What Does It Take for Organizations to Be Crisis Ready?

In a VUCA world—one characterized by Volatility, Uncertainty, Complexity, and Ambiguity—organizations can be brought down in an instant. Crisis readiness isn’t optional; it’s a lifeline.

A recent study explored what helps organizations become crisis ready. Researchers conducted a systematic literature review, analyzing studies published between 1987 and 2022, distilling down from thousands of articles to 40. Here are the 10 critical factors that emerged for achieving crisis readiness:

1. Detect Early Signals
Organizations must have strategies for early signal detection. Continuous monitoring and analysis of the environment are essential to identify potential threats before they escalate.

2. Develop a Crisis-Ready Culture
A culture of crisis readiness starts from the top. Management engagement is key, but everyone—at every level—needs to be involved. Train teams, assign crisis responsibilities, and empower crisis management teams to work autonomously.

3. Appoint a Crisis Management Team
Dedicated crisis teams are a must. Their role spans before, during, and after a crisis. They make decisions, create plans, and must be empowered to take control during the chaos.

4. Create a Crisis Management Plan
Effective crisis plans use PESTLE analysis to understand external factors (Political, Economic, Social, Technological, Legal, Environmental) and ensure robust internal and external communication flows.

5. Set Crisis Management Standards and Procedures
A SWOT analysis underpins the standards and procedures to help address Strengths, Weaknesses, Opportunities, and Threats. Use flowcharts, manuals, and checklists—and train everyone regularly.

6. Establish a Communication Plan
Ensure values, culture, and purpose are well understood within the organization before a crisis strikes. Appoint a crisis spokesperson and train managers to communicate effectively with all stakeholders during a crisis.

7. Prepare for Worst-Case Scenarios
Develop a worst-case scenario portfolio. Learn from other organizations’ crises, simulate different crises, and work through “what if” questions to be prepared for a variety of possibilities.

8. Train Across the Organization
Training must be thorough and cross-functional. Carry out drills, role plays, and tabletop exercises. Assign clear roles, test skills, and conduct evaluations to ensure readiness.

9. Test the Crisis Plan Regularly
Review, test, and improve the crisis management plan through simulations and operational exercises. Run debriefs after every exercise to capture lessons learned.

10. Consider External Stakeholders
Effective communication with external stakeholders is vital. Identify audiences in advance and develop strong relationships with the media, government, and communities before a crisis hits.

Points to Note

• The findings are based on an analysis of existing studies, and though they haven't been directly tested, a systematic literature review ensures a higher level of reliability.

Key Takeaways

• Evaluate Your Readiness: Use these 10 factors as a checklist. How well does your organization fare?

• Act Now: If you lead a team, start integrating these strategies. Can you train your team or test their crisis response through scenario-based exercises?

Need help implementing this plan or any other critical business or personnel function?
Contact Mike Frazier at:
mike@peaktcs.com | team@peaktcs.com | 706-228-7325

Reference: Bjorck, A., Blase, R., & Bastida, P. (2024). Becoming crisis-ready: A systematic literature review on corporate crisis readiness and the process to achieving it. Journal of Contingencies and Crisis Management, 32, e12614. (Open Access). https://onlinelibrary.wiley.com/doi/10.1111/1468-5973.12614