Businesses and Effective Crisis Response
Businesses experience diverse challenges which, in other instances, result in crises. Effective crisis response is a critical aspect of leadership and management. The case of Mary Barra, the General Motors CEO, during the ignition crash scandal the company faced in 2015 is an example of a perfect response to a crisis by a leader. Barra admitted the company and its employees had knowledge of the problem and had recalled its cars (Isidore and Perez 1). Barra highlighted that the company was sincere in its efforts to address the problem and understands the tragic situation its customers underwent.
The Essential Steps for Leaders in Crisis Management
Alison Davis, the CEO of Davis & Company, highlights the essential steps a leader should take when the company faces a crisis. According to Davis, taking immediate but unreasoned actions during a crisis may not be the best strategy for a leader. A fast response does not grant the leader time to make reasoned judgment during a crisis. Davis recommends that leaders seek the opinion and participation of trusted advisors to understand a crisis (1). A leader should take time to think about their actions, convene a meeting with the team members, and evaluate the situation. The first step helps a leader to think and have a perfect time to react to the crisis. Team members' role in a crisis would include gathering information fast and within the shortest and most convenient time. After initiating an inquiry, the next step is for the leader to communicate with other members of the organization to mobilize them (Davis 1). It is imperative to coordinate the crisis management team to assess the situation while engaging the leadership teams. Every team member should focus on assigned roles. Davis further recommends that the leader should allocate resources to address the crisis.
Works Cited
Davis, Alison. “How Great Leaders Respond to Crisis.” Inc., January 8, 2018, https://www.inc.com/alison-davis/facing-a-crisis-heres-surprising-thing-leaders-need-to-do-first.html. August 7, 2018.
Isidore, Chris and Perez, Evan. “GM CEO: 'People died in our cars.” CNN Money, September 17, 2015, https://money.cnn.com/2015/09/17/news/companies/gm-recall-ignition-switch/index.html. August 7, 2018.
