The first step is to identify who are your key stakeholders and what are their interests or demands in the crisis. You can use a stakeholder analysis tool to map out the level of influence and interest of each stakeholder group and prioritize them accordingly. You should also communicate with them regularly and transparently to understand their perspectives, concerns, and expectations. By doing so, you can build trust and rapport with your stakeholders and gain their support and cooperation.
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Ideally, you will have done this step in advance. A big part about effective crisis management is laying the groundwork before a crisis strikes, by having a crisis plan. A big misnomer is that it doesn’t need to be overly elaborate or complex. Let’s say you have a small company. Who are the 5-10 people you could count on to be an extension of you, the leader, in a crisis? If the crisis involved you, who are the next in line who could fill in for you (or, in an extreme case, fully take over?) You should pre-identify them in a 1,2,3,… series so succession is clear to them as well. Let’s also say all these folks and you were OK and able following a crisis. You can have an outline of who does what so they can help with outreach.
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Every business should have an active and up to date crisis management plan, identifying key contacts, 24/7 contact information, roles and responsibilities. I would also suggest agreeing ahead of time who the ultimate decision maker is for each area of the business in the event of a decision deadlock. The should include resolving any potential areas of conflict and competing interests ahead of any crisis. I firmly believe that in the course of daily business, the crisis management / leadership team should spend time together frequently to build trust, rapport and understanding.
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The goal of stakeholder analysis is to develop a strategic view of the human and institutional landscape, and the relationships between the different stakeholders and the issues they care about most. This is a proactive and ongoing process ahead of any crisis. An organization's success is dependent on how well it manages the relationships with key groups such as customers, employees, suppliers, communities, financiers and others that can affect the realization of its purpose. In tough times, within the context of Organizational Risk Management, communicating with stakeholders is critical to minimizing negative impacts, maintaining control, and securing the support your organization needs to move forward.
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It's not really identifying, you know who your key stakeholders and investors are. It's more about communicating to them. Transparency is paramount. In a crisis, stakeholders are understandably anxious. I make it a point to communicate openly and honestly, sharing the challenges we face and the steps we're taking to address them. Clarity reduces uncertainty and builds trust.
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I believe in creating trust among stakeholders by engaging in open and honest dialogue. I strive to ensure that all parties are heard, considered and respected throughout a process. In a crisis situation, I work with stakeholders to identify common goals and objectives before seeking solutions. This allows us to develop actionable plans that meet the needs of the stakeholders while maintaining focus on our long-term strategies.
The next step is to clarify your goals and values as an executive leader and as an organization. What are you trying to achieve or protect in the crisis? What are your core principles and standards that guide your actions and decisions? How do you align your goals and values with those of your stakeholders? You should articulate your vision and mission clearly and consistently to your stakeholders and demonstrate how you are committed to fulfilling them. You should also be prepared to explain and justify your choices and trade-offs in the crisis.
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A natural companion to your crisis plan is your strategic plan, which is your roadmap of who you are, where you are focused, and how you plan to be even better than you are today. Just like effective crisis plan development conducted in advance, developing and socializing your strategic plan - particularly among your employees and investors - is critical for everyone getting on the same page. It should be crystal clear to key stakeholders what your company stands for (or doesn’t). For example, a strong understanding that your company does its business in a safe and harassment-free manner (and assuming it lives by that edict) means if harassment occurs, it should be evident it won’t be tolerated and appropriate actions will happen swiftly.
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It's easy in a crisis to feel that you have conflicting goals. So to navigate the challenges and come together, focus in on what it is you share - starting with the crisis itself. Even though you might have different ideas of what you want the outcome to be or how you'll get there, what you're probably all aligned on is that the status quo is not sustainable. Start with where you align and agree, then find some quick wins where you can come together in pursuit of a shared goal. Once you've given yourselves confidence that you're able to find common ground, then you're ready to face into the biggest points of difference.
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Dr. Liebenberg is absolutely right. Don't wait until a crisis happens to establish relationships with stakeholders. Those relationships are integral to a successful business plan - and will enable a much quicker and more effective response, should a crisis occur.
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In my experience, many companies establish both an overarching company mission, vision, and values, as well as specific ones for individual teams or departments. It's crucial that these align and flow from one to the other. Even though each team focuses on distinct aspects of the business, everyone should be working harmoniously toward the same overarching goal. It's vital that this overarching goal remains crystal clear and is consistently communicated to all stakeholders.
