Crisis management [] designates systematic handling crisis situations. This contains the identification and analysis of crisis situations, the development of strategies, if not already in the context of the risk management happen, for the accomplishment of a crisis, as well as the introduction and pursuit of counter measures.

Arise from crises

Crises arise both in enterprises or other complex organizations and in their subranges, as e.g. in projects. Here the crisis management is according to part of the project management.

Several different aspects can point to a crisis:

• In crisis situations the used standard behavior patterns and strategies are not usually sufficient, in order to come out from the crisis again.
• The existing knowledge and existing resources are not sufficient, in order to master the situation.

Crises can occur e.g. also in the policy, in international relations, with natural catastrophes or in consequence of accidents.

Types of crises

The technical literature differentiates several types from crises, which are often different in number and naming. Here a rather general distinction is to be sufficient into the following three types:

• Survival crisis

To a survival crisis events belong, which endanger the existence of enterprise or another kind of organization. In case of an enterprise count for this liquidity problems, loss of enterprise-important business processes, loss of important customers and/or suppliers as well as other economic difficulties, who can lead to the insolvency. Measures, which against-steer a crisis of this type, contain often an economic consultation or an enterprise reorganization also cut into the firm's structure and must above all fast be advanced.

• Control crisis

The control crisis covers all problems, which refer to the management of an enterprise. To it do not belong wrong or existing decisions, a power monopoly, a power vacuum and information lacking on decision making. As counter measures usually instruments from reorganization offer themselves, Business Process Reengineering (BPR), knowledge management or personnel development.

• Change crisis

Change crises can result from changes in an organization or in an enterprise. In addition belong e.g. new IT-applications, which are not accepted by the users, or also process changes, which are not lived on the staff. Can be worked against to a change crisis by per-active change management (CHANGE management).

Strategies for crisis accomplishment

In case of of enterprise crises, which threaten the further existence of an enterprise, possible strategic action options would be for the accomplishment of the crisis:

• Holistic crisis management
• Sales of the enterprise
• Liquidation (thus dissolution) of the enterprise
• Reorganization.

Strategies for crisis avoidance/reduction

Many crises can be attributed to strategic wrong decisions or to failure into emergency situations. The availability of decision-critical information and the ability to master negative events time near are a good protection against crises

• Formation of strategic alliances, creation of opportunities of evasion
• Scenario technology for the identification of possible crisis scenarios
• Early warning system, risk management, which the risk exposition of the enterprise, the supplier, who detects customers continuously supervised and weak signals of developing crises.
• Regular execution of supplier and customer evaluations (see customer value)
• Crisis/emergency management system, which avoid in case of emergency the escalation of an event by prepared measure plans continuity management/is to decrease
• Training of the crisis staff, execution of crisis staff exercises
• Establishment of a communication strategy for cases of crisis (internal/external communication), since enterprise crises have often a negative medium effect and a high interest of public.

Literature

• Resin, Michael/stroke, Heinz Eberhard: Reorganization management. Enterprises from the crisis lead, 3. Edition, Duesseldorf 2006, ISBN 3-87881-184-5
• Rose-dear, franc (Hrsg.): The crisis managen, Frankfurt one general book, Frankfurt/Main, 2002, 248 sides, EUR 25,90, ISBN 3-934191-71-1
• New farmer, Michael: Crisis management in projects, Springer publishing house, 244 sides, 2. Edition 2002, ISBN 3-540-43355-4

Related links

• German society for crisis management registered association (professional association of German crisis managers and crisis researchers)
• News service www.krisennavigator.de of the Kieler of institute for crisis research, "“spin off"” of the University of Kiel
• Freely accessible on-line check lists about crisis management and enterprise reorganization
• Information about risk management and crisis management

Articles in category "Crisis management"

We found here 28 articles.

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