How often have we heard the expression “this is completely out of control”?
A crisis of any magnitude can hit an organisation where it
hurts without a moment’s notice and it doesn’t take long to lose control. The only protection is a well-rehearsed
crisis management plan.
In a matter of minutes, a serious incident or emergency can
run out of control and seriously disrupt a business with catastrophic
effect. In some cases, it takes years to
recover.
The right response actions can minimise serious damage and
can quickly put an organisation in control of its destiny. Management needs to consider the organisation
strategically and ask what is the worst thing that could possibly happen. Fire, financial problems, lawsuits, cyber crisis, product
defect, sexual harassment, act of violence, terrorism, security breach,
technology collapse, executive misconduct or environmental issues to name a
few. With the most likely threats in
mind, management can prepare strategies to avoid or manage a potential problem
and control the agenda.
Reading between the lines in today’s media reports of
crises, it is easy to see which organisations have anticipated the problem and
have a planning process in place to deal with it. If an organisation is ready, then there will
be a clear message about what is being done and who is doing it.
It is not just large organisations that need to have
comprehensive and integrated crisis management plans. All organisations need to anticipate
crises. It is so important that small
and medium-sized organisations look at their worst case scenarios - the service industry, government,
educational institutions, professional firms and research organisations. They often face the greatest damage from a
negative event because they may lack the financial and managerial support
required to respond and recover efficiently.
Ownership of crisis management planning must come from the
top because most crises end up at the top. The top global executives recognise that crisis management is a corporate
governance strategy and endorse its implementation. They know that a crisis out of control is
liable to lead to loss of profits, lawsuits, loss of market share, serious loss of reputation and, in many
cases, loss of senior jobs. After
writing numerous plans for organisations, I am totally convinced that unless
complete support of the Chief Executive and top management is assured, the
crisis management program will flounder and never reach its currency. The day the Chief Executive or Managing
Director endorses the organisation’s intentions to install a crisis management
program is the day it really happens.
