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The Big Picture of Business – The Statistics Tree: Understanding Figures and What They Symbolize, Relating Directly to Your Business Success

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Business bases much of what it does on statistics. Most often, they’re financial numbers or sales goals. More importantly are the Big Picture statistics that affect every aspect of business growth and success. The way in which the bigger issues are interpreted has direct bearing on strategy and implementation.

Here are some of the most significant statistics that relate to your ability to do business:

Only 2% of the businesses have a plan of any kind. What many of them think is a plan include some accounting figures or sales goals. That is not a full-scope plan. Of the companies who continue to operate without a plan, 40% of them will be out of business in the next 10 years.

Only 2% of those who call themselves Consultants really are just that. That 2% includes all the doctors, lawyers, accountants and engineers… those of us who actually advise. Most so-called consultants are vendors who peddle what they have to sell, rather than what the client companies really need. The answer is for companies to utilize seasoned advisers, rather than coaches and other vendors.

Research shows that change is 90% positive and beneficial. Why, then, do many organizations fight what is in their best interest? The average person and organization changes 71% per year. The mastery of change is to benefit from it, rather than become a victim of it.

92% of all business mistakes may be attributed to poor management decisions. 85% of the time, a formal program of crisis preparedness will help the organization to avert the crisis. The average person spends 150 hours each year in looking for misplaced information and files. One learns three times more from failure than from success. Failures are the surest tracks toward future successes.

One-third of the Gross National Product is sent each year toward cleaning up mistakes, rework, make-goods, corrective action and correcting defects. Yet, only 5.1% is spent on education, which is the key to avoiding mistakes on the front end.

50% of the population reads books. 50% do not. Of all high school graduates, 37% will never read another book after formal schooling. Of all college graduates, 16% will never read another book. Thus, a declining overall level of education in our society and serious challenges faced by organizations in training the workforce. Yet, the holdings of the world’s libraries are doubling every 14 years.

Today’s work force requires three times the amount of training they now get in order to remain competitive in the future. 29% of the work force wants their boss’ job. 70% of corporate CEOs think that business is too much focused on the short-term.

The human brain has more than 300 million component parts. The human brain connects to 13 billion nerves in the body. The human body has 600 muscles. The human body has 206 bones. The average person speaks 30,000 words per day. The average person is bombarded with more than 600 messages per day. More enlightened, actively communicating people are bombarded with more than 900 messages per day.

98% of all new business starts are small businesses. 45% of small business owners are children of small business owners. 83% of all domestic companies have fewer than 20 employees. Only 7% of all companies have 100 or more employees.

The current success rate for organizational hires is 14%. If further research is put into looking at the total person and truly fitting the person to the job, then the success rate soars to 75%. That involves testing and more sophisticated hiring practices.

Retaining good employees, involving training, motivation and incentives, is yet another matter. According to research conducted by the Ethics Resource Center:

  • Employees of organizations steal 10 times more than do shoplifters.
  • Employee theft and shoplifting accounting for 15% of the retail cost of merchandise.
  • 35% of employees steal from the company.
  • 28% of those who steal think that they deserve what they take.
  • 21% of those who steal think that the boss can afford the losses.
  • 56% of employees lie to supervisors.
  • 41% of employees falsify records and reports.
  • 31% of the workforce abuses substances.

On any given day, Americans spend over $33 million buying lottery tickets. On that same day, 99 American families fall below the poverty line. 68% of Americans do not like to take chances. 5% of all Americans go to McDonald’s every day.

99% of American women think that contributing to or bettering society is important. 35% of Americans are involved in community service and charity activities. During the last 3,500 years, the world has been at peace only 8 percent of the time.

Data from the Census Bureau shows that 69% of new companies with employees survive at least two years, and that 51% survive at least five years. An independent analysis by the Bureau of Labor Statistics shows that 49% of new businesses survive for five years or more. 34% of new businesses survive ten years or more, and 26% are still in business at least 15 years after being started.

