What is crisis management and its management in business?
Restructuring, change of computer system, upheaval of the group’s strategy, sale of activity, etc. During an exceptional event, exceptional measures must be put in place. Whatever the crisis situation, calling on an expert in transition management aims to quickly manage change, in the best conditions. This is the role of the interim manager in times of crisis.
What are the types of business crisis?
Crises can be very different depending on the structures, the sectors of activity or even the size of the companies. It is therefore difficult to precisely define a type of crisis in a company . However, several situations can be envisaged:
- Situation of financial crisis , linked for example to a deficit, excessive indebtedness or non-compliance with prudential rules. When the situation of financial crisis is likely to harm the interests of customers, the supervisory body may impose a sanction.
- Situation of economic crisis , which can be accompanied by bankruptcies in the most serious cases. In certain situations, the State may be required to subsidize companies in difficulty, by granting them financial aid, or by implementing a rescue plan. The economic crisis can also lead to “austerity plans”.
- Business crisis situation, when an economic sector is in difficulty and the loss is significant. If a major competitor comes to establish itself on the market, for example, the consequences can be very important for a company.
How to manage them?
- Anticipation of the crisis
In crisis prevention, the interim manager works with the communication teams and the manager of the structure to identify the potential threats of which the company could be the victim. The interim manager will make sure to limit the impacts and minimize the crisis. A well anticipated crisis will have less significant effects.
- Managing the company in times of crisis
The interim manager may be called upon to ensure the management of the company on a transitional basis in times of crisis. He must then demonstrate a certain distance to manage the company despite its many difficulties. It may be required to take measures while ensuring a reorganization of the structure of the company.
- Business crisis management
A well-managed exit from the crisis is a success factor for the future.
The approach chosen by the Interim Manager will, in fact, be decisive in building a new work environment, in which employees will regain confidence.
Call on an interim manager to manage a crisis
To effectively ensure crisis management in a company, an interim manager is the professional in the situation. Objective and lucid, his role is strictly defined in time and allows the implementation of a precise action plan to manage a way out of the crisis .
An Interim Manager has many areas of expertise:
- Excellent analytical skills, to quickly determine the issues and risks of the crisis within the company.
- Acute sense of organization, to analyze and follow all the files of the different entities of the company.
- Experience in evaluating costs and benefits to determine the best course of action.
- Efficiency in making quick but consistent and justifiable decisions.
- Leadership and experience in team management.
By entrusting your problem to an interim management firm , you are sure to be put in touch with the right person. Trust Reactive Executive to connect you with an effective Transition Manager.
Benefits of working with an interim manager
Calling on an Interim Manager to manage a crisis and organize a crisis exit plan is a strategy that most often proves to be a winning one for a company.
The interim manager may be required to lead the implementation of a new social policy when the crisis requires it.
As an external element, it ensures a presence over a determined period. He is mandated to accomplish a defined mission, he is able to set performance objectives.
His experience in transition management and his perfect knowledge of the business market are essential assets to support companies in emerging from the crisis.
Calling on an interim management firm is therefore a strategic reflex.
The main steps to resolve a crisis situation
1) Set course quickly
The interim manager will quickly set up a crisis unit. He then presents an action plan that will affect the entire structure: human resources, managers, IT services, etc. The levers he uses to drive change are diverse and all aim to keep control of the situation.
2) Organize the logistical means
The second step will be to prepare the necessary equipment and mobilize the infrastructure. He organizes the withdrawal to sites affected by the crisis while bringing together the company’s other sites. He identifies the staff authorized to convey the communication messages, and thus sets in motion his action plan.
3) Organize the way out of the crisis
Once the actions have been put in place, it is time to set up the way out of the crisis: feedback meeting, preparation of diagnoses and crisis management reports, etc. The interim manager gradually prepares for the return to normal while observing the results of the initiatives carried out.
4) Anticipate a possible next crisis
The objective of the interim manager is to ensure the sustainability of the actions that he puts in place. The actions undertaken must be maintained once its mission is completed. It thus gives the keys to the teams and managers to continue to move the company forward in the direction defined, while preparing for any future crises.