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The Business of Crisis - Aditya Yadav


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The Business of Crisis - Aditya Yadav

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The Business of Crisis - Aditya Yadav

  1. 1. “Running an Agile Fortune 500 Company” Aditya Yadav, *
  2. 2. * *A Typical Global Company *Fortune 500/1000 *200 Divisions *40 Countries *25000 Employees
  3. 3. @ Acme Inc. *
  4. 4. * *Original Question “Our Business is always in some Crisis… we have been fire fighting all the time and we haven’t gotten nothing done… and have at best just barely managed to stay afloat. What should we do?” *The Correct Question - “One cannot wish away Crisis… you have to handle it and a lot more… till crisis situations minimize and stability and growth make the majority of your efforts… Lets understand the relationships and how to make the best use of Crisis. Shall we?”
  5. 5. And The Philosophy Behind The Answer *
  6. 6. * *Crisis == Risk Made Manifest *Approach: Risk Reduction & Risk Hedging *or basically Plain Avoiding Risks
  7. 7. * *Crisis = Risk + Opportunity *Crisis Management is a Broader Framework than Risk Management
  8. 8. * * This Chinese symbol for risk is a combination of danger (crisis) and opportunity, * representing the downside and the upside of risk. This is the definition that captures perfectly both the essence of risk and the problems with focusing purely on risk reduction and hedging. * Any approach that focuses on minimizing risk exposure (or danger) will also reduce the potential for opportunity * Rule: The Reason Why Business’s Exist Is To Take Risks * If they don’t take risks they will not make any money * Rule: People who succeed the most at taking the most risk make/deserve the most money * The decisions on how much risk to take and what type of risks to take are critical to the success of a business * Exploit the Risks that’s you have an edge over others in exploiting
  9. 9. * * Opportunity * For Shock Therapy * To Fix Things * To Drive Change * To Drive Growth * To Innovate * Stories * Reinforce Culture, Values, Principles, Practices * Arrive At Consensus * Set/Change Direction * Rethink The Purpose * … and opportunity to do some other Unspeakable Things!!! If one exploits the Opportunity of Crisis…. Not only the Crisis gets addressed, their intensity and frequency decreases over time…
  10. 10. * * Estimate the Money At Stake… * Estimate the Downside Loss Possibility [If you can’t do either of the above two then the Crisis Does Not Mean a Business Opportunity for you] * Charge upto 2% of the former * Charge upto 20% of the latter * Don’t accept a Downside liability on your part… * The logic being Rescue Missions are rarely successful if they have the surety of being suicide missions. The rescuer always has to be reasonably sure of making it back home safely. That is the only scenario a rescue mission is done. Otherwise it’s a heroic suicide mission which makes a good 2 Hr Movie!!!.
  11. 11. * * Crisis is NOT ABOUT Exploitation ITS ABOUT Sharing Risks and Rewards and Using the Crisis towards Change, Growth and Innovation… * For a Rescuer….its about a genuine Capability to Rescue someone from a Crisis Situation, partially or completely before anyone else can, or before they cross the point of no return (Economics!!! At Play!!!) * Fact: Historically Business’s and Industries have grown the most and flourished during times of Wars, Crisis and Survival Threats * Crisis Scope * Business * Market * Industry * Economy * Regional * Global
  12. 12. * Aditya!!!