Bad Things Happen: How to Handle a Crisis

Be Ready, Be Calm

Managers have to deal with crises.

It is part of the risk of doing business.

In fact, the whole environment of doing business has gotten so much more complicated in recent times that it is almost inevitable that some crisis will occur in a company.

I am referring to globalization which brings many more complex regulations involving environmental concerns and the threat of terrorism.

Managers must handle a crisis. This is a logical part of their responsibility. Crises that are not well managed will destroy a career. Further, a badly managed crisis can destroy a business.  Here are my suggestions on how a manager can help manage a crisis

A Recipe for Success

Looking at the essentials, it is easy to conclude that good crisis management depends on good communication and preparation. The manager who communicates well, will likely manage the crisis well. Solid preparation leads to a calm and confident attitude on your part which then generates trusts and confidence in your ability. A crisis could be related to the business, a natural event or an act of terrorism or criminality.

How to Expect the Worst

Attempt to identify any potential crisis that the company might face. This will require establishing a risk management committee, made up of people who need to take some role during a crisis. They need to meet and brainstorm the various possible trouble spots that might occur. It would be valuable to have simulation and role plays  in order to clarify activity during the crisis. They can also establish protocol for communicating during the crisis.

This is when transparency is essential. Try to provide as much information as possible, at all levels. There two reasons for this: to keep rumors at a minimum and to retain the trust and confidence of all the stakeholders.

How To Repair the Damage

It is important to analyze  exactly what happened in the crisis. It is also necessary to review what actions were taken. This information needs to be clearly stated in a report to be reviewed by your risk management committee and other responsible persons within the company. Based on your findings, recommendations for action in the future should be part of the report.

TAKEAWAYS

1. PLAN FOR A CRISIS
2. KEEP PEOPLE INFORMED DURING THE CRISIS
3. ANALYZE WHAT HAPPENED AFTERWARD