Handling crisis management

What do we mean by “a crisis” in a company?

Crises can manifest themselves in a multitude of ways in a company. They can be caused by an internal incident – a sharp drop in activity, cash flow problems, multiple resignations, employee disengagement, loss of major accounts, absence of the director, or an unexpected and unmanageable peak in activity, for example. External factors, too, can lead to a crisis situation in a company, as evidenced by the current Covid-19 health crisis that has threatened the existence of many businesses. Generally speaking, a crisis is an exceptional and unexpected event that disrupts a company’s activity and jeopardises its survival. A poorly managed crisis can thus have very serious and damaging consequences.  

How should you handle crisis management?

Crisis management must be rigorously managed, with a hefty dose of pragmatism. The following best practices can be employed:

1. Adopt the right attitude towards the crisis

First and foremost, the best way to handle crisis management is to adopt the right mindset. Emotional involvement, lack of perceptive, and stress can dangerously compromise decision-making and impact the efficiency of actions. It is important to take a step back from the situation and to demonstrate great composure. Teams will be much more motivated and reassured by a leader who adopts a defensive posture and who approaches the crisis with confidence, serenity and optimism.

 2. Set up a crisis unit

The crisis unit should bring together the company's manager and key decision-makers, as well as any experts concerned (lawyers, accountants, etc.). Dedicated to managing the crisis, this team meets to develop an action plan and validate strategic decisions. Soliciting the collective intelligence of a small group helps avoid hasty decisions and ensures the proper management of the crisis.

3. Carry out a thorough audit of the crisis situation

In spite of the emergency nature of a crisis, it is essential to take the time to conduct an exhaustive assessment of the situation. As soon as the first warning signs appear, you should gather the heads of the main departments and take stock of the situation at all levels of the company (financial results, commercial performance, operational efficiency, employee commitment, etc.).

4. Implement a crisis management plan

The crisis team must take the time to develop a well thought-out and relevant action plan to respond to the challenges encountered. This may involve making difficult decisions (layoffs, cost reductions, site closures, etc.). The action plan must, first of all, eliminate the greatest risks and immediate threats, and stabilise the company by mobilising the necessary financial and human resources. In addition, during times of crisis, reference points 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. During periods of instability, employees can lose confidence and worry about the survival of the company and the safeguarding of jobs. It is important to accompany each employee individually during this delicate phase, in order to maintain team motivation and a calm yet dynamic atmosphere. You must also listen to your employees, giving them the opportunity to share their fears during individual interviews or small group meetings. Lastly, it is essential that you remain very present in the field, alongside your teams: this is essential for motivating employees each day and establishing a mutual support and teamwork mindset.

6. Pay attention to your internal and external communication

One of the risks during periods of crisis is damage to a company’s reputation. Well thought-out and careful crisis communication is therefore fundamental to preserve brand image and market reputation. It is important to be transparent and to promote a clear and consistent discourse, both internally and externally, with customers, suppliers, service providers and partners.

7. Implement sustainable change

Crises are powerful indicators of opportunity. For this reason, it is important to implement sustainable change and to identify areas for improvement during these times. A crisis can be an opportunity to adopt new practices, reshape the organisational model, reinforce values and implement new strategies.

8. Anticipate future crises

To limit the risk of a crisis, take the time during calmer periods to identify potential internal and external threats. With the help of department managers (legal, financial, commercial, IT, etc.), list the worst-case scenarios that could arise and set up a protocol for each case, indicating the resources you have available to deal with them.  

Outsource your crisis management: a healthy decision

Crisis management remains a very difficult operation to manage internally. To ensure its success, it is strongly recommended that you enlist the services of an interim manager. Familiar with crisis and emergency situations, this high-ranking professional will be able to rapidly activate the right levers to restore the situation. Moreover, their impartiality and external viewpoint will enable strong and salutary actions to be taken for a fast turnaround of the business.