Emotional Terrors in the Workplace: Protecting Your Business Bottom Line - Emotional Continuity Management in the Workplace

Failing to manage or make policies and procedures for real human Emotional Continuity Management carries direct risk to an organization. Costs and overlapping streams of costs carry measurable financial consequences. From a mental health perspective it is always easy to rally around the human costs, emotional consequences, family systems difficulties and sociologic effects of mismanaged workplace feelings. The truth is that this is only half of the discussion. Emotions cost money, big money. The " touchy-feely " soft side of business has no leg to stand on if it does not put dollars to the test. Bottom line numbers count. And, all the soft information will be meaningless until everyone understands that emotions are financial risks. Number crunchers need to know about compassion, but the numbers matter. From a human compassion perspective numbers of dollars lost taking care of people should be irrelevant. But squishy sentiment does not keep the trucks rolling across the homeland. And if you want to have a celebration of human emotions, you need the trucker to bring the bread that is served up in the feast. No trucks means no bread! No bread means no celebration. It's all of us or none of us! The combination of fiscal risk and compassion risk blend together and become the real and measurable risks of avoiding Emotional Continuity Management.

Some of the Bottom Line Costs of Spinning

• Fiscal: The real costs in dollars and cents expenditures, losses, revenue streams

• Goodwill: Will people use your business or move to your competitor?

• Liability: Will your business be eaten alive by nickel and dime or catastrophic litigations?

• Global: Will your company be part of the world community or isolated to the point of no contact and ultimate extinction ? Isolation is not viable .

• Other Costs: Can you think of other costs in your industry?

Fiscal

There are obvious and hidden costs associated with managing emotions at the workplace. There are costs like unaccounted health care dollars spent, counseling fees, lost vendors , clients who never pick your business because of the rude receptionist , pencils stolen and paper towels used by the obsessive-compulsive hand washer in the cubicle down the hall. A group hug isn't going to manage the fiscal risks of emotions at the work site. At the same time, putting emotions in a category that doesn't place real dollar risks on the small and large emotional spins of employees is shortsighted.

Risk Equation: Figuring the Exact Cost of Emotions in the Workplace

Your hourly salary times hours spent dealing with an emotional event, plus salary multiplied by time spent with the problem, plus the number of people affected by the spin times their salary times their hours lost, plus the salary of your boss multiplied by the time the boss who is now listening to you times the number of projected days/weeks until resolution, plus any additional ancillary costs such as FICA/taxes, services, customers lost, PR, training dollars, health care equals a number which reflects the literal cost of an emotional spin.

A 6- hour management issue that was resolved in one day that affected 14 people for 6 hours. One customer was lost with a projected revenue stream of $4,000.00 a month=$133.00 daily (avoiding the notion that this company may have gotten the customer back, they lost only a day's revenue)

$18.00 x 6 clock hours + ($8.00 x 6 x 14) + ($38.00 x 6) + $133.00 + ancillary loss=$1,141.00 plus other expenses. That roughly works out to $190.00 an hour.

Learning Byte

Paying attention to the cost of your time managing emotions becomes a valuable resource in advocating buy-on for Emotional Continuity Management policy, training, seminars , procedures, drills, and readiness.

DO THIS: Do the Math

DON'T: Forget that every hour you spend managing emotions costs your company money.

Calculating the Costs of an Emotional Spin

Learning Byte

Risk Assessment Pop-Quiz: At what point does the financial loss of an emotional spin become a risk factor for your company?

DO THIS: Do the math.

DON'T: Ignore the math .

These costs were accrued at one company over a two-month period. The company lost another twelve employees in the following eighteen months before this problem was arrested and a resolution process began . The resolution took over two years at additional costs for lost revenue, employees, trainings and consultations. (Descriptive details have been altered to protect confidentiality.)

Employee #1

Grievance: Employee-driven resentment about another staff member being assigned a new task

Outcome: Loss of this staff member to another institution

Employee #2

Grievance: Customer-driven complaint about poor customer services

Outcome: Staff member became angry and denied responsibility for poor customer services. Termination and loss of an external vendor

Employee #3

Grievance: Management-driven following vote of no confidence

Outcome: Manager did not feel competent and needed significant restoring of confidence to maintain standards of practice

Additional expenses accrued (not included in totals):

• Counseling/consultations for department for 18 months

• Advertising and recruitment expenses for new employees

• Re-training/orientations for new and existing staff

• Team building time with existing staff

• Community goodwill / public relations / vendor losses

• Replacement equipment/cost of stolen equipment

• Addiction- related costs (absenteeism, time loss, productivity)

• Additional health care (one person had several emergency room visits related to increased stress)

Goodwill

Goodwill for most companies determines longevity. Goodwill is mathematically factored by historical data, expectations of the industry, trends, and mythological predictions of future business. Predictions are fantasies. Certainly some fantasies match reality quite closely, but until a crystal ball is invented, or businesses hire psychics as consultants and their numbers are verified and repeatable, goodwill is a hope, not a sure thing. Some businesses, physicians for example, attach a "goodwill" value to the selling price of their practices. They have built up a reputation and it is a valuable asset. Clients and customers are attracted or repelled by goodwill concerns. Customer service is the subject of very expensive trainings and policy meetings for businesses that make an effort to keep people coming to their company for products or services. When people do not come, the bottom line is not maintained . And people don't come if they do not like you. This is one powerful domain of emotions at the workplace that can easily be translated into lost revenue. Large corporations spend billions on convincing the public that they are the "good guys." Loyalties shift rapidly and one day the good guys are the bad guys and revenue dries up.

The loss of goodwill can span industries and revenue streams for decades. What does the word Columbine mean to you? What did it mean 10 years ago? What about the words World Trade Center, Tylenol, TYCO, Halliburton, Enron, Exxon Valdez, or Martha Stewart? The Titanic was pitched as the safest maritime product and service in the known world. The Titanic was sold as "unsinkable." Today the word "Titanic" is synonymous with loss. Some loss, like the Titanic, spans fiscal and goodwill costs for decades.

