Contingency Planning Before the Crisis Occurs

No matter what we do in business, we can neverto think through and anticipate problems before
coach the future. One of the things that resultedthey occur, the manager can chart a course of
from the tragedy that was experienced here inaction that is well planned and not reactionary.
the United States on September 11th was thatMinimize Over-Reaction
many companies began to formally adoptYour company has a great deal to do with the
contingency planning as a regular part of theirway crisis situations are handled. If you are part
overall planning process. The process ofof a crisis prone organization, the management
contingency planning is initiated by asking a seriesstyle is often a "shoot from the hip" style. This
of questions about the business environment thatstyle tends to create over-reaction to problems
begins with "what if". Regardless of the how goodthat occur seemingly daily. Many managers truly
things appear at the moment, we have tobelieve that they get more done when operating
embrace Murphy's Law that states if anything canunder these circumstances. Though everybody
go wrong it probably will.has a different personality, the reaction is
Contingency planning is a formal process tounderstandable and at the same time, damaging.
manage crisis, whether inflected from an externalIt becomes your responsibility to decide if you
source or an internal source. In it's basic format, areally need or want to be involved in the problem
contingency plan involves potential problemor situation. At time when the problem escalates
identification, prioritizing the problems in a list ofto crisis proportion, the panic becomes a
most probable, and developing planned steps tocontagious disease that will spread through an
limit the harm that can be inflected on theorganization rapidly. On the other hand, if you are
company if indeed the potential problem becomesnot equipped to handle the problem, you can
real.quickly manage the problem into a crisis. Be
Be Responsiveaware and selective when you decide to get
Companies that are slow to act generally will feelinvolved. If you have the responsibility to make
the full impact of the crisis or problem. The daysthe decisions that will handle the problem, take
of sticking your head in the sand like theprudent well thought out steps that allow you and
proverbial ostrich are gone. Competition isyour team to appear calm, cool, and collected.
encountering the same issues you are in theDissect the problem and handle it in small pieces.
marketplace unless it is self-imposed, such as aThis gives you the opportunity to think through
recall or product defect. Marketplace issues areeach action with accompanying potential
easier to anticipate. These problems can usually beconsequences of each action. Action steps that
seen from a distance. It is those companies thatare thought out prior to the actual crisis occurring
fail to recognize their impact that feel theare always enacted with more confidence and
complete force of the problem.received better by internal subordinates and
Customer and market perception of a company'sexternal customers.
professional prowess is dictated by the company'sPrioritize
ability to handle big problems quickly andLook for at least two or three options that will
effectively. A slow response time, or pretendingsolve each problem. A decision has to be made as
the problem will go away all by itself, can cripple ato which problem has the potential to be the
management team faster than the actual problemmost damaging. Prioritizing the potential problems
arose. A solid contingency plan that is well thoughtthat could cause a crisis along with the number of
out in advance delivers a strong response andoptions defined to take corrective action is critical.
increases both internal and external appreciationThe best response should be discussed and a
of an efficient, responsive management team.complete series of action steps documented to
We Learn From The Pastformat the intended outcome.
History will usually repeat itself at some point.Remember to consider the seriousness of the
Scenarios are played out over and over again byproblem as well as the actual probability that the
companies that are willing to let history teachproblem will indeed occur. Ranking and prioritizing is
them that poor planning in the past has no place inan important part of the process. Contingency
the company in the future. At the same time, theplans deal with serious issues that have serious
question has to be asked, "is this indeed a trueoutcomes. Individual managerial goals and
crisis?"objectives can be structured in a way to focus
Your type of business dictates the importanceon solutions to anticipated problems as well as
that you will place on having a single or multiplesolutions to current problems. In either case, by
contingency plans in place so that as a crisis doessetting the focus, the basis for contingency
occur, a list of exacting actions will result toplanning becomes part of the overall planning
minimize that situation as much as possible. Let'sprocess.
take for instance a fire. Every business owner hasCompanies and businesses that want a strong
to think about this potential nightmare problemcontingency plan in place make it a priority and
due to insurance requirements by landlords. Planstreat it as a separate part of the overall planning
that are well thought out include keepingprocess. No mater which course of action you
customer lists and computer data back-up's offdetermine is best for you, a basic plan is better
site, vendor communications and inventory listingsthan no plan. If the problem arises, you will be
along with well documented video tapes of thethankful that some thought has already been
premises, just to name a few.given to the situation.
If you live in an area that is potentially effectedTake Steps to Prevent
by weather elements, you have a good idea ofIf you are able to prevent a problem before it
what has to be done when the weather alert isturns into a crisis, you have successfully
issued. Since you have done this before, the planmaneuvered through the minefield of
is more concrete and less necessary actions thatmanagement. Consider these courses of action to
are required to stay safe fall by the wayside. Thestay in a preventative posture.o Anticipate the
same is true for you business. Once tragedy hits,problems that might occur in your business and
you are in the middle of the crisis before youtake action steps to prevent them or limit the
have a chance to consider the ramification. A wellconsequences.o Track major tasks through
thought out plan in advance minimizes theprogress reports by identifying major issues and
problems that are going to arise because youtaking corrective action steps.o Crosscheck
have a prioritized list of actions to execute quicklyinternal departmental goals and objectives to
and efficiently.make sure that no crisis is looming once the
List the Potential Problemsobjective has been met.o Assign the correct
Consider how serious the problem really is to youpeople to handle the issue, problem, or crisis.
and your business. Assign it a priority number. TheAvoid over committing your resources by
problems that rank the highest should be work ondetermining in advance who and what is needed
the most. A priority analysis should includes a listto solve the problem or issue.
of the potential problems, how serious theRe-access After the Crisis
problem would be, how probable is it that theTaking time to examine the step steps to
problem would occur, then assign a priority weightsuccessfully navigating through the crisis can be
to the problem. Some problems can be preventedone of the most important parts of having a
altogether while others will occur no matter whatcomplete contingency plan. You will find that some
you do. The best outcome here is to try to limitaction items went well, other could have been
the damage and keep the problem to a minimumimproved and/or changed altogether. By revisiting
as much as possible.the problem while the entire scenario is fresh in
Outlining the trouble spots is important based onyour mind, you will be able to make notes and
the severity of the problem. If the problem is lessoutline a better course of action if the crisis were
likely to occur, your time should be spent askingto arise again.
the questions such as " what has gone wrongShare the feedback and write a case study for
before", "in addition to what has alreadyothers in the company to provide their input on
happened, what else could go wrong?" and "whatspecific successful action items as well as
can be done to minimize the situation and getalternative ideas on unsuccessful action items.
things back to normal as quickly as possible?"Modify and document the plan after a consensus
Give Yourself Reaction Timehas been reached.
Small problems are easier to solve than largeOur businesses change daily. Both internal and
problems. By catching the smaller ones beforeexternal factors contribute to crisis situations that
they become big problems, you have time towill arise. Most can be anticipated and minimized
anticipate and plan for a reasonable outcome.with a strong contingency planning process.
Gray stated "Ignorance is bliss". Without theOthers cannot be avoided and will have to be
proper time to plan, the bliss is indeed ignorance.dealt with expeditiously and professionally. Good
Professional managers have to build in someluck is not always available and things happen.
flextime into their schedules. Priorities areBeing prepared to deal with bad luck can turn
rearranged, appointments change, unannouncedeven the most unsavory situations in
meetings occur, and unforeseen problems ariseopportunities. Having a good contingency plan in
that have to be handled. By having enough timeplace is no longer an option, but a necessity.