Emergency Response = Business Turnaround?

“I think I broke my neck.”

He was lying next to a log in the middle of a mountain bike trail. I found him there surrounded by other bikers. Kneeling down, I placed my hands on either side of his head. When I took control, stabilizing his neck, I kicked off the first in a 7-step process to managing an accident response. 

The business world is usually less dramatic than a potentially broken neck. However, the same accident response process can be applied to many business situations whether it is a full turnaround; containment of a quality escape, or recovery of past due deliveries. While it might not be an immediate life-threatening situation, a struggling business needs quick and effective action to remain relevant in the eyes of the customer. The seven steps to accident response can prompt us along the path to recovery.

1.     Take charge

In any emergency response, someone needs to be in command. When I came upon that biker, people were milling around and not sure what to do. Taking charge helps others focus because a leadership void leads to second guessing and confusion.

Business problems are often quite complex, and the need for leadership is just as important as in an emergency. The key point is for the business to clearly communicate who is in charge to the rest of the organization. A failure to widely communicate the leader puts the project at risk due to a perceived leadership void. This perception can lead to confusion, frustration, and tension from competing approaches.

If the problem is contained within a business’ four walls, then determining a leader can be as simple as an executive or other manager naming someone to lead, or perhaps a few people are consulted before naming a leader. What if the problem is in outside of the business’ four walls, such as a supplier? In this case, it is critical the supplier agrees there is a problem that needs to be fixed. If not, then it is nearly impossible to address the issue. The old adage “you can’t fix someone that doesn’t want to be fixed” applies. In this case, you need to convince the other business of the need for change, or it may be necessary to replace that supplier.

2.     Assess the situation

In a wilderness emergency, this step is to make sure the scene is safe. It does no good to attempt a rescue only to find yourself also needing rescue. When I found the fallen biker, I quickly scanned the area for any potential hazards. For example, was he under a dead tree, which could be leaning precariously over him? Was he on a slope, so I needed to be careful not to slip and fall, or perhaps I needed to secure him from sliding downslope?

In the business world, this step is a little different. This assessment is a relatively brief one to understand the key circumstances creating the need for a turnaround. Far too often, leaders act without surveying a situation. Talk to the people doing the work. Review key metrics. Observe how groups interact. 

The initial assessment does not have to be a weeks or months-long exercise. The main objective is to identify the top two or three problems. The numerous other issues will become apparent and addressed over time.

3.     Perform emergency 1st aid

Many people have heard of the ABCs of first aid. The acronym stands for “Airway, Breathing, and Circulation”. The ABCs must be addressed first. Everything else is secondary. A sprained ankle means nothing to someone that lacks a pulse. The mountain biker was somewhat fortunate because his “only” injury was a potentially broken neck. He was breathing, alert and oriented, and was not obviously bleeding.

In business, it is easy to get overwhelmed during a turnaround. Customers are angry. Deliveries are late. Maybe a machine is old and requires constant attention. People get sick, leave for a different job, or plan on retiring. Costs can be high. Suppliers are late or have quality issues. There is either too much or not enough inventory. Upper management provides help that is not always so helpful.

Focus on the “critical few” in this first phase. Resist the urge to address too many problems too quickly. It is better to fully solve two or three problems than to prioritize 50 things but not have time to make progress on any of them. This step also gives the team a chance for a couple quick successes, which builds confidence. 

4.     Protect the patient from further harm

The last thing anyone wants to do is to cause additional harm to a patient. That is why I immediately put my hands on either side of the biker’s head. He was able to move all of fingers and toes. His spinal column was intact.  Holding his head still eliminated any risk of additional spinal injury.

When a business or project is in turmoil, it is easy for the team to become inwardly focused. The leader needs to consider the customer’s needs because we do not want any additional harm to that relationship. The leader should communicate regularly with customers and major stakeholders. From my experience, transparency is a good approach. “Spinning” or “sugar coating” the situation will only infuriate the customer and undermine the leader’s credibility. Conversely, clear, transparent communication often strengthens relationships, and customers can be immensely understanding, supportive, and helpful.

5.     Check for other injuries

With his neck isolated and 911 activated, I had the team check for other injuries and record basic metrics. Was his heart rate and breathing changing? Did he break other bones or sprain anything? Did he have any new bruises or swelling? What about other miscellaneous pains?

When a business or project struggles, there are usually many contributing factors. While a couple issues may be the driving causes, the long-term goal is to make the business stronger than what it was in the beginning. We do not want to fix a couple things only to find ourselves in the same situation a few months later.

The road to long-term health requires the team to address secondary and tertiary issues. During the turnaround process, many of these issues will become apparent. Make sure the team records these other issues so these problems can be eliminated when priorities and bandwidth allow.

6.     Make an evacuation plan

We were a few miles from the trail head. However, the nearest access road was only a half mile away through the forest. Our evacuation plan was relatively simple. I sent a couple bystanders out to the road, and they would escort the EMTs back to our location.

“Evacuation” is not quite the right term for a business turnaround. Think of this step as creating a long-term improvement plan. Gather key team members, analyze the main driver metrics, and review the status of the key issues that still need to be addressed. Agile project management techniques are helpful in this case. The goal is rapid and iterative improvement, not perfection.

7.     Carry out the plan

Fortunately, the paramedics brought a stretcher with balloon tires, which could roll over the forest floor. A couple of other bystanders and myself helped the EMTs roll the stretcher through the woods to the ambulance. As the ambulance drove off, the others and I were left to wander back to our bikes and complete our rides.

It is much the same in business. Leading a business turnaround can be an all-consuming exercise. Once the business is healthy, then everyone goes back to normal. After a few weeks, hopefully it is as if nothing ever went wrong. Remember however, the goal is not simply to complete a turnaround. The goal is to put preventative actions in place to ensure the business remains healthy and recurrence is unthinkable. It is also important to celebrate the team’s success. 

Every high achiever in business will eventually get that tap on the shoulder where a senior manager will say, “We have a problem, and I would like you to lead the recovery.” Unfortunately, that assignment never comes with a roadmap of what to do next. When that call inevitably comes, remember the 7 Steps To Accident Response.

1.      Take charge

2.      Assess the situation

3.      Perform 1st aid (AKA address key issues)

4.      Protect the patient from further harm (AKA protect the customer and communicate)

5.      Check for other injuries (AKA check for other issues)

6.      Make an evacuation plan (AKA make a long-term improvement plan)

7.      Carry out the plan