The Halifax Herald (May 2, 1912) received the following information from the "Insurance Press" about some of the financial losses from the Titanic sinking. (Behe, 2004) Representations of the value of a dollar in 1912 would translate into significant expenditures at today's rates

• John B. Thayer: $50,000 accident insurance

• Edgar Meyer: $47,500 life insurance

• Herbert Chaffee: $146,750 life insurance

• Benjamin Guggenheim: $25,000 life insurance

• Charles Hayes: $25,000 life insurance, $80,000 accident insurance

• William Silvey: $22,500 life insurance

• Walter Clark: $20,000 life insurance

• Isador Straus: $20,000 life insurance

• Walter Porter: $15,000 life insurance

• Albert Stewart: $15,000 life insurance

• John Cumings: $10,000 life insurance

• Walter Douglas: $10,000 life insurance

• Arthur Newell: $10,000 life insurance

• William Stead: $10,000 life insurance

• Emil Taussig: $10,000 life insurance

• Henry Harris: $5,448 life insurance

• Archibald Butt: $2,000 life insurance

• Emil Brandeis: $175,000 accident insurance

• Frank Warren: $50,000 accident insurance

• Stephen Blackwell: $33,000 accident insurance

Learning Byte

Very few companies today would use the word 'Titanic' to try to increase good will toward their company. More like performance art than business, the reputation of the show brings in the business. Goodwill is the ongoing "curb appeal " that makes the client energy flow toward and into your revenue stream. An emotional spin can redirect the flow to the extent that the goodwill moves elsewhere at an astonishing speed.

DO THIS: Consider goodwill as money on its way.

DON'T: Think people aren't paying attention to the smallest ripple of attitude.

When the caf and bakery, The Petite Pan, opened in the small town, the locals were delighted with the homemade products and the beautiful atmosphere. They flocked to the site and quickly included the owners into the community. In an uncharacteristic gesture of inclusion the traditionally isolated and emotionally closed community saw the caf as good for commerce and local goodwill and the Petite Pan became the new place to meet friends and business colleagues.

Business boomed. The locals started sending their teenagers there for beginning jobs. The job turnover was surprising with the average length of employment under six weeks. It became a local joke and a point of competitive amusement , "my kid lasted five weeks," "well, my kid lasted six." No one questioned why and adults made a collective assumption that it was due to the incompetence of young workers with no skills and the money flowed into the caf from all directions.

It was Tina's first job and everyone was amazed that she lasted beyond the usual two months. After four months local adults began to praise her openly and asked her what her secret was. She innocently replied, "Oh, I guess I'm just not so bothered when the owner comes at me with butcher knives and screams at me or his wife and throws things at her. I know he's sort of insane so I think it's sort of funny ." Everyone was appalled and started asking their children what had happened to them. The teens shared their stories of violent tantrums between the owners that were often leveled directly at the children. The adults were humiliated that they had been so blind and had not protected their children. Business slumped dramatically. Word got around town quickly. No one sent their children there for part time jobs, no one was available to wash dishes, clear tables, or sweep floors and no one bought the baked products. The caf couldn't even sell day-old bread. The business failed within weeks. The couple filed bankruptcy and left town. No one cared.

Learning Byte

Goodwill came and goodwill left. This was a lose-lose situation for everyone involved except perhaps for Tina. Her reputation as a sturdy employee became a local myth associated with the former Petite Pan caf stories. Tina was hired by another company and locally celebrated as a "brave kid." She took that experience forward and was able to evolve it into a mature work ethic for herself. "I can work anywhere ," she would say, "after all, I survived the Petite Caf longer than anyone in town." Be that as is may, a manager or employee may get points for surviving an emotionally spinning workplace, but adults do not tolerate the same behaviors that untrained, entry level employees may accept. And, word of mouth is louder than ever with rapid speed information technology. There are no secrets that last.

DO THIS: Assume that everything is completely visible to everyone on the planet at all times and someone is keeping score.

DON'T: Ever forget that your next client is in the wings waiting to be either your client or someone else's client.

Liability

The history of litigation originally was intended to offer strength and support in holding someone to accountability. Today, it is more like a blame-and-gain game. It seems as though there is someone ready to sue someone right now because they wore the wrong hat on a Tuesday. Industries, businesses, employees and managers are at extreme risk for litigation through civil, criminal and personal liability suits . Emotions at the workplace, from extreme events such as shootings and criminal incidents to small events such as an implied sexual innuendo or racist comment, routinely end up in court. The hourly fees and retainers of legal advisors add significant costs to companies. A day in court could ruin a small business.

Managers can be blamed and scapegoated if they get caught in the middle of an emotional conflict. Personal liability in a company is an emotional and fairly political topic. The role of manager as he or she stands in the midst of in an emotional conflict is a dangerous place to be. Policies and procedures that are established to protect employees should be super- sized to protect managers. Employment Practices insurance is a growing industry and some managers are seeking personal liability insurance outside of any policy held by their company. Managers should be knowledgeable about if and how they are protected from liability.

Posturing and positioning during conflict can lead to verbal or physical threats and outright attacks. Threats of litigation are becoming more dangerous and powerful then real attacks. Legal saber-rattling from an adversary is intended to shift power so the other guy will back away first in compromise. This behavior creates emotional spin and launches future spins through implications of future terror. When managers know how they are protected from such threats they are in a better position to mediate a conflict. Managers who are afraid of being sued tend to lose their own emotional continuity if they respond from their own emotional, fear-based reactions .

