Demystifying Crisis Management: Why Organizations Should Start Building Resilience Today

Have you ever heard or wrote “that will never happen” or “I’m sure we can deal with it when it happens”?  Theses statements are usually proceeded with "Don't worry!" I have heard each of these while working for a large corporation and with non-profit organizations.  The rationale comes down to two key assumptions – 1) We are big enough to withstand a disruption (aka ‘we are big and smart’) or 2) We are so small, we are off everyone’s radar.  Both of these assumptions are flawed and can lead to catastrophic consequences. 

 

Crisis management is no longer a luxury reserved for larger companies - it is a necessity for every organization. For many, "crisis management" often conjures images of complex protocols and full scale exercises with a war room visual. It doesn’t have to be that complicated or complex. In this article, we'll demystify the concept, highlight its significance for organizations of any size, and provide actionable steps to start building a crisis management program today.

 

Why Crisis Management Matters

Crisis management is the process of identifying, preparing for, responding to, and recovering from disruptions that threaten an organization's operations, reputation, and stakeholders. From cybersecurity breaches to natural disasters and supply chain disruptions, crises can strike unexpectedly and have far-reaching consequences. By implementing a proactive crisis management program, organizations can minimize the impact of crises and safeguard their futures.

 

Demystifying the Term

Contrary to popular belief, crisis management doesn't require elaborate plans or extensive resources. At its core, crisis management is about preparedness, communication, and resilience. It's about having a framework in place to anticipate, respond to, and recover from business impacts effectively. By breaking down the concept into manageable steps, organizations can begin building a program tailored to their needs.  One size does not fit all and the areas focused on are different for different industries and organizational missions.  The most important step is to start. And not just to start to think about it, but putting ideas on paper (or screen) and sharing these with key people in your organization.

 

Starting Your Crisis Management Journey

  1. Assessing Risks: Begin by identifying potential risks and vulnerabilities facing your organization. Consider internal and external threats; such as physical spaces, employees, neighbors and even product failures. Conduct a thorough risk assessment to prioritize areas for action.

  2. Developing a Plan: Once you've identified potential risks, develop a plan as if one of these risks actually occurs. Outline roles, responsibilities, and protocols for responding to crises. Keep the plan simple and actionable, focusing on key areas such as communication, resource allocation, and decision-making processes. Focus on keeping things simple that work for the majority of scenarios.

  3. Communication Strategies: Effective communication is essential during a crisis. Develop clear and concise communication strategies for both internal and external stakeholders, outlining the message, how it will be delivered, and by who. Emphasize transparency and honesty to maintain trust and credibility for everyone involved.

  4. Training and Preparedness: Invest in training and preparedness activities to ensure your team is ready to respond. Conduct drills and scenarios to test your crisis management plan. The key is to identify areas for improvement, not test the people involved. Empower employees to take ownership of their roles in crisis response. With so many moving parts, delegation and follow up is a must.

  5. Continuous Improvement: Crisis management is an ongoing process of learning and adaptation. Regularly review and update your crisis management plan based on feedback, lessons learned, and changes to your business (e.g. new staff, new products, and services). Do not only focus on the response to the incident; a good crisis management program is actually focused on prevention.  Go back and review your risk assessment regularly and find ways to reduce their chances of occurring or how to know when they are beginning to occur.  Seriously embrace a culture of continuous improvement to strengthen your organization's resilience over time.

 

So what will you do?

Crisis management is not a daunting task reserved for those that are bigger or have more to lose. It is a fundamental aspect of business resilience that all organizations cannot afford to ignore. Crisis management has the ability to do two things: Allow a business to survive a critical disruption AND build confidence in your team and your customers that you will be there tomorrow.  By shing a light on crisis management and breaking it down into actionable steps, organizations can start building a program today. Remember, perfection is not the goal—starting now and making incremental progress is key. There is a proverb that says that “the best time to plant a tree is twenty years ago. The second-best time is now.”  The same can be said about crisis management; the best time to have a plan is before you need to use it.  Do something today to be prepared and keep your organization resilient and growing every day.

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