Crisis Incidents the Last Decade Term Paper

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[. . .] Leaders are prone to attend to those who are most active and vocal in their work. This may include shareholders and stakeholders. This may create a communication gap and create a void of perspectives (Groom and Fritz, 2011).

If Ford had taken heed of its customers earlier or listened to their risk management team before, a contingency plan would have been created. This wouldn't have a crisis buildup. Firestone neglected the red flags as insignificant (Groom and Fritz, 2011).

The leaders should gather opinions from all segments of their departments. This includes top to lower hierarchy. Leaders should influence their management to let the subordinate's voice their concerns and work accordingly. Crisis experts examine thoroughly with a strict eye and reflect on the data collected. The leaders can challenge their own perspectives (Groom and Fritz, 2011).

Leadership in preparation and prevention stage of a crisis:

This is the phase where leaders engage to deflect a crisis. This includes making crisis policies, strategies, procedures and creating schedules for crisis drills. This doesn't mean all forms of crisis will be subverted. This means that leaders will be able to better manipulate crisis if they materialize out of the blue. When an organization is ready for a crisis situation, it copes well. Leaders should be well aware of the strata of its organization and make a failsafe plan accordingly. Otherwise, it can affect an organization negatively. In this way, a better crisis management is created which features the entire strata of an organization. For instance, Wal-Mart was better prepared when Katrina Hurricane occurred. Government agencies scrambled and flip flopped meanwhile. Wal-Mart gathered its basic supplies needed in times of need. Wal-Mart served the American population well than government in comparison. The CEO of Wal-Mart was all set for a crisis situation with previous experience. He set up teams for work in this case, which was a lesson to learn for the American government agencies (Mueller, 2010).

So creativity in this case can work wonders for a given organization when new ideas, products, services and processes are required. Creativity is intensely required when a crisis occurs as a contingency plan needs to be made. This requires going beyond conventional rationalization. Competent leaders are to locate a crisis earlier. Scenario planning is also important in creating maps for reference and use later on (Mueller, 2010).

Leadership during damage control stage of crisis management

Leaders are occupied with solving a crisis and contain the damage control which takes toll on their time and attention. But business recovery is also required. Crisis containment is needed to keep a crisis from multiplying and expanding. The leaders in this phase aims to limit financial, repute and stakeholder damage (Dezenhall and Weber, 2007).

This phase of crisis ensues:

A: Acting speedily and decisively

B: Adaptive organizational structure

C: Being open minded

Acting speedily and decisively

Leaders must reach a decision under pressure. Crisis is deadly if left unattended. Therefore, immediate action is required by the top management. The time to think and ponder is little. In 1982 during Johnson & Johnson crisis, the management was lightning quick with its product modification. They pulled out their products from the shelves. Although the complaints received were from Chicago city only. This did cost Johnson & Johnson dearly in terms of finances. In the bigger picture, they regained the public trust again with their quick action. Their clientele did notice their quick response and remained loyal as before (Dezenhall and Weber, 2007).

An adaptive organizational culture

The organization must learn to adapt and change its behavior accordingly when external pressure is applied. Work takes on a whole new meaning in case of crisis management. Working style changes, approaching stakeholders, communication and resources are all reallocated. Collaborating together and sharing new ideas can work wonders in this case. Gene Krantz played a pivotal role in Apollo 13 space mission. During emergency situation, Gene Krantz worked together with his crew. He reframed and redesigned solving complications (Dezenhall and Weber, 2007).

Being open minded

The leadership must communication efficiently. Due to communication barriers, crisis materializes adding fuel to the fire. The leadership must take charge of the situation and work together with top to bottom hierarchy. Reassurance and maintaining calm is necessary. Leaders need to be confident, compassionate and persuasive (Dezenhall and Weber, 2007).

Leadership during recovery of business stage of crisis management

The role of crisis management is to rotate back to normal business days. Top management is busy convincing stakeholders about recovery. Smart leaders consider both short-term and long-term effects of a business crisis and recovery. It requires thinking outside the box. This is called resilience. Maintaining positive attitude is the key here. Avoiding minor setbacks and absorbing strain is all it requires. Bouncing back from the crisis is the quality of a true leader (IRGC, 2011).

Leadership during learning and analyzing stage of crisis management

Crisis management is all about being competitive and well prepared for an unexpected red flag. Being experienced and well managed means restoring order to its previous stage. Sometimes, leaders neglect crisis management after business recovery phase commences. Crisis management is imperative to learn from past bloopers. Crisis must be seen as openings for a new curve to learn, adopting from new measures and use past experience for developing latest practices and processes which turnarounds an organization's outlook. This creates a void for innovation and problem solving situations (IRGC, 2011).

Conclusion

Leadership does play a pivotal role in responding and eliminating a given crisis in an organization. Leadership is all about adapting, learning along the way, foreseeing the future and trusting your workforce to deliver stellar results when needed. This brings affirmative changes in an organization and takes crisis out of the equation. Crisis leadership is all about being in the field when retreat seems an easier path. Human mechanisms kick in and being defensive is the obvious choice here. Crisis leadership is also about learning from each other's failures and successes. Heavy decisions are needed to be taken when circumstances require to. Leadership is all about leading the organization out of the pit into safe haven. Trust of stakeholders is also needed for their due approval in collaboration (IRGC, 2011).

References

OECD (2011), OECD Reviews of Risk Management Policies, Future Global Shocks, Improving Risk Governance, OECD Publishing.

Dezenhall, E.; Weber, J. (2007). Damage control: Why everything you know about crisis management is wrong. Portfolio Hardcover.

Erickson, Paul A. (2006). Emergency Response Planning for Corporate and Municipal Managers (2nd Ed.). Burlington, MA: Elsevier, Inc.

Barton, L. (2007). Crisis leadership now: A real-world guide to preparing for threats, disaster, sabotage, and scandal. New York, NY: McGraw-Hill.

Groom, S.A.; Fritz, J.H. (2011). Communication ethics and crisis: Negotiating differences in public and private spheres. Madison, New Jersey: Fairleigh Dickinson University Press.

Mueller, N. (2010), "Proposition for a multi-dimensional, integrated approach for a crisis management system on a national… [END OF PREVIEW]

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