Benazir Marjan is intended to use her business knowledge in the practical field through this article.
Business and Crisis Management
Crisis or disaster may be predictable or unpredictable, but these are the chunks of our life. Nothing will be ever easy in life. We have to make our ways well ordered with punctuality, struggle, intelligence, hard work, and patience. Sometimes we may fail and sometimes, move towards success. No matter it is our personal or professional life; there would be always reverse situations. This depends on you, how you are dealing with all those to master. Here comes the challenge of becoming triumphant in the war. A business crisis is an event or a series of events, that causes major disturbance for a business. Crisis management in business will be always very notable competence and capacity in the respective field.
Crisis in business can affect on sales, existing and prospective customers, puts off your investors, share holders, suppliers, and potential employees. It can disrupt business operations, damage your reputation and impact on your finance.
There could be natural disaster, technological crisis, confrontation, malevolence, organizational misdeeds, workplace violence, rumours and also man made disaster as well. Whether is is natural or simulated, a business or company must have some pre-plan to handle any kind of emergency situation with their best.
It would never possible to over come 100% but there could be certain ways to control crisis, like:
1. Risk assessment: The first step is to identify the probable issues and challenges that may appear due any kind of crisis in business. If the assessment is near to reality then the enterprise will be able to solve it easily as much as possible. The company may need to flash back to previous records of reversal and emergency circumstances that had been occurred before, which may help them for future risk assessment and recovery as well. Risk assessment will be undoubtedly a pivotal hypothesis for any business.
2. Managing contingency : Contingency is a provision for a possible event or circumstance. There could be poor maintenance, human error, bad planning, material failure, unethical or dishonest behaviour, unresponsive culture, leadership failure and poor judgement. A company should be aware of these kind of problems so that they take prompt actions to resolve this kind of issue.
3. Have a strong plan: There must be a strong plan on how to deal the (unpredictable/worse) situation with great effort. Companies should make a special crisis management team where there would be crisis manager, crisis management advisor, emergency management director, legal advisor, advisor (medical, health, safety, security, environmental) as well.
4. Spokes Person: As we know that spokes persons represent a company in public, delivering messages to audiences, therefore, their role is always vital in any business. All companies need to train some skilled person so that they can deliver emergency drift in any kind of plight situation regarding conveying the tweet, following some special techniques on condition demands.
5. Honesty and openness: Honesty must be maintained in any kind of business. It builds loyalty and trust in customers and prospects of business. A company should be always transparent regarding any kind of information and activities going inside the business. In this way, there will be no rumour or gossip outside the company. Unambiguous details will always help to keep company reputation upward in the market.
6. Keep employees literate: Employees have significant financial and time investments in the company, they play a defining role in the strategy, tactics and the operations that organizations carry out. Thus, it is essential for top management to keep employees informed about the crisis situation of the company so that, employees will work out according to the state of affairs. It will help the company to survive in the combat circumstance.
7. Communicate with suppliers: Suppliers are part of supply chain management. Healthy supplier relationship ensures better value of any business. Thus, the real scenario of a company must be cleared with the suppliers, so that the enterprise will get benefit in future from them. Superior supplier relationship with the business will benefit you from dedicated services, preferential pricing and other special terms as well. Make sure that they get the information from the company first. Otherwise, they may fall into rumours which will destroy the supplier relationship with the business and put your business in more danger situation for future.
8. Social media: Now a days, social media is a critical communication channel. It will be wise for companies to make a temporary, special team (aware of all internal issues) to monitor, post and react to social media activity through out the crisis period.
9. Update the crisis plan: Struggles, hurdles and crisis; all changes with time. They must update the action plans according to the prediction and demand of time, also add new developments as frequently as possible.
A crisis or disaster can damage the reputation of a business, it’s operations, create disruption and revenue loss. By taking proper and adequate preparation to handle (predictable/unpredictable) situations will help to overcome as much as possible in best ways. By following above depicted steps, I believe, any business will be able to prevent their entity from long-lasting, negative repercussions.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2021 Benazir Marjan