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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Not Being a Hero

Entrepreneurs might think of themselves as heroes trying to hit a home run or create miracles. Is this helpful?

Heroes are generally created infrequently and for a very short time. While you might feel that you have to rescue your company from all situations, it is not always possible and more importantly not the right thing to do. A crisis manager in one situation is not always a great leader.

Successful companies need long-term leadership that builds the organization and the employee team to solve problems and exploit opportunities in the absence of the leader. Dependence on a hero can only work in the short term or in a few instances.

While Entrepreneurs might think of themselves as “super-heroes” for starting the company and making it grow though its infancy, strong business leadership is necessary to nurture it for long-term growth and success.

Be a leader rather than a hero!

Ravi Patel

www.patelCFOservices.com

Published in: on August 11, 2015 at 3:54 am  Leave a Comment  
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Surviving a Crisis

Entrepreneurs go through day-to-day crisis situations when building their companies while facing economic and governmental uncertainties in the market place.

Each day seems like a fight to survive so you can live for one more. This takes a lot of strain and toll on the Entrepreneurs and key employees. Some cannot bear the pressure and give up. The fighters bravely battle on and their persistence eventually pays off.

While crises face all Entrepreneurs, the ability to not only manage them when they happen, but also to reduce their frequency will allow the Entrepreneurs to “live” instead of “fight.”

Anticipating negative events and potential threats, planning to mitigate them, and implementing warning systems to alert you well in advance of the crisis will allow you to live more and fight less.

One cannot eliminate the occurrence of a crisis, but how well you learn to manage it will reduce the stress and allow you to live freely.

Ravi Patel

http://www.patelcfoservices.com

Published in: on March 31, 2015 at 3:45 am  Leave a Comment  
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