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How to lead your company out of a crisis

In our business we’re all too aware that no company, big or small, is immune to crisis. In fact, according to a global report by PwC, 80% of CEOs say they’ve faced financial crisis at some point.

Crisis triggers can be diverse, from operational inefficiencies to poor staffing to economic downturns. But regardless of how trouble starts, survival depends upon the right actions being taken at the right time to turn things around.

While every situation is different, based on our experience and the insights of others, here are some effective tactics you can employ to steer your company back to black.

1. Take a step back
Sometimes the best way to get a holistic view of increasing going on is to take a few steps back.
Look at the situation from an outsider's perspective and think about what needs fixing.
Then, decide whether this organization needs a retrenchment strategy, a recovery strategy or both.
Retrenchment strategies deal with internal causes like operations to reduce costs, while recovery strategies focus on external causes, like a competing competition.
The sooner you identify what implications work, the sooner you can discover what will.
2. Discussed be afraid to criticize your plan
If your plan is working, scrap it and come up with a different one.
Considering no shame in admitting that your plan is flawed.
3. Expect more from your Board of Directors
Joan Garry, a nonprofit consultant, believes that behind every healthy organization is a healthy board: “Shared leadership with an invested thought partner with leadership skills can cut so many challenges off at the pass and propel your organization towards the fulfillment of your mission more quickly , more clearly, and more strategically. "
Your Board of Directors should be passionate, engaged, collaborative and held accountable for their role in the successful success.
Some basic responsibilities of the board of directors are:
Appointing the CEO
Approving major policies
Making major decisions
Overseeing management performance
Serving as an external advocate
4. Focus on finances
Funding is one of the most important aspects of a successful turnaround.
According to the 2015/2016 Global Entrepreneurship Report, over half of all businesses fail due to finances.
You need to recognize an issue before it becomes the death of your company, which means keeping a close eye on your balance sheets and cutting costs when necessary.
5. Build up the leadership team
People are what build a company, not CEOs, but a good CEO develops and leads their people down the path of success.
According to Fast Company, one of the biggest drivers of high turnover is the belief that there are better professional development opportunities further afield.
Successful leaders have the ability to inspire loyalty in their employees and reduce turnover by investing in their employees, developing their skills and providing them with a healthy, collaborative work environment.
Companies with reliable employees and a savvy leadership team have a much better chance of surviving than those without.
6. Trim the fat
People are what make a company great, so if the people are great, the company will suffer.
The company may need to downsize in order to save money and weed out the good employees from the great ones.
7. Re-think your incentive plans
In order to attract the best talent and re-energize your employees, you may ne ed to beef up your incentive plans.
Try setting specific goals every quarter on an all-or-nothing basis.
8. Benchmark against other top companies in your industry
Follow the old saying: keep your friends close and your enemies closer.
You should constantly be scoping out the competition and paying attention to how successful companies operate.
While not every company can be saved, the following these tips will ensure leading the company out of a crisis, instead of into one.

Example :

crisis management example and how this brands handled crisis communication. Does your brand have a strong crisis management strategy in place?? If not, this brand might give you the incentive you need to get started.

Uber

Uber went from one of the most celebrated brands in the world to one of the most reviled in a matter of months. The ride-hailing company started 2017 off in hot water when it was revealed that CEO Travis Kalanick was serving on an advisory council to President Trump. The hashtag DeleteUber was born and Kalanick announced that he would be stepping down from the council shortly after.

The hashtag made a comeback in February, first when Uber continued operating at JFK International Airport during a taxi strike in protest of President Trump’s immigration ban, sparking a company crisis. And second, when ex-employee Susan Fowler Rigetti leveled claims of sexual harassment and gross HR misconduct at the company. Kalanick announced an immediate investigation into the issue, but early investors voiced concerns over the impartiality of the internal investigation and the company’s private arbitration clause.

The hashtag really gained momentum a few days later, however, when video surfaced of Kalanick arguing with an Uber driver about a drop in driver pay. Kalanick released a statement on Uber’s website saying, “I must fundamentally change as a leader and grow up.” But for many Uber customers, the damage was done and the video was viral.

February 2017 also saw Uber slapped with a lawsuit from Google. The technology giant claimed Uber stole technology from their self-driving vehicle division, Waymo. So far, this case isn’t going in Uber’s favor either. The tech darling is also in hot water for using technology called Greyball to elude authorities worldwide, and has seen several executives, including their head of communications, step down.

Uber’s Crisis Management

How has Uber handled the negative attention? While the company continues to release statements concerning each incident, it’s hard to ignore the fact that missteps keep piling up. A lack of transparency has been Uber’s biggest failing in handling much of the public interest. A heartfelt letter from the CEO promising to be a better leader won’t get the company far unless the public sees steps and actions taken to get there. Uber is a classic example of crisis management gone wrong.