Boards are a Critical Resource in Crisis
When a crisis strikes an organization, the board of directors is a critical resource for navigating through that crisis. Trying moments for brands prove the a company’s mettle in general and all the people within them. Board members can make or break the recovery. PricewaterhouseCoopers recently gave direction for boards, helping them prepare in advance for potential problems. (May 18, Loop et al) There are four main risks to address:
- Lack of awareness: Sometimes, companies don’t have response plans in case of crises – but directors don’t realize there is such a problem. Boards have to be proactive about checking in on strategies on a regular schedule.
- Poor communication: When a problem occurs, the board should be informed right away. Sometimes this doesn’t happen. Therefore, crisis escalation plans must involve a step in which leaders call the board.
- Lack of feedback: The board should ensure that there is information flowing in during the course of a crisis, from both inside and outside the company. Lack of access to this information could cause a failed response.
- Failure to learn from mistakes: While a natural action post-disaster is for a company to look ahead instead of back, every crisis is an educational opportunity that shouldn’t be discarded so quickly. Improving crisis response plans based on real results is a key step.
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