Leadership is to have inspired, energized
followers. -Warren.G. Bennis
The Cult of the heroic leader remain strong.
- Loren Gary
The Crisis is a change – sudden or evolving –
that results in an urgent problem that must
be addressed immediately.
Crisis are not the normal ups and downs of a
business cycle those recurring problems
faced in the course of taking risk and
exploring new avenues of opportunities.
Yet some good can come out of these difficult
A crisis is an event that can affect or destroy
an entire organization.
There are 4 types of crises:
Natural or Company related events
Economic & market forces.
Business relationship crises.
In the category two types of crises fall i.e.
Uncontrollable natural events:
1. They strike unexpectedly.
2. This event may take the form of an earthquake,
typhoon, tornado,hurricane,bizzards,flood,fire,or some
natural disaster that crushes buildings, destroys
infrastructures and interrupts the communication.
Health & environmental disaster:
1. A health and environmental disaster related to a
company is a disastrous event that, though it not
necessarily caused by a company is directly related to
The company is either responsible or perceived to
be responsible for dealing with it. For example:
An outsiders tampers with the product that will not
only harms consumers but also damages the
overall image of the company.
Serious product problems come to light.
Environmental pollutions is unknowingly caused by
your company in years past.
Catastrophic accidents like oil spills, radiation,
leakage, occur in company’s watch.
In case of natural crises there is no
preventive steps. But Company crises
can be prevented through proper
verification and preventive action taken
before the happening.
Everyone knows what it’s like when a company’s
server goes down. Completely disaster.
In this information age we are extraordinarily
dependent on technology to communicate , do
research, buy, & sell.
Some of the technological problems that could
turn into crisis:
Data Loss, Security Breaches, Communication
Technology, Outmoded equipments.
Avoid technological breakdowns by
keeping computers and other systems
up to date and troubleshooting quickly
when problem do arise.
With global economy and high speed
information, markets and economies change
far more rapidly than before. Such as:
Avoid ongoing financial crises by fully funding
development projects from the beginning.
All business depend on people within the
company and outside.
When crucial period comes such as:
Vendor fails to deliver critical supplies.
When an employee is caught embezzling
money from a client account.
When major customer goes out of the
Avoid relationship crises by confronting and
Negotiating problems before they escalate.
Avoiding the crisis
Preparing to manage the crisis
Recognizing the crisis
Containing the crisis
Resolving the crisis
Learning from the crisis
Facing the crisis- turning fear into positive
Being vigilant- watching for new
development & recognizing the importance.
Maintaining focus on the priorities-ensuring
that people are safe first.
Assessing and responding- to what is in his or
her control and ignoring what is not.