Crisis Management Often Backfires, Expert Says

Crisis management expert John Kotter says any kind of impending crisis needs to be understood – and leaders must be ready to make the tough decisions about how to handle upcoming difficulties.

In an article in the Ottawa Citizen, Donna Nebenzahl says Kotter, a Harvard Business School professor emeritus and author of the book A Sense of Urgency, says many companies are unable to do this.

He cites one company going through a crisis where the CEO hoped that members of the organization would be jarred from their complacency by the crisis. Unfortunately, Kotter writes, “instead of mobilizing people into action, the crisis led many managers into making fewer decisions because they didn't want to be accused of mistakes with the press and public watching. ... So they held back just at a time when the CEO most needed their help ....”

Another roadblock to productive action during a time of crisis is the real possibility that unless employees understand the company strategy, they will feel manipulated or believe the company’s behavior is putting them in harm's way, he writes.