4 Basic Steps that Illustrate How to Prepare a Company for Any CrisisApr 30, 2021
What are the phases of crisis management?
Nobody likes to admit it, but if you’re going into business, one thing you can expect to happen is problems. At one point or another, challenging circumstances will arise to test the viability of your business.
The only way to survive will be through strategic decision-making. The bad news is that problems are inevitable. The good news though, is that it’s possible to prevent or prepare for them. All you need is smart crisis management.
A Stitch in Time Saves Nine
Legal Expert Darryl M. Bloodworth advises that “If a crisis is mismanaged, a company can suffer not only direct financial losses but also the loss of goodwill and reputational damage. Damage from which the company may never recover.
Many businesses are only able to deal with a crisis by reacting at the moment because they have given no thought to proactive planning.” Following 4 steps to create a crisis management plan:
1) Save Up on Cash
Emergencies don’t always unfold in the same way. But more often than not, it takes a lot of financial investment to rebound from crises. This is why companies should always go the extra mile to build up cash reserves for use in emergencies.
2) Create a Control-Room
The bigger a company is, the more necessary it is to have a coordinated response to emergencies. There should always be an infrastructure of facilities in place which enable a nimble response. It’s also wise to designate crisis teams that wait on standby for urgent situations.
3) Draft a Manual of Procedures
Employees need proper training on how to behave in situations of emergency. The easiest way to accomplish this is with standardized rules and manuals.
4) Simulate Plausible Crises
Another way to train and reinforce preparedness is by physically simulating emergency situations. Going through dry runs can highlight blind spots in response strategies.
Whether it’s on an individual level, or at an organizational level, no one knows what the future will hold. That’s why it’s always a good idea to prepare for the worst, but hope for the best. Crisis management is all about thinking ahead. It boils down to picturing the worst-case scenario, then putting structures in place to insulate the company against disaster.
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