When conflicts and power struggles exist it means that someone will win and someone will lose. Some battles need to be fought for justice and ethical standards; and many conflicts originate from people who only use litigation for the right reasons. There are others who use litigation or threats of litigation for the wrong reasons, to start or maintain a spin or to gain position and power. A manager needs to have total confidence that a superior or company will back them up, or support them, before they enter into a conflict or power struggle. This provides an atmosphere where the manager can feel protected and remain neutral and compassionate in the face of conflict. Rather than guarding and defending themselves or preparing their own attack, they can listen to emotionally laden content without fear. There are many models of non-violent and non-fear-based communications that can be learned to deal with conflict. And it is also a good idea to make sure having an excellent insurance policy to cover your bases.

Marie always got A's in math. In 8th grade she brought home a D. Marie said that the teacher didn't seem to understand math and had a temper and would yell, "Hey, if you guys aren't getting this stuff it isn't my problem, you must be a bunch of retards." Marie's parent went to school and spoke to the principal and the teacher. The teacher emotionally escalated the situation and threatened to quit. The principal escalated the emotions by increasing blame toward the student and backed the teacher. The parent threatened litigation.

Learning Byte

Your clients take things seriously and so should you. Litigations are expensive and time consuming. Escalating conflicts and misunderstandings into litigation are not productive. Litigation should be used when there are significant issues, but not just to manage poor communication and power struggles. Have you had any experiences where you have seen power struggles turn into litigations? How much did they cost? What are legal fees per hour in your city?

DO THIS: Call several local attorneys and ask their fees per hour.

DON'T: Assume your company will cover your legal fees. Find out.

Global Consequences

What happens when a cow falls down on Christmas Eve? No, it isn't a children's riddle. A cow fell down in Washington State and within two months there was a global spin. In dairy communities cows are like cash. The idea that one sick cow could affect an entire ranch is less of a stretch to the imagination than thinking that a cow could launch a global economic disaster. A single cow at a ranch in Mabton, Washington led to a crisis in the international beef industry and sparked surprising risks in non-beef industries, created, public health scares, left citizens sorting out the realities from the rumors, and eventually became a college course at a university in Connecticut. The chronology of newspaper headlines from the Tri-City Herald, a local news source for the region near around Mabton, presents a fascinating picture of how one cow can create a global emotional spin in a short period.

(All Headlines From The Tri-City Herald, Kennewick, Washington; Associated Press; and other sources)

• Mad Cow Reported In Mabton (12/24/2003)

• Mad Cow Announcement Drains Holiday Cheer (12/25/2003)

• Sunny Dene Ranch Being Investigated (12/25/2003)

• Congress Twice Has Scuttled Plan To Restrict Sale Of Suspect Beef (12/25/2003)

• Beef Pulled From Shelves, Menus (12/25/2003)

• Mad Cow Incident Came Week After Court's Sick Animal Ruling (12/25/2003)

• Mad Cow Answers Sought (12/25/2003)

• Disease Could Ravage Industry (12/25/2003)

• Mabton In Spotlight (12/25/2003)

• Disease Could Ravage Industry (12/25/2003)

• Mabton Rallies Around Embattled Dairy Owners (12/26/2003)

• A Few Tips To Minimize Risk Of Getting Mad Cow Disease (12/26/2003)

• British Lab Confirms Mad Cow Disease (12/26/2003)

• U.S. Beef Importers Worldwide Shut Doors Amid Mad Cow Fears (12/26/2003)

• Mad Cow Disease Likely To Be Costly To Beef Industry (12/27/2003)

• Second Herd Isolated In Washington (12/27/2003)

• Tainted Holstein May Have Been Used For Various Items (12/27/2003)

• Beef Futures Fall, But Customers Still Buying Meat (12/27/2003)

• Handling Of Mad Cow Scare A Key (Bush Administration) Issue (12/27/2003)

• Holstein Traced Back To Canada (12/28/2003)

• Mad Cow Still Perplexes Scientists (12/28/2003)

• Mad Cow Disease Revives Debate (12/28/2003)

• Eyes Of Nation, World Turn To Region In 2003 (12/28/2003)

• Countries That Have Banned U.S. Beef (12/28/2003)

• Authorities Say One Herd To Be Killed, Other Still In Limbo (12/29/2003)

• News Analysis: Addressing American's Concerns About Mad Cow Disease (12/29/2003)

• Mad Cow Follows Bumper Year For Cattle Ranchers (12/29/2003)

• Many Consumers Unfazed By Mad Cow News (12/29/2003)

• Burger Chains And Steakhouses Unaffected By Mad Cow Scare (12/29/2003)

• Beef Futures Fall The Limit In Mad Cow Aftermath (12/29/2003)

• House Agriculture Committee Members Receiving Dairy Industry Money This Year (12/29/2003)

• Sheep Ailment May Hold Clues To Mad Cow Disease (12/29/2003)

• Infected Holstein Born Before Restrictions Placed On Cattle Feed (12/29/2003)

• More States May Have Received Meat From Sick Cow, But USDA Says It Is Safe (12/29/2003)

• New Methods To Test For Mad Cow Disease Would Give Results Sooner (12/29/2003)

• Japan's Mad Cow Experience Means Tough Sell For U.S. Officials (12/29/2003)

• Mad Cow Case Heightens Debate About Feed Inspections (12/29/2003)

• Dairy Industry Contributed To Key Lawmakers Who Opposed 'Downer' Ban (12/29/2003)

• Countries That Have Banned U.S. Beef (12/29/2003)

• USDA Unsure If Cattle To Be Slaughtered (12/30/2003)

• Officials Hunt 81 Additional Cows (12/30/2003)

• Agriculture Department Bans Further Use Of Sick 'Downer' Cattle For Meat, Wants Nationwide ID Stem For Cattle (12/30/2003)

• Mad Cow Isn't Result Of Trade Policy, Experts Say (12/30/2003)

• 'Downer' Decision Catches Meat Lobby Off-Guard (12/30/2003)

• Taiwan Bans U.S. Beef Imports For At Least Seven Years (12/30/2003)

• Mad Cow Scare Could Spur Move To High-Tech Livestock Tracking (12/30/2003)

