All businesses have problems, but some have been able to use the crisis to identify new opportunities for renewal and future success. Whether it was a product recall, financial problems, public relations issues, or industry disruptions, these organizations illustrated leadership responses that enabled them to rebuild and restore trust. Rather, research indicates that crisis leadership can be tied to communication, adaptability, and decisive action, as found at Harvard Business Review.
Communicate Quickly and Clearly
Johnson & Johnson’s response to the Tylenol poisoning incident from 1982 included regular public announcements and nationwide product recalls. The company’s response to the crisis is the subject of an in-depth study and serves as a model of transparent crisis communication.
Put Customer Safety First
The Tylenol crisis was a prime example in which Johnson & Johnson recalled millions of bottles while introducing tamper-evident packaging in order to place the safety of consumers over financial short-termism.
Take Responsibility Early
In an example of how transparency can be a first step in repairing a problem, Nissan Motor Corporation and other companies dealing with governance concerns instituted sweeping changes after accounting scandals in the early 2000s.
Adapt When the Market Changes
Netflix successfully shifted from a DVD-by-mail business to streaming as consumer preferences changed. The company’s transformation is frequently cited as an example of adapting before disruption becomes a crisis.
Focus on Long-Term Solutions
Ford Motor Company was almost bankrupt in 2008, and decided to change up the way it did things and instead look to the future and long-term financial stability instead of short-term fixes.
Build Trust Through Action
After significant data breaches, companies like Target Corporation have adopted robust cybersecurity and customer protection measures to regain public trust and enhance their operations.
Stay Flexible During Uncertainty
As revealed by a McKinsey & Company study, companies that are agile and flexible during emergencies generally come back quicker than their competitors, which are less flexible.
Empower Teams to Respond
According to Deloitte, effective crisis management often depends on empowering teams to make decisions quickly and collaborate across departments.
Keep Investing in Innovation
During the early 2000s, Apple struggled through some financial difficulties and continued to invest in product innovation that would eventually turn Apple into the world’s top company.
Learn From Every Crisis
Organizations that take a systematic approach to analyzing and learning from crises are likely to be better equipped for future crises. Such companies develop a sustainable competitive advantage through ongoing testing and adaptation of their strategies.
