Awakening Africa Magazine


Making Major Decisions in Major Crises

2 Mins read

With many businesses adversely impacted by the Coronavirus in 2020, the need for crisis management is on the rise. Leaders not only need to think about an action plan but then need to act fast! With the quickly changing environment and the unprecedented challenges that are being faced by businesses today, it has become more important than ever to make effective decisions in order to save the business. If you are stuck in a tough spot during this crisis, here is what you need to do.

Taking a Tough Call

During a crisis, a leader needs to take hard decisions and tough calls. These often involve relevant trade-offs. COVID-19 led to many companies laying off employees, which meant that many people were out of jobs. The unemployment rate by October 2020 had fallen to 6.9 percent. Leaders had to make the tough decision of saying goodbye to employees who were with the company for many years. However, it was the need of the hour, and leaders had to consider many factors to reach this decision. Leaders needed to have a clear vision of the goal they wanted to achieve through this decision.

Gathering Information

Another important aspect of crisis management, be it due to a pandemic or due to an accidental leak at a factory, leaders need to gather all relevant information before making a decision. Remember, a decision made on half information is just as dangerous as making a decision based on no information. For gathering relevant information, you must have inter-department coordination and alignment. This is integral because if there is no coordination, there is a chance of dissipating inaccurate information and hence improper solutions.

Formulate a Strategy

Once you have gathered relevant information, it is important to analyze the information and formulate a strategy. It is important to note here that organizations may change their leadership style in a case of a crisis. Where an organization may be practicing a democratic leadership style in normal circumstances, a crisis requires a more authoritarian approach. An effective leader needs to manage and turn the data available into meaningful information. This can be challenging for a leader, and this is where your decision-making skills come into play.

Eliminating a Crisis

It is important to move back from emergency mode to regular mode, and an effective leader will determine the right time to do this. Once the crisis is eliminated, it is important to follow routine procedures. You cannot continue to function in crisis mode forever! This is an important time to evaluate the performance of the leaders as well.

Learning from a Crisis

The whole exercise of crisis management is integral for the future of the company. As the world underwent a pandemic, they now know contingency steps they can take to avoid the impact of a pandemic in the future. A crisis can form a guideline for plans that the company can make so as to prevent crises in the future.

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