Small businesses really do drive the economy. Many people believe that businesses frequently fail because there are a large number closing every year. In 2009, for example, more than 550,000 businesses were opened, and more than 660,000 closed. This occurred during a recession. However, during an economic expansion, the number of new businesses would outnumber the closures.

Many people may not realize how many small businesses there are in the country. In 2011, the Department of Commerce estimated that there were 27.5 million businesses in the United States. Only 18,000 of those businesses had more than 500 employees, and the rest were considered small businesses.

29% are still in business at the end of year 10. And the biggest drop comes in the first 5 years, when half of startups go belly up. This shows that the odds are against startups staying in business. The internet home business success rate is only 5%.

7 Primary Factors of Business Failure:

  1. Failure to value and optimize true company resources.
  2. Poor premises, policies, processes, procedures, precedents and planning.
  3. Opportunities not heeded or capitalized.
  4. The wrong people, in the wrong jobs. Under-trained employees.
  5. The wrong consultants (miscast, untrained, improperly used).
  6. Lack of articulated focus and vision. With no plan, no journey will be completed.
  7. Lack of movement means falling behind the pack and eventually losing ground.

What Could Have Reduced These High Costs:

  1. Effective policies and procedures.
  2. Setting and respecting boundaries.
  3. Realistic expectations and measurements.
  4. Training and development of people.
  5. Commitments to quality at all links in the chain.
  6. Planning.
  7. Organizational vision.

Success is just in front of our faces. Yet, we often fail to see it coming. Too many companies live with their heads in the sand. Many go down into defeat because it was never on their radar to change.

About the Author

Power Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flameis now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – Becoming a Legend

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Are you a legend? Do you admire people who went the distance? Have you celebrated organizations that succeeded? I hope that you are and will continue to be distinctive.

This essay is to give insights into those who leave legacies. The secret to long-term success lies in mapping out the vision and building a body of work that supports it. The art with which we build our careers and our legacy is a journey that benefits many others along the way.

These are the ingredients that make a legend:

  • Significant business contributions.
  • Mature confidence and informed judgment.
  • Courage and leadership.
  • High performance standards.
  • Professional innovation.
  • Public responsibility.
  • Ethics and integrity.
  • Cultural contributions.
  • Giving to community and charity.
  • Visionary abilities.
  • Commitment to persons affected (stakeholders).

I have been blessed by receiving several Legend honors. What I remember the most are the ceremonies and the nuggets of wisdom that flowed. The commonality was the zest of giving back the honors to others.

The first was a Rising Star Award, presented to me in 1967 by Governor John Connally. That was the first time that I was called Visionary, and that experience told me to live up to the accolades later. The governor whispered to me, “Get used to wearing a tuxedo. Live up to the honor by saluting others.”

That same year (1967), I met singers Sonny and Cher, little knowing that 26 years later, I would be inducted into the Rock N’ Roll Hall of Fame and that they would hand me the award. I remarked to Sonny that I often quoted his song “The Beat Goes On” as analogous to change management, and he was pleased. Cher recalled the 1971 occasion where she and I visited at a jewelry store on Rodeo Drive in Beverly Hills, California. I remembered that we drank champagne in a pewter cup. Her quote: “There are new ways to approach familiar experiences,” and I have applied that to corporate turnarounds.

It was by being inducted into the U.S. Business Hall of Fame that I met Peter Drucker. We subsequently worked together, doing corporate retreats. You’ll note his endorsement on the back cover of my signature book, The Business Tree™.

One year, I received several awards. I got a Savvy Award, for the top three community leaders. I was a Dewar’s profile subject. I had gotten a standing ovation at the United Nations for volunteer work that was my honor to do (especially since it enabled me to work with my favorite actress, Audrey Hepburn).

Subsequently, I was judging a community stewardship awards program. I quizzed, “Why is it that the same old names keep popping up? There are great people to honor other that those of us from business, high society or other top-of-the-mind awareness. What this community needs is an awards program that people like us cannot win.”

