Crisis Management Principles for Business

There are a few underlying principles, or management laws, for conducting business when your enterprise is in crisis. If these principles are violated your business may survive, but your job will be much more difficult and your chance for a successful outcome is considerably reduced.

Here are the crisis management principles for business that I believe must be adhered to when you are trying to turn your failing business around:

• 1. HONESTY.
  This is the most important business crisis management principle. This is the one that can make or break your turnaround effort. Of course, this is one of the management principles you should have been adhering to all along. Now, you will have to be negotiating, convincing, asking favors, making promises, etc. to everyone affected by your business. If any of these efforts are to succeed, people need to believe what you say. If you make a promise to someone, make sure you can deliver, otherwise; your promise will be worthless next time. In a time of crisis your word is your gold standard—don’t tarnish it!
• 2. MORAL & ETHICAL STANDARDS.
  We live in a time when moral and ethical standards vary substantially from person to person, but for the business-in-crisis there is no room for that kind of behavior. This specific crisis management principal for business requires that you establish a policy—and practice—of high standards. When your bar for moral and ethical behavior is raised above that of society in general, you cause those involved in your business to rise with it.
• 3. TRUST.
  If you want those involved in your business to trust you to get your business through the crisis, then you must trust them equally. This is especially true if your have eliminated some (all?) layers of management and you now work more closely with everyone. You need to tell your employees what you expect as an end result, make sure they are properly trained, and then trust them to get the job done.
• 4. PERSONAL AVAILABILITY.
  “Open door policy.” “Management by walking around.” These are some of the terms that have been thrown around by the experts, but they do describe what you must do when overseeing your business crisis. Stay out of peoples’ way and let them do their job—but be visible and available to answer questions, offer support, and help where help is needed. You are the chief morale officer of your business-in-crisis and that job can only be done by being available.
• 5. RECOGNITION.
  In my final crisis management principal for business lets examine how the experts have developed strict standards, guidelines, rules, forms, pay scales, grades, etc. This has caused the barriers between management and employees to grow bigger through the years. Yet, employees tell us that intangibles, such as, respect, environment, personal interest, and recognition, are more important than money. When your business is in crisis everyone is doing something extra to try to save your business. So, make sure you show your appreciation when someone (or everyone) does a good job. A handwritten personal note of thanks and appreciation, a barbeque on the lawn, a pizza party in the shop or office, etc, etc, Think “recognition” and you will come up with lots of ideas.

Well, the list of crisis management principles for business may be short, but ignore any one of them and you just make your job that much more difficult. Ignore them all, and your business-in-crisis will fail—guaranteed!

For more information about crisis management principals for business and other turn around strategies you can get your own copy of Be Your Own Turnaround Manager: A Common Sense Guide to Managing a Business Crisis.