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Your values serve as a compass during turbulent times. When you consistently uphold your organization's principles, it not only strengthens your position but also inspires confidence in your stakeholders. By showcasing your commitment to shared values, you can bridge gaps and foster a sense of common purpose even when interests appear conflicting.
The third step is to evaluate your options and risks in the crisis. You should consider the short-term and long-term implications of each option and how it affects your stakeholders. You should also assess the potential risks and uncertainties involved in each option and how you can mitigate or manage them. You should use data, evidence, and best practices to inform your analysis and decision-making. You should also seek input and feedback from your stakeholders and experts to validate your assumptions and improve your solutions.
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Once you start developing a crisis plan - and especially when you involve key stakeholders in its development - you will see it evolve to include areas you hadn’t even thought of at the outset! Though you’ll need to go through a thorough review at the end to make sure it all makes sense, you should hopefully have steps to include how to manage the crisis into a longer term or “new phases,” and of course, how to pivot away from the crisis (or how to begin reinventing the organization depending on what type of crisis and how severe it was). The more you prepare ahead, the easier it will be to focus in a crisis. Having key statistics about your organization, areas of operation, statistics and infographics - it all makes a big difference.
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My approach to handle conflicting or competing interests from different stakeholders in a crisis is to first identify the root cause of the problem. After that, I assess all potential solutions and weigh their costs and benefits with respect to each stakeholder's perspective. Then, I explain my proposed solution clearly and concisely to ensure everyone understands the rationale behind it.
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To build a rational plan under pressure in a crisis, get clear on what you know and what you don't know, what is fact and what is assumption. Take the emotion out of the situation and find ways to validate what you know about the situation and the options ahead. Use the GROW model - what are your Goals, what is the Reality, what are your Options and what Will you do? Think about what's the worst that can happen. Think about what you need to know in order to make the next move, and what you don't (yet) need to know. You might not need as complete a picture as you think in order to begin a plan. Don't get lost in analysis paralysis when there is also merit in trying things out, being agile and adaptable. There is often no perfect answer.
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I highly recommend running crisis scenarios on a regular basis to ensure everyone is aware of their roll and you have tested and stressed your priority matrix and communication channels.
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Recognize that risk assessment goes beyond the immediate consequences. Consider the long-term repercussions on stakeholder relationships and your organization's reputation. In times of crisis, a thorough evaluation of risks and transparent communication about potential pitfalls can help build credibility and trust.
The fourth step is to negotiate and collaborate with your stakeholders in the crisis. You should acknowledge and respect the diversity and complexity of your stakeholder groups and their interests or demands. You should also recognize and address the sources and impacts of conflict or competition among them. You should use your emotional intelligence, communication skills, and influence tactics to engage and persuade your stakeholders. You should also look for opportunities to create win-win scenarios or mutual benefits for your stakeholders.
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This can be a bit of an exercise of testing your vulnerability when you engage parties in “what ifs,” but I would argue that scenario is always better in advance than in the midst of a crisis. Let’s say you have a business that is closely watched by the environmental community. Maybe there are two interest groups who really watchdog your company. What if you met in a non-crisis environment and talked about their expectations in an abstract? You don’t necessarily need to agree to these expectations, but knowing where they are coming from and how they think is pretty darn helpful in a crisis - and will inform your strategies. Same goes for other critical stakeholders, such as employees. In all cases, staying up to date is critical here.
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In addressing conflicting stakeholder interests during a crisis, the use of ethical AI can offer a nuanced approach. While data analytics can assist in identifying stakeholder sentiments and probable outcomes, ethical guidelines need to be in place to ensure the AI system doesn't inadvertently favour one group over another due to algorithmic biases. AI can facilitate real-time, data-driven adjustments to crisis plans, yet its utility is maximised when its ethical limitations are understood. In short, AI can be a powerful tool for crisis management, but its use must be transparent, ethical, and aligned with the broader values and objectives of the organisation.
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Transparency is non-negotiable. Lay out the cards on the table—let everyone in on the situation. Establish a unifying vision, a goal so compelling it resonates with every stakeholder's core interests. However, beware of the pitfalls! Sometimes, conflicts arise from misunderstandings or lack of information. Enlighten stakeholders about the bigger picture, by engaging diverse groups in dialogue and fostering transparency. Another strategy is prioritizing common ground. Recognize shared aspirations amid divergent goals as the fulcrum for progress. And never underestimate the power of inclusivity. Involve stakeholders in the decision-making process.