I was then challenged to come up with such a program, the result being the Leadership in Action Awards. At the banquet, the swell of pride from the winning organizations was heartening to see. These unsung heroes were finally getting their just recognition for community work well done.

One cannot seek awards just for glorification reasons. However, recognition programs are a balanced scorecard that involves the scrutiny of the company and its leaders by credible outside sources.

Awards inspire companies of all sizes to work harder and try more creative things. Good deeds in the community are not done for the awards; they just represent good business. Receiving recognition after the fact for works that were attempted for right and noble reasons is the icing on the cake that employees need. Good people aspire to higher goals. Every business leader needs to be groomed as a community leader.

Recognition for a track record of contributions represents more than ‘tooting one’s own horn.’ It is indicative of the kind of organizations with whom you are honored to do business. The more that one is recognized and honored, the harder that one works to keep the luster and its integrity shiny. Always reframe the recognition back to the customers, as a recommitment toward serving them better and further.

Characteristics of a Legend

  • Understands that careers evolve.
  • Prepares for change, rather than becoming the victim of it.
  • Realizes there are no quick fixes in life and business.
  • Finds a blend of perception and reality, with emphasis upon substance.
  • Has grown as a person and professional… and quests for more enlightenment.
  • Has succeeded and failed… and has learned from both.
  • Was a good ‘will be,’ steadily blossoming.
  • Knows that one’s dues paying accelerates, rather than decreases.

Best Advice to Future Legends

Fascinate yourself with the things you are passionate about. Be fascinated that you can still be fascinated. Be glad for people who mentored you. Be grateful for the opportunities that you have had. Be proud of yourself and your accomplishments. Do not let the fire burn out of your soul.

There comes a point when the pieces fit. One becomes fully actualized and is able to approach their life’s Body of Work. That moment comes after years of trial and error, experiences, insights, successes and failures.

As one matures, survives, life becomes a giant reflection. We appreciate the journey because we understand it much better. We know where we’ve gone because we know the twists and turns in the road there. Nobody, including ourselves, could have predicted every curve along the way.

However, some basic tenets charted our course. To understand those tenets is to make full value out of the years ahead. The best is usually yet to come. Your output should be greater than the sum of your inputs. This is accomplished by reviewing the lessons of life, their contexts, their significance, their accountabilities, their shortcomings and their path toward charting your future.

  • Whatever measure you give will be the measure that you get back.
  • There are no free lunches in life.
  • The joy is in the journey, not in the final destination.
  • The best destinations are not pre-determined in the beginning, but they evolve out of circumstances.
  • You’ve got to give in order to get.
  • Getting and having power are not the same thing.
  • One cannot live entirely through work.
  • One doesn’t just work to live.
  • As an integrated process of life skills, career has its place.
  • A body of work doesn’t just happen. It is the culmination of a thoughtful, dedicated process, carefully strategized from some point forward.

About the Author

Power Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flameis now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – Yesterdayism… Learning from the Past, Planning for the Future

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This Annual Report issue celebrates the year, as basis for helping business people to prepare for the future.

People are interesting combinations of the old, the new, the tried and the true. Individuals and organizations are more resilient than they tend to believe. They’ve changed more than they wish to acknowledge. They embrace innovations, while keeping the best traditions.

When one reflects at changes, he-she sees directions for the future. Change is innovative. Customs come and go… some should pass and others might well have stayed with us.

There’s nothing more permanent than change. For everything that changes, many things stay the same. The quest of life is to interpret and adapt that mixture of the old and new. People who fight change have really changed more than they think.

The past is an excellent barometer for the future. I call that Yesterdayism. One can always learn from the past, dust it off and reapply it. Living in the past is not good, nor is living in the present without wisdom of the past.

Trends come and go… the latest is not necessarily the best. Some of the old ways really work better… and should not be dismissed just because they are old or some fashionable trend of the moment looks better.