• Brisk US-Canada Cattle Trade Connects Countries In Mad Cow Risks (12/30/2003)

• Countries That Have Banned U.S. Beef (12/30/2003)

• So Far, U.S. Only Contemplates Changes In Mad Cow Testing (12/30/2003)

• U.S. Delegation Arrives In South Korea To Discuss Mad Cow Case In Washington (12/30/2003)

• Meat From Holstein Sent To 8 States (12/30/2003)

• Meatpackers Say Tougher Rules Following Mad Cow Discovery Are A Good Thing (12/31/2003)

• Mad Cow Follows Bumper Year For Cattle Ranchers (12/31/2003)

• French Fries Blocked From Asian Markets (12/31/2003)

• Timing Of Mad Cow News Minimizes Impact On Ranchers (12/31/2003)

• Human Version Of Mad Cow Disease Usually Not Linked To Diet (12/31/2003)

• Farmers Won't Lose Much On Ban On Slaughtering Downers (12/31/2003)

• Mad Cow Scare Could Spur Move To High-Tech Livestock Tracking (12/31/2003)

• Federal Authorities Backtrack On Decision To Kill Calf Herd (12/31/2003)

• Officials Say Pet Owners Shouldn't Be Alarmed About Mad Cow Disease In Dogs And Cats (12/31/2003)

• GAO Report Warned Of Mad Cow Incubation (12/31/2003)

• Meat Laws Give Latino Stores A Jolt (12/31/2003)

• USDA Issues New Rules For Beef Safety (12/31/2003)

• Governor Locke Seeks Testing For All 'Downer' Cows (12/31/2003)

• Government Changes Intended To Boost Confidence In U.S. Beef Supply At Home, Abroad (12/31/2003)

• Cattle Producers Will Fight Bad Publicity About Mad Cow Disease (12/31/2003)

• Investigators Tentatively Link Mad Cow Cases To Edmonton Rendering Plant (12/31/2003)

• Cash Cows (12/31/2003)

• USDA Officials Back 30-Month Standard (1/1/2004)

• Mad Cow's Brain-Wasting Course Inspires Fear (1/1/2004)

• In Evansville, Mad Cow Doesn't Scare Lovers Of Brain Sandwiches (1/1/2004)

• Producers See More Interest In Buffalo Meat After Mad Cow Case (1/1/2004)

• Exporters Worry Beef Will Spoil During Ban (1/2/2004)

• USDA To Decide Soon On Killing Cows In Mad Cow Holstein's Herd (1/2/2004)

• From Hooves To Tendons, Asian Consumers Bought What Americans Don't Eat (1/2/2004)

• Groceries Hold Off On Selling Cow Heads For Hispanic Holiday Fare (1/2/2004)

• Iowa Lab In Forefront Of Testing For Mad Cow Disease (1/2/2004)

• Mad Cow Probe Turns To Canadian Rendering Plant (1/2/2004)

• Hide Industry Hit By Mad Cow Scare (1/3/2004)

• U.S. Beef Ban Roils Shippers (1/3/2004)

• USDA Quarantines Third Washington Herd; Some Cattle Linked To Mad Cow To Be Killed (1/3/2004)

• School Lunches Safe, Officials Tell Parents (1/4/2004)

• Mad Cow Rules Aimed Overseas (1/4/2004)

• Japan Says U.S. Safeguards Against Mad Cow Not Strict Enough (1/5/2004)

• Research Priorities Linked To Mad Cow (1/5/2004)

• Family Of Brain Diseases, Including Mad Cow, Mystify Scientists (1/5/2004)

• USDA To Kill 450 Calves In Herd Linked To Mad-Cow Holstein (1/5/2004)

• Cattle Feeding Habits Get New Scrutiny (1/5/2004)

• Utah Producers See Little Fallout From Mad Cow Scare (1/5/2004)

• As Lunch Rush Resumes, School Officials Monitoring Mad Cow Case (1/5/2004)

• Mad Cow Case Shows Risk Of Push For Protein In Feed (1/5/2004)

• Orthodox Jews Say Eating Kosher Beef Might Protect Against Mad Cow Disease (1/6/2004)

• Mad Cow Disease Puts New Spin On Farm Policy (1/6/2004)

• Have Scientists Missed Some Cases Of Mad Cow Disease In Humans? (1/6/2004)

• DNA Tests Confirm Mad Cow Holstein Came From Canada (1/6/2004)

• Cattlemen Praise Prices At Yakima Valley Auction (1/6/2004)

• USDA To Kill 450 Calves (1/6/2004)

• Market Recalls Beef Bones Linked To Mad Cow Batch (1/6/2004)

• Herd Of Calves Being Killed (1/7/2004)

• Mad-Cow Scare: Have Scientists Missed Some Cases Of Mad Cow Disease In Humans? (1/7/2004)

• Kennewick General Hospital Removes Beef From Menu (1/7/2004)

• Canada To Press Countries For Reopening Of Global Markets To Canadian Beef (1/7/2004)

• DNA Shows Cow Came From Canada (1/7/2004)

• South Florida Woman Has Mad Cow Disease (1/7/2004)

• Mad Cow Scare Revives Calls For U.S. Beef Labels In Stores (1/7/2004)

• Ranchers Wary Of Jumping Back Into Sales Ring (1/7/2004)

• Japanese Officials To Meet With U.S. On Beef Safety (1/8/2004)

• 'We Fed Legal Feed,' Say Farmers Who Raised Mad Cow In Canada (1/8/2004)

• Herd Killed Because Of Mad Cow Disease Is Buried At Landfill (1/8/2004)

• Canadian Ranchers Battered By Mad Cow Scare (1/8/2004)

• Probe Focuses On Cattle That Came From Canada With Infected Cow (1/8/2004)

• Man Learns He Ate Beef Linked To Holstein With Mad Cow Disease (1/8/2004)

