Even “healthy” companies should work out a concept that helps them to detect critical phases early on. It’s a good idea to have an established crisis management plan at the ready. Initially, this should focus on investigating risks and uncovering solutions. In terms of business liquidity, it’s important to assess various possible dangers and detriments. This makes it easier to create meaningful reserves. A functional early warning system also defines company-specific indicators.
A crisis plan usually manages the structure and sequence of a company’s crisis management. It provides guidelines in case of emergency, prevents chaos, and enables rapid action. The plan determines organizational structure and lists the most important points.
The goal is to always be able to call upon a crisis team when necessary. This ensures that no single person makes the decisions, but experts collectively agree on how to proceed. The plan appoints employees and their responsibilities and creates the legal foundation for an emergency procedure.
A taskforce should look something like this:
- A core team of 1 to 3 people with expanded decision-making power
- A team leader who has the final say
- An extended special working group to incorporate management and other departments
- Where applicable, an external advisor
Start-ups without enough manpower are doing well if they’re able to detect signs of a looming crisis. Even discussions between employees could offer insight. A transparent company culture avoids hiding problems.
Aside from personnel set-up, sustainable crisis prevention should provide recommendations for operational procedures:
- Who is the right contact person when a situation escalates?
- Who should be informed first? Who is authorized to initiate measures?
- Who evaluates and controls the success of these measures?
All these questions should be answered by the internal coordination and scheduling department. Importantly, there should be a chain for communication so that important co-workers can be brought up to speed swiftly. At least one member of staff should monitor which actions are successful.