Improve operational safety and productivity with digital checklists for your crisis management plan.
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Crisis management comprises the steps taken by a company to minimise the negative impact of an unforeseen event on the company and/or its stakeholders. A well-designed crisis management plan is essential for the survival of a company when unexpected developments threaten the stability of its business.
The use of a checklist in crisis management helps to plan ahead and to identify all possible threats in order to develop crisis strategies. Checklists also facilitate the exchange of information among the members of the crisis management team.
It is impossible to predict every single crisis scenario. Nevertheless, we can prepare for them. Four main types of crises in companies are distinguished, which are listed below. The categorization helps those responsible for crisis management to create the appropriate checklist to minimize if not eliminate the probability of occurrence:
In a crisis due to a natural disaster, we speak of an event that is entirely unavoidable because it is a natural phenomenon. Natural disasters such as hurricanes, earthquakes, tsunamis and the COVID-19 pandemic all fall into this category.
This type of crisis refers to cases where the assets and income of a company are not sufficient to cover the operating costs and related liabilities. The crisis can be caused by new competition, poor investment decisions and mismanagement of financial resources.
A crisis in public relations refers to events that damage the reputation of the brand. An engineering error that has led to serious injury or death, news of poor working conditions and contaminated food and drink can trigger a PR crisis and deter customers, investors and other stakeholders.
This type of crisis is about internal conflicts that affect efficient operations and the achievement of corporate goals. Minor differences of opinion and misunderstandings between teams and colleagues are, at times, completely normal. However, if targets and deadlines are regularly not met, managers must analyse whether there are errors in the organisational structure and internal processes so that corrective measures can be taken.
Whereas a crisis management plan is mainly aimed at minimising the damage caused by unforeseen events, a risk management plan creates concrete measures to avoid such events from the outset. If the risk management plan is unable to contain a problem, the crisis management plan intervenes to cushion the negative impact on the company. In addition, a business continuity plan outlines the measures the company will take to ensure that it remains viable by systematically deploying its remaining resources until the status quo is restored.
Not all crisis management plans are prepared in the same way. Although the details may vary depending on the preferences, capabilities and resources of each company, the following points should be considered when creating a crisis management checklist:
Productivity and security are the two pillars of any successful company. But when a crisis occurs and the safety of employees is at risk, a good company is prepared to let productivity suffer in its place. This includes, for example, flexible working arrangements when the risk of a virus infection threatens, as with Covid-19. Although some organisational functions may be affected by the new regulation, proactive companies putting the safety of their employees first.
When a crisis arises, employers are well-advised to communicate the situation honestly, clearly and effectively to their employees rather than trying to cover it up. Employees want to be able to trust their superiors and managers, and therefore feel that they are privy to all the details of an organisational crisis, especially if they may end up being directly affected. If companies are honest with their employees, especially in crises, this pays off in the form of greater trust in the work of management and executives and is ultimately reflected in the way they carry out their day-to-day work.
Companies that choose to keep crisis details vague, if not completely hidden from their employees, leave room for speculation. This undermines trust in management, as they almost always cast a bad light on the company. A good company considers it necessary to keep its employees informed to prevent rumours from arising in the first place. A culture of open communication about problems should prevail in the company to create trust and maintain the possibility of productive cooperation.
Regardless of whether a company is facing an internal crisis or a global crisis that the whole world is dealing with, customers and stakeholders expect clear and honest communication. There must be open communication about the situation and the measures to be taken, including the necessary adjustments in terms of commitments to customers and stakeholders.
The focus on safety and productivity is the key to achieving and maintaining successful operations - even in a crisis. With Lumiform's mobile app and desktop software, managers and key stakeholders can create effective crisis management plans using checklists to minimise the impact of different types of crises.
Digital checklists facilitate the implementation of the measures from a crisis management plan. All data is immediately available for the entire crisis management team. In this way, problems during implementation are immediately detected and can be immediately corrected.
With Lumiform, managers and executives benefit from the following advantages when planning:
To make it easier to get started in crisis management with a checklist, we have put together several templates that can be adapted to the individual needs of the company at any time.