11 Insights into (strategic) crisis management

Dora Horjus

Executive director COT, instituut voor veiligheids- en crisismanagement

Marco Zannoni & Dora Horjus

"Bad companies are destroyed by crisis. Good companies survive them. Great companies are improved by them” (Andy Grove, former CEO of Intel).

This quote touches the very core of crisis management. Crisis situations can determine the continued existence and the (new) future of organisations. We set out the 11 most important tips for good crisis management.

1. Build crisis capability Being prepared for crisis is a choice. It
is precisely those companies who have everything in order that
invest in crisis management. They know how resilient or well-prepared their organisation is in terms of leadership, decision-making under pressure
and situational awareness. Training and exercises focus on what is not available in the organisation and enhance what is.

2. Take the lead Leadership starts before a crisis. By encouraging a culture in which mistakes can be reported, malpractice is addressed and (near) misses are
actively monitored and learned from. In times of crisis, the crisis operation needs calm and determined leadership. Leadership creates trust and provides clear directions for people. This is what is important to us now and how we will get
ourselves out of this situation.

3. Start with a diagnosis Any approach to a crisis should start with a razor-sharp diagnosis. What’s (really) going on? What crisis are we managing and what is the seriousness of the situation? This means you have insight into the facts, the parties, the impact being experienced and the factors and people complicating or simplifying the situation. This has to be a shared picture of the situation so that you
don’t have one team member managing a technical incident while another sees it as a sector-wide crisis.

4. Deciding in times of uncertainty Critical decisions can escalate or de-escalate a situation. For example, the closure of branches, the resignation of top management and the payment of claims. Critical decisions are rare, always have major consequences and are usually a case of ‘choosing between two evils’. They can only be taken properly if you are aware of the (often controversial) options and the impact of your decision on all stakeholders. Don’t forget to pay attention to critical decisions that may be taken by others (authorities, investors, etc.).

5. Focus on impact What impact is the crisis having on those directly involved and for the organisation itself? These are the two key questions to be examined. How is the situation affecting your license to operate? How can you retain it? And how can you help those directly involved? Take measures to reduce or even avoid the impact in the short and long term.

6. Discover the special nature Each crisis has its own characteristics: a slow or speedy progress, the involvement of authorities and the high or low knowledge of the issues. It is important that you have an eye for the specific nature. This is not an easy search process. Start with what you have prepared or with what you have in-house like procedures, plans, knowledge & expertise within the organisation. As a crisis leader remember to look at what is really needed to manage the special nature of the particular situation.

7. See the situation as it is Organisations who have a common practice of monitoring and setting guidelines have an advantage in times of crisis. Monitoring should be active, arranged and disciplined. A media analysis is a good starting point. Enhance this with stakeholders’ reactions (customer care centres, supervisory bodies and signals from within the organisation). Take good account of the ‘game changers’ (for example proof of foul play) and the actions of influential stakeholders.

8. Work as a team Any crisis managed unilaterally by lawyers, technicians or for example communication professionals is doomed to go wrong. Success needs the integral approach of these disciplines. Set up a multi-disciplinary team under your leadership. This team will act based on the same situational picture, the same leading principles and the same priorities.

9. Work with a time line A crisis doesn’t disappear after two days, but is defined by a long, persistent period (the ‘recovery and aftermath’). A time line is an
essential tool in the early stage to identify critical moments such as the expiry of statutory terms, a weekend and possible decrease of victims. Later you will use the time line to anticipate moments when a situation might flare up. Consider the start of criminal proceedings, one year remembrance, the findings of an investigation, the political discussions. Many of these moments can be predicted, require capacity and focused preparations.

10. Act and tell Your organisation will only survive if you do the right things and communicate in that precise order. Behaviour and actions create a reputation and not the other way round. Your measures will be under a magnifying glass. This means you have to be aware of who communicates with who and when. You have to communicate in the proper order and with the right messenger. The golden rule is: pay particular attention to preparing your very first performances (for staff, press, politicians, investigation committee) down to the minutest details. Every word counts.

11. Gain and restore trust Each crisis marks the start of a loss of trust of customers, staff, supervisory bodies, investors, media and others. This reduces
your license to operate and limits your ability to do what your organisation wants. Therefore it is in everyone’s interest that you (re) gain trust with perseverance and a consistent (read: reliable) approach. Close each crisis with two questions: is everyone’s trust restored and what can we learn and in particular improve in our organisation?

In their day-to-day life the authors in this publication provide leadership within the COT | Institute for Safety Security and Crisis Management, based in The Netherlands. Both have in recent years frequently provided advice during crises in the private and the public sector.