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Rather than viewing conflicting interests as adversarial, I encourage collaboration. We bring stakeholders to the table to discuss concerns, find common ground, and jointly develop solutions. It fosters a sense of shared responsibility.
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Effective negotiation often requires re-framing the conversation from a win-lose scenario to a win-win solution. Highlight shared goals and the benefits of cooperation, emphasizing that compromise can lead to more favorable outcomes for all parties involved. Your ability to mediate and build consensus can be a powerful tool for conflict resolution.
The final step is to implement and monitor your actions and outcomes in the crisis. You should communicate your decisions and actions clearly and timely to your stakeholders and ensure their alignment and commitment. You should also allocate and mobilize the necessary resources and capabilities to execute your plans and deliver your results. You should also measure and track your progress and performance against your goals and expectations. You should also solicit and incorporate feedback and learning from your stakeholders and adjust your actions and outcomes accordingly.
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Considering a third party and/or using anonymous survey tools can be very helpful in this stage. If you don’t invest in evaluating the crisis outcomes against your goals, you can’t evolve, improve and properly prepare for the next one. Sometimes, there can be internal resistance to investing more time in something that has already consumed plenty of resources, but the final step of proper evaluation is essential.
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Consider establishing key performance indicators (KPIs) that align with stakeholder expectations. Regularly report on your progress toward these metrics, as it provides transparency and reassurance to stakeholders that their interests are being considered. Remember, adaptability and responsiveness are crucial throughout the crisis life cycle.
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In this stage it is recommended also to use tracking tools that can be even common with the stakeholders so they can also check the status and the outcomes. In software development it can be Jira or an internally built platform. Agile Methodology and principles are best to apply to ensure alignment and commitment from all parties involved: plan, design, develop, test, display, review and to work in sprints, a dedicated period of time in which a set amount of work will be completed on a project. Usually an Agile project will be broken down into a number of sprints, each sprint taking the project closer to completion and can be also reviewed together with the stakeholder to adjust outcomes, timeline or any other thing if needed.
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I often face such situations with the tech founders I work with, having boards, partners, clients, employees, and co-founders, and many times interests are clashing, especially in crisis but also in high growth stages. Now, what we do is to clear things up a bit by utilizing The Four Quadrant Model and find out what's urgent and important, and who the most important stakeholders need to be addressed first. Then we go with the following list: Open Communication: Encourage stakeholders to voice concerns. Impact Evaluation: Prioritize actions. Mission Alignment Data-Driven Decisions Collaborative Problem-Solving Short-Term vs. Long-Term: Balance immediate needs and sustainability. Leadership's Role: Guide discussions towards win-win.
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Crises can be defining moments for organizations. Be as accountable as possible, be truthful, be empathetic, be realistic and be committed to doing the right things. A company reputation is like a person’s: it takes a long time to build and, if not carefully managed, can collapse to nothing in a blink of an eye.
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Conflict is inevitable, but it doesn't have to be destructive Conflict is a natural part of life, and it can also be a natural part of organizations However, when conflict is not managed effectively, it can damage relationships, productivity, and morale There are many different types of conflict that can occur in organizations, such as personality clashes, disagreements over work priorities, and competition for resources No matter what the cause of the conflict, it is important to address it in a constructive way - Learn from conflicts - Focus on the problem, not on the person - Encourage diversity of thought - Take a step back - Create a conflict resolution policy - Willing to compromise (at times)
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Oftentimes we can perceive a crisis brewing up (exceptions: incidents/accidents, freak failures). So, step #1 is to 'step in decisively' (no delegation, no 'ignorance is bliss', no 'oh-no-not-today'). Next: take a hard, unbiased look at the situation, facts, risks and the competing interests (nothing wrong with them!) with everyone on board (esp. SMEs). Principles to know/follow are: 1) While no one likes a diminished stake on the table, no one complaints either if they know it's fairly done. 2) Empathy for the most impacted/vulnerable is the first among equals of values (e.g., customer-first, safety-first). This defines actions to stop-the-bleeding, that must be personally monitored and untiringly communicated, plus, corrected as required.
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Managing a remote team working across different timezones, my two cents is that it's important to tackle conflict and competing interests head-on and a belief that, you've got this! Don’t worry! Start by fostering open dialogue and encouraging everyone to share their thoughts and concerns. Hold team meetings where everyone gets a chance to speak up and be heard. Remember, active listening is key here! Take the time to understand different perspectives and find common ground. Together, you can brainstorm and come up with win-win solutions that address the needs of all stakeholders. Keep that positive energy flowing, and remember, teamwork makes the dream work!
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