in with my good friend Chris! Great reminder of how brands are not always defined by whether something goes wrong, but rather by how you react/respond when it does. A future blog in the making – why do we invest so much in getting it right the first time and so little at fixing it quickly when it doesn’t “go right”??
BTW – Saw Lou at a tradeshow yesterday – shared some great memories!
Steve
Steve, always great to hear from you! As someone that managed customers at such a high level for so many years, you have truly lived this part of the brand building experience. For readers, it was Steve’s exemplary support leadership and great team that served as a differentiator versus competitors in our tech firm. And I cannot think of two greater people to reconnect in an industry than you and Lou! Best, -Art
Andy, I always enjoy your comments. There are no circumstances where I will let management off the hook for preparing for this type and many other types of problems. The Splendor debacle is a CEO firing offense IMO for failure to plan and then to execute. -Art