Many organizations view crisis management as non-essential. In the past, crises were rare, improvisation was common, and leaders could typically count on days, weeks, or longer before their problems would be known publicly
Many organizations view crisis management as non-essential. In the past, crises were rare, improvisation was common, and leaders could typically count on days, weeks, or longer before their problems would be known publicly. Unfortunately, this perspective is obsolete. Increased globalization, hypercompetition, and technological advances have increased the prevalence, intensity, and visibility of organizational crises, pushing readiness essentials into the strategic core.
As an architect and thought leader of crisis management for more than 30 years, I’ve witnessed contextual changes, but nothing as dramatic as what we’ve seen in the past decade. Extreme shifts in the work environment are jarring the need to improve crisis readiness, detection, response, and learning, across organizations of all sizes worldwide.
Three fundamental factors raise the bar for crisis management: hypercompetition, globalization, and technofusion.
Hypercompetitive approaches and high turnover leave many employees at all levels running on fumes. Trying to do more with less, quicker, cheaper, and better is one route to greater profits, but this approach has a devastating effect on people. Many who remain in the workforce are exhausted and disengaged. These conditions can drive rash decisions and actions, making organizations more vulnerable to crises.
Also read: Go time: How leaders can learn to manage crises and uncertainty
Your organization’s core values provide a solid and consistent foundation for crisis response, no matter what the nature of the crisis or where the effects are felt throughout your organization. Teach your employees at all levels to stick to your core values when difficult decisions must be made during the most trying times.
Train employees at all levels to spot potential problems. Make it safe to bring problems forward, without the pressure to bring the solution as well. Hold supervisors, managers, and executives accountable for moving forward information and action regarding reported signals and problems.
Also read: Leadership isn't about you—it's about everybody else
Crisis readiness is fast becoming an essential element for organizational success. Hypercompetition, globalization, and technofusion spur the frequency, variance, and reach of crises. Clear and flexible crisis approaches that align with their organization’s core values not only help leaders persevere but also thrive despite and because of the challenges they overcome.
If you’d like to learn more about crisis preparation and response, my new book, Come Out Stronger: Embrace Crises to Stack the Odds, Keep People on Your Side, and Buy Time, takes a fresh look at crisis readiness, focusing on practical approaches for today’s workplace.
[This article has been reproduced with permission from Knowledge Network, the online thought leadership platform for Thunderbird School of Global Management https://thunderbird.asu.edu/knowledge-network/]