Ian Mitchell King emphasized that if your business could be affected by any kind of crisis, you need to have a plan for how to handle it. Many businesses fail because of a crisis caused by technology or by people. A problem with your software or hardware can be disastrous for your business. An industrial accident can cost a company tens of thousands of dollars in income. While this is going on, competitors with better technology can easily take your market share and get your product or service on the market faster.
When a crisis hits, the weak spots of a company become clear. Without a crisis plan, the organization will face serious problems, such as legal, operational, and public relations problems. If it isn't ready, it might even have to close. But statistics show that 29% of businesses with big problems don't have people on staff who are trained to handle crises. Also, 28.9% don't know if their plan for a crisis is up to date.
During the response phase, key stakeholders are talked to and different actions are started. During the management phase, a crisis plan is made and the immediate and long-term effects of the incident are dealt with. It also means that everyone involved in the incident talks openly with each other. During this phase, you can hire experts to help you make a crisis management plan that fits the needs of your business and employees. And don't forget to keep an eye on any rules that could affect your business.
Crisis managers can get the word out to the public in an hour or less by using mass notifications and websites. Even though it could cause panic and mess up a business, this lack of information will be filled by the media. Because of this, it's important to be ready to act quickly. Even though there isn't much news to share at this point, a quick response makes the organization look like an expert and gives its side of the story.
The first step in handling a crisis is to think about how it will affect those who are affected. When a plane crashes, the airline sends trauma teams to help the people who were hurt and their families. A Business Roundtable report from 2002 says that companies need to think about how the crisis will affect their employees. Part of managing a crisis is making sure that employees and the families of victims have access to counseling services. So how will managing a crisis help your business?
Ian Mitchell King pointed out that a survey of employees can help you find out what they want and need. The survey also lets you keep track of and keep an eye on your work. The best leaders make strategic decisions and are ready to quickly change direction, change priorities, and get rid of roadblocks. The whole company should do a survey, not just when there is a problem. And a survey of what employees want will help you figure out what needs to be changed. For example, during the COVID-19 crisis, it might have been helpful to have a library of resources for working from home. Surveying after a crisis is also an important part of getting back on your feet.
After figuring out what kinds of crises could happen, it's important to make a plan for how to handle them. The plan should be based on what the company stands for. It should also say exactly what to do in each possible situation. The less likely chaos will happen when a disaster happens, the more detailed a plan is. And don't forget that a crisis management plan will help keep your business going if something bad happens.
Once a crisis has been found and the problem is under control, the next step is recovery. During this stage, you will work on getting customers and employees back to normal and getting the management team ready for what will happen next. The main goal of crisis management is to avoid a disaster and make sure your business keeps growing and doing well. If you don't plan for a crisis, you might lose the loyalty of your customers.
Ian Mitchell King noted that a company that had a data breach is a good example of this kind of crisis management. Before this happened, Equifax wasn't ready for it, and as a result, they took a lot of damage. The company's investments lost $6,2 billion, and the executives' pay was taken away. In 2014, General Motors recalled 30 million cars and ended up paying more than $1 billion in fines, repairs, and payments to people who were hurt.