How to handle business/corporate crisis management? what is crisis management?

Soft Skills for a Flat World: By Stephen Manallack,Tata McGraw-Hill, 289 pages, Rs395.

Author Stephen Manallack’s latest book, Soft Skills for a Flat World, expands the purview of soft skills from mere conversational and social graces. Focusing on Indian companies that are expanding globally, Manallack believes that their success is based on a blend of communication, spirituality, state of mind and leadership “soft skills”.

Manallack works between Australia and India to provide cross-cultural training. He is a former secretary of the Australia-India Business Council, a business advocacy organization that promotes bilateral trade between the two countries. He is also a mentor in leadership for Asialink at Melbourne University, a centre for promotion of public understanding, business and cultural partnerships to strengthen Australia-Asia engagement. Manallack wrote You Can Communicate in 2002 and co-authored Riding the Elephant—Doing Business And Making Profits in Modern India in 2010.

In a section on how to handle a crisis, he discusses how companies are damaged more by their reaction to a crisis than by the crisis itself. He points out tactics to avoid and fix conflicts and how they can be contained before they turn into a crisis. Edited excerpts: 

 

Handling a Crisis

When good corporations face a crisis or a problem, they take these six steps, and it is worth trying to engender this approach:

1. Get the facts (the first casualty of war is the truth, and it sure disappears when we are angry or in crisis).

2. Communicate action (people respect you if you act positively, even if at first you were wrong).

3. Review stance and processes (take a look at yourself, do you have to change?).

4. Take market soundings (ask others what they think).

5. Change behaviour and practices (you will improve if you try to change).

6. Get the new message across (work on positive communication).

Note how the bad corporation just lashed out in haste, while the good takes its time and considers the situation; this suggests that patience is the key.

Sometimes we face conflict, rather than a crisis. Conflict can escalate into a crisis, so it is important to have a personal approach to conflict. In most areas of working life, disputes and conflict do arise from time to time and can become a crisis. So what do you do about conflict?

 

Is there something underneath it all?

An important first tactic is to explore the possibility that there are some deep problems within the office. There is a simple honesty to this approach that stands you in good stead.

 

Avoid ‘tit for tat’ reactions

Yelling at someone increases the level of conflict. Just as bad is having a go at others behind their back, or using your position to ram something through when skilful communication would produce better long-term outcomes.

 

Don’t force an end to conflict

This might work short-term, but for real long-term resolution of group conflict, let the group work on the conflict. You can apply this at home too, especially with teenagers. A common mistake parents make is to lead by “instruction” instead of leading by discussion.

 

Crushing people today can ruin them for tomorrow

If one person is playing up, the best senior corporate executives know that simply crushing them might end the misbehaviour today, but the cost could be that the person leaves the group or makes a lesser contribution to the team. This can be quite a loss, so hesitate and think before you use heavy criticism to end conflict.

Resolving conflict harmoniously is not a matter of being weak or letting people walk all over you within the office. We all face tricky emotional situations (at home, school or work) when it is important to assert yourself. You will say “no” and mean it more often if you have made a prior decision to be strong. The best way to assert yourself is straightaway. If, for example, you suspect there is a conflict brewing in the office, gather the right people together and talk about it; do not hesitate.

One further lesson from the corporate world is while being assertive and dealing with a problem situation, try to keep a steady, friendly gaze into the other person’s or the group’s eyes. Almost every communication training programme for senior executive places a lot of focus on eye contact. If you look at the ceiling, cover your mouth, look anxiously back and forth, you will be misunderstood, sowing the seeds for the next crisis.