Manage the Crisis

In a fast-changing, turbulent, highly competitive business environment, you will have a crisis of some kind every two or three months. You also could have a financial crisis, a family crisis, a personal crisis, or a health crisis with the same frequency.

Take Charge Immediately
When the crisis occurs, there are four things you should do immediately.

  1. Stop the bleeding. Practice damage control. Put every possible limitation on losses. Preserve cash at all costs.
  2. Gather information. Get the facts. Speak to the key people and find out exactly what you are dealing with.
  3. Solve the problem. Discipline yourself to think only in terms of solutions, about what you can do immediately to minimize the damages and fix the problem.
  4. Become action-oriented. Think in terms of your next step. Often any decision is better than no decision.

Practice Thinking Ahead
One of the key strategies for business and personal success is "crisis anticipation." This strategy is practiced by top people in every field-executives, managers, entrepreneurs, and leaders, especially military leaders. You practice crisis anticipation by looking into the future three, six, nine, and twelve months ahead and asking, "What could happen to disrupt my business or personal life?"

Develop a Contingency Plan
You need to have a contingency plan for possible emergencies and crises. What steps would you take if something went seriously wrong? What would you do first? What would you do second? How would you react? Develop a scenario—a storyline and a plan—describing how you would handle a negative situation, if it occurred.

Prevent the Recurring Crisis
A crisis, by definition, is a once-only, unexpected negative event. If there is a recurring crisis in your company or your life, one that repeats itself regularly, especially cash crises, then you are dealing with a deeper problem, usually incompetent or poor organization. To ensure that the crisis does not repeat itself, after you have resolved that crisis for the first time, do a thorough debriefing on the problem. What exactly happened? How did it happen? What did we learn? What could we do to make sure it doesn't happen again?

Action Exercise

  1. Identify the three worst things that could happen in your business in the next year. What could you do today to minimize the damage from these crises?
  2. Identify the three worst things that could happen in your personal and family life, and then take steps to make sure they don't happen.

Comments

Post a Comment

Popular posts from this blog

5-Step Plan to Reverse Diabetes

Image
Step 1: Remove These Foods to Reverse Diabetes Naturally Certain foods negatively affect your blood sugar levels, cause inflammation and trigger immune responses. To reverse diabetes naturally, the first step is to remove these foods from your diet: Refined sugar: Refined sugar rapidly spikes blood glucose, and soda, fruit juice and other sugary beverages are the worst culprits. These forms of sugar enter the bloodstream rapidly and can cause extreme elevations in blood glucose. (7) Even though natural sweeteners like raw honey and maple syrup are better options, they can still affect blood sugar levels, so only use these foods on occasion. Your best option is to switch to stevia, a natural sweetener that won’t have as much of an impact. Grains: Grains, especially gluten-containing grains like wheat, contain large amounts of carbohydrates that are broken down into sugar within only a few minutes of consumption. Gluten can cause intestinal inflammation, which affects hormones like...
Read more

Does apple cider vinegar help people with diabetes?

Image
Apple cider vinegar may have various health benefits, such as supporting weight loss and managing blood sugar. These benefits could help people with or at risk of diabetes. However, scientific research has not yet confirmed them. Scientists have yet to back up the majority of the health claims around apple cider vinegar with significant clinical research. However, some evidence has emerged to suggest that apple cider vinegar may have particular benefits for the management of diabetes. Diabetes is a chronic condition that leads to an inability to manage blood sugar levels properly. According to the World Health Organization (WHO), in 1980, around 108 million people had diabetes. Its prevalence has significantly increased over the past few decades to an estimated 422 million in 2014. This article looks at the research that links apple cider vinegar and diabetes, as well as ways to take apple cider vinegar effectively. According to scientists, apple cider vinegar has the potential to ...
Read more

The Dangers of Ego-Driven Spending: A Call for Reality Check

Image
In a world where status and outward appearances reign supreme, it's all too easy to fall into the trap of ego-driven spending. We live in a society where success is often measured by the size of our possessions and the prestige of our lifestyle. As a result, many of us find ourselves chasing after the latest trends and splurging on luxury items in a bid to keep up with the Joneses. But what if I told you that some of the wealthiest individuals in the world eschew ostentatious displays of wealth in favor of a more modest lifestyle? Take, for example, Warren Buffett, one of the most successful investors of all time. Despite his immense wealth, Buffett is known for his frugal habits, driving the same modest car and living in the same unassuming house for decades. Similarly, tech titan Mark Zuckerberg, founder of Facebook, is often seen wearing a simple gray t-shirt and jeans, despite being worth billions of dollars. And then there's Ingvar Kamprad, the founder of IKEA, who fam...
Read more