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Identify potential crises
2
Prepare contingency plans
3
Train and test your team
4
Respond quickly and transparently
5
Learn and improve
6
Here’s what else to consider
Crisis management is a vital skill for any leader, especially in uncertain and volatile times. A crisis can be any unexpected event that disrupts your normal operations, threatens your reputation, or poses a risk to your stakeholders. How can you plan and prevent crises effectively, and respond to them if they occur? Here are some tips to help you.
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1 Identify potential crises
The first step is to anticipate and assess the possible scenarios that could affect your organization. You can use tools such as SWOT analysis, PESTLE analysis, or risk matrix to identify the internal and external factors that could trigger a crisis. You should also monitor the trends and signals in your industry, market, and environment, and gather feedback from your customers, employees, and partners.
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For me, this starts will culture. So many crises develop because people feel they must fix an initial or small mistake on their own; by the time they've recognised they can't, the steps they've taken have escalated the whole situation. Crises management is one thing, but avoiding problems becoming cataclysmic invovles creating a culture where people feel able to flag their mistakes.
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2 Prepare contingency plans
Once you have identified the potential crises, you should develop contingency plans for each one. A contingency plan is a set of actions and resources to be activated in the event of a crisis, and should include assigning roles and responsibilities to your crisis team, establishing communication channels and protocols for internal and external stakeholders, having backup systems and procedures for critical operations, and instituting evaluation and review mechanisms for your crisis response. These elements may include the spokesperson, the coordinator, the experts, media, regulators, customers, IT, finance, logistics, debriefs, audits, and lessons learned.
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- Alireza R. Founder CEO | Harvard Specialist in Leadership, Strategy, Innovation, Negotiation, International Business Consulting | Doctoral, M.Phil. UCAM | Harvard Business School | HBSOC organizer | American Management Association
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in my opinion, a proactive method that focuses on promoting openness makes it possible to find problems early on and fix them. My organization will always be ready if it does regular risk assessments and makes a complete disaster plan. , my organization's protection comes from using monitoring tools and having strong relationships with stakeholders.
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3 Train and test your team
Having a contingency plan is not enough. You also need to train and test your team on how to implement it effectively. You should conduct regular simulations and drills to practice your crisis response, and evaluate the results and feedback. You should also update your contingency plan based on the changing conditions and new information.
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- Alireza R. Founder CEO | Harvard Specialist in Leadership, Strategy, Innovation, Negotiation, International Business Consulting | Doctoral, M.Phil. UCAM | Harvard Business School | HBSOC organizer | American Management Association
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I remember after two years of COVID-19 spreading all over China, the Crisis Management Team gathered for their quarterly drill. Despite having a robust contingency plan, they believed in regular hands-on testing. Through simulations, they unearthed gaps and refined strategies. One drill revealed a delay in communication, leading to a refined protocol that was updated in their master plan.
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4 Respond quickly and transparently
In the event of an unexpected crisis, you need to respond quickly and transparently. Activate your crisis team and plan, and communicate with your stakeholders immediately. Acknowledge the problem, express empathy, and take responsibility for your actions. It is important to provide accurate and consistent information, and avoid speculation or misinformation. Demonstrate leadership and confidence by showing how you are solving the problem and preventing it from happening again.
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- Alireza R. Founder CEO | Harvard Specialist in Leadership, Strategy, Innovation, Negotiation, International Business Consulting | Doctoral, M.Phil. UCAM | Harvard Business School | HBSOC organizer | American Management Association
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In 1982, seven people in Chicago died after taking Tylenol pills that were laced with cyanide. Johnson & Johnson, the company that makes Tylenol, told the public right away and returned 31 million bottles, which cost them $100 million. They put the safety of consumers ahead of making money, so they made packages that couldn't be opened and kept communication open during the crisis. Their quick and customer-focused reaction helped them quickly win back the trust of the public and set a new standard for how to handle a crisis.
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5 Learn and improve
After the crisis is over, you should not just move on and forget about it. Instead, you should conduct a thorough analysis to identify the causes, impacts, and outcomes of the crisis. This will help you recognize the strengths and weaknesses of your response, as well as any opportunities and threats for your organization. Additionally, you should implement necessary changes and improvements to your contingency plan, team, and operations. It is also important to share your learnings and best practices with stakeholders, and thank them for their support and cooperation. Crisis management is not a one-time event, but a continuous process of planning, preventing, responding, and learning. By following these tips, you can enhance your leadership skills and protect your organization from potential threats.
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- Alireza R. Founder CEO | Harvard Specialist in Leadership, Strategy, Innovation, Negotiation, International Business Consulting | Doctoral, M.Phil. UCAM | Harvard Business School | HBSOC organizer | American Management Association
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After matters at J&J, they changed the way their products were packaged and added ways to tell if they had been tampered with. By telling the business what they had learned, they pushed for higher safety standards everywhere. This event not only changed how Johnson & Johnson did business, but it also changed safety standards for product packing around the world.
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6 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Alireza R. Founder CEO | Harvard Specialist in Leadership, Strategy, Innovation, Negotiation, International Business Consulting | Doctoral, M.Phil. UCAM | Harvard Business School | HBSOC organizer | American Management Association
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In the digital world we live in now, crisis management involves more than just taking quick action. It also involves being constantly alert and making ethical decisions. Because social media is everywhere, it's important to act quickly to stop the spread of false information. During a crisis, it is very important for a business to put the well-being of its employees first and keep open lines of communication with all of its stakeholders.
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Crisis management plan should be easily understandable and accessible to everyone in a company. It can increase preparedness and help with recovery in the event of a crisis. All stake holders involved whether directly or indirectly should know what to do and when to act. Also, leaders should establish a post crisis assessment that reminds his/her team to follow up and assess what went well and what didn’t. Accordingly, they can update their crisis plan with lessons learned to improve responses and reduce business impact. Post crisis assessment can avert future risks even if there is a change in leadership or handing over of leadership position from one person to another.
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