When we see how far we have come, it gives further direction for the future. Ideas make the future happen. Technology is but one tool of the trade. Futurism is about people, ideas and societal evolution, not fads and gimmicks. The marketplace tells us what they want, if we listen carefully. We also have an obligation to give them what they need.

In olden times, people learned to improvise and ‘make do.’ In modern times of instantaneous disposability, we must remember the practicalities and flexibilities of the simple things and concepts.

Things which Made Comebacks…

Ceiling fans. The jitterbug and swing music. Hardwood floors. Stained glass.

Things the Economy Has Exempted…

Penny arcades. Five-and-dime stores. Full-service gas stations. Free car washes at gas stations. Towels in boxes of detergent. Mom-and-pop stores. S&H Green Stamps and other redemption programs.

Things which the Marketplace Has Eclipsed…

  • Ice delivered in blocks via a horse-driven carriage by the ice man
  • Milk delivered in bottles via a horse-driven carriage by the milk man
  • Going downtown to do all of your shopping
  • Drive-in movies
  • Stores closed on Sundays

The Old Became the New Again…

The original speed for phonograph records, as invented in 1888, was 78-RPM, which engineers determined to be the most ideal for sound quality. In the 1940s, technology brought us the 45-RPM and 33-1/3-RPM records… adding up to the ‘mother speed’ of 78-RPM. The 1980s brought us compact discs, which play at a speed of 78-RPM.

Station wagons of the 1950s went out of style. They came back in the 1980s as sport utility vehicles.

Midwives were widely utilized in previous centuries. In modern times, alternative health care concepts and practitioners have been embraced by all sectors of society. Herbal ingredients and home remedies have gained popularity, and cottage industries support them.

Telephone party lines went out of style in the 1920s. They came back in the 1990s as internet chat rooms.

Corporations have become extended families, thus embracing dysfunctionality, changes, modifications and learning curves.

Schools started out as full-scope community centers. As the years passed, academic programs grew and became more specialized, covering many vital subject areas. Today, with parents and communities severely neglecting children and their life-skills education, schools have evolved back to being full-scope community centers.

7 Levels of Yesterdayism… Learning from the Past… Sources of Insights:

  1. Think They’ve Been There… Haven’t Yet Fully Learned from It.
  2. Saw It Happen… Understand It.
  3. Participated In It.
  4. Been There… Learned from It.
  5. Teach, Understand and Interpret It.
  6. Innovated It… and Teach You Why.
  7. Innovative Then and Now… Still Creating.

7 Applications for Yesterdayism… How to Shape the Past Into the Future:

  1. Re-Reading… Reviewing… Finding New Nuggets in Old Files.
  2. Applying Pop Culture to Today.
  3. Review case studies and their patterns for repeating themselves.
  4. Discern the differences between trends and fads.
  5. Learn from successes… and three times more from failures.
  6. Transition your organization from information down the branches to knowledge.
  7. Apply thinking processes to be truly innovative.

Apply History to Yourself. The past repeats itself. History is not something boring that you once studied in school. It tracks both vision and blindspots for human beings. History can be a wise mentor and help you to avoid making critical mistakes.

7 Kinds of Reunions… obtaining perspective:

  1. Pleasurable. Seeing an old friend who has done well, moved in a new direction and is genuinely happy to see you too. These include chance meetings, reasons to reconnect and a concerted effort by one party to stay in the loop.
  2. Painful. Talking to someone who has not moved forward. It’s like the conversation you had with them 15 years ago simply resumed. They talk only about past matters and don’t want to hear what you’re doing now. These include people with whom you once worked, old romances, former neighbors, networkers who keep turning up like bad pennies and colleagues from another day and time.
  3. Mandated. Meetings, receptions, etc. Sometimes, they’re pleasurable, such as retirement parties, open houses, community service functions. Other times, they’re painful, such as funerals or attending a bankruptcy creditors’ meeting.
  4. Instructional. See what has progressed and who have changed. Hear the success stories. High school reunions fit into this category… their value depending upon the mindset you take with you to the occasion.
  5. Reflect Upon the Past. Reconnecting with old friends, former colleagues and citizens for whom you have great respect. This is an excellent way to share each other’s progress and give understanding for courses of choice.
  6. Benchmarking. Good opportunities to compare successes, case studies, methodologies, learning curves and insights. When ‘the best’ connects with ‘the best,’ this is highly energizing.
  7. Goal Inspiring. The synergy of your present and theirs inspires the future. Good thinkers are rare… stay in contact with those whom you know, admire and respect. It will benefit all involved.

About the Author

Power Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flameis now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – Doing Your Best Work on Deadlines: Mobilizing the Energy for Best Business Success

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We just had the first live TV musical play extravaganza on television after a 50-year hiatus. The production was The Sound of Music, starring Carrie Underwood. This TV special got a lot of attention because it was unique live, just like opening night of the Broadway show on which it was based.

Truth is that throughout the 1950’s (the Golden Age of Television), there were comparable live TV extravaganzas on the air every night of the decade.

Many of them were consistently great. They were live, in real time. They had top talent behind them. They were well rehearsed. They had the adrenaline of “going live,” and they shined with luster.

Among those crown jewel TV moments were:

  • Our Town, starring Frank Sinatra, Paul Newman and Eva Marie Saint.
  • Requiem for a Heavyweight, the premiere of Playhouse 90. It was written by Rod Sterling and starred Jack Palance and Ed Wynn.
  • The Petrified Forest, starring Humphrey Bogart, Lauren Bacall and Henry Fonda. In it, Bogey reprised the 1930’s Broadway hit and movie that launched his career.
  • The Ford 50th Anniversary, a two-hour musical starring Ethel Merman and Mary Martin. This was the first TV special and set the tone for thousands of others since.
  • The first Beatles appearance on the “Ed Sullivan Show,” where the whole world was watching. The Beatles topped that by composing All You Need is Love while they performed it on a global telecast.

I have those any other live TV gems on DVD. I watch them to experience the magical energy of live performances. Many of us remember writing the college theme paper the night before it was due. We recall compiling the case notes or sales projections just before the presentation meeting.

The truth is that we do some of our best work under pressure. We might think that the chaos and delays of life are always with us, but we handle them better when on tight time frames.

Before you know it, you’re on deadline again. Even though the tasks mount up, you have a knack for performing magnificently under deadline, stress and high expectations.

This is not meant to suggest putting off sequential steps and daily tasks. Learn when deadline crunch time is best to accomplish the optimum business objectives. I’m a big advocate of Strategic Planning and Visioning. Every company needs it but rarely conducts the process because they’re knee-deep in daily minutia.

I know from experience that planning while going through the “alligators” is the most effective way to conduct the process. By seeing the daily changes resulting from the planning, companies are poised to rise above the current daily crises. I recommend that diversity audits, quality control reviews, ethics programs and other important regimen be conducted as part of Strategic Planning, rather than as stand-alone, distracting and energy diverting activities.

Those of us who grew up working on typewriters know how to master the medium. You had to get your ideas on paper correctly the first time, without typographical errors and with great clarity. The first time that I worked on a computer was when I was 40 years old. I took that typewriter mentality with me when I had to compose a brochure and do the desktop publishing graphics in the same two-hour window where I was learning how to work on a computer.

There were years where I kept the typewriter on the work station next to the computer. When I had five minutes to write a cohesive memo and fax it off to the client, I wrote it on the typewriter. Though I wrote all my books on computers, I wrote the modern technology chapters on the typewriter, to make points to myself that the readers could never have grasped.

In mounting your next strategic Planning process for your company, go back and analyze what elements from the past can be rejuvenated as your future. That’s a trademarked concept that I call Yesterdayism.

With planning and organizing, you can meet and beat most deadlines without working in a pressure cooker. Don’t work and worry yourself into exhaustion over every detail. Sometimes it makes sense to move the deadline to the 11th hour. Having too much time to get projects accomplished tends to breed procrastination.

Here are my final take-aways on the subject of doing your best work when on last-minute deadlines:

  • Learn what working style goes best with you.
  • Care about deadlines.
  • Prioritize the real deadlines, apart from the artificial or self-imposed ones.
  • Review the work that you’ve done on tight deadlines. Analyze what makes it different.
  • Know your own strengths and limitations.
  • Work on your own timetable.
  • When working with teams, determine the best compromise working tempo.
  • Get Your ‘to do lists’ in order.
  • Evaluate your progress.
  • Remove the distractions to doing your best-focused work.
  • Ready… Set… Be productive.

This article was written in one hour, just before the impending deadline.

About the Author

Power Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flameis now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – Achieving the Best by Preparing for the Worst: Lessons Learned from High-Profile Crises, part 4 of 4

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Thinking Through the Strategies

Crisis management is so much more than handling of the media. A major oil company had a plant explosion and proceeded to do a good job of communicating afterwards. Unfortunately, the follow-through never transpired after the media coverage died down. Thus, lawsuits flew in the company’s face.

My client (a different chemical company) later had a similar explosion. The chief legal counsel called and stated that we did not want the fallout as from the other company. We therefore mounted a full-scope crisis management initiative that focused heavily on after-the-crisis help for the victims and their families. The goal was to keep litigation from occurring, which was met. At a later news conference, OSHA announced that it was assessing its smallest fine, as a result of the forthright way in which my client had handled the crisis.

Another energy industry client operated coal mines. The irresponsible actions of two employees thrust sludge from the mines and into the Cumberland River, which subsequently contaminated the water supply of three cities. The State of Kentucky filed suit, seeking criminal charges against the company.

Working closely together with legal counsel, our recommended crisis program posed an alternative to a worst-case sentence. The program, approved by the judge, consisted of TV and newspaper apology statements, plus the assurance that safety-environmental training would be provided to employees. An investment of $50,000 effected a reduction of the fine from $2 million to $500,000 and reduction of the charges from criminal to civil. Sustained follow-up communication with employees, customers, the court, regulators and opinion leaders ensued.

Another client was a large urban shopping center. Rapes occurred in the parking lot during the Christmas shopping season. Neighboring offices began e-mailing their friends, concerned that the center was unsafe.

Our strategy to address the crisis was three-fold. We engaged senior citizen volunteer corps and criminal justice students to wear Santa hats and serve as holiday escorts, assuring safety but not appearing as armed guards. Secondly, we initiated safety training that expanded to help home owners avoid accidents. Thirdly, the communications process served to glean research data that we needed to upgrade the center, its tenant mix and security issues. The common denominator was open communications with customers, where other retail centers try to stifle mention of incidents.

The process of strategy development is not esoteric. It is common sense, with an emphasis upon ideas that work and are easy to communicate. You always draw upon successful elements of other client crises. I had a restaurant chain attacked by an auto incident. Its family customer base was uneasy for their safety. We took the shopping center escort idea and translated it to senior citizen door greeters, armed with friendliness and the latest serving suggestions. Coupled with armed guards in parking lots, the approach was to reiterate the friendly, homey atmosphere, in contrast to the stereotype of sterile chain eateries.

There are three aspects to Crisis Management and Preparedness. First, qualified business advisors conduct Crisis Communications Audits. This securing and evaluation of programs needed or in-progress has enabled corporate management to make informed decisions, take swift action and avoid possible litigation.

Next comes Crisis Planning. This becomes a coordinated committee, with multiple departments and professional disciplines represented. What-if scenario planning is similar to the processes utilized in overall company strategic planning and visioning. The crisis plan must be part of the bigger process, not an adjunct or afterthought.

