Beyond a Catastrophe: B&B’s Recovery and Continuity challenges

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Beyond a Catastrophe: B&B’s Recovery and Continuity challenges

The newspaper headlines were increasingly accusatory to Barney and Barney (B&B), which was still reeling from the disaster. Biz Star wrote, “B&B Negligence leads to four deaths,” SunnyStar’s headline read, “B&B’s death would have been avoided,” and The Chronicle noted, “ B&B: Hotbed of death.” How can a successful bleach manufacturer, led by competent individuals, be so ill-equipped to manage the toxic chemicals used in its production process? Worse still, the response to the incident was slower than the company management and the public anticipated.

The chlorine poisoning occurred on the 24^th February 2020 on a hot Monday afternoon. A leakage of chlorine gas started at 2:00 p.m. from the storage chambers and found its way to other rooms using the ventilator and open spaces. By the time the alarm was raised, some workers had collapsed on the floor, and tens were scrambling for safety. The management had gone for training at a nearby hotel, and only two supervisors were on the premises. Emergency services reached B&B, gave first aid treatment to some workers, and rushed 14 employees to the hospital. The management arrived at the chaotic scene to find the press, ambulances, and an angry crowd. The public was not addressed until 3 hours later. By the next day, four workers had died, and ten were in critical condition.

Janet Sunders, the CEO of B&B, was very concerned. B&B had been a successful bleach manufacturing company with over 20 years’ experience in the market. The company had a strong public image and had survived economic hardships over the years. Janet was worried that the chlorine incident would be the death of B&B. The frequent press addresses and apologies were counterproductive as the community became more enraged when they saw her or read news of B&B. The public also wanted to know all the details leading up to the incident, and Janet’s reluctance annoyed them. Janet also felt guilty for the lost lives and hoped that the surviving workers would be completely cured, although no good news was forthcoming. With a board meeting ahead, Janet read the incident report that had been submitted to her in the morning by the special committee’s chair, Joseph Macron.

The findings of the report were shocking, at the very least. There was evidence of poor storage of the chlorine chemicals. The steel tanks were old and needed replacement. The replacement had been scheduled for 24^th February 2017, two years from the current date, but no replacement was done. Additionally, easy access to the storage room was a challenge. Although the company had strict access policies, and only a few individuals were granted entry, the chamber doors remained unlocked for up to 30 minutes, which was more than enough time for an employee to cause damage. Again, the workers also had little knowledge of how to respond to a chlorine disaster because they had not been trained. Perhaps the most dangerous and likely cause of the incident was the leakage from Tank 9, whose faulty vault was responsible for the calamity. The vault buckled easily with a slight temperature increase, releasing the chlorine gas. The afternoon’s temperature was recorded as the hottest in years by the meteorological department.

However, an even bigger task was at hand, which was continuity and recovery from this issue. Janet convened a meeting with the heads of HR, Chemicals’ department, and operations manager. The three leaders created a strategy named Forward Ever, which focused on workers, kick-starting operations, and safety. However, the implementation would prove very challenging.

The first problem was that the staff did not feel safe in the business. After witnessing the death and illness of their colleagues, the employees were demotivated to remain at B&B. If anything, they were demanding compensation through their union representatives. Equally, there was a widespread resignation rumor, in which over 50 employees vowed to leave B&B as soon as possible. The remaining loyal workers limited their communication with the company, for fear of backlash. Worse still, the factory had been shut down pending safety and legal investigations. Without workers, the entire production was at a standstill.

At the same time, the company’s budget restraints limited quick recovery. The company had experienced some cash flow problems because of low sales from their best-selling products, CleanMax and HighClean, which accounted for 50% of total sales. Besides, money had been invested in the creation of a new product, which had not even reached the testing phase. Cash trapped, there was no money for implementing enhancing safety changes, such as immediately purchasing better storage equipment, and employee training. With a probable looming lawsuit, the upgrades could take even longer. Furthermore, the company was responsible for the treatment cost of all the patients, was footing the funeral bills, and paying restitution to the deceased’ family members.

Additionally, the company was relying on partnering with the suppliers and product distributors for regular stock movement, which was proving challenging. For one, the suppliers were more concerned with their image and financial security. The suppliers were demanding to be paid as soon as possible and distanced themselves from B&B until further notice. As for the distributors, they sent a joint email to B&B’s CEO, and logistics manager, informing them of their skepticism of B&B’s product sales after this incident. Already, B&B stock was barely moving in retail outlets because of stiff competition. With the present damage, consumers would now resist the product, and distributors did not want to be left with what they described as ‘useless stock.’

The local government also intervened in the case and ordered B&B to halt its production. The company was served the injunction hours after the leak and had to comply. B&B, which was abuzz with workers, had now been turned into an investigation scene full of officers from the Chemicals Safety Board (SBI), and Crime Scene Investigators (CSI). Other parties, such as the union officials, and the media were very eager to access the premises, which remained closed to the public. Until the entire situation had been resolved, which could take months, production was discontinued.

The continuity plan was also of little help to the leaders. The plan had not been updated in three years. At the time, B&B was at the height of its success, and the company had been rated as the best place to work in by Raters Magazine and WorkForMe Magazine. Since everything was running smoothly, the leaders downplayed the occurrence of a chemical leak, and its impact. Critical processes, such as supply, distribution, and people, were not given a priority as the main focus was on retaining the production of bleaches afloat. In the present circumstance, the plan was a useless guide.

Janet Sunders sat in her office, pondering how she would be able to salvage B&B with all those odds stacked against the firm. Nonetheless, she acknowledged that better mitigation strategies would have stopped the leakage and saved innocent lives. For now, she had to prepare for the board meeting and had tough questions to answer. Never had she felt so helpless.

Discussion Questions

1. What caused the chlorine leakage in B&B?
2. Mention instances of poor disaster management before and during the incident.
3. Do elements of recovery and continuity should B&B have included in the continuity plan
4. How can B&B prevent another calamity from happening in future?
5. Do you think B&B will ever fully recover from this incident? Why?