The nature of the crisis is how unexpected they are. As a leader, you can take an entire roster of preventative measures, but sooner or later something’s going to go wrong. Those are the moments that separate great leaders from the good, and the ability to create an effective crisis management plan will set you apart.
The goal of every crisis management plan is to minimize the damage it does to your organization and to restore normal operations as soon as possible. This plan will become a living, ever-evolving member of your team that will typically look like a checklist. Members can check things off that are accomplished, and add new issues that demand attention.
The best way to tackle a crisis is to break it down into smaller, more manageable tasks for your team. It’ll stop you from getting overwhelmed and allow a logical approach to solutions. The type of crisis you face will vary depending on the industry you’re in, but the following 6 steps will help you tackle any emergency you find yourself in.
Table of Contents
Step 1: Create a Team
Even if you think you can handle a crisis on your own, don’t try it. You may have incomplete information, or there could be a member of your team that was better suited to the task. Your job as a leader is not to solve all problems; it’s to effectively delegate roles
If the crisis affects the entire organization, which it mostly will, you should redirect maximum efforts to the strategy. Only the people essential to the functioning of the firm should stay in their previous positions; the rest should organize for action. Your most important role is assigning leaders to different categories of the plan. Some will focus on damage control and others on brainstorming, but all departments must function independently under leaders who take action.
Step 2: Risk Assessment
Once you have everybody gathered and have assigned the relevant roles, conduct a brainstorming session with your leaders. Crises have a way of sneaking up on you in more ways than one, so you should allocate some time to recognize your vulnerabilities. Once you establish a risk register, you are immediately in a better position to manage the crisis.
Risk registers record and analyze the probability of all possible setbacks you could face. It eliminates progress delays and helps you visualize what risk is most likely to occur. The slightest warning or preparation can be the difference between overcoming the crisis and letting your company die, so don’t skip this step.
Step 3: Count Your Losses
It wouldn’t be a crisis if you hadn’t lost something already, and it’s important to have a full account of your resources. Once you have a risk register in hand, start analyzing the impact each potential problem could have on your business. Get your crisis leadership together to analyze each risk individually because they’ll all have different impacts on your business.
Potential impacts include customer attrition, lower brand recognition, delayed sales, delayed deliveries, lost suppliers, lost income, and regulatory fines. The first step in counteracting each problem is recognizing its extent. If a situation has already gotten out of hand, you don’t want to spend additional resources trying to fix it.
Step 4: Make a Plan
Once all the risks have been identified, you can start reacting to the actual problems. Each part of the crisis, and all the problems it could cause in the future, should have a team member focusing on it. For example, you may work for a software company that experiences a cyberattack. You’ll need someone to secure the network to prevent future attacks first and foremost, but you’ll also need someone to manage a press release. Simultaneously, somebody needs to be working on a damage assessment report while another gets into contact with the relevant authorities. A good crisis management plan will delegate responsibilities to address all those issues.
Step 5: Solidify the plan
Up till now, you’ve focused on organizing your workers and verbally making sense of the situation. Even if you’ve jotted down the threats, risks, impacts, and possible responses, the plan isn’t solid. It needs to have activation protocols for each category so nobody jumps the gun. Moreover, you need emergency contacts for each department to streamline communication. Key stakeholders across the company should understand their roles and the roles of their counterparts; everyone understands what to do and when.
Step 6: Review and Update
If there’s one thing you can be sure of in a crisis, it’s that it’s never static. The situation will change organically and respond to the actions that you take, so you must change with it. Conduct a thorough review of your plan once you’ve finished to make sure there are no gaps in the strategy. Once perfected, leave room for change. Look over the plan regularly and update it. If you continue to adapt to the risks you face, it’ll be hard to blindside you.
This rough template for crisis management can be applied to any business in any industry. Even if you aren’t in an active crisis, you should have a plan ready just in case. Follow these steps and adapt them to your business, and no crisis will get the best of you.
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FAQs
- Why is crisis management planning important for businesses?
Crisis management planning helps businesses respond quickly to unexpected situations, minimize damage, and recover faster. It ensures smooth communication and organized decision-making during critical times.
- How often should a crisis management plan be updated?
Regular reviews are essential. Ideally, update the plan every six months or after significant organizational changes or industry shifts.
- Who should be involved in a crisis management team?
Key leaders from different departments, including operations, communications, HR, and legal teams, should be part of the crisis management team.
- What are some common risks businesses should prepare for?
Cyberattacks, financial crises, natural disasters, supply chain disruptions, and public relations issues are common risks businesses should assess and plan for.
- How do you measure the success of a crisis management plan?
The success of a crisis management plan is measured by how effectively the team responds to the situation, minimizes losses, and restores normal operations. Post-crisis evaluation and feedback help improve future strategies.
