Strategic planning in organizational crisis management
What is crisis management?
Crisis management is the recognition of risks to the organisation and its members and the approaches used by the organisation to resolve these challenges. In consideration of the uncertainty of international politics, companies must be able to cope with the potential for drastic changes in the way they perform their business.Crisis management requires actions to be made instantly and/or often after an incident has already taken place. Organizations also create a crisis response strategy to reduce confusion in the case of a crisis,which is a very important strategy that can either cause a business to fail or survive.
Preparing for a crisis is very important because when the time comes,the firm wil be in a state of panic therefore,the decisions will either be very short-term or tend to be uneffective.Preparedness allows the firm to get back on it’s feet in the shortest time possible.
How does crisis manangement work?
Any enterprise, big or small, can have issues that may adversely affect the usual course of operations. unfortunate crisis such as burning, death of the CEO, terrorist attacks, data breaches or natural disasters will lead to tangible and intangible losses for the company in terms of missed revenue, consumers and a reduction in the company’s net profit.
Businesses that successfully execute a business continuity plan in the event of unexpected eventualities that reduce the consequences of any adverse incident that may arise. The method of executing a contingency strategy in the case of a crisis is known as crisis management. Don't use plagiarised sources.Get your custom essay just from $11/page
In order to provide a corporate survival strategy in the wake of the crisis, several companies are beginning to carry out risk assessments of their activities. Risk assessment is the method of determining any adverse events that may occur and the probability of occurrence.
For example, a risk manager may predict that the likelihood of a flood occurring within the company’s area of operation is very high. The worse case outcome of a flood would be to kill the company’s information infrastructure and hard drives, thus destroying valuable records on consumers, vendors and on-going projects.If the risk manager understands what he / she is working with in terms of potential threats and the effect on the company, the crisis management department must create a strategy to handle some sort of situation if and when it becomes a possibility. Following the scenario above, in which a business faces a high likelihood of flooding disruption, a back-up network for all information equipment should be set up.In that way, if a disaster happens that effects the organization, the organization will also have a database of the data and work processes stored. While business that slow down for a brief period of time as the corporation purchases new computer equipment, business activities will not be absolutely halted. By having a crisis plan in place, a organization and its stakeholders will organize and react well to the unexpected situation,
Types of crisis
Crisis can be either self-inflicted or caused by external factors. Types of external influences that may have an effect on an organization’s affairs include natural disasters, security threats, or misleading facts about a business that damages its credibility.
Self-inflicted problems are triggered within the company, such as when an employee-smoking in hazardous chemicals areas, opens or installs inappropriate files on a work laptop, performs terrible customer care that goes viral.
Internal conflict can be handled, mitigated or stopped if a organization enforces stringent legal standards and procedures on workplace conduct, practices, laws and regulations.
Pre-crisis response
The basic steps in successful crisis management are not complicated, but require preparation planning to mitigate harm. So if you’re concerned about crisis preparedness and resolution, business should try this approach,the first seven of which can and should be done before any crisis happens
- Anticipaction crisis
If you’re proactive and preparing for a crisis, organize your crisis Management Staff for intense brainstorming sessions about all the possible issues that could arise in your company.
There are at least two immediate advantages of this exercise:
- you can understand that certain conditions may be avoided by merely changing current operational methods.
- You could start thinking about future outcomes, best-case / worst-case situations, etc. Better now than under the burden of a true crisis.
This evaluation process will lead to the development of a Crisis Response Plan that is suitable for the organisation, covering all organizational and communications elements. The following measures below describe some of the core concerns that will be discussed in the communications portion of the program.
- Identify the Crisis Communications Response unit
A small team of senior executives will be appointed to act as the Crisis Management Department of the company. Ideally, the CEO of the company will head the group, with the firm’s top public affairs director and legal counsel as the chief advisor. Other team leaders are usually the heads of the major organizational units, because any situation that rises to the point of crisis will impact the entire organisation. And often the team often has to involve people with special experience relevant to the ongoing situation, e.g. subject-specific experts.
- Identify and Train Spokespersons
Categorically, every company must ensure, by proper policy and preparation, that only designated spokespersons speak for it. This is especially important in the midst of a crisis. That crisis response staff will include members who have been pre-screened and qualified to be the lead and/or replacement spokespersons for various means of communication.Both corporate spokespersons in a crisis situation must have:
- the appropriate expertise
- the right position
- the proper training
Speakers are not only required for media interactions, but for all forms and means of communication, both internal and external. That covers on-camera sessions, municipal hearings, staff meetings, etc. You just don’t want to make assumptions on too many different forms of spokesmen when “under pressure.”
