Management in Crisis
The events of Boxing Day 2004 caused all of us to reflect on our reaction to crisis and on the inspiring depth of our capacity for response.
It caused me to also review my papers from the MAAOE 2003 Conference - the theme for which was ‘Organisational Excellence in the Face of Crisis’.
In an insightful paper by Robert Herriot a different view of crisis was presented. Using the familiar examples of Cyclone Tracy and the Canberra bushfires he showed how a crisis is really the succession of decisions or circumstances that lead to an event, not simply the catastrophic trigger at the end of that sequence. After looking at the organizational lifecycles of 110 companies, his proposal is that excellence in decision making can avert crisis, or at least minimise the effects of the event. This is why the same ‘crisitic event’ can affect companies differently.
The (Oxford) dictionary defines ‘crisis’ as 1. a time of danger or great difficulty, and 2. a decisive moment or turning point. The second definition is often overlooked. These two meanings of crisis highlight the choice between two approaches - management ‘in crisis‘ - and the management ‘of crisis‘.
For example, one organisation I know of has found themselves in the position of not having the time to develop the skills needed to respond to the challenges ahead. They have decided to focus on their speed of response, rather than proactive prevention. While effective in the day-to-day… they no longer plan for or take holidays. Management in crisis has replaced the management of crisis.
The other approach is explained by Richard Slaughter in his integral discussion “Futures Beyond Dystopia: Creating Social Foresight”. He concludes that having a way to think about the complexity of the future can remove our fear of it. This requires of us the ability to clearly read the signs that point to a dangerous or diminished future, to interpret them correctly and to take effective action.
I suppose this is why we see each Board meeting or critical management decision that marks a potential turning point as being so important.
It is the way to avoid the great difficulties of the future.
Read article: Samith Dharmasaroja