• Farmers Who Raised Mad Cow Say It Was Legally Fed (1/8/2004)

• Workers Bury Calves Killed In Response To Mad Cow (1/8/2004)

• Japan To Send Team To United States To Investigate Mad Cow Case (1/8/2004)

• 129 More Cows To Be Killed (1/9/2004)

• Where's The Beef Panic? U.S. Consumers Shrug Off Mad Cow Scare (1/9/2004)

• Canada To Spend $72 Million To Expand Mad Cow Testing (1/9/2004)

• Japanese Officials Advise Against Selling U.S. Steaks Imported Before Ban (1/9/2004)

• Few Buy At Cattle Auction (1/9/2004)

• Mad Cow Investigation Focuses On Cattle That Entered Country With Infected Holstein (1/9/2004)

• 129 More Cattle To Be Killed In Mabton Herd (1/10/2004)

• Dog Sled Race Relieved By Change In Pet-Food Ban (1/10/2004)

• Mabton Rallies Around Beef And Community Members (1/11/2004)

• Officials Defend Milk From Mabton Dairy (1/11/2004)

• Nethercutt Touts Cattle Industry Changes (1/12/2004)

• Mad Cow Is A Boon To Testing Labs (1/12/2004)

• South Florida Mad Cow Victim Undergoing New Treatment (1/12/2004)

• Organic Beef Growers Determined To Cash In On Mad Cow Case (1/12/2004)

• Mad Cow Scare Revives Calls For U.S. Beef Labels In Stores (1/12/2004)

• Investigators Focus On 'Painstaking' Search (1/12/2004)

• Canadian Agriculture Minister Proposes Dialogue Aimed At Lifting Import Ban (1/13/2004)

• Japanese Delegation Reviews Mad Cow Investigation (1/13/2004)

• Evidence Suggests Unreported Cases Of Mad Cow In Humans (1/13/2004)

• Canadian Beef Industry Sends Thank You Postcards To Albertans (1/14/2004)

• Mad Cow: U.S. Investigators Conduct A Bovine Missing-Persons Case (1/14/2004)

• Small Town Accepts Decision To Become Mad Cow Killing Site (1/14/2004)

• Mad Cow Investigation Continues; Governor Plans Visit To Mabton (1/14/2004)

• Ranchers Tell Nethercutt They Want Regulations (1/14/2004)

• Mad Cow Takes Center Stage At One Of The Nation's Largest Gatherings Of Beef Ranchers (1/14/2004)

• Locke To Visit Mabton For Mad Cow Disease Meeting (1/14/2004)

• USDA Secretary Breaks Ground On New Lab To Test For Animal Diseases (1/14/2004)

• Quest Gets Permission To Ship Meat For Food Drops (1/15/2004)

• Mad Cow Takes Center Stage At One Of The Nation's Largest Gatherings Of Beef Ranchers (1/15/2004)

• Brain Sandwiches Still On The Menu In Indiana Despite Fears Of Mad Cow Disease (1/16/2004)

• North American Agriculture Officials Fail To Agree On Resuming Beef Trade (1/16/2004)

• Washington State Lawmakers Call For More Mad Cow Measures (1/16/2004)

• USDA Officials Push For National Cattle Identification System (1/16/2004)

• State Takes Steps To Better Identify Brain-Wasting Illnesses (1/16/2004)

• Tougher Mad Cow Measures Proposed (1/16/2004)

• USDA Declares 'Extraordinary Emergency' (1/16/2004)

• Cattle Groups Tell Governor They Need International Markets (1/16/2004)

• Mad Cow Discovery Shifts Focus For Washington Lawmakers (1/18/2004)

• Lack Of Modern Tracking System Hampers Mad Cow Investigation (1/18/2004)

• Consumer Groups Want More Cattle Testing, Information On Mad Cow (1/18/2004)

• Sunnyside Calf Farmer Starts Over (1/19/2004)

• Mad Cow Scare Hurts Midwest Meatpacking Belt (1/20/2004)

• Oregon-Based Interstate Meat Tries To Rebound After Mad Cow Scare (1/20/2004)

• Beef Industry To Launch Delayed Ad Campaign (1/20/2004)

• Dairy Copes With Mad Cow Fallout (1/20/2004)

• Japanese Team: U.S. And Canadian Beef Still Not 100 Percent Safe (1/20/2004)

• Hold Order Placed On Oregon Dairy In Mad-Cow Investigation (1/21/2004)

• Veneman To Brief Congress On Mad Cow Investigation (1/21/2004)

• Virginia Tech Researchers Cloning Cattle To Be 'Mad Cow-Free' (1/21/2004)

• Japan Orders Wholesalers Not To Sell U.S. Beef Products At Risk For Mad Cow (1/21/2004)

• 4 More Cows From Canadian Herd Found (1/21/2004)

• Mad Cow Scare Hurts Midwest Meatpacking Belt (1/22/2004)

• Oregon Has First Tie To Mad Cow (1/22/2004)

• Boardman Dairy Cow In Isolation (1/22/2004)

• Supermarket Uses Discount Cards To Inform Customers Of Recall (1/23/2004)

• Canadian Cows Traced To Idaho As Part Of Mad Cow Investigation (1/23/2004)

• Democrats Hit Nethercutt On Mad Cow (1/23/2004)

• United States, Japan Discuss Mad Cow Measures But Reach No Agreement On Resuming Beef Imports (1/23/2004)

• Meat Packers May Be Offered B&O Tax Break (1/23/2004)

• U.S. Delegation In Japan Says 100 Percent Testing Not Effective In Preventing Mad Cow Disease (1/23/2004)

• Herds In Three States Quarantined In Mad Cow Investigation (1/24/2004)

• Administration's Mad Cow Response Irks Both Sides (1/25/2004)

• Ranchers Still Reeling (1/25/2004)

• Beef Industry Gadfly Says Mad Cow Case Vindicates Comments To Oprah (1/25/2004)

