| All business managers have been warned against | | | | work with chaos theory and management. (Chaos |
| operating in an environment of crisis management. | | | | Theory holds that if a butterfly flaps its wings in |
| To be a more effective manager and leader, you'll | | | | Tokyo this will result in a tornado in Texas.) Our |
| want to know that there are prevalent beliefs | | | | essential findings from the chaos research were |
| about crisis management that need to be | | | | that managers who tried to hold situations static |
| understood and discounted. To allow us to | | | | in their organizations (or, "stable," in their view) |
| examine beliefs that have been assumed for | | | | were most likely to wind up in a great deal of |
| many years, I've described these prevailing ideas | | | | trouble. Why? Because in their struggle to keep |
| as the myths of crisis management in the text | | | | things from "happening," they ignored all of the |
| that follows. | | | | early warning signs indicating that trouble was |
| Management in the modern organization, of | | | | brewing, and they refused to deal with these |
| necessity, requires managers that are | | | | situations in a timely manner. And, why was that? |
| fleet-of-feet and able to manage ever-changing | | | | Primarily, it was because their earlier management |
| conditions. When the term "crisis management" | | | | training had prescribed that they not engage in |
| was coined forty years ago, organizations were | | | | "crisis management." What resulted, therefore, |
| still rather staid and unchanging entities. | | | | was the severest form of chaos, often requiring |
| Consequently, it was deemed an unfavorable sign | | | | months, and sometimes years, to disentangle and |
| if an organization of that time was regularly in a | | | | to make "right." |
| state of crisis, or, change. And, the management | | | | Crisis Management Myth #2 - Inherent in the |
| of that organization was viewed as needing to | | | | beliefs about crisis management and its |
| exert more influence to obtain control of events | | | | consequences, is the assumption that managers |
| at the firm. Crisis Management Myth #1, | | | | should have full control over all events in the |
| therefore, is that experiencing frequent change in | | | | organization. Fifty years ago, that might have |
| organizations, (or "crises") is a bad thing. On the | | | | been an accurate depiction of appropriate |
| contrary, an organization in today's business | | | | corporate management. Today, however, events |
| climate that is not in a constant state of | | | | are rarely "controlled," but are, instead, managed, |
| fluctuation, change, and growth will not be able to | | | | or orchestrated, for best effect. And, only in the |
| survive. Organizations that understand the nature | | | | rarest of organizations will any one single individual |
| of change and its usefulness are those that do | | | | have the ability to fully control all of the events |
| well. These organizations know that: 1) change is | | | | and "goings-on" in the organization. I know of very |
| inevitable, as nothing is certain, except change | | | | few organizations wherecontrol of this sort is so |
| itself; 2) imminent changes that are faced with | | | | complete. Most organizational management |
| courage and confidence are readily managed; 3) | | | | responsibilities in today's organizations are shared |
| change brings with it a certain amount of | | | | amongst several of the corporation's leaders (for |
| ambiguity and turbulence; and 4) the results of | | | | example, Presidents, CEOs, CFOs, COOs, and |
| facing the challenges of change well will be a more | | | | others), all working in orchestrated teams that |
| cohesive company environment, aligned with its | | | | lead organizational efforts. To fear engaging in |
| business community and its clients and customers. | | | | change evidence, or "crises," because full control |
| The challenge for modern managers is to learn | | | | over all situations is preferred is at one and the |
| the agility and responsiveness required in an age | | | | same time both a delusion and an unattainable |
| of computerization and technological interface. I'm | | | | goal. |
| frequently reminded of my research team's early | | | | |