The 6 key steps of crisis management in business

Despite the care attributed to the organization of services in a company, it is not excluded that it will experience crises. This crisis manifests itself after the disruption of one or more factors within the company. The longer this situation lasts, the more it puts the company at risk. It is therefore necessary to react quickly and effectively so as not to affect it further. The management of a crisis in a company goes through different stages. What are they? How to implement them? These are the questions you will find answers to in this article.

Instilling a culture of risk

This is the first step in the corporate crisis management procedure. The risk culture must be known and shared throughout the company. Indeed, there are different departments within a company. Each of them works in synergy to provide satisfactory results. Therefore, when there is a malfunction in one of the areas of the company, it is likely to affect the whole. The culture of risk as a means of assessing and becoming aware of the existence of risk is permanent.

To instil a culture of risk, you need to know how to assess risk. Depending on the field in which the company works, there are different types of risks. These are adapted to the field. Thus, there may be risks : financial, social conflict, due to the departure of an employee, industrial. Some risks are common to all companies and others are specific. To instill a culture of risk, it is therefore necessary to take everyone’s opinion and identify potential risks. You can use a trusted platform of employee reviews to collect feedback from all employees. Risk assessment makes it possible to become aware of their existence.

The crisis is the result of several situations. It does not appear overnight. Rather, it occurs as a result of many unresolved situations. It is therefore not enough to seek to resolve it. We must first be aware of this. Hence the importance of risk culture, which can be integrated into corporate culture.

Identify the problem

The crisis does not happen overnight. It is indicative of an imbalance in the organization and management of resources in the company. Several situations within the company therefore contribute to its appearance. For good crisis management in business, it is necessary to identify the problem effectively. The identification of this problem requires the search for the causes and manifestations of the problem.

The causes of the problem are related to the risks identified in the company’s risk culture. The problem can therefore be financial, organizational, industrial, social (relationship between employees). It can also originate from the abrupt departure of an important member of the company. But, it may not have only one origin. To identify it quickly, it is important not to turn a blind eye. Each of the unusual situations that the company has experienced in recent days must be analyzed. This will be an opportunity to find the causes that are at the origin of these situations.

Internal problems of any kind are likely to affect the quality of products and services and consequently the e-reputation in business. They are the source of the crisis affecting the company. They must therefore be resolved in a sustainable way for the company to continue to thrive. But, before finding the ideal solution to solve them, it is necessary to know the cause or causes on which to act. For this step, you can use a manager to bring their expertise as well as a fresh and objective look at the situation.

Mobilising the crisis unit

In general, the crisis unit only comes into action in a crisis situation. It exists to develop and implement the company’s crisis exit strategy. It is composed of permanent members and others who are called upon as required. For effective crisis management in companies, the crisis unit must be composed of competent employees with additional knowledge. Each of these members has a different area of expertise and brings their experience to the resolution of the crisis.

Other members external or internal to the company can be added to the crisis unit as needed. This addition is necessary when the area of expertise sought is not represented. Since the crisis unit is intended to manage the way out of the crisis , it is composed of certain managers of the company. The manager, community manager or any other image and communication manager useful in the crisis unit.

Members of the company’s communications team handle internal communication and content for people outside the company. Discover the interest of internal communication in companies and employer branding. The primary objective of the crisis unit is to find a rapid, lasting and effective solution to the crisis . For this, employees must be in the best conditions. You can therefore set up a space for meetings of the crisis unit for decision-making.

Company employees who are external to the crisis unit also have a role to play in crisis management. Their role is even more important when the crisis affects the company’s brand image. How do employees contribute to improving the company’s brand image?

Develop potential scenarios

For good crisis management in business, it is necessary to anticipate. There are different levels of crisis in business. Depending on the nature of the problem to be solved, the crisis can be classified as major or minor. When the crisis is minor, in general, it can be resolved easily and effectively. But, if the crisis is major, it stems from the dysfunction of several departments of the company. The problem may be general and may even last over time. In this case, all possible scenarios must be considered.

This step consists of looking for the consequences of the crisis in the long term. The members of the crisis unit are therefore wondering what situations might arise in the future and arise from this crisis. Thus, they anticipate the evolution of the crisis and are able to put in place a long-term crisis management strategy. If the crisis is likely to affect the brand image and e-reputation of the company, it is necessary to think about an e-reputation strategy.

The development of potential scenarios is purely hypothetical. To be sure to anticipate as many consequences as possible, it is therefore necessary to rely on the risks. Each risk that contributed to the onset of the crisis must be analysed. This analysis makes it possible to identify situations that could escalate the crisis and therefore aggravate its consequences.

Establish an action plan

The procedure for managing a crisis in a company must be efficient. This requires finding the best way to manage the crisis with as little time and resources as possible. That is why an action plan must be drawn up. Team cohesion is essential for the action plan to be implemented quickly.

Set specific objectives

The action plan is not drawn up blindly. In order to carry out efficient actions, it is necessary to start by defining the objectives of crisis management . In all companies, the overall objective is to manage the crisis situation effectively and to emerge from it with as little damage as possible. The specific objectives depend on the nature of the crisis. They serve as guidelines for taking action to end the crisis.

Putting solutions in place

The identification of solutions is based on the origin of the problem. The crisis unit therefore finds the crux of the problem and proposes appropriate solutions to solve it effectively. The solutions put in place are aimed at the long-term resolution of the problem identified.

Putting everyone at the same level of information

For the action plan to be truly effective, everyone must play their part at the right time. It is necessary for the head of the crisis unit to put everyone at the same level of information. Everyone will be assigned a task and all members will have to work in synergy to facilitate the way out of the crisis.

Choose spokespersons

The spokespersons will be upstream of the communication strategy for the management of the crisis. They represent the company both internally and externally. They must therefore be carefully selected and prepared to fully assume their role as communicators.

Prepare messages to be broadcast

The company’s communication officers must prepare the messages to be disseminated. According to the strategy developed by the crisis unit , they will have to produce messages for employees and customers. Messages to employees are used to reassure them and explain crisis management approaches. Thus, they feel accepted and involved in the process of ending the crisis. This involvement of employees contributes to the improvement of QWL: employer brand and employee loyalty.

The messages addressed to the customers aim to inform them and assure them that everything is being done to resolve the issue that caused the crisis. This way, they feel valued and do not seek out a new service provider.

Taking stock of crisis management

Although the onset of a crisis is a situation feared by all companies, it still has its share of advantages. As soon as the company is out of crisis, it is an opportunity to take stock. This concerns the origin of the problem, the means used to solve it effectively and the results obtained. The whole team therefore makes a point and it makes it possible to anticipate and avoid crises in the future.

The company that succeeds in emerging from a crisis already has an established protocol for crisis management in business. It is therefore more able to react to crises. In addition, it can more easily see indicators of an impending crisis and can solve the problem before it escalates. Situations such as employee burnout can quickly put the company at risk. To prevent this situation, find out how to prevent employee burnout in companies? The stocktaking stage of crisis management is decisive for the future of the company. Indeed, based on this experience, the company members pay more attention to detail. Thus, they avoid adopting attitudes that will lead them to the same consequence. This is an opportunity to improve the internal organization of the company and make decisions for the survival of the company. Discover some examples of crisis in business. These examples will allow you to draw a parallel and identify the situations that your company may potentially encounter, to avoid them.