How to Crisis Management is Created? What is Crisis Management?

Crisis Management is while companies are trying to reach their goals, they may sometimes encounter unexpected events and situations. These unpredictable events and situations that require intervention are defined as crises. On the other hand, companies need to be able to prevent, intervene and evaluate the consequences of these events and situations. For this, companies need to accept the crisis and manage it effectively. we will discuss what crisis management means, together with case studies.

What is a crisis?

A crisis is defined as an unplanned situation, event, or series of events that require intervention. Crises are considered events that threaten the goals and assets of companies and negatively affect their decision-making mechanisms. For a company, the unexpected resignation of the marketing manager or, as it has been known recently, events such as pandemics are considered crises. However, by effectively managing such crises, companies can come out of them stronger.

Factors that create a crisis for companies are evaluated under two headings as environmental and institutional. Situations outside the company such as the social and economic conditions of the world or the country, technological developments, and changes are shown as environmental factors. Institutional factors, on the other hand, refer to situations that arise depending on the company, such as management, employee, budget.

What is Crisis Management?

Since the crisis is unpredictable and requires intervention, companies can cope with crises effectively if they are both prepared for crises and have the skills and opportunities to manage the crisis. For this, companies need to have effective crisis management. Companies need to meet certain conditions for effective crisis management. These conditions can be listed as follows:

Corporate Strategies:

Institutional strategies include the plans and procedures necessary to respond to and deal with a crisis. For effective crisis management, it is important for companies to always have a plan for every possible crisis. For unpredictable crises, it should have strategies that will create this plan in a short time.

Institutional Structure:

The corporate structure of the company is related to whether it has the resources needed in the prevention or coping phase of the crisis. For effective crisis management, companies must have appropriate human resources, methods, and technologies.

Corporate Culture:

Corporate culture, which plays an important role in both intervening and preventing the crisis, is related to the behavior and attitudes of all employees. While a strong corporate culture largely prevents crises that arise due to corporate factors, it provides the company with an effective crisis management capability for crises due to environmental factors.

Features of Employees:

In crisis management, the characteristics of the employees in a company’s internal structure are also taken into consideration. In particular, the attitudes, abilities, and competencies of the employees in the crisis response process due to institutional factors play an important role in both preventing and responding to the crisis.

How to Create a Crisis Management Process?

The crisis management process is established to prevent, minimize or repair the damage of crises that arise due to both institutional and environmental factors. The crisis management processes of companies consist of stages such as prevention, planning, protection, and evaluation. These stages form the roadmap of the crisis management process. this process, factors such as institutional structure and corporate culture should also be considered. The process of creating crisis management can be summarized as follows:

Making preparations for the prevention of the crisis by taking into account the signs and signals of the crisis.

Carrying out actions to contain the crisis.

Identifying and controlling the damage caused by the crisis.

Making and implementing plans for both improvement and return to the normal process of the company.

Evaluating the results of the crisis and the process carried out, revealing the knowledge and experience gained from this process.

Successful Crisis Management Examples

Crisis management is seen as a process that every company will experience depending on institutional or environmental factors. We can summarize as follows how two international companies managed the crisis, they experienced due to environmental and institutional factors with similar methods:

An example of crisis management depending on the institutional factor;

In this process, the brand created an advertisement work with a humorous and sincere style and even won an award in the public relations and advertising categories.

An example of crisis management based on environmental factors;

The global impact of COVID-19 and its continued uncertainty created a crisis environment for almost all companies. IKEA, one of these companies, has put forward a process that is based on customer satisfaction and reflects its corporate identity during this crisis. In the advertisement created for this process, the brand stated that they contributed to transforming their homes, where people spent more time due to the pandemic, into an environment where they could have new experiences and see the value their homes deserve.

The successful evaluation of these examples stems from accepting the emerging crisis and transforming it into an experience on behalf of the company with an appropriate plan and process in this direction. As in the examples, you can prevent the emergence of crises in your company with solutions for improving logistics and fleet management, strengthening corporate culture and similar processes, and you can minimize the damage with crisis management.

Conclusion.

Crisis Management for a company, unexpected events such as pandemics is considered crises. The crisis management processes of companies consist of stages such as prevention, planning, protection, and evaluation. The successful evaluation of these examples stems from accepting the emerging crisis and transforming it into an experience on behalf of the company with an appropriate plan and process in this direction Institutional strategies include the plans and procedures necessary to respond to and deal with a crisis. The corporate structure of the company is related to whether it has the resources needed in the prevention or coping phase of the crisis.

Leave a Comment