Crisis management


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Crisis management

  1. 1. How to stay focused on your company’s vision in tough situations Crisis Management Cem Tozar
  2. 2. “The best way to manage the crisis is to predict the coming and get prepared.”
  3. 3. Ignoring the crisis increases the magnitude of the damage.
  4. 4. “The real success criteria in crisis management is the prediction of crisis and avoiding it.”
  5. 5. Crisis is a part of our life. Even though you are far away from nuclear plants.
  6. 6. The essence of crisis management is knowing the roots and having a strategy to deal with.
  7. 7. action plan
  8. 8. A crisis can be a physical or non-physical event and even an emerging issue, and threaten to cause damage or harm to your employees, business operations, brand, customers. Requires immediate senior management notification, focused involvement, action and resources.
  9. 9. #1 have a crisis management policy Describe the organization’s stance on managing incidents and crises and the type of response it expects of its people. Align your stance with your mission and values.
  10. 10. #2 maintain crisis management standards These standards should reference and incorporate guidance, and should establish a fundamental response capability for the range of risks and threats.
  11. 11. #3 create a crisis management structure Define the roles, units and responsibilities. Allocate the resources.
  12. 12. Company Strategic Management Team Business Units Crisis Management Teams Regional Support Teams Response Teams a crisis management structure
  13. 13. #4 decide the level of crisis Crisis Management Corporate Support Incident Support Immediate Response Strategic Operational& Affects Goals Operational & Potential to affect goals Operational
  14. 14. #5 establish a crisis management process Notification & Reporting Review CM Policy, CM structure Identify Roles & Responsibilities Define response Teams, Relationships, Integration Points Create concept of Operations Update / Develop Plan Monitor Process & Results Assess the Crisis and take measures to prevent the same situation
  16. 16. Leaders & Managers should stick to the strategy in the light of mission and core company values. when dealing with crisis.
  17. 17. –Ronald Heifetz “Keep your hand on the thermostat. If the heat’s too low, people won’t make difficult decisions. If it’s too high, they might panic.”
  18. 18. Crisis is a test for leaders which determines the level of trust among the company, the leader and employees.
  19. 19. A leaders role during crisis is maintaining the communication, balancing the mood, and keeping teams focused on strategy.
  20. 20. Risk Management Crisis Management Managing risks is actually managing crisis.
  21. 21. Source:Managing Risks: A New Framework HBR Reprint R1206B The risks that companies face fall into three categories, each of which requires a different risk-management approach. Robert S. Kaplan
  22. 22. –Robert S. Kaplan “A firm’s ability to weather storms depends on how seriously executives take risk management when the sun is shining and no clouds are on the horizon.”
  23. 23. The word “crisis” consists of two words in Chinese; danger and opportunity. The leader should recognise the opportunity. danger opportunity
  24. 24. Further Reading & Sources: 1-Managing Risks: A New Framework- Robert S. Kaplan HBR Reprint R1206B 2- Johnson Controls Risk Management System 3- Leadership in a (Permanent) Crisis-Ronald HeifetzAlexander GrashowMarty Linsky HBR Reprint R0907F 4- Crisis Management: Mastering the Skills to Prevent Disasters (Harvard Business Essentials)Sep 1, 2004 by Harvard Business School Press
  25. 25. cmtzr cemtozar thankyou