Elements of a Good Crisis Management Plan

 

A crisis is any event that threatens your company. This can range from a natural disaster to the loss of a major client or a scandal among your executives. When a crisis hits, you may feel like giving up. But if you have a plan for continuing your operation, you can regain your footing. Create your crisis plan when times are calm so you’ll have definite actions you can take if events work against you.

Proper management of an emergency situation involves the implementation of a pre-arranged crisis management plan. Having a plan of action available before a crisis takes place can give your company an advantage over those that simply wait for something to happen and then react to it.

So in this article we are discussing a few tips that can be of great use during moments when crisis management is needed.

 

Chain of Command

During any crisis, someone must lead. Whether that person is you or a trusted manager, the leader must have absolute authority to tell people what to do and when to do it. You will need one or more alternates who can take command in the event the person who is your first choice is one of the people rendered ineffective by the crisis. Your plan should explain the crisis leader’s priorities, including ensuring the safety of employees and getting the company back to operational status.

 

Understand the Crisis

There are four different categories of events that constitute a crisis in business. Those four classifications are: financial crises, natural disasters, technical crises, and political and social disasters. Each type of disaster requires a different approach in order to be managed properly. Properly assessing the current threat is what will determine your approach a crisis management. For that reason, it is very important that company managers have a good understanding of the type of problem the company is facing at the present time.

On the other hand, an improper assessment of the present crisis may cause an organization to waste their time and resources by taking irrelevant actions.

 

Crisis Team

The crisis leader can’t work alone. Your crisis plan should designate a crisis team who will relay the leader’s directives to the other employees. This team can also participate in the decision-making process and inform the leader of issues that need to be resolved. You could choose team members based on their problem-solving abilities and rapport with employees.

 

Elect a Spokesperson and Assign Roles

Emergency response plans should include an outline of the roles and responsibilities of each member of your management team in the event of a crisis. It is very important that for companies designate someone to play the role of leader. The leader should then choose a team strong enough to carry out directives under pressure. The management team chosen by the leader will be responsible for gathering information that will help to determine the type of crisis that the company is facing. They should also help to generate strategies for solving these issues when the time comes. The leader’s role is to decide on a course of action, monitor progress, and energize the efforts.

 

Build Risk Scenarios

Building a crisis management plan requires that company think of a few scenarios that would constitute a business disaster. Once the scenarios are described, your management team should discuss the type of damage that each scenario would cause. The type of damage a crisis could inflict should help to determine your course of action. Moreover, discussing risk scenarios will help your company to prioritize during times of panic and confusion.

 

Alternate Resources

Depending on the nature of the crisis, you may need new business premises, replacement computer with software, alternate suppliers and a delivery or courier service, to name a few examples. Your business infrastructure may be disrupted. So investigate alternatives that could help see your company through a crisis. List all contact information for these alternative resources so that a designated person will know who to call.

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