Principles of Crisis Management


What does one do when a crisis comes? There are some principles, not rules that can be useful to managers facing a crisis:

Define the real problem: Crises tend to face managers to think short term and focus on the narrow problem at hand. The crisis management team should ask several reflective questions: What would constitute a good job in managing this crisis? What can we accomplish? What is impossible?

Set Goals and Define the Crisis Strategy in Light of Those Goals: The urge to act first, think later is hand to resist when facing a crisis. The better the course is to have some managers actively thinking about the goals—What do we want to accomplish? How do we want to be perceived by the media? By our shareholders? By our employees and customers?

Manage the flow of Information: Experts advise managers to tell the story their way, consistently, and frequently. Because electronic media repeat crisis stories quite frequently in a typical news day, managers have an opportunity to correct errors and should not permit an erroneous statement to stand unchallenged.

Adopt a Team Approach: It is important to have one spokesperson designated at the outset and available to act on the company’s behalf immediately. Successful companies have thought in advance about the skills each crisis team should possess. Legal, media, and government relations skills are essential in many crisis situations.

Plan for the worst case: A crisis always has the potential to worsen, and managers need to anticipate the worst case possibility. It is tempting to assume a crisis will pass and the world will return to normal. It is wise to prepare for the worst.

Plan on the Situation Getting Worse: By doing so, an organization can begin to see ahead and create contingency plans for communicating with key stakeholders, deploying resources, and organizing other companies and people for action.

Follow up after the Crisis is Over: Many contacts with stakeholders occur during a crisis. A company can restore its image and reputation by dedicated follow-up to stakeholders.

Use Technology: Information technology can be a powerful aid to a company facing a crisis and needing to communicate with stakeholders. A company should measure the effectiveness of communication message through polling, surveys, and focus-group interviews.

Don’t Give up: As bad as it can be for an organization, a crisis rarely destroys a well-managed business. Leadership is vital if an organization’s internal and external stakeholders are to believe that there is a bright future beyond the crisis.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Facing the Harsh Facts


Many companies that have lost profits or market share have managers who are still waiting patiently for their business to “get back to normal.” Others are looking for government help for their declining market and profit positions. Neither of these approaches is a viable situation. What is needed is less wishful thinking and rhetoric and greater willingness to squarely face the true facts about their markets and competitive positions. The demand changes that have occurred in many markets are structural, not cyclical, and it is unrealistic to expect any kind of a dramatic recovery or turnaround that will restore demand to former levels.

It is extremely difficult for managers who have built their entire careers around specific products and technology to accept the fact that their former business base has now leveled out from prior peaks, or worse yet, become obsolete or irretrievably lost to new competitors or technology. Obviously, many old-line steel managers could not imagine today’s world of aluminum cans, plastic auto parts and bodies, or Japanese, Korean, and small regional producers who constantly “beat their pants off.” Nor could managers in the high flying semiconductor business foresee the situation where their markets have not only ceased to gallop ahead, but decline dramatically, and where foreign sources, including Brazil, Korea, and Taiwan, have captured the bulk of the remaining business. Unfortunately, these are the facts, and an equally discouraging set of forces applies in many other markets.

It is understandable that managers who have grown up and lived through the growth years in any of these industries find today’s conditions difficult to accept. But they must change their myopic or unrealistic views of their business so they can tackle the hard work required to regain a profitable competitive footing. Otherwise, their situations will not improve and will most likely deteriorate further.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight