The crisis is approaching, are we prepared or are we still floating on a cloud of bliss? The German economy, as the engine for Europe, has had brilliant years with continuous economic growth for the past 10 years, but can this be sustainable? The headlines of the past days speak for themselves, indicating that this might not be the case: "Germany's industry in free fall," reported by ING on 26.08.2019, and the Federal Statistical Office reports a "0.1% decline in GDP from the last quarter." Can we already define this as a crisis, or is it a regular economic cycle that repeats itself and eventually improves? Each company must answer this question for itself, as the impacts vary across different industries. How significantly these concerning news affect individual companies depends on whether the management has done its homework in recent months to counteract and take appropriate measures. The reasons are obvious and have been known for years. The buzzwords include: trade conflict, Brexit, diesel scandal, climate policy, and I can directly name 50 companies in your vicinity that are directly or indirectly affected by these issues. Why do some companies and industries still seem to be hit so evidently and unprepared? Have they been too complacent, mismanaged, ignored disruptive companies? Possibly - partially - but not only. The global signs have changed. Long-standing alliances are in disarray, the world economy has become a plaything of individual personalities who, at their whim, can drive stock prices up and down with just one tweet, creating uncertainties. How can one prepare for this? Is it even possible? The answer is clear and simple. YES! Let go of the long-standing scenarios you have developed to position your company well. Plan more short-term and thus be more flexible because each new day carries the risk that a new crisis hotspot may emerge somewhere in the world, affecting you too.
The Crisis Response
When called to a search dog operation, the only things we know are: where did it happen, who is missing, how many people are affected, and even these are very vague, everything else is unknown. One cannot prepare 100% for such an event, as crucial information about the situation and safety on-site is unknown, and the crisis can evolve rapidly. If this were not the case, we wouldn't be talking about a crisis but about a predictable event that can be managed according to standardized processes and guidelines. For our rescue missions, we prepare with the following keywords: Cooperation, Coordination, Communication, Control, and Comfort Zone. These are the 5 C's that help us to be at least 70% prepared to exclude as many events and uncertainties as possible in advance. The remaining 30% depend on the flexibility, motivation, and performance of the individual as well as the team. Of course, the right gut feeling with a touch of luck is also essential to react intuitively successfully. However, these 30% are of paramount importance for the success of the mission; if I have a demotivated team or make no decisions, the best preparation will not help, and I will end up in an economic disaster. Continuously prepare your employees and your company. Keeping employees motivated, flexible, and willing to perform is the order of the day, as crises do not necessarily hit a company during regular business hours but at unexpected times. Similar to a successful search dog operation on a Sunday morning at 3:23 a.m. The question is not whether crises have increased, but whether you are adequately prepared and able to handle them. Then, you even have the chance to emerge stronger from the crisis. I am happy to provide you with further insights and impulses from disaster management for your company. Yours Felix WILDE with Buddy.
