5 reasons why crisis-management is so complex
While crisis management is an important process from the point of view of ensuring organisational sustainability, it is also a very complex undertaking. Its complexity stems from a variety of factors, both internal and external. Sometimes, crisis management can also fail, despite the best efforts of those involved.
To ensure a timely and effective response, the focus must be on the organisation’s preparedness and awareness of potential risks and the environment in which it operates. We highlight 5 reasons why crisis management is so complex.
One of the main reasons why crisis management is difficult is the unpredictability of crises. While organisations can develop contingency plans and emergency action plans, they cannot anticipate the exact nature or timing of a crisis – it usually happens without warning, leaving little time for preparation, leaving organisations with little time to respond effectively.
In addition, crises can take different forms, from natural disasters to man-made incidents, making it difficult to have a coherent approach to crisis management. The complexity of a crisis can make it difficult to understand the full extent of the problem and to develop appropriate responses. For example, a crisis may involve multiple stakeholders with different objectives, interests and priorities, making it difficult to find a common approach.
As crises often have significant consequences, including loss of life, reputational damage and financial loss, those involved in crisis management are under great pressure to make the right decisions quickly, which can lead to errors of judgement or decision-making.
2. Time pressure
Time pressures and the need for rapid decision-making can make it difficult to gather accurate information, assess options and make effective decisions. The high stakes of a crisis can also create a sense of urgency, which can lead to impulsive decisions or inadequate planning. This, in turn, can damage an organisation’s reputation and credibility, making it difficult to regain stakeholders’ trust.
3. Communication and cooperation problems
Effective communication is essential in times of crisis, but misinformation or incomplete information can make matters worse. In addition, crises often involve complex and multi-faceted issues that require coordination and cooperation between different teams, departments or even other organisations, sometimes even competitors. Communication breakdowns or a lack of coordination can hamper effective crisis management, causing delays or errors.
4. Lack of resources
In addition, crisis management is often hampered by a lack of resources, such as funding, crisis training, staff or equipment. Organisations may not have the resources to respond effectively to a crisis, or they may be forced to divert resources from other areas to crisis management.
In scenarios involving local authorities, there is also a public sector element to consider in relation to legislation that may have a significant impact on organisational crisis management.
5. Psychological impacts
Finally, the emotional impact of a crisis on the individuals concerned can make rational decision-making difficult. Managers may experience a variety of internal factors such as stress, helplessness, anxiety and fatigue, to name but a few, which may affect their ability to make rational decisions.
The intense attention and media scrutiny that often accompanies a crisis can increase the pressure and make it difficult for organisations to control the narrative and manage public opinion.
In conclusion, crisis management is complex because it is unpredictable, evolving, involves difficult decision making, reputational damage, communication difficulties and also an emotional burden. In addition, one has to take into account that the stakes can be high and the problems can be complex, which in the worst case can lead to resource constraints. Crisis management capacity can be developed – more on that in the next post!