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Failing to plan is planning to fail


by Darren Gilbert on 24 February 2012

A crisis for anyone, let alone for a company, is bad. Fortunately, crises can be managed. As San Reddy stated in my article this week, this comes down to the successful implementation of a plan. Without one in place, you can expect an uncomfortable journey. You might be able to rectify it, but don’t expect to come out looking good. It comes back to that adage: if you fail to plan, you’re planning to fail. Here are a few examples of companies that did just that.

One example that everyone should know because it is arguably the biggest crisis fail ever was the response from BP following an oil spill in the Gulf of Mexico in April 2010. Like BlackBerry (used as the example in my article), executives were slow to respond and when they did, they were tightlipped and feigned ignorance about the effect it would have. Then CEO Tony Hayward even so far as to claim that the spill was “relatively tiny” compared to the “big ocean”. We all know how that turned out.

For Reddy, good leadership is paramount to managing a crisis successfully. One look at the response from Hayward will show that BP was always going to be on the back foot.

Another company that shared BP’s mistake is the world’s biggest car manufacturer, Toyota, who ironically prides itself on its safety and reliability. In 2010 though, it had to recall millions of vehicles after a fault was found with accelerators and brakes. So what did they do? Mr Toyoda held a press conference two weeks after the recall of vehicles to reassure consumers that there was no defect. This didn’t really have the desired effect. In January 2010, following public pressure, Toyota announced it would temporarily stop building and selling certain models in America.

These are, of course, only two examples. There are many more and unfortunately, there will be countless in the future. Hopefully, if your company is ever faced with a crisis, don’t do what Mr Hayward or Mr Toyoda did – act instantly. A crisis can happen to anyone. But it’s what you do after it hits that counts. Don’t plan to fail; plan to succeed.




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