What Project Leaders Can Learn from Corporate Crisis Management

Maybe you didn’t even see it coming. That is often the nature of a corporate crisis. They come without warning and leaders typically have to act quickly with limited information to effectively manage the fallout. A sudden corporate disaster requires a fast and well-executed public response with clear and meaningful actions.

Just think about the challenges of a few of the better publicized corporate debacles of the last decade: the AIG bonus scandal, Walmart’s factory fire in Bangladesh, Abercrombie and Fitch CEO’s offensive comments, and Target’s data breach, to name just a few. Some organizations emerged in pretty good shape; for others, the damage is long-lasting and perhaps will never be overcome. All struggle with identifying the most effective way to handle a corporate crisis and to rescue credibility and reputation.

The strategy for recovering from a corporate crisis is not unlike handling the repercussions of a visible or important project gone sour. Here are some tips from crisis management experts that can be applied to a project post mortem to make sense of a failed project and manage better the next time:

• Assess
Take the time to look at the big picture and get a sense of what went wrong. Consult with a respected person who can be objective. Talk as well with all stakeholders to get their feedback. Share the input with your project team. Figure out together where you slipped up. Was it in the project definition stage around goals, business case, success metrics, sponsors, stakeholders, roles, resources or communication?  Was it in the project planning stage where you were over-optimistic or not detailed enough in the areas of risk management, planning, scheduling, or resourcing? Was it in the project execution phase in the areas of project kickoff, problem solving, conflict resolution, continuous improvement, rewards and recognition, meetings, accountability, trust, communication, change management or measurement?  

• Plan 
Create a smart plan for improvement. Coming clean early on and proposing a fix-it plan that aligns with your company values is the only strategy that really works. AIG tried to sidestep the issue, Walmart put in place a weaker safety plan than the European accord, and A&F hoped the negative comments would be forgotten. None of these strategies worked very well. Only Target’s strategy of transparency seems to have been the right move. Experts say the same thing whether for crisis management or for repair of the team after a failed project: acknowledge, assess, plan and act.

• Communicate, communicate, communicate
To recoup your credibility and reputation, communicate your plan to all stakeholders and follow through on the changes needed. Be accountable going forward. Answer questions openly and honestly. If you hide, suspicions will be raised about your sincerity. Let people know what you know, what you do not know and when you will be able to fill in the gaps.

The advantage of a project post mortem over crisis management is that:

1. You have more time to reflect with your team and think through what you might have done better and 
2. You have more control over making the improvements next time. 

Whether handling corporate crises or healing the wounds of a failed project, the steps to recovery are similar: gather input, set up a strategy for improvement, stay on message and follow through on your commitments.

Learn more at: http://www.lsaglobal.com/project-post-mortem-training-consulting/