"The new decade was introduced with a wave of unexpected events that no organisation was prepared for. It’s becoming more difficult to maintain stability, with most businesses experiencing economic challenges. Effective crisis management practices should be put in place to avoid such situations.
A study conducted by the Oxford Executive Research Study Centre revealed that companies with effective crisis management practices were able to reduce negative capital impacts by 60%, whereas companies with a lack of these practices suffered capitalisation losses up to 11% and stock price losses of 15% (West, 2003). Despite the clarified benefit of these practices, evidence showed only 30% of organisations have crisis management plans (Henry, 2000). It is evident that crisis management practices play a significant role in determining a business’ success or failure.
Poor crisis management techniques can lead to disruptions in overall profitability and take a large toll on revenue and turnover rates. So where do we start when putting together a crisis management plan?
When faced with a crisis, most companies may make the mistake of overly focusing on external resources - but what about the internal ones? In times of need, it’s most efficient to focus on what’s already at hand; the people within a company are what discerns real growth opportunities."