Here's How Crisis Management Can Make Your Operations Streamline
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As per the universal definition, crisis management is the process by which a business or other organization deals with a specific emergency. However, the notion goes a bit deeper. Crisis management, much like the human body, deploys senses to assess the crisis holistically and adopting a multi-pronged approach. Companies today tread a very fine line between survival and disaster; the crisis is inadvertent part of the business scenario, but it is a task to avoid the bad from getting worse.
Since word travels far and wide, it is essential to plug all holes and crisis should be reprimanded via all social & media platforms and if need be, face-to-face meetings as well. Disaster can also be in terms of financial expulsions, technical breakdown, product flaw or the workforce. Crisis management involves an in-depth understanding of the problem at hand and the necessary tools to resolve it.
What is Corporate Management?
In a nutshell, corporate management is the technique involved in running an organization based on its operative, regulatory and financial pathways. As per the businessdictionary.com, Business tasks often performed by corporate management might include strategic planning, as well as managing company resources and applying them toward attaining the company's objectives. Today corporate management is achievable via a Corporate Management System (CMS) which allows organizations to respond to market changes in real time.
How Are Crisis Management & Corporate Management Connected?
It is a rather simple equation — the better the crisis management, the smoother the path for corporate management. Upholding the brand value or rectifying it to the customer & other stakeholders’ expectations, creates a positive image for the organization. This positive image fuels the tactics that can be leveraged to grow the organization in a desirable direction.
Why is There a Gap between Crisis & Corporate Management?
The crux lies in understanding the need for crisis management and what measures can be incorporated to align with the company's existing functionality. The gap between the two can prevail for the following reasons:
If the organizational team or core team is unaware of the type of crisis at the threshold. Crisis management can be for anything, ranging from a brand perspective to a technical breakdown.
They do not have the correct knowledge of the remedial measures that can be adopted to mitigate the crisis
The team is shooting in the dark, trying to choose a trial & error method which will lead to the loss of capital and resources.
The organization is not ready to face the challenges and is hence, ill-equipped during the downpour
What can the Lack of Crisis Management do to an Organization?
Dissolve the Current Image of the Organization: In simple terms, the organization loses face
Loss of Credibility: With no reputation, customers lose faith
Impairment of Goodwill: No one will have the trust factor in the organization
Loss of reliability: The organization will lose its reputation for being self-sufficient.
Impact future growth & progress: Since the organization is trudging tiringly towards saving itself amidst a crisis, it often loses sight on the future which impacts the growth trajectory.
Compromise the way the organization was functioning since the energy is now devoted towards saving the sinking ship
High attrition rate: No one likes to be a part of an uncertain future. Lack of proper crisis management can lead to employees leaving the organization.
Crisis Management Strategies for the Corporate Save
Since catastrophe is an uninvited guest (if we can call it that), it is better to keep in handy a couple of strategies that can either avert the impending disaster or at least soften the blow.
Have a Plan: This goes without saying. Map the problem on a large scale and define clear objectives for every small step that can untangle the mess one knot at a time.
Honesty is the Best Policy: The worst thing you can do at the time of adversity is hiding it behind a pile of lies which will sink the brand reputation even further. Being transparent and coming out clean doesn’t offer much scope to those looking for dirt and also upscale the brand image as the one that takes ownership — a win-win situation.
Communication: Communication with the team, customers, suppliers and keep them in the loop of the ongoings, especially during the difficult times. This will bring in inclusiveness and also build the trust factor.
Update Constantly: By keeping your name clear through constant communication will help erase the taint and not allow any space for any rumour to brew.
Overall Engagement: While it is essential to stay in the clear on social media, ensure that you do not miss out on other mediums of print and broadcasting. The tarnish can often be removed by interacting with people, in the flesh, devoid of any intermediary mediums.
Advantages of a Good Crisis Management & How it Can Help build a Robust Organization
Prevent Heavy Financial Losses: For instance, if a server of large companies slags or is down, even though for some hours, it can mean a colossal loss in those couple of hours. A crisis management planning can, if not foresee, can arm organizations better in case of an impending disaster which can save a considerable amount of resources.
Legal Protection: Crisis can be in the form of litigations and lawsuits. Having a robust crisis management plan can seal the holes for any legal exposure and save the organization from going into a trial or expending huge cost as you are now aware of fines or penalties involved in your line of business.
Avoids Reputational Damage: This cannot be emphasized upon enough. Reputation can make or break a company, and a robust crisis management plan can steel the reputation against upcoming attacks. There have been way too many instances in the news where hi-profiled CEOs and founders were questioned in public about their practices and a lack of proper explanation for the same.
The Secret of crisis management is not good vs. bad; it’s preventing the bad from getting worse.