Corporate crisis is the new normal. So why do most companies fail to take this one crucial step?
The impact of a crisis
Nothing shakes a company’s foundation, tests its values or challenges team cohesion quite like a crisis. It’s the most emotionally charged situation a company will likely face. Although the impact of a crisis can be substantial, there is also an upside. Just as a crisis will reveal whatever stress fractures may be hidden in the company’s operational structure, it can also point the way to how to navigate any kind of business challenge and emerge stronger, more resilient—and even more profitable.
Nearly 100% of US companies are expecting to be hit by (at least) one major crisis in the next five years
According to PwC’s 2019 Global Crisis Survey, of the eight in 10 companies who had been through a recent crisis, only 15% had conducted a root cause analysis and followed through on the actionable changes identified. Among those who did a root cause analysis, most did not make the effort to make the changes suggested. This is one of the most important steps you can take to enjoy a positive outcome from a crisis, so why are businesses so half-hearted when it comes to taking action?
But why is that—and what can you do about it?
How do you fight the burnout factor, and seize the opportunity?
The key is to start thinking about what caused this crisis while you are battling it. Beginning on a root cause analysis in the middle of the crisis is the most crucial factor in determining whether a company will or will not emerge strengthened from that crisis.
The most urgent task when crisis hits is finding out the facts: focusing on the what, how and why
Starting on the root cause analysis in the thick of the action can also help you build the capacity and organizational momentum you will need to carry the necessary reforms forward. It will give you a runway to follow through while memories of the experience—and the desire to not repeat the same mistakes—are still fresh. This is the single best crisis investment in time and resources you can make.
