Disaster Recovery at Marshall Field’s

Early in the morning on April 13, 1992, basements in Chicago’s downtown central business
district began to flood. A hole the size of an automobile had developed between the river and
an adjacent abandoned tunnel. The tunnel, built in the early 1900s for transporting coal, runs
throughout the downtown area. When the tunnel flooded, so did the basements connected to
it, some 272 in all, including that of major retailer Marshall Field’s.

The problem was first noted at 5:30 a.m. by a member of the Marshall Field’s trouble desk
who saw water pouring into the basement. The manager of maintenance was notified and
immediately took charge. His first actions were to contact the Chicago Fire and Water
Departments, and Marshall Field’s parent company, Dayton Hudson in Minneapolis.
Electricity—and with it all elevator, computer, communication, and security services for the
15-story building—would soon be lost. The building was evacuated and elevators were
moved above basement levels. A command post was quickly established and a team formed
from various departments such as facilities, security, human resources, public relations, and
financial, legal, insurance, and support services. Later that day, members of Dayton Hudson’s
risk management group arrived from Minneapolis to take over coordinating the team’s
efforts. The team initially met twice a week to evaluate progress and make decisions and was
slowly disbanded as the store recovered. The goal of the team was to ensure the safety of
employees and customers, minimize flood damage, and resume normal operations as soon as
possible. The team hoped to open the store to customers 1 week after the flood began.

An attempt was made to pump out the water; however, as long as the tunnel hole remained
unrepaired, the Chicago River continued to pour into the basements. Thus, the basements
remained flooded until the tunnel was sealed and the Army Corps of Engineers could give
approval to start pumping. Everything in the second-level basement was a loss, including
equipment for security, heating, ventilation, air-conditioning, fire sprin An attempt was made
to pump out the water; however, as long as the tunnel hole remained unrepaired, the Chicago
River continued to pour into the basements. Thus, the basements remained flooded until the
tunnel was sealed and the Army Corps of Engineers could give approval to start pumping.
Everything in the second-level basement was a loss, including equipment for security,
heating, ventilation, air-conditioning, fire sprinkling, and mechanical services. Most
merchandise in the first-level basement stockrooms also was lost.

Electricians worked around the clock to install emergency generators and restore lighting and
elevator service. Additional security officers were hired. An emergency pumping system and
new piping to the water sprinkling tank were installed so the sprinkler system could be
reactivated. Measures were taken to monitor ventilation and air quality, and dehumidifiers
and fans were installed to improve air quality. Within the week, inspectors from the City of
Chicago and OSHA gave approval to reopen the store.

During this time, engineers had repaired the hole in the tunnel. After water was drained from
the Marshall Field’s basements, damaged merchandise was removed and sold to a salvager.
The second basement had to be gutted to assure removal of contaminants. Salvageable
machinery had to be disassembled and sanitized.
The extent of the damage was assessed and insurance claims filed. A construction company
was hired to manage restoration of the damaged areas. Throughout the ordeal, the public
relations department dealt with the media, being candid yet showing confidence in the
recovery effort. Customers had to be assured that the store was safe and employees kept
apprised of the recovery effort.

This case illustrates crisis management, an important aspect of which is having a team that
moves fast to minimize losses and quickly recover damages. At the beginning of a disaster
there is little time to plan, though companies and public agencies often have crisis guidelines
for responding to emergency situations. Afterwards they then develop more specific, detailed
plans to guide longer-term recovery efforts.

Busines problem
 A hole the size of an automobile had developed between the river and an adjacent
abandoned tunnel.
 Tunnel runs throughout the downtown area, when the tunnel flooded, so did the
basements connected to it, some 272 in all, including that of major retailer Marshall
Field’s.
 At 5:30 a.m. a member of the Marshall Field’s trouble desk saw water pouring into
the basement.
 Pumping out the water was not possible, as long as the tunnel hole remained
unrepaired, the Chicago River continued to pour into the basements. The basements
remained flooded until the tunnel was sealed and the Army Corps of Engineers could
give approval to start pumping.
 Everything in the second-level basement was a loss, including equipment for security,
heating, ventilation, air-conditioning, fire sprinkling, and mechanical services. Most
merchandise in the first-level basement stockrooms also was lost.
 The goal as well as challenge was to ensure the safety of employees and customers,
minimize flood damage, and resume normal operations as soon as possible.

Stake holders:
 The manager of maintenance - the Project Manager - head the Disaster Recovery
Team.
 A team formed from various departments such as facilities, security, human
resources, public relations, and financial, legal, insurance, and support services.
Because they need to perform certain specific tasks for the project like human
resource need to provide manpower for project, financials need to provide enough
funds to project etc.
 Members of Dayton Hudson’s risk management group assigned to this project
because they have specific skill set to work in such situations.
 Electricians - to manage supply of electricity
 Engineers - to repair the hole in tunnel
 A construction company - to restore damaged areas of building
 Customers

Root Cause Analysis

What was the problem?
 The problem here is flooding into the basement due to development of hole between
the river and an adjacent abandoned tunnel.
Why did it happen?
 Tunnel runs throughout the downtown area, when the tunnel flooded, so did the
basements connected to it.
What is the alternative solution ?
 Block/ Seal the portion which connects tunnel and basements of Marshall Field’s.

Prioritising during problem:

 Repair the hole that developed between the tunnel and the Chicago lake
 Then drain the water out as soon as possible
 Once the water is drained the equipment’s should be analysed thoroughly and those
can be repaired should have been send to repair
 Rest should be sold or disposed and cleaning and repair work of the building should
begin.

Is the project cost, time, or resources constrain ?

 Because this project requires a variety of skills and resources, the actual work has
been performed by people from different functional areas like facilities, security,
human resources, public relations, financial, legal, insurance, support or by outside
contractors like salvagers, fire departments etc.
 This project focuses on delivering disaster recovery within particular time and cost.

CASE 1-2

Business problem

New system development to meet goals for reducing the cost and improving the value.

Conflict between team members due to project took priorities

Functional mangers and team members had to listen to Director his decisions was final.

The top committee made it clear that the requirements and deadlines wont be changed

Stake holders:

Shah Alams top management committee

13 members from different departments – HR, FS, IS,

Project director, Functional managers and projects team members

 Technical experts from HSB

What was the problem?

Develop a new system to meet the goals

Why did it happen?

The main aim was to reduce the cost and and improve value and services.

What is the alternative solution?

Instead of HBS and Shah Alam members working together. The work should have been
outsourced to HBS and maintenance work should have been kept with the company.
Example SBI and TCS.

Priorities

Is the project cost, time, or resources constrain?

The project has time constrain as the team members from Shah Alam was working only 50%
and other resources also could’nt be changed