4. Establish Notification and Monitoring Systems
It is absolutely important, before the crisis, to set up communication systems that will allow you to access your stakeholders easily using multiple modalities. The Virginia Tech campus shooting tragedy, where email was the only way of alerting students originally, shows that the use of any one modality could make the situation worse. Some of us that be on email all the time, some not. If you use more than one modality to reach out to your stakeholders, it is much more likely that the message will pass through efficiently and effectively.
Intelligence collection is a vital component of both crisis management and crisis response. Knowing what is being discussed about you in social media, mainstream media, your staff, clients, and other stakeholders also helps you to capture a derogatory “trend” that, if ignored, turns into a crisis. In the same way, tracking feedback from all stakeholders during a crisis scenario helps you to change your plan and strategies precisely.
Post-Crisis Response
- Asseses The Crisis Situations
Reacting without enough knowledge is a stereotypical “fire first and ask questions later” scenario in which you may be the primary target. And, once you do any of the above first, it’s a “easy” matter to let the Crisis Management Team collect the information coming from the staff members and ensure that the right kind of input is given and that you can handle it.
6. Finalize and Adapt Key Messages
With statements available as a starting point, the Crisis Communications Committee will continue to create the crisis-specific communications needed by any particular situation. The department already knows, categorically, what kind of knowledge the customers are asking for. How do some stakeholders need to know about this crisis? Hold this easy. Provide no more than three key messages to all stakeholders and, if applicable, other audience-specific messages to each stakeholder community.
7. Post-Crisis analysis
After cowpies no longer interfere with the air-circulation system, the question must be posed, “What did we gain from this?” A systematic review of what was done well, what was done wrong, what should be done differently next time, and how to strengthen different aspects of crisis preparedness is another must-do task for any Crisis Communications Department.
Benefits Of Crisis Management
- The simple act of establishing a contingency strategy also increases awareness of disaster threats around the enterprise. By recognizing and prioritizing incidents that may disrupt regular business activities, a company may take a big step in building a risk-conscious community that accepts the fact that something can go wrong and that it is worth devoting time and energy towards preparation of potential problems.
- Crisis preparation will reduce the severity of a crisis. Once a company has identified high-priority threats, the list will provide the basis for risk-reduction measures. For example, developing procedures and conducting routine evacuation exercises which will mitigate loss of life in the event of a fire or earthquake.
- Crisis planning reduces the time it takes an organisation to adapt to a crisis. In this era where everyone has a smartphone capable of going live with video for a global audience, organisations must act quickly and instantly when the crisis occurs. The Crisis Management Strategy lays out roles and offers a structure for decision-making to include leadership and quick response.
What is strategic planning?
Strategic planning is the method of recording and defining the course of the businesses — by determining both where you are and where you are going. The strategic plan gives you a place to archive your purpose, vision, and principles, as well as your long-term objectives and action plans that you can use to accomplish them.
A well-written strategic plan can play a crucial role in the development and progress of your company, as it advises you and your staff how best to adapt to opportunities and obstacles.
Despite the advantages of getting a strategic plan in place, a growing percentage of small business owners are not focused on the long-term plans of their companies as they are more focused on the short-term plans therefore,many small business end up having problems.
Strategic planning is a method of thinking ahead that will include your whole company, and conversations will lead to major changes in your company.
Strategic planning consists of assessing the enterprise and establishing practical goals and priorities. This refers to the development of a structured plan detailing the company’s goals and priorities for the future.
How does strategic planning benefit businesses?
The strategic planning process can take some time, but it is helpful to all involved. As a small business owner, you’re going to have a clearer sense of the priorities and targets that you want to accomplish and the direction to follow. For your staff, this mechanism will help increase productivity — contribute to the growth of your company.
- Communicating your strategic plan
Your staff should be involved in the strategic planning process as your workers are involved in day-to-day activities and will give you a unique perspective of the company.In addition to your staff, it is important to reach out to people outside the company and get their feedback;external stakeholders.
- Increases productivity
Involving the staff in the strategic planning process often ensures that they will have a sense of responsibility that it will improve efficiency. If they have contributed to the project or have been aware of the priorities and strategies of the company once the strategic plan has been identified, they would be more likely to continue to help you accomplish those goals.
