Crisis management: How great leaders handled setbacks
The Editorial Staff
Crisis management skills help to control both leadership and organizational crisis and it is important for all leaders to learn the craft.
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The Harvard Business School experts extensively study crisis management practices. They say leaders can use crises management principles to turn hardships into lucrative opportunities. How? Is it workable? A restaurant owner, Bruce Kroll, sets an excellent example for us.
Crisis management success story of a restaurant owner
When his restaurant collapsed during a devastating fire break out, he handled the situation unconventionally. He had 40 employees working for his restaurant. All of them knew they were out of work and will need to find an alternative source of income. Instead of backing out, Bruce rushed to rescue them. He paid them out of his pocket during the rebuilding of his restaurant.
When Bruce confronted an opposition about his decision, he said he saw the whole situation differently. He stayed calm and thought it was good to invest in employee loyalty. Did Bruce win the employee's confidence and support he foresaw?
Reportedly, many of his employees continued working at the restaurant for the next five years simply because of the owner and his excellent help. They joined him six months after when his restaurant reopened. When the restaurant was closed during the festive seasons, many of his employees volunteered for social works.
So, when many presumed the situation as a severe crisis moment, Bruce reversed its effect and turned it into an opportunity. His effective crisis management strategy earned him employee loyalty.
It takes exceptional managerial skills to control crisis management.
Crisis management—an opportunity to emerge a winner
A person with an exceptional leadership quality can help prevent reputation damage. If you’re a good leader, we’ll assume you know its feasibility and applicability during challenging moments. However, how you perceive this managerial practice, which way you would like to implement such principles, and how you believe it can help your organization preserve its corporate image is critical to come out of any business crisis.
It is not only enough to develop crisis management skills. It’s the ability to understand business communications and implement a sharp response to crises that will go a long way to save your corporate enterprise. Leadership crises are bound to emerge, and you should be ready to respond proactively. You should be able to develop a crisis management plan with practical crisis communication tools available. There are a significant number of firms and institutions that assist in crisis management. The Institute of Public Relations, for example, provides extensive programs and tools for managers.
Crisis management essentials
Good leaders and entrepreneurs find out ways to flip a challenge upside and reap the opportunities hidden inside. Effective crisis management strategies are crucial tools in handling difficult situations.
Second, you’ve to become a man of action. Whether it’s a crisis in an organisation or in an employee’s life, winners never backout. We will get nothing if we cry or blame our luck on an adverse situation. We’ll have to sort out and find a solution to suppress the problem.
Here is another example. We all know Steve Job was a visionary. But his trivialising attitude put several challenges in front of his team. He assigned aggressive deadlines. He lead his manufacturing team to develop a particular glass for the first iPhones. The team figured out ways to transform the production facility to meet the deadline by making the glasses within six months.
It is important to note here that though Steve showed leadership in perusing a vision, his team also showed organisational leadership to avoid a business crisis. But did they profit? Your guess is good as mine. Did they give up on challenges? No, instead, they found out ways to turn the crisis into a promising opportunity. Creating an opportunity is how you overcome a problem in management.
Personal crisis management abilities are essential to overcome your fears during crisis periods. Such qualities challenge you to do the right thing. It enables you to see well at the end of the tunnel. It empowers you to maintain positive interactions, even in the face of desertion or criticism for the business decisions you take. You can become an exceptional manager through the empowerment of cumulative wisdom.
Want to know more about crisis management? There are several books from Harvard to learn how to master the skills to prevent a disaster in your specific endeavour.
The Editorial Staff
The Editorial Staff at The Business Frontal is a team of writers dedicated to bringing seasoned news stories and how-to business articles to our readers and patrons to help maximize their entrepreneurial potentials.
