Crisis management: how to cope?

When can we talk about a crisis in a company?

Within a company, crises can manifest themselves in many ways.

The crisis can be linked to an internal cause: a sharp drop in activity, cash flow problems, multiple resignations, employee disengagement, loss of key accounts, absence of the manager or an unexpected and unmanageable peak in activity…

External factors can also lead to a crisis situation in society, as shown by the current Covid-19 health crisis, which threatens the existence of many societies.

Generally speaking, the crisis is therefore an exceptional and unexpected event, which disrupts the activity and jeopardizes the survival of the company.

Poorly controlled crisis management can therefore have very serious and harmful consequences.

 

How to deal with crisis management?

Crisis management must be managed rigorously, with a lot of pragmatism, by following several good practices, such as:

1. Adopt the right attitude in the face of the crisis

The best way to deal with crisis management is to adopt the right mindset.

Indeed, emotional involvement, lack of perspective and stress risk dangerously compromising decision-making and impacting the effectiveness of actions.

It is therefore necessary to take a step back from the situation and to show great composure. On the other hand, teams will be much more motivated and reassured by a leader who approaches a crisis with confidence, calmness and optimism, while adopting a defensive posture.

2. Set up a crisis unit

The crisis unit must bring together the manager and the company’s main decision-makers, as well as possibly the experts concerned (lawyers, accountants, etc.).

This team will be dedicated to managing the crisis, and will meet to develop an action plan and validate all strategic decisions.

Soliciting collective intelligence within a small group will make it possible to avoid hasty decision-making and to ensure the proper supervision of crisis management.

3. Carry out a detailed diagnosis of the crisis situation

Despite the urgency that can often accompany a crisis, it is essential to take the time to carry out an exhaustive inventory of the situation. As soon as the first warning signs appear, it will be necessary to bring together the heads of the main departments and carry out an inventory at all levels of the company (financial report, commercial performance, operational efficiency, employee commitment, etc.).

4. Implement a crisis management plan

The crisis cell team will have to take the time to carry out a well-thought-out and relevant action plan to respond to the challenges encountered. This can lead to difficult decisions (redundancies, cost reduction, site closures, etc.).

The action plan must, in the first place, avert the greatest immediate risks and threats, and stabilize the company by mobilizing the necessary financial and human resources.

On the other hand, in times of crisis, the benchmarks are often turned upside down. It is therefore important to refocus on the company’s values, which will serve as an anchor and reference for the actions carried out.

5. Reassure and unite teams

The human aspect is essential during crisis management. Indeed, during these periods of instability, employees can lose confidence and worry about the survival of the company and the safeguarding of jobs.

It will therefore be necessary to make sure to support each employee individually in this delicate phase, to motivate your teams and to maintain a serene and dynamic atmosphere.

It is also essential to listen to your employees and give them the opportunity to share their fears during one-on-one interviews or small group meetings.

Finally, it is essential to be very present in the field, with your teams: this is crucial to motivate employees on a daily basis and to establish a state of mind of mutual aid and cohesion.

6. Take care of your internal and external communication

In times of crisis, one of the risks is that the company’s reputation will be damaged.

Thoughtful and careful crisis communication is therefore fundamental to preserving your brand image and reputation in the market.

It is therefore necessary to ensure transparency and to maintain a harmonized and clear message, both internally and externally, with customers, suppliers, service providers, and partners.

7. Implement sustainable changes

Crises are powerful indicators of opportunity.

For this reason, it is important to create lasting change and identify areas for improvement during a crisis. It is an opportunity to adopt new practices, reshape the organizational model, strengthen values and implement new strategies.

8. Anticipating future crises

To limit the risk of a crisis, it is necessary to take the time, during a serene period, to identify potential threats, both internal and external.

List, with the managers of the various departments (legal, financial, commercial, IT, etc.), the worst scenarios that could arise and set up a protocol for each case, indicating the means you have at your disposal to deal with them.

 

Outsourcing crisis management: a salutary decision

Crisis management remains a very difficult operation to manage internally. To ensure its success, it is strongly recommended to use the services of an interim manager.

Familiar with crisis and emergency situations, this high-ranking professional will be able to quickly activate the right levers to restore the situation. In addition, his impartiality and his external perspective will allow him to carry out strong and salutary actions to quickly recover the activity.