Crisis Management- a Strategic Leadership Approach Essay

3968 Words Jan 19th, 2011 16 Pages
Crisis management - a strategic leadership approach

Introduction

The past decade has been wrought with crises on both a domestic and international scale. It has been marked by a glut of organizational crises including natural disasters, technology disruption, and acts of terrorism, scandals, and financial mismanagement.
Yet, many leaders are ill-prepared for the important role they may need to play in leading an organization through a crisis. At the beginning of the decade people all over the world scrambled to tackle the potential technological disruption of the Y2K bug which was one of the utmost crises. Then in 2001 the US was thrown off balance by the terrorist attack on September 11, which led to a world wide upshot. A few
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Indeed, it is these activities that people associate with crisis management, and represent an important step toward the next phase: business recovery.

Phase 4: Business Recovery:
One of the ultimate goals of any crisis situation is to return the organization to its pre-crisis condition. Leaders constantly try to reassure stakeholders that, despite the disruption, business affairs are operating smoothly or will be returning to normal soon. In the business recovery stage, crisis handlers should have a set of short- and long-term initiatives designed to return the business to normal operations

Phase 5: Learning
Organizational learning is the process of acquiring, interpreting, acting on, and disseminating new information throughout the firm. When it comes to managing crisis situations, however, firm leadership runs the risk of adopting a reactive and defensive posture that prevents learning. Firms taking a learning stance would still be subject to the earlier crisis phases and would be enhanced by an explicit attempt to understand the underlying organizational factors contributing to the crisis. Leaders could then leverage this insight to facilitate fundamental change in firm systems and procedures

Leadership and Crisis Management:
Leadership can be conceptualized as a collective phenomenon where different individuals contribute to the organization by strategizing a course of action

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