Sense-Making Of Crisis Situations

When a crisis strikes, it has the propensity to disrupts the ‘business as usual’ operating mode in an organisation, affecting decision making, and not the least, organisation’s ‘judgment’. The inevitability of crisis situations in the modern day global economy and the unforgiving business environment, necessitates organisations to fully embrace crisis management in strategic planning and decision making.

Apart from the potential damage to an organisation’s reputation, crises can drastically affect and physically, emotionally, and financially harm organisation’s employees and other stakeholders. Often than not, crises manifest unexpectedly. Most crises, especially where there is absence of issue monitoring, leaves organisation’s leadership grappling with ‘sense-making’ of what has just occurred. This may happen as a result of a number of reasons, including: the rarity of crises in that particular organisation or business environment; the organisation’s poor monitoring of issues that may escalate into crises; and the absence of crisis mitigating plans in the organization.

As soon as a crisis unfolds, organisation’s leaders often experience a huge sense of loss-of-control. This is normal with every crisis situations - either at personal or professional level. For example, the pressure for calculated decisions making within the shortest space of time, as the crisis unfolds, can emotionally affect leader’s perception of their control of the unfolding situation. This sense of loss-of-control can negatively impact on the emotion and subsequently the behavior of the leadership during the crisis.

As pressure for urgent decision making - as well as stakeholder’s demand for information build up - making sense of the crisis can be the catalyst for management in finding solutions and making headways in resolving an unfolding crisis. It is, therefore, very important for organisation’s leadership to expediently task itself with making sense of what is going in the organisation environment, as soon as a crisis rears its head.

Organisation’s leadership can make sense of an unfolding crisis by, among others engaging and asking themselves clear questions that generate clear answers to understand crisis cause, crisis impact, public opinion, as well as employee safety and emotional wellbeing. When organisation’s leadership swiftly make sense of a crisis, they are well placed to explain the crisis to the organisation’s various stakeholders - thereby creating deeper stakeholder understanding of the organisation’s unpleasant situation. Sense-making allows for organisation’s leadership to get the pulse of a crisis situation, and allows for making effective decisions, leading the organization through the storm.

Sense-making sets the pace to premise organisation’s response in assuaging crisis situations. As such, it is important for leadership to be on top of what is unfolding, appreciate what is happening, and figure out what needs to be done to allow for all stakeholders, including employees, to equally make sense of the crisis and participate in the recovery process at any level and in any way they can.

Employees and stakeholders that are taken on-board the organisation’s crisis recovery process can be the pressure-escape valve that sometimes an organisation needs to emotionally sway public opinion in its favour. They can become an organisation’s organic brand and crisis ambassadors.

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Leadership and Crisis Management

Crises are inevitable in modern environments, the substance that should matters most to leadership is; what type of crisis will occur, when, and how leadership will respond in managing the crises. The increasing competitive environment, increased human activities, and demands for better living continuously place individuals, organisations, groups, and governments in situations susceptible to crisis. In such situations, leadership (self and group) plays a critical role in shaping how crises are handled.

In April 2010, bp’s drive to increase its profitability and sustain competitive advantage in the oil market resulted in what is famously known as the Bp Deep-water Horizon oil spill. This crisis resulted from an explosion on bp’s oil drilling rig, in which 11 people died and 17 were injured. The oil spill caused a massive environmental damage in the Gulf of Mexico, affecting tourism and livelihood of the people of the gulf. The behavior of Chief Executive, Tony Hayward who demanded his 'life back' and chose to go on a holiday during the crisis period was perceived as bp being out of sync with the crisis situation at hand. The CEO’s inability to handle the crisis effectively cost him his position and did further damage to the ‘beyond petroleum’ brand reputation. This highlights the importance for organisational leadership in managing crises effectively.

Leadership is significant in the overall (organisational) direction and becomes more eminent where an organisation undergoes crisis situations. Thus far, a leader’s behavioral dispositions in crisis situations are critical cues on how the overall entity will respond to an unfolding crisis. The importance of leadership approach during crises illuminates the rationale that crises shape people’s perception of their leaders. Unfortunately, while modern (organisational) operating environment is far much prone to crises than any other time before, many leadership training do not prepare executives for crisis management.

This is even exacerbated with the fact that most leaders perceives crises as a catalyst for problems, (and not as an opportunity for learning and creating a new beginning), because crises disturb an (organisation’s) stability by creating potential for loss of business; loss of reputation; and endangering organisational present status. However, (organisations) cannot effectively deal with crises situations without effective leadership. This suggests that in responding to crisis, leadership assumes ‘the buck stops here’ attitude, and is responsible for the overall attitude the entire organisation attains in resolving challenges.

A very good example is that of George W. Bush. Returning from a reputation sinking recounting of Florida presidential ballots debacle in 2000, G.W was mostly perceived as a weak president and his approval rating was the lowest of any winning team. However, closely followed by the 9/11 attacks, G.W took an aggressive stand against terrorism, sounded more resolved and decisive, became eloquent, and sided with the people. His action not only engaged a world crusade against acts of terror, but also endeared him with the people. His approval rating immediately went up.

Crisis management strategies that an (organisation) may adopt may not only be prompted by organisational environment factors, but are also closely knitted with the efficiency of prevailing leadership.

#CrisisManagement #Leadership #PublicRelations #PJElwyns #ReputationManagement