In a period of multiple crises, particularly in industries with implicit reputational challenges such as the Romanian wood industry, preparing the organization for worst-case scenarios is mandatory. This makes the difference between a company that fails during a crisis and one that successfully overcomes the critical moment. Business continuity relies overwhelmingly on the awareness and commitment of leadership in integrated crisis management. And here, simulation exercises of worst-case scenarios identify problem areas and, most importantly, the role of communication on all fronts.

THE NEED

Operations of the Austrian EGGER Group in Romania started in 2008 with the initiation of particleboard production at the factory in Radauti, Suceava county. The company's activities have consistently expanded through the construction of adhesive and OSB facilities, as well as a biomass cogeneration plant. One of the key business components of the company is increasing the proportion of sustainable wood utilization as a natural resource and raising awareness of environmental responsibility. As a concrete measure, EGGER is developing platforms for collecting recyclable wood throughout the country, with investments of over 80 million euros to date, which will continue. Currently, there are five such centers: two in Bucharest and one each in Brasov, Cluj, and Arad.

At the Radauti factory, significant amounts of used wood, furniture parts, pallets, wooden packaging, and wood from construction and demolition are received daily. These materials are flammable, so fire safety measures are extremely strict. Considering that the Radauti platform integrates an adhesive facility and a biomass power plant, safety regulations cover all operational and environmental risks.

However, from a reputational standpoint, the company has identified the need to exercise the designated roles outlined in the Crisis Manual at the group level, as well as the challenges of communication with stakeholders in a worst-case scenario.

THE BRIEF

Conducting a crisis simulation to practice preparedness for a worst-case scenario, communication under pressure within the team and with stakeholders, as well as familiarization with the EGGER Crisis Manual.

THE CHALLENGE

Thorough documentation, including information on the organization of the EGGER platform or rapid response operations. This stage is mandatory to identify a REALISTIC crisis scenario that immerses the Crisis Team in a quasi-real, plausible, and convincing situation. Because nothing is worse in a crisis simulation than a lack of team engagement due to an unrealistic scenario.

THE STRATEGY

We chose a fire scenario at the lumber warehouse on the EGGER platform in Radauti, during nighttime after shift change, with injured victims requiring hospitalization.

Testing operational preparedness by including surprise elements in the scenario: locomotives getting stuck on the transportation rails within the platform, strong winds (common in the area) fueling the fire, ethanol-filled wagons in proximity to the fire, and other unforeseen but possible disruptions.

Involving all stakeholders in the scenario:

the local community fueling panic through social media posts
injured employees and their families exerting pressure on crisis managers
local authorities continuously demand information
top-level management at the group level requesting briefing
local and national media, NGOs, and local environmental activists

The simulation was conducted as a tabletop exercise, utilizing only paper-based planning documents without actually involving the equipment required for implementation (e.g., computers). Although this may seem relatively straightforward, many organizations make the mistake of believing that these types of exercises are solely for middle management to review the overall response plan.

Our goal was to demonstrate that in a crisis situation, unknown factors and unforeseen developments can arise, despite well-controlled operational flows and top-level backup measures.

Therefore, the main risk was not the management of the fire itself, as our documentation showed that this component is well controlled. Instead, the focus was on external risks, particularly amplified by social media or misinformation. Additionally, we aimed to test the coordination among Crisis Team members, internal communication skills, leadership and delegation abilities, the capacity to listen to expert opinions, the adoption of a consistent communication strategy, and key procedural adherence under time pressure.

THE SOLUTION

The leadership of EGGER Romania took on the role of fully engaging in this simulation, involving all operations leaders. Lighthouse PR designed the exercise based on the Crisis Team structure and the roles outlined in the Group Crisis Manual. In a multinational company or one with global operations, a unified approach to crisis management is necessary, and procedures must be aligned for optimal handling of the worst-case scenario, which in some cases can be transnational.

The exercise was structured into two teams, each consisting of eight members, randomly selected from those designated to form the Crisis Team and their reserves. Why reserves? Rarely, during a crisis, all key members of a team are present at the office. Therefore, the reserve member who is absent must be prepared to take over their role.

Each team had a moderator who also acted as a trainer. They received the scenario sequences in stages and mock-ups containing social media or media reports to enhance the realism of the scenario.

Each member of the Crisis Team, structured at the group level, had assigned roles, focusing not only on operational challenges but also on communication challenges. The exercise lasted for two hours, with four scenario updates, one every half an hour.

THE RESULTS

Each team member was trained on their role in crisis management.
A well-practiced command structure with clear lines of communication and authority.
An efficient document tracking system to protect personnel and gather information.
Building the capacity to anticipate a crisis and the need for backup locations and virtual response.
Improvement in communication procedures, establishing steps for information flow and team communication.
Development of relationships with emergency response teams and enhanced risk assessment.
Experience in managing media relations and other stakeholders.
Increased support at the group level and strengthened overall organizational image.

THE TEAMS

LIGHTHOUSE PR TEAM: Ana Maria Gardiner (Managing Partner, Trainer & Facilitator), Cosmina Croitoru (PR Director, Trainer & Facilitator), Mădălina Cătălin (Project Manager, Support)
EGGER Romania Team: The company's top management and division directors with backup support

[Case Study - IQads] Warehouse fire - A crisis simulation by Lighthouse PR at EGGER Romania