4. *
*Original Question “Our Business is always in some
Crisis… we have been fire fighting all the time and
we haven’t gotten nothing done… and have at best
just barely managed to stay afloat. What should we
do?”
*The Correct Question - “One cannot wish away
Crisis… you have to handle it and a lot more… till
crisis situations minimize and stability and growth
make the majority of your efforts… Lets understand
the relationships and how to make the best use of
Crisis. Shall we?”
7. *
*Crisis = Risk + Opportunity
*Crisis Management is a Broader Framework
than Risk Management
8. *
* This Chinese symbol for risk is a combination of danger (crisis) and
opportunity,
* representing the downside and the upside of risk. This is the
definition that captures perfectly both the essence of risk and the
problems with focusing purely on risk reduction and hedging.
* Any approach that focuses on minimizing risk exposure (or danger)
will also reduce the potential for opportunity
* Rule: The Reason Why Business’s Exist Is To Take Risks
* If they don’t take risks they will not make any money
* Rule: People who succeed the most at taking the most risk
make/deserve the most money
* The decisions on how much risk to take and what type of risks to take
are critical to the success of a business
* Exploit the Risks that’s you have an edge over others in exploiting
9. *
* Opportunity
* For Shock Therapy
* To Fix Things
* To Drive Change
* To Drive Growth
* To Innovate
* Stories
* Reinforce Culture, Values, Principles, Practices
* Arrive At Consensus
* Set/Change Direction
* Rethink The Purpose
* … and opportunity to do some other Unspeakable Things!!!
If one exploits the Opportunity of Crisis…. Not only the Crisis gets addressed,
their intensity and frequency decreases over time…
10. *
* Estimate the Money At Stake…
* Estimate the Downside Loss Possibility
[If you can’t do either of the above two then the Crisis Does
Not Mean a Business Opportunity for you]
* Charge upto 2% of the former
* Charge upto 20% of the latter
* Don’t accept a Downside liability on your part…
* The logic being Rescue Missions are rarely successful if they
have the surety of being suicide missions. The rescuer always
has to be reasonably sure of making it back home safely. That
is the only scenario a rescue mission is done. Otherwise it’s a
heroic suicide mission which makes a good 2 Hr Movie!!!.
11. *
* Crisis is NOT ABOUT Exploitation ITS ABOUT Sharing Risks and Rewards and
Using the Crisis towards Change, Growth and Innovation…
* For a Rescuer….its about a genuine Capability to Rescue someone from a
Crisis Situation, partially or completely before anyone else can, or before
they cross the point of no return (Economics!!! At Play!!!)
* Fact: Historically Business’s and Industries have grown the most and
flourished during times of Wars, Crisis and Survival Threats
* Crisis Scope
* Business
* Market
* Industry
* Economy
* Regional
* Global