"Never Waste A Good Crisis"

The above quote, which was made popular in 2008 by Emanuel Rahm, the former Chief of Staff to the US President Barack Obama, was quoted by Winston Churchill, a former UK Prime Minister, in the 1940's - towards to end of WW2, while discussing the opportunity that birthed the United Nations.

Crisis usually results in efficiency

Organisational crisis yanks businesses off the state of inertia and usually makes action inexorable. I have seen several organisations talk about some transformational business efficiency, for several years, without taking any credible action to actualise it, until they run into a crisis. In other words, until confronted with an "either sink or swim" situation.

Change: Can be driven by inspiring others or instilling fear in others

The "burning platform" change management is the alternative to the more difficult, longer but more sustainable route of inspiring businesses to get better and be more competitive. Some team members (aka doubting Thomases) resist change except it is “crystal clear” the business needs to change therefore leaders, sometimes, create burning platforms to drive organisational change with less resistance by the troops. Leaders sometimes create a perception of crisis to force positive change.

Burning Platform Principle

The burning platform has its roots in the Piper Alpha platform fire incident that claimed 167 lives in July 1988. It has the reputation of being one of the costliest man-made catastrophes to date and definitely the worst offshore oil disaster in terms of lives lost and industry impact.

Essentially you make a choice of either "a sure death" (staying on the burning platform, status quo, state of inertia) or "a possibility of survival" (jumping from the helideck, about 30-40 storeys above sea level, into the freezing North Sea). Ouch!

A Good Crisis

When crises are real and not conjured up by leaders, as with the present economic slowdown, then a natural opportunity for efficiency presents itself to the business. That is a good crisis. That is an opportunity for business leaders to re-visit the parked disruptive initiatives, thoughts and ideas. They have the potential to save businesses and improve competitiveness.

That is not wasting a good crisis.

This is my 3rd key take-away from my on-going series on "Lessons from my conversation with the Chairman of Julius Berger PLC, Mr. Mutiu Sunmonu CON". He says he never lets a good crisis go to waste. What does he do? And what exactly does he advise business leaders, entrepreneurs, and decision-makers to do, so as to come out of this ongoing economic slowdown, stronger?

Watch the video of my conversation with Mr. Mutiu Sunmonu CON, below

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About the Author

Akin Monehin (MBA, Strategic Management — Chicago Booth) is a thought leader, business strategist & speaker. He hosts Make or Mar Moments with Monehin on YouTube and maintains a Leadership & Entrepreneurship column in Africa’s leading Business newspaper, BusinessDay Newspaper.

Akin is a 2015 recipient of Choiseul Institut France’s Award of Top 100 African Business Leaders under 40 Years Old. He has worked in over 10 countries including French and Arabic speaking ones and has the privilege of work experience from the following leading organisations:

• Qatar Shell GtL Ltd — The world’s largest Gas to Liquid Plant
• Virgin Atlantic Airways Ltd — one of the most innovative (& fun) businesses
• British Airways PLC — the world’s favourite airline
• The Shell Petroleum & Development Company of Nigeria Ltd — the pioneer in oil exploration & production in Sub Sahara Africa
• Nigeria LNG Ltd — one of the world leading producers of Liquefied Natural Gas

He currently works for Shell Nigeria Exploration & Production Company(SNEPCo) as the Business Transformation Manager. He is based in Lagos and you can connect with him on Instagram or via email akin.monehin@chicagobooth.edu

Views expressed in this article are personal and do not represent the views of SNEPCo, Royal Dutch Shell or any institution he is affiliated to.