Danger Zone

Hazards Of A Mismanaged Crisis

  • A significantly damaged reputation that can take years to repair
  • Loss of employee loyalty
  • A decreased level of productivity
  • Lower sales
  • Reduced profits
  • The cost to hire lawyers, consultants and other experts
    to help reduce the damage
  • The shift in focus that occurs when managing the crisis takes the company's attention away from its primary business
  • Changes in senior-level executives and other personnel
  • Necessary changes to re-engineer products and services
  • Possible product or corporate name changes

Source: The Crisis Counselor

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This article was originally published in the November 1998 print edition of Entrepreneur with the headline: Danger Zone.

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