Crisis Management in Maersk Line The road towards excellence

October 2014

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The Maersk Line machine Our starting point The ambition What did we do? The principles What were the challenges?

Crisis Management - Agenda

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• Present with 374 offices in 116 countries

• 25,000 shore based and 5,000 sea based staff

• Operate 584 vessels and have cargo on

another 300-350 vessels

• Transport approx. 11 million containers every year

• Calling a port somewhere in the world every 15 minute (35,000 calls per year)

• 59,000 customers globally

• Value of goods transported USD 675 billion (2012)

The Maersk Line machine is big even by global standards

1 The Maersk Line machine

Some facts

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Existing processes were in-sufficient to cater for a changed world

Insufficient processes – strong culture

• Room for improvement in our handling of crisis situations

• No standard crisis methodology applied • Not scalable

• Focus primarily on own vessels

• More complex business environment

(Vessel Sharing, Affiliated brands, Multiple locations)

• No learnings captured from previous incidents

• Strong culture for fixing problems but many people involved

2 Our starting point

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We are striving towards excellence

Ambitions are high – As they should be

• Clear formulated crisis management plan

• Underlying response plans, check-lists etc. in place

• The right people involved at the right time

• Coordinated communication to media,

customers and staff

• Capability to handle multiple simultaneous incidents

• Learning from our mistakes

• Maintain the company culture of scrambling and working together when something goes wrong

3 The ambition

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We have looked around for inspiration and “picked” with pride

A lot of progress since January 2014

• Dedicated Incident & Crisis Manager appointed

• Best Practices from other industries identified

• New Crisis Management Plan formulated

and launched

• Crisis Management put on the internal agenda

• Executive Management introduced to and signed off the new Crisis Management Concept

• Significant amount of time spend on introducing the new crisis concept

• Global roll-out program in progress

4 What did we do?

World Food Program

Intelligence Management Services

Wallenius

Royal Danish Navy

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The new Crisis Management Concept builds on simple principles

A simple Crisis Management Plan

• Scope covering entire Maersk Line Business

• 3 Crisis Levels

• Dedicated Crisis Management Team

• Delegation where possible

• Well defined trigger points to assist assessing crisis level

• PEARS Priority model to guide response

• Simple 3 step process

• Fixed Post Incident Review procedure

• Exercise/Drill scheme

• Advanced Crisis Management room

5 The principles

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Three Crisis Levels with clear triggers Level 1

Level 2

Level 3 A crisis which has significant safety, financial or

reputational impact on Maersk Liner Business. A

serious event which can cause prolonged

disruptions to critical parts of Maersk Liner

Business operations. The event can take place any

anywhere in the Maersk Line operating area.

A crisis with limited safety, financial or reputational

impact on Maersk Liner Business. An event that

poses a risk to the safety of employees or the

continued business operations of a critical node in

Maersk Line network. An event that typically are

geographically limited.

A local event occurring (or about to occur) that

poses a risk to the safety of people or the

continued operations at a local and non-critical

location.

Crisis Pyramid Level 1

Level 2

Level 3

5 The principles

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Level 1 incidents are handled by Global Crisis Management Team

Level 1

Level 2

Level 3

Crisis Pyramid

Global CMT

Local / Functional

NOTE: Escalating incidents needs to reviewed continuously for correct Crisis Level

5 The principles

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The PEARS-model is our guide to priorities in a case of crisis

5 The principles

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Crisis Management Room at Esplanaden with all facilities available

5 The principles

Advanced Crisis Room

• 6.00m x 1.70m screen (245”)

• Video Conference Facility (up to 48 participants in HD)

• Conference phone

• Landline outside switchboard

• TV, DVD, Blu-Ray, Apple TV, Streaming

• Access to all Maersk Line systems

• Global tracking of vessels

• Operator positions

• Blinded windows for full confidentiality

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Changing is difficult – Top Management support critical

6 What were the challenges?

Is has not been easy…

• Reluctance to change

• Old habits die hard

• Feeling left out

• Global organisation – hard to reach

• It takes time – a lot of time

• Hard initially to quantify the benefits of changing

• Getting swamped

• Repetition – Repetition - Repetition

But we had a good start..

• Management support

• Dedicated function BEFORE changing the system

• Clear reporting lines

• Clear mandate

• Strong culture

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About the presenter

Details

• Steffen Conradsen, 47 years old, Danish

• Director & Head of Incident & Crisis Management

• Graduated Naval Officer and Master Mariner with 15 years in the Royal Danish Navy

• 13 years operational experience in Maersk Line • Chartering & New-buildings • Operations Manager for Eastern Mediterranean

& Black Sea • Head of Maersk Line Situation Room

• PRINCE II certified

• Contact details

• Mail: steffen.conradsen@maersk.com • Phone: +45 3363 8683 • Mobile: +45 2178 9775