Organisations face a 70% chance of a major crisis within the next 5 years! A fascinating and very helpful report just release by PwC addresses the issue of crisis management, based on research involving over 2000 senior executives from 25 industries across 43 countries (download it here). As a result, their report is full of observations and advice on how to prepare, and even benefit from a crisis.
I really recommend each leader access and read the report, and consider its implications for your entity. However, a quick overview of some of the reports key points follow. The top 5 observations from the research are:
- It’s not if. It’s when. No one is immune
69% of leaders have experienced at least one corporate crisis in the last 5 years, and the average number of crisis experienced s 3. - The diversity of crisis keeps companies guessing.
The big three types of crisis were liquidity issues, operational, and tech-related. In Australia, technological or operational disruption were most frequent. - The most disruptive crises aren’t necessarily the most newsworthy.
If the most disruptive crises aren’t the most newsworthy, the most newsworthy may not be the most disruptive either – a potential blind spot when it comes to crises-readiness. - Who’s responsible for crisis management? Everyone – and no one.
The “ownership map” clearly highlights the overlapping roles of responsibilities, which should cause some concern given the importance of efficient coordination, communication and decisions in crisis. Nearly three quarters sought outside help. - Companies that emerge stronger from crisis do specific things.
What doesn’t; kill you makes you stronger. Here are a few of the things companies did that made then stronger:
(i) Allocate budget to crisis management – before it hits;
(ii) Have a plan – and test it;
(iii) Adopt a fact-based approach – and don’t neglect key stakeholders;
(iv) Perform a root-cause analysis – and follow up;
(v) Act as a team, and hold to your values.
The report stresses that the chances of corporate crisis are growing, and will be played out more publicly, hence the need to have a plan of action now. Do yourself a favour, download the report, read it, and incorporate their principles into your organisation.