How one transportation company survived Hurricane Sandy

He explained that businesses can react to disruptions one of two ways — they can go completely rigid and stop providing services, or remain flexible and continue to provide services whenever or as long as possible.

The company under study uses flexibility to compete in its area of the transportation industry. So the company remained open and accommodated emerging customer requests until it had to stop to ensure personnel safety and protect its equipment.

As meteorologists tracked Sandy’s approach across the Atlantic, the company set up a weather event management team to connect experts and decision makers who had the authority to commit the company’s resources or accept risk for meeting individual customer requests in the northeast. It scheduled a complete shutdown of services for the time when the hurricane would make landfall.

Until then? “They were scrambling to do everything they wanted to get done,” Deary said. As one senior employee in a command center told him, “The actual storm is not a crisis — getting ready for the storm is a crisis.” During this time, the company adopted strategies to speed communication and decision-making.

“It may seem counterintuitive, but in order to speed things up, they stepped back from electronic communication. When an issue was important, they actually walked around the command center and talked to each other directly,” Deary observed.

To save time, the schedulers in the command center were also given the authority to make critical decisions, such as those concerning asset movement and protection, without seeking prior approval of senior managers. This approach was successful because of the schedulers’ keen awareness of management’s priorities in responding to the event.

Ultimately, the company suffered no human injuries or significant equipment damage. It met many, though not all, last-minute customer requests before Sandy arrived, and appeared to meet customer expectations for restoration of service after the storm passed, the researchers concluded.

“This study suggests that a business doesn’t have to be perfect, but if it’s flexible — if it’s clear to customers that you’re trying to be flexible in accommodating them, you succeed in the long run, and stakeholders look at you in a positive way,” he said.

The release notes that this study is just one of many where Ohio State students are learning to help organizations become more resilient. He also helps lead a university-wide Initiative on Complexity in Natural, Social and Engineered Systems — a 10-college collaboration which aims to develop certificate programs in complexity. Through collaborations with the John Glenn School of Public Affairs, the initiative is providing computer modeling tools that Ohio State students will use to study interconnected systems and guide new research.