• Search For More Mad Cow Cases About Over, Government Says (1/26/2004)

• Hastings Discusses Immigration, Mad Cow At Town Hall (1/26/2004)

• Agriculture Secretary Says U.S. Trying To Prevent Trade Problems Related To Mad Cow Disease (1/27/2004)

• USDA May Not Find All Of Herd (1/27/2004)

• Government Bans Cattle Blood In Feed, Nears End Of Probe (1/27/2004)

• 15 Cows In Connell Killed In Mad Cow Investigation (1/27/2004)

• 20 Cows From Oregon Dairy Are Euthanized (1/27/2004)

• In Wake Of Mad-Cow, Democrats Push For National Animal ID System (1/28/2004)

• Increased Testing Backed In Survey (1/29/2004)

• More Cattle Killed In Mad Cow Investigation (1/30/2004)

• Extra $47 Million Sought For Beef Safety (1/31/2004)

• Canadian Mayors To Discuss Beef Industry (2/2/2004)

• Man Who Says He Killed Mad Cow Challenges USDA (2/4/2004)

• Three More Cows Euthanized Over The Weekend (2/4/2004)

• Ag Secretary Downplays Mad Cow Risk Cited By Expert Panel (2/5/2004)

• Canadian Mayors Talk About Mad Cow Hit (2/5/2004)

• Panel: Undiscovered Cases Of Mad-Cow Likely In United States (2/5/2004)

• Panel Seeks More Mad Cow Shields (2/6/2004)

• Scientists Say Blood Donors Could Be Among People With Human Mad Cow Disease (2/7/2004)

• Fair Worries (2/10/2004)

• USDA Ends Hunt For Mad Cow Herd (2/11/2004)

• Proposed Legislation Would Make It Easier To Track Cattle (2/15/2004)

• Critics Question Findings Of Mad Cow Study (2/17/2004)

• New Form Of Mad Cow Disease Discovered By Italian Scientists (2/18/2004)

• Canada Bails Out Beef Industry (2/19/2004)

• USDA's Facts In Question (2/19/2004)

• Family Backs Mad Cow Claim (2/20/2004)

• Beef Prices Expected To Drop Because Of International Bans (2/25/2004)

• More Mad Cow Tests Loom, Says Veneman (2/26/2004)

• U.S. Beef Restraints May Soon Be Eased (2/26/2004)

• Mad Cow Criminal Probe Begins (3/4/2004)

• U.S. Extends Restrictions On Canadian Beef Imports (3/5/2004)

• Mad Cow Criminal Probe Begins (3/5/2004)

• House Seeks OK For Mad Cow Bills (3/9/2004)

• U.S. Extends Restrictions On Canadian Beef Imports (3/9/2004)

• Increased Mad Cow Testing In Works (3/10/2004)

• House Seeks OK For Mad Cow Bills (3/10/2004)

• Mad Cow Coverage By Media Discussed (3/11/2004)

• Increased Mad Cow Testing In Works (3/11/2004)

• Rapid Mad Cow Test Approved, Company Says (3/19/2004)

• Mad Cow Coverage By Media Discussed (3/19/2004)

• Mad Cow-Tainted Feed Traced To 2 Plants (3/20/2004)

• Rapid Mad Cow Test Approved, Company Says (3/20/2004)

• Canada Bails Out Beef Industry (3/23/2004)

• Mad Cow-Tainted Feed Traced To 2 Plants (3/23/2004)

• Senator Cantwell Pushes Bush To Close Mad Cow Loopholes (4/20/2004)

• Allow Mad Cow Testing (4/23/04)

• Nethercutt Aims Early at Murray (4/25/04)

• Got Cow Power? (5/9/04)

• Take Care on Downer (Cow) Ban (5/20/04)

• Mad Cow Tests to Begin Today (6/02/04)

• Mad Cow Reforms Still Lagging (6/27/04)

• Tyson Workers Protest Testing (6/30/04)

• Audit Finds Flaws in Mad Cow Testing (7/14/04)

• Veneman Defends Mad Cow Testing (7/15/04)

• Communicating Risks (8/30/04)

• Farmer's Plans to Raise More Cattle Worry Nearby Residents (9/12/04)

According to Moneyline Telerate (February, 2004) stocks in Beef related restaurants have lowered while stocks in laboratories that test for mad cow disease have risen.

Michigan based Thron Apple Valley Inc filed for Chapter 11 bankruptcy after recalling 30 million pounds of possibly contaminated meat and poultry. (McLeod, D, Business Insurance, 1999)

Learning Byte

According to Donald Bryan, Chicago-based managing director of Marsh, the brokerage unit of Marsh, Inc., the following costs should be addressed for any estimation of the economic consequences of any product recall:

• Transportation

• Storing and destroying the product

• Refunds

• Lost business

• Cleanup

• Correction of the problem, supply of replacement products, advertising, public relations, brand rehabilitation

• Customer incentive programs

• Legal costs

• Fines and reasonable costs of crisis management consultants

• Third party liabilities

• Employee-related costs, such as layoffs

DO THIS : Review the mad cow examples presented again and consider each headline individually. Then consider how many people or companies might be influenced by each headline. Then consider how many people or companies might be influenced by those secondary and tertiary influences. Think in exponential terms.

DON'T : See any incident as an isolated event in the world market of today.

Dear Dr. Hawkins-Mitchell: I wanted to tell you about the four ex-employees who were working in my office two years ago are still causing me untold financial grief . One employee was an associate medical professional, fresh out of school, and this was the first private practice experience. The others were two assistants and one receptionist. The ongoing lawsuits are defamation of character and malicious slander that are costing me financially , physically and emotionally. My reputation and personal integrity in the community have had irreparable scars. My dream of moving my successful practice into a teaching institution is nearly lost. My retirement is not an option currently.

