Crisis Management


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Principles of Crisis Management

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Crisis Management

  1. 1. Crisis Management: An Overview
  2. 2. Crisis management is the discipline and science of managing breakdown and recovery <ul><li>What is a crisis? </li></ul><ul><li>How do you manage a crisis? </li></ul><ul><li>Three examples of a crisis ... </li></ul>
  3. 3. What is a Crisis? <ul><li>A crisis is sudden </li></ul><ul><li>A crisis is unexpected </li></ul><ul><li>A crisis is the result of an internal or external event that was not accounted for while planning </li></ul>
  4. 4. How do you manage a Crisis? <ul><li>You accept that the kind of thinking that got you into the crisis is not the kind of thinking that will get you out. </li></ul><ul><li>You ask open questions. </li></ul><ul><li>You execute crisis plans. </li></ul>
  5. 5. If you’re watching a movie at a theatre and someone yells, “Fire!”, do you: <ul><ul><li>Panic? </li></ul></ul><ul><ul><li>Remain Calm? </li></ul></ul><ul><ul><li>Account for all of the panicky people in the theatre? </li></ul></ul>
  6. 6. If you’re executing an employee reduction program, do you: <ul><ul><li>Lay off staff to meet cost requirements? </li></ul></ul><ul><ul><li>Lay off staff to match the productivity stats of your competitors? </li></ul></ul><ul><ul><li>Lay off staff to bring new people with new ideas into the corporation? </li></ul></ul>
  7. 7. If your corporation is moving into a new business, market, or location, do you: <ul><ul><li>Plan to capture the benefits of the new business, market, or location? </li></ul></ul><ul><ul><li>Plan to expand what you already know? </li></ul></ul><ul><ul><li>Plan to start a conversation between the old and the new? </li></ul></ul>
  8. 8. Crisis management requires mastering three kinds of learning: <ul><ul><li>Informational Learning - find problem, run solution </li></ul></ul><ul><ul><li>Motivational Learning - “I’ll be fine as long as I’m better than the next guy” </li></ul></ul><ul><ul><li>Transformational Learning - “I am new.” </li></ul></ul>
  9. 9. Mastering the three kinds of learning requires knowing what they are and knowing when and how to use them <ul><ul><li>Informational Learning - efficient answers, cost / benefit, use resources within normal operations </li></ul></ul><ul><ul><li>Motivational Learning - energize and know the limits of your environment, your team, and yourself </li></ul></ul><ul><ul><li>Transformational Learning - Non-Linear, throw out the rule book, go to the War Room </li></ul></ul>
  10. 10. What is a War Room? <ul><ul><li>In the War Room, you develop crisis plans. </li></ul></ul><ul><ul><li>In the war room, you execute crisis plans. </li></ul></ul><ul><ul><li>In the War Room, You question the assumptions that you have previously relied upon. </li></ul></ul><ul><ul><li>In the War Room, you ask questions that you are not allowed to ask in normal times. </li></ul></ul>
  11. 11. Crisis management operates on multiple levels at the same time <ul><ul><li>Corporate - Large, complex organizations are less able to manage a crisis because they are large and complex </li></ul></ul><ul><ul><li>Professional - Knowing a specialty or discipline well makes it harder to “jump outside your own box”. </li></ul></ul><ul><ul><li>Personal - You can’t see what you’re not equipped to see; you can’t do what you’re not equipped to do </li></ul></ul>
  12. 12. Crisis management recognizes the choice between competitive, cooperative, and structural thinking <ul><ul><li>Competitive - “We will kill or capture Bin Laden” </li></ul></ul><ul><ul><li>Cooperative - “It’s time to sit down and talk with the Taliban”. </li></ul></ul><ul><ul><li>Structural - “we can adapt what we learned from the Anbar awakening to Afghanistan.” </li></ul></ul>
  13. 13. Use the principles of crisis management for all planning methods <ul><ul><li>Understand the assumptions upon which your plans are built. </li></ul></ul><ul><ul><li>Keep your plans efficient. </li></ul></ul><ul><ul><li>Keep your planners motivated. </li></ul></ul><ul><ul><li>Better preparation leads to better performance. </li></ul></ul>
  14. 14. When to use a Crisis Management Specialist <ul><ul><li>If you’re ruminating, you haven’t defined the depth of the crisis, seek assistance. </li></ul></ul><ul><ul><li>It may feel like you’re walking off a cliff. </li></ul></ul><ul><ul><li>A crucible requires enough heat to change the ingredients but not so much heat as to melt the pot! </li></ul></ul>
  15. 15. Choosing a Crisis Management Specialist <ul><ul><li>Broad background - education and experience </li></ul></ul><ul><ul><li>Experience matters, depth and breadth </li></ul></ul><ul><ul><li>Test their methodology and their creativity </li></ul></ul>