Dealing With Crisis Situations

 

Everyone occasionally faces a crisis situation or perceived irregularities in their business. Entrepreneurs are no exception. How they deal with the crisis and potential negative perceptions separates calm, professional leaders from all others.

Some suggestions for Entrepreneurs:

  • Never overreact to situations where there is employee dissatisfaction, customer, or vendor complaints. Analyze the situation calmly before taking proper corrective action, instead of taking hurried actions due to external pressure.
  • If you do have a serious situation, do not create a smokescreen and divert attention away from it to hide the real problem.
  • Do not focus on the small or minor issues in managing your companies; focus on the larger or macro issues for greater impact. Let your management team manage the details.
  • If you need to make a statement or message regarding any irregularities in your company, do it for significant issues not trivial ones. If you mostly emphasize minor matters, your employees are going to be dismissive of such gestures.
  • Be sensitive to the message that you send with your actions. For example, if you are being austere or are having cost reduction programs, do not have bonuses or spending that is contrary to the current environment in your company. Having incentives is not inappropriate, but make sure that they are related to the right objectives and are perceived positively.
  • When you are borrowing a lot of money, do not spend it on bonuses or management extravagance.

While the above sound obvious, sometimes we tend to lose sight of reality and the negative perceptions that are created.

Ravi Patel

www.patelCFOservices.com

 

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