Managing crises: Keep a cool head!

Close your eyes and get through it - this is the motto that companies often follow when they are in crisis. But it is precisely then that it is important to open one's eyes and set a new course. So that the crisis does not turn into a catastrophe.

Crises in companies: Instead of hectic and blaming each other, you need a cool head. (Image: Antonioguillem - Fotolia.com)

The company's executive suite is like a swarm of bees. Executives are rushing from one meeting to the next, and employees are ducking their heads to avoid being caught in the impending storm. The reason for the hectic activity: the current quarterly results. Completely unexpectedly, the company slipped into the red. So those in charge are now rushing from one meeting to the next to discuss what to do in this tricky situation.

But the hectic back and forth is not productive. Because the question keeps coming up: How did it get this far? And, at least indirectly, the question: Who is to blame? Just when all those responsible should be acting effectively together, they get caught up in mutual recriminations. Or they use the situation to settle old scores. What's more, very few people are playing with their cards on the table, because they are afraid: If I'm not careful, I'll be pilloried.

Crises are often recognized and named late

This is also the reason why many crises are only recognized and named when it is already too late. Because no one dares to say openly: "If things go on like this, we'll end up in a crisis." Because everyone fears; Then everyone else will fall over me. So they prefer to keep their mouths shut and hope that things won't get so bad or that someone else will open their mouth and take a beating.

This is why bad figures are often covered up and quality deficiencies concealed until the first major customers withdraw their orders. That's why managing directors often hesitate with painful decisions until the bank pulls the ripcord. And that's why projects are still pursued even when it's long been clear to everyone: We'll never achieve the project goals. Accordingly, it is important to create a structure and culture in companies that enables risks and problems to be identified and named at an early stage.

External moderation often helpful

And if a crisis does occur, those responsible should first be aware of it: Crises can be managed - if you keep a cool head. However, those involved in crisis situations often fail to do just that, because they themselves are more or less affected. That is why it is advisable to call in an external moderator in such situations. The moderator creates the necessary framework conditions at the crisis meetings so that those responsible can overcome the crisis together.

To do this, they should analyze together in the first step: What alternative actions do we have in the current situation? These are usually more numerous than they appear in the initial panic. Especially when solutions are considered that were previously taboo in the company - because they run counter to the usual approach. Or because they challenge established structures and privileges. Or because they contradict (at first glance) the company's self-image.

Also discuss unusual solutions

Once the possible solutions are on the table, they need to be evaluated - starting with the question: What will help us best in the current situation? Here, too, external moderation is often helpful. This is because certain solutions are often not discussed seriously, even in crisis meetings - because those present would have to change their behavior or give up certain privileges in order to do so. If no one dares to suggest something like this, an external moderator can provide an advantage. For example, by asking: "Under what conditions could this solution be realized?" Then suddenly statements like: "If the decision-making powers of the sales department were expanded." Or: "If the requirement xy would no longer apply."

Only when the possible solutions have been evaluated in terms of their feasibility and their advantages and disadvantages can the parties involved reach agreement: We take the following action.... At the same time, they should agree: Who does what by when? When do we check whether the measures are having the desired effect? And: How do we measure this? This is the only way they can take countermeasures in good time if the measures do not have the desired effect.

Learning for the future

Only when the crisis has been resolved should those responsible sit down again to discuss the questions that were so burning on their minds at the beginning: How did the crisis come about? And: Why didn't we recognize it earlier? Because now they can address these questions in a much more relaxed manner - because the pressure to act is no longer so high. That's why there is also less blame and personal hurt.

In addition, such a meeting should discuss what has worked and what has not worked in overcoming the crisis. In this way, the necessary conclusions can be drawn from the shared experiences and the required (structural) changes can be derived so that the company does not slip into similar crises again.

To the author:
Klaus Doll, Neustadt an der Weinstraße, works as a business and executive coach for companies (Internet: www.doll-organisationsberatung.de).

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