Crisis Management & Avoidance
Transforming businesses from obstacles to prosperity
Stephen J. Homola
Crisis Management is no longer a rare “in-trend” scenario that a business and their management consider unnecessary. Chances are exceptional that a crisis will happen in every business. It is, however, in today’s difficult challenges a reality that every business will go through its own unique crisis at some point in the company’s history. BMCS offers the ability to react when this need arises in the process by which an organization deals with a major unpredictable event that threatens to harm the organization, its stakeholders, or the general public.
There are four elements common to most definitions of crisis:
1. Threat to the organization
2. Element of surprise
3. A short decision time
4. Need for extraordinary change
The main argument is that crisis is a process of transformation where the old system can no longer be maintained. Therefore the fourth defining quality of need for extraordinary change, if not needed, the event could more accurately be described as a failure or incident.
In contrast, Crisis Avoidance involves assessing potential threats and finding the best ways to avoid those threats; crisis management involves dealing with threats after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start.
Crisis management of late has become an important component of managing the business. In the current day situation no business is immune to crisis. Crisis may hit an organization in the shape of malevolence, technical/human breakdowns, theft of intellectual property, personnel sabotage, theft of trade secrets, owner disruption due to illness or death, terrorist attack, industrial accidents, product recall, organizational misdeeds, workplace violence, or natural calamity. Crisis management is closely linked to public relations where company’s image and pride are at stake.
Leadership framework for crisis management
A leader must institutionalize the process of crisis management to anticipate, prepare and mitigate an impending crisis. To ensure an effective crisis management mechanism leadership support and involvement is utterly essential.
Crisis management consists of:
Methods used to respond to both the reality and perception of Crisis Establishing metrics to define what constitutes a crisis The trigger for necessary response mechanisms Communication within the response phase-crisis scenarios Damage control Remediation
The credibility and reputation of any business or organization is heavily influenced by the perception of the response during crisis. The organization and communication involved in responding to a crisis in a timely fashion makes for a challenge in businesses. There must be open and consistent communication throughout the hierarchy to contribute to a successful crisis communication process.
In general, the vast majority of businesses never have a plan until an “incident” occurs. This is, of course, costly in terms of reputation, welfare, extended disruption, and financial recovery.
Summary:
While every crisis is unique to the organization under impact, there are logical steps to take to handle and avoid the confusion of how to act. Business Management Counseling Services can aid your company or organization prior and during the time of crisis. We highly recommend a pro-active approach of preparedness, however when a pro-active plan does not exist we can facilitate the least amount of collateral damage to the event.
