Crisis era
Business crises happen every day, from serious accidents to McDonald's notorious coffee spill. In his introductory chapter in the book Crisis Manager: Facing Risks and Responsibilities, Otto Rebinger will now be described as a crisis era, reflecting the increasing scale and complexity of modern technology and industrial organizations. In the 1980s, since the 1970s, product damage litigation has increased dramatically, and signs of rising corporate crisis frequency have been discovered. Later, in the 2000s, the frequency of crises was higher, and corporate customers, media and communications professionals, risk and insurance management practitioners, scholars and government officials generally supported the argument that an increasingly turbulent The frequency of crises in the world is increasing.
There is no doubt that the global economy has intensified competition, shortened the product life cycle and increased the risk of failure. In addition, people are increasingly concerned about corporate social responsibility as a competitive advantage, ensuring that companies can solve social problems and are responsible for the environment, labor standards and human rights.
Another aspect of crisis management has also emerged in the past few years; media has continued to be disseminated through Internet news sites and social media. The company is constantly facing and being hit by new information, causing the crisis to grow from one hour to one hour, so it is necessary to manage the crisis through rapid response.
crisis awareness
Living in a crisis era makes it more and more likely that managers will face a crisis at some point. Therefore, any company that relies on public opinion and reputation, at least in a sense, should be prepared in the event of a crisis. Being prepared means developing a management system, assessing potential threats and dealing with any crises that may arise. Therefore, crisis management involves not only the reaction behavior after the crisis, but also the active preventive measures to prevent the outbreak of the crisis. When possible, prevention is always better than reacting after something goes wrong.
Still, while the crisis may challenge the company's reputation and survival, it seems reluctant to adopt a crisis management plan. Moreover, although it is the lowest cost and simplest way to control, proactiveness to prevent crises is often completely ignored. One of the characteristics of today's crisis is the lack of awareness and understanding of numerous warning signs. They are often detected but not collectively identified and analyzed on the appropriate management side.
Planning to prevent crises requires strategic approaches and ways of thinking. Managers should understand the potential events that may lead to a crisis when developing a company strategy. In his book "Crisis Management in a New Strategic Environment," Crandall et al. pointed out that there is a correlation between the various strategies that organizations follow and the relationship between crisis planning. While crisis management should be part of the strategic management process, the strategy chosen by the firm may be a factor in the frequency and type of crisis it faces.
Other experts in the field have identified common long-term assets in both management areas, how they deal with emergencies, and focus on future organizational survival. Unless the integration of crisis management is included, the strategic plan of the organization or country is incomplete.
Crisis management steps can be linked to different strategic management processes such as strategy development, implementation and evaluation. The extent to which organizations move from prone to crisis to crisis preparation may be related to the extent to which they can integrate crisis management and strategic management processes. In addition, the strategic assessment did not fully address the long-standing problems in implementing and maintaining selected strategies due to changes in the business environment. Therefore, when analyzing the organizational environment, the common aspects of strategy and crisis management show that certain strategies are more prone to crisis than others.
Despite this, there are indications that this relationship has not been exploited and taken into account when developing and implementing the strategy. Although strategic management and crisis management have the potential for synergistic integration, they are developed separately. Strategic management has not paid enough attention to defensive actions, which may play a role in preventing accidents, bad and unexpected crises. The academic community still holds unrealistic views on strategic management. It uses a variety of techniques that rely on stable internal and external environments for teaching.
Despite improvements in the past few years, traditional crisis management is still seen as a separate planning process rather than intertwined with strategy. Despite growing interest in the strategic importance of the crisis, our understanding of the region is very limited. A key issue is that the exact relationship between the company's strategic environment and its crisis management decisions remains to be fully clarified. In addition, a few articles discussing crisis and strategic integration focus primarily on coordination of activities within two separate management areas.
All in all, strategic management pointed out that the lack of attention to the crisis may be a problem in the handling of future crises and should be resolved more thoroughly by business managers.
Orignal From: Lack of integration of strategic planning and crisis management
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