Finally comes Crisis Training. Activities include media-spokesperson training, field and operations staff training, coordination of corporate response and message points, community liaison, collateral materials writing-production, video archiving-production, media relations, monitoring and expert testimony. The crisis teams need to be prepared.

Crisis planning and strategies should be intertwined with security issues, financial goals, workforce empowerment and many other corporate dynamics. Elements which Crisis Management and Preparedness Plans should address, per categories on The Business TreeTM, include:

  1. The business you’re in (core business). Protection of intellectual property, materials, business continuity and core business production information. Prevention of theft, leaks in proprietary information and delays in deliverables.
  2. Running the business. Protection of physical plants, equipment, office files and other supplies. Prevention of unnecessary downtimes, spoilage, stoppage in processes and theft.
  3. Financial. Protection of fiduciary responsibilities and financial assets. Prevention of theft, embezzlement, accounting fraud and overpayments.
  4. People. Protection of human capital, knowledge bases of workers, executives, company safety and the work environment. Prevention of unnecessary employee burnout.
  5. Business development. Protection of company reputation, partnerships and alliances, marketplace intelligence and customer interests and relationships. Prevention of leaks in customer information and losses in company market position.
  6. Body of Knowledge. Protection of status and utilization of organizational working knowledge, management’s activities and relationships with regulators. Prevention of strains in company relationships with others and attacks from outside the organization.
  7. The Big Picture. Protection of the overall organization, compliance standards in the organization. Prevention of loss in quality, purpose or vision.

In times of crisis, take assessment of damages, and investigate the truth. Never exaggerate, speculate, or withhold information. No statements should be “off the record.” Provide complete answers, and respond to media requests for additional information in a timely manner. Failure to return calls implies something to hide. Maintain accurate records of all inquiries and news coverage.

The best way to build bridges is to seek out community opinion leaders and stakeholders before times of crisis. Educate them of your activities. Offer tours or community visitations to facilities. Provide printed information on your business… and a video, if at all affordable.

Test crisis plans during simulated drills, using qualified outside strategic planning consultants to evaluate results. Company officials should take these simulations seriously. The military does, terming them “war games.”

Part of being prepared is being engaged in routine activity. Have a plan in force, and be sure that every employee has a copy. The binder containing the plan should include easy-to-read fact sheets and backgrounders on company operations, current phone numbers, and a delineated line of authority (from company resource people to the spokesperson)

Crises can have many liabilities upon companies, including loss of profits and market share. Inevitable spin-offs include government investigations, public scrutiny, and a tarnished image. This causes loss of employee morale and, as a result, company productivity.

Crisis management and preparedness can minimize negative impacts of any emergency. Going through the planning and implementation is a quality assurance process that strengthens any company. Crisis communications means banking goodwill for those times when the plan is called to the test.

Crises of one sort can and will happen to every company. They can be turned from disasters into opportunities to project corporate strengths. The manner in which a crisis is handled often wins praise for companies whose positions are improved in the public eye. Those who are prepared will survive and thrive.

Defining Moments in the Corporate Culture

Volatile business contractions, uneasy economic climate, plant explosions, health care crises, hostile corporate takeovers, governmental shakeups, and financial failings are crises that upset the routine of business life.

Some jolting incident puts every organization into a reaction mode. The consequences of miscommunication in a crisis can be devastating to all involved. By dealing with the unexpected, preferably before it occurs, companies can bank public goodwill that may be useful later. Playing catch-up means that you have lost the game.

It is the responsibility of corporate management to practice effective Crisis Management and Preparedness. Management must study practical experiences of what can go wrong, put a crisis team into place, understand the workings of news media, identify community opinion leaders, and predict potentially harmful or controversial situations. Learn from those who were successful, those who failed to achieve the desired effects, and those whose corporate credibilities were damaged by inaction or the wrong actions.

Return to part 1 of 4.

About the Author

Power Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flameis now out in all three e-book formats: iTunes, Kindle, and Nook.