Crisis Management
by Greg Henderson
B
Photo by CDC on Unsplash
usiness failure rates are high. Every.
The effect of the Coronavirus pandemic on local
most cases that is no longer true. (There are
Single. Year. Records indicate 100,000
businesses has been unexpected by many, if not
instances where it would improve our company’s
more business failures occurred in 2021
most, small business enterprises. The seriousness
success if some peers would work harder ). Cell
than just the normal 400,000 when nothing
of the pandemic on a national and world-wide
phones are ubiquitous – everyone seems to have
unusual is going on. One business trainer
scale has been brought to the local level from
one. Regular and rapid responses to messages
frequently teaches students to “Fail fast.” Get it
political and medical organizations not normally
are nearly automatic. There was a time when we
over with and move on. Failure happens for a
of great concern to the family businesses
had to stop at a phone booth to call the of ce for
multitude of reasons.
because there is a disconnect in communication
messages, now we can respond to dozens of
between small, main street businesses and
inquiries before our rst cup of coffee is nished.
international in uences. Experience is a quick
There is an on-line library that lists 77 million
and effective teacher. Business plans are certainly
books in its inventory (digital inventory, I am
encouraged to include better and more frequent
sure). That is amazing.
Blame it on the Coronavirus, COVID-19, or the responses to it. Blame it on Putin and the Russian invasion of Ukraine, and the world’s responses to it.
communication than has been utilized in the
Most business crises, large and small, aren’t as devastating as war or a pandemic. But they are often enough to end an entrepreneur’s dream. The best advice might be to have a business plan. Its about avoiding risk, not all, but the most important. Remember the phrase, “Failure to plan is planning to fail.” It’s a risk reduction effort that doesn’t guarantee success but certainly helps to eliminate many potential hazards that had been overlooked. Its also a living document that needs to be reviewed regularly; because things often change. Some suddenly.
recent past. Our world is shockingly small because of amazing technology now available at the local level and must be utilized in the risk reduction plans of business organizations. Crisis management in business is necessary when business growth, sustainability and potential expansion is considered. These are chapters in the business plan that are necessary
fi
fi
fi
fl
Crisis management? Absolutely. If you believe, as I do, that an 80% business failure rate is unacceptable, then be sure to include a complete chapter on Crisis Management in your Business Plan. It’s the reasonable thing to do.
if business-ending risks are to be avoided. “Work smarter, not harder” is an adage we’ve heard and stated for years. When a strong back was the most valuable tool for business success, we were able to succeed by working harder. In
34 | Southern Oregon Business Journal March 2022
Cyber security? Of course. Risk avoidance? Yes.
Greg Henderson is the retired founder of the Southern Oregon Business Journal. A University of Oregon graduate and a six year U.S. Air Force veteran. Contact him at ghenderson703@gmail.com
