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Leadership Dispatches: Chile's Extraordinary Comeback from Disaster (High Reliability and Crisis Management) - Hardcover

Buch 5 von 11: High Reliability and Crisis Management

Useem, Michael; Kunreuther, Howard; Michel-Kerjan, Erwann

 
9780804793872: Leadership Dispatches: Chile's Extraordinary Comeback from Disaster (High Reliability and Crisis Management)

Inhaltsangabe

On February 27, 2010, Chile was rocked by a violent earthquake five hundred times more powerful than the one that hit Haiti just six weeks prior. The Chilean earthquake devastated schools, hospitals, roads, and homes, paralyzing the country for weeks and causing economic damage that was equal to 18 percent of Chile's GDP. This calamity hit just as an incumbent political regime was packing its bags and a new administration was preparing to take office. For most countries, it would have taken years, if not decades, to recover from such an event. Yet, only one year later, Chile's economy had reached a six percent annual growth rate.

In Leadership Dispatches, Michael Useem, Howard Kunreuther, and Erwann Michel-Kerjan look at how the nation's leaders—in government, business, religion, academia, and beyond—facilitated Chile's recovery. They attribute Chile's remarkable comeback to a two-part formula consisting of strong national leadership on the one hand, and deeply rooted institutional practices on the other. Coupled with strategic, deliberative thinking, these levers enabled Chile to bounce back quickly and exceed its prior national performance. The authors make the case that the Chilean story contains lessons for a broad range of organizations and governments the world over.

Large-scale catastrophes of many kinds—from technological meltdowns to disease pandemics—have been on the rise in recent years. Now is the time to seek ideas and guidance from other leaders who have triumphed in the wake of a disaster. In this vein, Leadership Dispatches is both a remarkable story of resilience and an instructive look at how those with the greatest responsibility for a country, company, or community should lead.

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Über die Autorinnen und Autoren

Michael Useem is William and Jaclyn Egan Professor of Management at The Wharton School, where he is also Director of the Center for Leadership and Change Management. His previous books include The India Way, The Go Point, Leading Up, The Leadership Moment, and Boards that Lead. Howard Kunreuther is James G. Dinan Professor of Decision Sciences and Public Policy at The Wharton School. He is Co-Director of the Wharton Risk Management and Decision Processes Center, a Fellow of the American Association for the Advancement of Science, and Distinguished Fellow of the Society for Risk Analysis. Erwann Michel-Kerjan is Executive Director of the Wharton Risk Management and Decision Processes Center and Chair of the OECD Secretary-General Board on Financial Management of Catastrophes.


Michael Useem is William and Jaclyn Egan Professor of Management at The Wharton School, where he is also Director of the Center for Leadership and Change Management. His previous books include The India Way, The Go Point, Leading Up, The Leadership Moment, and Boards that Lead.Howard Kunreuther is James G. Dinan Professor of Decision Sciences and Public Policy at The Wharton School. He is Co-Director of the Wharton Risk Management and Decision Processes Center, a Fellow of the American Association for the Advancement of Science, and Distinguished Fellow of the Society for Risk Analysis.Erwann Michel-Kerjan is Executive Director of the Wharton Risk Management and Decision Processes Center and Chair of the OECD Secretary-General Board on Financial Management of Catastrophes.

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Leadership Dispatches

Chile's Extraordinary Comeback from Disaster

By Michael Useem, Howard Kunreuther, Erwann Michel-Kerjan

STANFORD UNIVERSITY PRESS

Copyright © 2015 Board of Trustees of the Leland Stanford Junior University
All rights reserved.
ISBN: 978-0-8047-9387-2

Contents

Prologue: A Quiet Summer Evening,
PART I: Taking Charge to Lead a Comeback,
1. Twelve Days before Entering the Presidential Office,
2. One of the Most Intense Events Ever Recorded,
3. First Order of Business,
PART II: How They Did It,
4. Frameworks for Action,
5. Presidential Leadership,
6. Tiered Leadership,
7. Financing Recovery,
8. Insurance Payouts for Recovery,
9. Private Giving for Recovery,
10. Execution and Expectations,
11. Vulnerability and Readiness,
12. Civil Action,
PART III: What They—and We—Learned,
13. Long-term Disaster Recovery,
14. Rescuing Thirty-three Miners,
15. Leadership Dispatches,
Epilogue: A Quiet Summer Afternoon,
List of Tables, Figures, and Photographs,
Notes,
References,
Individuals Interviewed,
Acknowledgments,
About the Authors,
Index,


CHAPTER 1

TWELVE DAYS BEFORE ENTERING THE PRESIDENTIAL OFFICE


The reality of my life has changed. —Interior Minister-Designate Rodrigo Hinzpeter


"Oh my God, it's not stopping," recalled a Time magazine reporter in Santiago who had been in a bar when the earth started moving. Glass shards everywhere, patrons were clambering out the shattered windows, others rushed for the door.

