Crisis Management - A Team Approach to Addressing Business Problems

During the course of day-to-day business, onlybe made with the expectation of how the
one thing can be expected. That is that problemsinformation should be summarized or presented
how will arise. Some businesses hold individualto the action team and when. Ideally, they should
managers responsible to resolve problems. Othersbe in the form of a presentation with back-up
address problems through teams of managersdetails in advance of the next action team
aligned either organizationally or functionally withmeeting to allow for detailed review prior to the
the problem. And yet other businessesnext meeting.
intentionally or unintentionally ignore problems untilStep 3: DO YOUR HOMEWORK
they are so impactful on business outcomes thatThe Second Action Team Meeting
they must be addressed in some manner. TheAction teams must work in compressed time
latter usually requires additional resource due toframes to be most effective. Within a short
the crisis nature of the problem. In that businessperiod following the initial action team meeting and
problems are a given, there should be athe completion of the assigned research, the
consistent methodology for addressing problemsteam should reconvene, in an environment where
as they arise. The purpose of this document is tothey cannot be interrupted by any normal
summarize one of the most effective was today-to-day issues. These should be either
identify, address and resolve business problems.delegated or temporarily reassigned during the
Identifying business problems.action team meeting to allow complete focus on
One of the greatest challenges in business isthe task at hand. The action team meeting should
separating problems from the numerous dailybe structured as follows:
issues, challenges, competitive pressures and- Restatement of the business problem
change. Many if not most of these are part of- Review of the direction from the CEO including
the day-to-day and must be addressed by thethe time frame for resolution
individual managers with functional or organizational- Crisp presentations by each of the individuals or
accountability in the area where they arise. This isteams on their research topic
not to minimize the importance of these. It is just- Boarding (Post Its or large flip charts) the
that they must be acted upon by the individualscauses of the issue, actions to address the
who have accountability and responsibility whereproblem, other effects of those actions and good
they arise. There are other business problemsideas and issues but unrelated to the problem at
that go beyond the accountability of the individualhand should be posted on a "parking lot"
manager. Some of their characteristics are:- Vote on the issues and actions to identify the
- They impact the revenue top line against thetop three of each
business plan- Assign a team to present each of the issues
- They impact the cost and/or expense againstand a team to present each of the actions
the business planStep 4: CLARIFY THE TOP THREE ISSUES AND
- They impact market share against what wasRELATED TOP THREE ACTIONS
targeted in the business planThe Third Action Team Meeting
- They impact customer satisfaction against theThe action team should reconvene to present the
measure in placetop three issues and related top three actions.
- They impact employee retention and/orThis could be the next day or the next week. It
satisfaction against the measure in placeshould not be more than two weeks after the
While there may be business problems beyondSecond Action Team meeting. The third action
these that need to be addressed by a team andteam meeting should be structured as follows:
the process outlined below, these are the key- Review of the business problem and time frame
indicators externally and internally for the successfor resolution
of any business. Any deviation in any of these- A crisp presentation by each of the sub team
measures against the business plan or otherof their top (one of three) issues and related
internal metric is a candidate for action by a crossaction (one of three)
functional and/or cross organizational action team.- At the end of each there should be a rigorous
Step 1: IDENTIFY THE PROBLEM IN CLEAR,question and answer period. The points should be
CONCISE LANGUAGEboarded on a flip chart
Team to resolve the problem- When the discussion of all three issues and
Now that the problem has been identified andactions have been completed and documented,
documented in clear, concise language, the nexttheir should be a vote among all participants of
step is who can address the problem. Short ofthe dominant issue and action
the Chairman or the CEO, who is the business- The dominant issue and action should be
owner for the outcome or achieving thedocumented to insure clarity among all participants
committed business result? This needs to be- Each participant should speak to their role in
defined clearly within the organization at theaddressing the issue; this should not be
functional and organizational level. Once thatconstrained by resource, budget or organizational
individual has been identified, she must becontention
empowered by a senior leader (CEO ideally) to- The agreed upon issue and action including first
own and resolve the problem. Along with thisstep organizational and functional roles should be
goes the charter to establish an action team todocumented and reviewed with the entire action
work the problem to resolution. The CEO (orteam
other senior executive) needs to be clear about- A target for presenting the action team issue,
the time frame for action. The problem owneraction and accountabilities to the CEO or senior
must next reach within and outside theirbusiness leader should then be scheduled
organization to assemble a team to address andStep 5: ALIGN ON A SINGLE ISSUE, SINGLE
resolve the problem. While this team may includeACTION, FUNCTIONAL OWNERS
members of organizations such as Finance,Present, Close and Act
Marketing, Sales, Operations, Research andThe agreed upon issue, action and owners with
Development and Human Resources, theaccountabilities and time frames must next be
composition should be specific to the problem andpresented to the CEO or senior business leader. If
not include more than one participant perthe senior business leader agrees with the action
organization or functional area. The members ofteam's recommendations, the next step is to
the action team need to be committed to theimplement the action plan with specific objectives,
project through their leadership and committed toowners and time frames (metrics). If the senior
a pre-agreed amount of their work time andbusiness leader does not agree with the action
project duration. While these may change atteam's recommendations, the action team must
points during the project, they should beeither go back and do additional research and
communicated up front.follow the subsequent steps or if additional
Step 2: ASSEMBLE AN EMPOWERED TEAM TOresearch is not needed then the team should go
RESOLVE THE PROBLEMback to step 3.
Initial MeetingStep 6: ACT, MEASURE, CORRECT, ACT,
The action team must have an initial meeting forMEASURE, CORRECT
several purposes. First it should serve toDuring the execution of the action plan, the
communicate the problem to all participants.individual functions and organizations must perform
Secondly it should serve as an occasion for all thethe roles, actions and within the time frames
action team members to get to know onepresented by the action team to and as
another. Thirdly, the timeline, expectations, andapproved by the CEO or the senior business
roles must be clearly outlined at the initial meeting.leader. The action team does not own this, they
Finally, specific fact-finding assignments must bemust be owned by the functions and the
made during the initial meeting along with timeorganizations as part of day-to-day business.
frames for reporting out information from theOtherwise it will be viewed as an action team
fact-finding. More information is better. Whileissue and not a business issue. The time frames,
business instincts are important, facts serve tometrics and readouts to the CEO or senior
take emotion out of the exercise. Whetherexecutive by the overall business owner are
individual or small teams, clear assignments mustessential to resolve the business problem.