Crisis Management Article Index for
Crisis 		Articles about
Crisis Management 		Website Links For
Crisis 		 

Information About

Crisis Management
APPAREL
BABY
BEAUTY
BOOKS
CAR TOYS
CELL PHONES
DVD'S
ELECTRONICS
GOURMET FOOD
GROCERIES
HEALTH & PERSONAL
HOME & GARDEN
JEWELRY
MUSIC
MUSIC INSTRUMENTS
OFFICE PRODUCTS
SOFTWARE
SPORTING GOODS
TOOLS & HARDWARE
TOYS
VIDEO GAMES
SHOPPING HOME
MORE SHOPPING...



Many school districts also have developed crisis response guides, which identify potential situations such as fires and other disasters, bomb threats, confronting unwelcome visitors, violence (and threats thereof) and the death of a student.

In general terms, the theory of crisis management can be divided into crisis bargaining and Negotiation , crisis Decision Making , and crisis dynamics.


IN MANAGEMENT

In business there are three main types of crisis:
  • Financial crisis - short term liquidity or cash flow problems; and long term bankruptcy problems

  • Public relations crisis - negative publicity that could adversely effect the success of the company

  • Strategic crisis - changes in the business environment that call the viability of the company into question - for example the introduction of the automobile was a strategic crisis for buggy-whip manufacturers


Certain preliminary measures need to be taken to prevent a crisis. Companies should always plan ahead and project likely outcomes. They should avoid decisions that have the potential to turn into a crisis. They should know their " Worst Case Scenario s" and have a contingency plan for it.

If prevention has not been successful, then the following six steps should be undertaken immediately:
  • Do an objective assessment of the cause(s) of the crisis.

  • Determine whether the cause(s) will have a long term effect or whether it will be a short term phenomena.

  • Project the most likely course of events.

  • Focus all the most capable people (including yourself) on activities that will mitigate or eliminate the problem.

  • Look for opportunities - there could be a "silver lining"

  • Immediately act to guard cash flow.


If it is a financial crisis do not wait for further evidence before acting. Immediately take actions to maintain or increase cash flow. These could include:
  • accelerate accounts receivable payments even if this requires the granting of discounts

  • decelerate accounts payable payments even if this means losing discounts

  • increase short term sales

  • maintain or increase profit margins on sales if possible

  • reduce expenses:

  • --- eliminate non-essential expenses

  • --- sell non-mission critical assets

  • --- reduce payroll

  • --- outsource non-mission critical operations

  • renegotiate loans and other debts wherever possible - obtain interest-only loans or extended payment terms


If it is a public relations crisis, act immediately to prevent or counter the spread of the negative information. Containment may require intense media activities. Use every media available to you to provide a counter argument or question the credibility of the original negative publicity.


SEE ALSO