Corporate Crisis Management

Corporate Crisis Management

Going through a period of crisis is part of the life of a company. It may be internal, in particular the subsequent collapse of production during a change of supplier or external, such as the shortage of raw materials following a natural disaster. The crisis certainly creates strong tensions for all the staff, but the fact of getting by can strengthen the cohesion of the company. Whether the origin of the crisis is internal or external, the company is obliged to adopt a positive attitude , stay on course and focus on its objectives.

How To Manage The Crisis: Preparation Phase

Even before the crisis occurs, it is necessary to anticipate it. Conducting a survey of your competitors is part of good practice to prevent a crisis. How do they react to a crisis. Among the points to identify:

  • The causes of recurring malfunctions.
  • The attitudes and solutions they adopt.

This anticipation phase is essential to deal with damage and impacts at all levels: image, drop in turnover, demobilization of personnel, etc. To carry out the analysis, here are the steps to follow:

  • Distribute the responsibilities of each actor;
  • Measure the risks.
  • Define the solutions to be implemented;
  • Imagine several scenarios.

Managers must put everything in order to be able to effectively manage unforeseen situations and their possible adverse effects, including in terms of communication strategy. Corporate crisis management must always follow the same protocol regardless of the extent of the damage caused.

Reactions To Adopt In An Emergency Situation

Be visionary and responsive whatever the nature of the problem and always remain positive despite the gravity of the situation. Be exemplary in the eyes of your employees. Be transparent to avoid escalating situations. It is better to be precise, concrete and clear to reassure and encourage those around you than to foster an even more tense climate.

1. Encourage Employees To Work Harder

A good manager must always stay awake. He is the team captain, it is up to him to pilot the ship and ensure the survival of its passengers until the port of disembarkation. The manager must quickly implement an action plan aimed at reassuring his employees and keeping them calm. Then organize meetings to explain the facts and schedule individual interviews if necessary. Meetings are an opportunity to answer honestly any questions they may have. Encourage them to double their efforts so that they see that you have complete confidence in them and thank them for their commitment even in this difficult period.

2. Listen To Your Collaborators

As the primary person responsible for the proper functioning of the company, the manager must remain attentive to his collaborators, even during a particularly difficult period. On this occasion, give everyone the opportunity to express themselves, to share their opinions, ideas and concerns. The information or ideas gathered during these meetings will be useful for decision-making in the face of a critical situation.

3. Streamline Internal And External Communication

Honesty and transparency towards collaborators and customers are a means of consolidating trust between the two parties. Do not fail to keep them informed of the slightest change in the situation . If customers are affected by the crisis, then do not delay in engaging in negotiation and offering compensation. This gesture makes it possible to regain their confidence and improve the image of the company.

4. Put Management In The Hands Of An Interim Manager

Given the missions to be accomplished, calling on an experienced interim manager to manage this crisis can be beneficial. The goal is to resolve issues quickly. The interim manager must have the following qualities:

  • With many years of experience in the field;
  • Knowing perfectly your sector of activity, its stakes and its mechanisms;
  • Having a sense of organization to find the most appropriate solutions in a reasonable time.

5. After The Crisis: Prioritize Communication

After the crisis, the manager must communicate constantly with his team and his external collaborators. Communication, both internal and external, plays a key role in a company’s success today. Seen from a positive angle, the crisis forges and improves the structuring and brand image of the company. It is also a golden opportunity to win back public opinion.

Also Read: Do You Want To Be Boss Or Leader? We Explain The Differences

 

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