Visiting Santiago from Oregon, Sylvia Dostal had booked a room on the twenty-third floor of the capital's Marriott Hotel. "I had been in earthquakes before," including the deadly 6.9-magnitude event in 1989 near San Francisco, "but this was different," she said. "The building was swaying AND moving up and down!"

Near the epicenter, 210 miles south, Osvaldo González was on a river island with dozens of relatives when the earthquake happened. He began shuttling family members off the island in a boat, as did his cousin, Osvaldo Gomez, with another boat. But then, after several successful crossings, recalled González, "I never imagined what was about to happen." A thirty-foot wave surged up the river just as he was momentarily at the shore, but his cousin was still midstream when it hit. González saw his cousin's boat wafted high on the crest of the enormous swell.

Karina Murga had been partying in a nightclub in the nearby city of Constitución: "It was about 3:20 in the morning. We were close to the beach, celebrating a cousin's birthday," she said, "when the ground started to shake. At first it was soft, but then it got strong, so strong we couldn't hold ourselves up." Some yelled, "Tremor, tremor!" Others, "Earthquake, tsunami!" When Murga emerged outside, she recalled, "You couldn't see anything. There was a cloud of earth—horrible—you had to yell people's names to know where they were, because you couldn't see them."

Katrina Murga's six-year-old daughter, Carla, had been left for the night with friends. "I yelled, 'My daughter! My daughter! I need my daughter! I have to go get my daughter!' Like a crazy woman, 'My daughter!'" Murga would soon reunite with her unscathed six-year-old. Osvaldo González would never find his cousin.


THE PRESIDENT AND INTERIOR-MINISTER-TO-BE

Although more than two hundred miles from the epicenter, the capital city's shaking also aroused the president-elect's interior minister-designate, Rodrigo Hinzpeter. He and the new president would be taking power in less than two weeks. But as the first signs of the calamity's enormity became shockingly evident, the future minister quickly appreciated that the new administration's leadership of the country was about to be profoundly tested and redefined. It would have to address a whole new order of very unexpected business.

The designated minister of the interior and public safety (as Rodrigo Hinzpeter would be formally entitled)—the premier member of the presidential cabinet who would become vice president if the president were abroad or incapacitated—talked with his wife, checked on his three children, and attempted to call his mother. Telephone lines were dead or jammed, but after many redials, he found that his family was well and safe. Yet he also soon realized that tens of thousands of other families were suffering, and that any return to the anticipated governing path was not in the cards: "The reality of my life has changed." Hinzpeter's portfolio included public order and internal security, direction of all domestic policies, and oversight of regional authorities throughout the country. Every element would be affected.

Hinzpeter raced across the near-empty streets of Santiago at 4:30 a.m. to the party's campaign headquarters, where the future government had been readying itself ever since its victory at the polls on January 17. Plans for stimulating growth and creating jobs had been on the table yesterday, but today they would be swept aside for the urgency at hand. "We were waiting to start the government," recalled the future minister. "In a few days the government team would have to start working, so from the very beginning we had no time to lose" and "we had to understand what happened to the country."

The interior-minister-to-be had managed to learn a little about the country's condition before exiting his home, before all power had been severed. But now in the car, with a working radio, as he sped across the darkened capital he was hearing spot reports indicating that the destruction was severe and extensive. "I began to understand that it was a really big mess," he recalled, "more than I imagined when I was at home." Panicked citizens were already in long queues at gasoline stations, he saw, though to no avail, since the station pumps themselves were powerless.

Hinzpeter called the president-elect to compare what little data they had gleaned so far; they agreed to meet later that morning at an agency of the Ministry of Interior, the National Emergency Office, abbreviated as ONEMI (La Oficina Nacional de Emergencia del Ministerio del Interior—National Office of Emergency of the Interior Ministry). Similar in charter to the U.S. Federal Emergency Management Agency (FEMA), ONEMI was responsible for responding to large-scale national crises.

The soon-to-be-inaugurated president and interior minister entered the National Emergency Center at 11 a.m. The enormity of the moment was becoming all too evident. "The earthquake had been huge," recalled the president. "It had affected six regions where more than 70 percent of the Chilean population lived, and the consequences in terms of life had been very huge." He added, "We already knew that more than 500 people had been killed and that the economic damage had also been massive."

Sebastián Piñera and Rodrigo Hinzpeter returned to their campaign headquarters both to consult and to instruct the incoming cabinet, even though technically none of them had official responsibility yet. The president asked the minister-of-finance-designate, Felipe Larraín, to forecast the total costs of reconstructing the country; the future housing minister, Magdalena Matte, to estimate the number of homes destroyed; the future minister-of-public-works-elect, Hernán de Solminihac, to assess the damage to public infrastructure; and the future minister of the...

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