When the new doctor, Dr. Shoola agreed to the buy-in of part ownership of the practice I accepted this as a good sign and moved forward with my projects. Less than two months into the association Dr. Shoola told me there was a family emergency out of state and had to go home to live. My shock was mixed with confusion when I filtered out the medical details of the emergency, which didn't totally correspond to true medical details, and stories about a "bad-break-up" with a former lover. Dr. Shoola gave me a one-month notice of leaving. During that last month, my lawyer encouraged me to have everyone in the practice sign a confidentiality agreement. Dr. Shoola refused to sign the agreement. The entire staff had been informed that the new procedures were for everyone's protection and would now be a mandatory policy for continued employment. Dr. Shoola refused to sign and understood that it would mean immediate termination. With one week to go on the one-month notice, Dr. Shoola was terminated . This led Dr. Shoola to create four behind-doors meetings with the staff. Dr. Shoola left the state for this so-called family emergency but returned frequently for meetings with staff. Dr. Shoola took complaints and fabrications to the State Quality Control Commission and made a formal complaint of mistreatment and accused me of alcohol abuse. Coordinating efforts with former staff and personal relationships, including my former spouse with whom I was currently in divorce proceedings , apparently used this "catastrophic and emotionally traumatic" termination for a personal agenda. The effects which continue, have been, to date:

• Suspension of my medical license for 7 weeks for an investigation

• Three major malpractice lawsuits directly traced back to the encouragement from this health practitioner and former staff

• Loss of over $100,000.00 in lost production

• Anticipated losses will continue due to ongoing lawsuits including new defamation lawsuits that I will start against these former employees

• An accusation of alcohol abuse that has affected hospital status, community regard, incurred significant counseling and assessment fees. The Licensing board demanded in-patient alcohol treatment, which was assessed as not necessary from several competent Alcohol and Drug Assessment professionals who agreed this was not indicated. The Licensing board did not accept these professional assessments although the superior courts have defined them as appropriate sources for assessment. My license is still at risk due to this and ongoing litigation processes.

• Costs for Counseling and consultations

• Loss of community reputation and subsequent client losses still rising

It hasn't been a great year for my business. But if it hadn't been for the consultation we had last year, I suspect it would have been worse , because I would have taken it all personally . Now I am just approaching it as a very difficult a business issue, and not a personal emotional spin. Best Regards, Dr. Ryder.

Learning Byte

Emotional spinning is expensive.

DO THIS : Take the subject seriously without being afraid of it. Do the math.

DON'T : Stop adding the costs when the obvious spin ends. Continue adding costs beyond the event as they continue to evolve. Some costs evolve for decades.

Other Costs of Spinning

• Researchers at the Cornell University Institute for Health and Productivity Studies (IHPS) and the health-information firm Medstat estimate that companies' on-the-job productivity losses from presenteeism are possibly as high as 60 percent of the total cost of worker illness - exceeding the costs of absenteeism and medical and disability benefits. 'Presenteeism' is the new buzzword to describe people who refuse to take time off from work, even for sick leave, because they fear losing their jobs in the current economy. (April 20, 2004 Cornell University)

• Stress-related absenteeism is responsible for the loss of 50 million working days each year. (Thomas, 2002)

• By 1991 it was estimated that stress-related disorders cost approximately $150 billion annually and claimed more than 14% of insurance compensations. (Pelletier, 1991)

• The cost of depressions alone tops $70 billion in health care, work loss as well as other expenses. (Tanouye, 2001)

• In 1997 over $100 billion was lost in productivity due to cardiovascular disease. (Thomas, 2002)

• A study by the General Accounting office found 123 plants in America that, if damaged, could expose more than one million people to toxic clouds of gas. (Kroll, 2003)

• The Impact of September 11, 2001 (Marcella, 2003)

  • 2,830 lives lost

  • 14,600 businesses directly impacted

  • Million square feet of office space lost

  • Corporate tenants displaced

  • 200,000 communication lines out of service due to network failures

• The percentage of trauma victims of September 11 that will continue to have problems and develop Posttraumatic Stress Disorder will depend on many factors, including the severity of trauma exposure. In research on disasters, prevalence rates have been: (Marcella 2003)

  Natural disaster:	4 “5%
  Bombing:	34%
  Plane crash into hotel:	29%
  Mass shooting:	28%

• The following types of exposure place survivors at high risk for a range of post-disaster problems (Marcella, 2004):

  • Exposure to mass destruction or death

  • Toxic contamination

  • Sudden or violent death of a loved one

  • Loss of home or community

• The rates of Acute Stress Disorder following traumatic incidents vary, with higher rates reported for human-caused trauma. (Bryant, 2000):

  Typhoon:	7%
  Industrial accident:	6%
  Mass shooting:	33%
  Violent assault:	19%

The Costs of Protecting a Human Life

According to Kip Viscusi of the Harvard Law School, the price of an American human life is approximately $7 million. He has researched what people would pay to protect themselves from death at work, and how much they will compensate for the increased risk of death on the job. (Viscusi, 2004)

Costs of War Away From Home

Reservists and soldiers who have been deployed to the Middle East for the War in Iraq and Afghanistan come home to problems. Their employers have problems while they are away. At the time of writing of this book, over 176,000 reservists and guard members are currently deployed overseas. The numbers change as many come and go regularly while the War continues to demand military presence. Some soldiers come home to jobs that have been reassigned or outright lost to someone else.

Nathan Isaacs, a news staff writer, reported that in Ohio, a reservist committed suicide claiming it was due to the loss of a promised promotion after he got home. (Tri-City Herald, 2004) Although there are laws that make it illegal for an employer to discriminate against a reservist, terminate their jobs, or relinquish seniority , not all employers maintain the highest standards. And the need for reservists may not diminish for some time. According to Isaacs, since September 11, 2001, the number of mobilized reservists has topped 364, 477 compared to 250, 000 during Desert Storm. One employment consideration with this war is that the length of deployment is much longer than ever before. When reservists return, after a long deployment, the world has moved on, and sometimes that means their jobs are gone. The Labor Department reports as of May 2004, that reservists have filed over 3,000 work-related complaints.

