Crises in businesses appear in all forms and categories. They can be slow building or appear overnight. They can be business oriented or .........
An ongoing series of articles exploring the seven critical areas that can indicate a partnership is in trouble.
The 7th C: Crisis management impaired by personal issues:
- Attack and blame.
- Take to drink.
- Disappear.
- Pass the buck.
- Become hysterical.
- Project your anxiety or anger onto others.
- Take it out on your spouse.
These are some of the ways people react in a crisis situation. Read on for alternative options for handling crisis.
Crises in businesses appear in all forms and categories. They can be slow building or appear overnight. They can be business oriented or personal and have an impact on the business. Some are predictable,
others not.
For example, a partner may become seriously ill, a major client may leave, the economy may change and your product is no longer a high priority, an investment fails, a key employee leaves, a supplier doesn't meet a deadline and you are left with unfilled orders, the city is renovating the street in front of your store and clients shop with your competition because the approach is easier. The list of possibilities is endless.
How does a business and more specifically the partnership handle the crisis? It depends on many things. The personalities and the history of how they handled crises in the past are good clues. The manner in which the crisis is handled can escalate or calm it down. The list at the beginning of this article shows examples of behavior that can escalate the problem. Here are some better ways to handle crises:
- Remain calm.
- Analyze.
- Evaluate the repercussions of the crisis.
- Examine options.
- Break down the required actions to small tasks.
- Delegate.
- Confer with others.
- Brainstorm for creative ideas with key players.
- Accept responsibility.
- Ask for help.
Because history will play a very big role in how you and/or your partner handle a crisis, it is important to prepare for it before it happens. Even though not every crisis can be predicted or prepared for, there are things that can be in place to minimize the trauma and the damage.
Here are some suggestions:
Have resources available: finances, a coach, and other consultants dealing with specifics such as technical needs, key employees who can step in, alternate sources of income, excellent communication skills, and regular meetings to recognize, discuss and pre-empt problem areas before they erupt.
An advertising agency, owned by Susan and Phillip, was faced with the possible loss of their biggest client. They discovered this when it was almost a fait accompli. Both of them went into attack mode, blaming each other. When the breakdown between them began affecting their managerial team, they panicked and called me in.
We had never worked together before. My individual interviews with every key player revealed a list of areas of dissatisfactory communication between all the players, particularly the two partners, who on the surface got along well. Just below the surface, however, there were resentments about division of labor, job clarity, hurt feelings, and feelings of not being heard and not feeling equally rewarded for work done. The client crisis presented an opportunity for an explosion to anger that had been festering below the surface.
Open and honest communication and regular meetings to discuss problems when they are small can avert or minimize meltdowns such as this one between Susan and Phillip. If the crisis is totally unexpected, the partners, rather than attacking each other, can use their communication skills and their commitment to the success of the partnership and to each other to pull together and handle the crisis.
It is best for partners or potential partners to begin coaching when everything is going well. During the honeymoon period is the best time to build on strengths and discuss irritations before they become major festering wounds. Meeting once a month with a coach can achieve this in most partnerships. It is the best return on a modest investment.