- Identifies strengths and weaknesses
You must review and evaluate the whole business as part of the strategic planning process. Take a look at what the company is doing well and the places that it also needs to change. By recognizing the potential strengths and weaknesses of your company, this method allows you and your staff a chance to grow in the future and become a profitable business by reducing risks.
- Gives a sense of direction
By the completion of the strategic planning process, you and your team will have a strong vision on where you expect the company to go in the future. Such discussions and the planning process itself aim to place the company in the strongest shape to succeed in the future.
Misconceptions in strategic planning
There are also misconceptions about strategic planning. There are a variety of reasons why company owners may be skeptical of strategic planning, from not having enough time to believing that it just helps bigger companies, to worrying that you would put your company on the wrong track. But don’t worry; strategic preparation will improve the business — big or small — and the rewards greatly outweigh any potential drawbacks.
But how do you know if you’re moving the business in the right direction? The early stages of strategic planning focus on research and debate. The decisions you make during strategic planning are not based on assumptions; they are based on analysis and knowledge you have learned when talking to your staff and people outside the company.
If you’re going through the strategic planning process already, don’t presume you’re not going to have to do that again. The strategic plan is a living document; it can be updated over time. It is not uncommon for company owners to create a development strategy for their staff. Reviewing and updating your action strategy on a daily basis will help hold you accountable and on track to meet your goals and priorities.
THE ROLE OF STRATEGIC PLANNING IN ORGANIZATIONAL CRISIS MANAGEMENT
Communication can lead to inspiring people in crisis situations by encouraging preparedness, improving community awareness of threats and through coordination, e.g. in the case of evacuations, or by coordinating involvement in decision-making on restoration activities.However,how do businesses confront a crisis when it arises?The best thing to do is not to panic which is what most of the unprepared businesses do.A strategic plan is what helps firms when facing a crisis.
Abraham Lincoln once said, “Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” Today’s business executives continue to be questioned about how to handle external and internal challenges that occur in dynamic and intertwined ways. The business world has seen a fair share of disasters, and any risk can easily turn into a crisis. By paying attention to a few do’s and don’ts, you can be able to maintain the interest and prestige of your company. History has taught us that companies have taken varying approaches to how they respond to emergencies. Some of the answers have been more positive than others. Regardless of how the boards chose to react to emergencies, their decisions will have a direct effect on the company’s portfolio and image. It is important for business leaders to worry about the possible consequences of their decisions carefully.
Strategic planning plays an important role in the organization, especially when a crisis occurs. As a result, the principle of strategy-focused management was developed to embody much of the discipline’s approach to social regulation. Strategic management as thoroughly defined by different scholars includes three key elements: policy design, implementation and analysis.
As we’ve seen above, organizations which prepare with crisis management tend to have less severe impacts when a crisis hits. For instance, during this global pandemic of COVID-19, organizations who had crisis management plans were able to get back on their feet, supermarkets were able to shift to and take orders online, schools and universities teach the students online through zoom, google classroom etc. Indicating that the unexpected events didn’t cause such panic for them and they were able to respond to their customers positively instead of rationally.
This shows, that having a strategic plan benefits an organization by allowing it to be prepared for any unforeseen events and not in a state of panic and confusion.
However, why do firms ignore crisis management or strategic planning even though it plays an important role in organizations. This is mostly due to the fact that crisis management is costly and takes a lot of time, therefore causing organizations to push it aside.But how was the outcome?
In conclusion, firms that don’t take crisis management into consideration tend to face greater problems when a crisis arises, which makes it difficult for them to get back on their feet. This is mainly because they didn’t have a strategic plan or even take crisis management into consideration. A strategic plan allows the organization to be prepared in critical times. Organization cannot stop services due to crises, to that one among it’s basic priorities is to style a solid system to manage crisis before, throughout and when it happened.
References
https://sba.thehartford.com/business-management/what-is-strategic-planning/
https://www.investopedia.com/terms/c/crisis-management.asp
https://managementhelp.org/crisismanagement/index.htm
https://www.dpkpr.com/articles/the-top-5-benefits-of-pr-crisis-planning/
https://www.researchgate.net/publication/318395099_The_Roles_of_Strategic_Planning_in_Organizational_Crisis_Management_The_Case_of_Jordanian_Banking_Sector
http://dstore.alazhar.edu.ps/xmlui/bitstream/handle/123456789/261/ALSTIO-3.1.pdf?sequence=1&isAllowed=y