How to deal with internal crisis
Companies have from time to time internal crisis. Some thoughts about how to deal with them
Internal crises can have a significant impact on a company's operations and reputation. And while they can be a difficult time for the company and the entrepreneur, they also serve as a learning experience for future actions and decisions.Â
To deal effectively with an internal crisis, it is important that the company has a plan and acts quickly. Here are some tips for dealing with an internal crisis that I have found useful in my life as an entrepreneur.
#1 Identify and assess the crisis
The first step in dealing with an internal crisis is to identify what is happening and assess the potential impact on the company. This includes identifying the cause of the crisis, the severity of the situation, and the potential consequences if left unaddressed.
#2 Communicate with stakeholders
Effective communication is key in any crisis situation. This includes communicating with employees, customers, shareholders, and the public. It is important to be transparent and provide accurate information to prevent speculation and rumors.
#3 Take action
Once the crisis has been identified and assessed, it is important to take action to address the situation. This may involve implementing a plan to resolve the crisis, as well as taking steps to prevent similar situations from happening in the future.
#4 Establish a crisis management team
Having a dedicated crisis management team in place can help to ensure that the company is prepared to respond to a crisis. This team should be responsible for developing a crisis plan, communicating with stakeholders, and taking action to resolve the crisis. I know that in newly created startups, where there are not yet many people working on them (less than 10 employees), it is difficult to have a specific team dedicated to crisis resolution. That is why, in these cases, the whole team will be involved in managing the crisis.
#5 Implement a crisis communication plan
Developing a crisis communication plan can help to ensure that all stakeholders are informed and that the company's message is consistent. This plan should include guidelines for communicating with employees, customers, shareholders, and the public, as well as a plan for managing the company's social media channels during a crisis.
And, a word of advice, although you will never know the reason for the crisis, from experience I recommend having a basic contingency plan, with a guide of processes and actions to be taken, which can be used as a basis for this type of situation and adapted to the particular crisis.
#6 Train employee
It is important to train employees on how to handle a crisis and what their roles and responsibilities are. This will help to ensure that they are prepared to respond effectively in the event of a crisis.
#7 Review and improve
After a crisis has been resolved, it is important to review the situation to identify what went well and what could be improved. This will help to ensure that the company is better prepared to handle future crises.
In conclusion, an internal crisis can have a significant impact on a company. It can damage the company's reputation, financial stability, and operations. It also can create a negative impact on the employees and the company culture. Therefore, it is important for companies to have a crisis management plan in place to mitigate the effects of an internal crisis and to quickly and effectively respond to it. Additionally, companies should also strive to proactively identify and address potential internal crisis situations to avoid them from occurring in the first place.
More to watch:
https://www.ted.com/talks/amy_c_edmondson_how_to_lead_in_a_crisisÂ