Joe is a reservist and has been deployed to a secret location. He cannot talk about it to his wife Crystal. She is in counseling because they are having marital problems. Joe has been consumed with his fears of being deployed and Crystal has gotten a job. The children are in day care for the first time. Money is tight and everyone is anxious. Crystal's counselor asks if she is concerned about Joe's safety as he goes into harms way. Her primary concern is that she is having a difficult time at work and she wants out of the marriage before something happens. Joe returns and finds everything has changed. His wife is financially emancipated, his children are older, and his civilian job has been outsourced. He tries to explain to his former boss that he didn't want to go to the Middle East and really needs his job back. The employer isn't sympathetic thinking that Joe, as a reservist, wasn't like a real soldier, and must have had a choice. The couple files for bankruptcy and divorce.

A nurse's unit was activated and deployed to Iraq. He was a reservist and had never thought he would be in active duty. He rose to the occasion and provided excellent combat-field medicine. He saw more than he had ever expected to see in his career at home. When he returned home he had to make a very difficult transition from combat/trauma emergency medicine to treating children with fevers, old people with the flu, and skateboarders with sprained ankles.

Learning Byte

Work transitions like this are difficult. Soldiers must learn to transition quickly in order to survive. When they return from active duty they may assume that their work sites or jobs have kept up with their speed.

DO THIS : Support your employees who serve in the military.

DON'T : Drop them on their heads when they get home. Manage them well by helping them manage the changes. If their jobs are gone, help them move forward. Soldiers understand the concepts of forward and retreat and re-group. But they also operate on "no man left behind!"

Reservists, who have transitioned from the expectations of the "weekend mission" to active combat status, have changed. Many of the jobs they left at home have not changed. The fit may not work now. And, unlike a pair of jeans someone has outgrown, the receipt for exchange may have been lost. (By either the soldier or the employer.) Great employers keep the receipt and help the soldier readjust to life back in the civilian sector. Great soldiers help their bosses get ready for that with such programs as Bosslift , a program to prepare employers to help reservists. Managers can help reservists and employers "keep the receipt" and prepare everyone for a thoughtful transition out and back. The ESGR ( E mployer S upport of the G uard and R eserve) can help managers do this well.

The formal mission of the ESGR is to "Gain and maintain active support from all public and private employers for the men and women of the National Guard and Reserve as defined by demonstrated employer commitment to employee military service" (ESGR 2004). A practical and powerful experiential program of support for soldiers and employers is found in the Bosslift Program. Bosslift is a program the helps soldiers explain the importance of their work, so their bosses can buy-on to the value of the work they will be doing when deployed. Bosslift trips are organized to link employers and soldiers for increased support of the military mission and the need for jobs to be protected by employers. The trips are meant to remove the image of "weekend warriors" from the minds of employers. Employers are taken on simulated air combat flights , exposed to training cases, visit flight towers , tour technical schools , and have the opportunity of compare planes and equipment as well as sitting in real cockpits during takeoff and refueling.

Costs of Wars on the Home Front

• Sun Microsystems accepted $1.6 billion from Microsoft to drop an antitrust suit and agreed Friday to do business with its sworn enemy, apparently ending one of the high-tech industry's bitterest feuds. (The Associated Press, April 4, 2004)

• School in Richland was locked down by police after a 16-year-old student threatened to shoot himself. (Tri City Herald, April 4, 2004)

• Two top official at the Department of Energy resigned Friday, days after the department was sharply criticized at a congressional hearing for its handling of a program to compensate workers who became sick from their jobs at federal nuclear defense sites. (Herald Washington, D.C. bureau , April 3, 2004)

• Trains and buses in major U.S. cities may be targeted this summer by terrorists using bombs hidden in bags or luggage, federal counterterrorism officials have told law enforcement and transportation officials in a nationwide bulletin. (Associated Press, April 4, 2004)

• A band teacher was arrested on charges he had sexual contact with two female pupils. (Klamath Falls, Oregon, April 4, 2004)

• A former custodian alleging racial discrimination and retaliation has sued the Beaverton School District (Portland, Oregon, April 4, 2004)

• Secretary of State, Bill Bradbury is considering auditing the Salem-Keizer School District's contracting and purchasing practices, claiming they may have violated public contracting procedures. (Salem, Oregon, April 4, 2004)

• Tour bus filled with students hits truck, trees: 20 injured. Local television pictures showed dazed children standing on the side of the road as paramedics treated the injured. (Cocoa, Florida, April 4, 2004)

• The manager of a state unemployment office was shot to death Friday by a man upset about his jobless benefits, and another worker was wounded when he rushed to his colleague's aid. (Associated Press, April 4, 2004)

• With the jury close to reaching a verdict, a judge declared a mistrial in the grand larceny case against two former Tyco executives after a juror apparently received an intimidating letter and phone call for supposedly siding with the defense. (Associated Press, April 4, 2004)

Costs that are Personal, Local, National, Global

Some incidents cross previously established boundaries and spin into each other. Rumors and innuendos can be at the bottom of a spin and what is seen in the final moments is only a reflection of the far-reaching consequences.

US Airways Groups Inc. President and Chief Executive David Siegel, whose demands for cost cuts created animosity with union leaders , resigned from the nations 7 ^th largest airline. He led the company out of 8 months of bankruptcy. Union groups were critical of his leadership and called for his resignation . Trying to keep the company afloat with $1 billion cost cuts found labor groups balking. He will be replaced by Bruce Lakefield who has enjoyed better relations with labor groups. (Associated Press, April 2004)

Learning Byte

Who knows what really happened here except this dramatic outcome?

DO THIS: Pay attention as well as you can and know that you cannot know everything, even though you are expected to be all-knowing.

DON'T : Try to predict outcomes , but be prepared for possible complications and surprises .