Lessons from historical crisis management scenarios
Lesson that are most important to consider in crisis action planning include the impacts of catastrophes on the shareholder and the crisis as opportunity. The consequences of catastrophes appear to be the most significant element to consider in the effective management. One of the effects that are as a result of catastrophe is the stock price. For example, the catastrophe would result into an increase or a decrease in the stock price in the market. This would of significant value to the crisis manager when they are formulating an action plan
Considering the abnormal to be normal
It is important to consider abnormal to be normal because an individual is expected to have normal reaction to abnormal situation. This is because in most cases, crises are as a result of failure of full normal operations and abnormal operations prevail in this situation.
On the other hand, a crisis society is as a result of societal demands and stress and trouble. Gender equality, artificial insemination and discrimination affect how people see their responsibilities and roles in the world.
Failure of conventional thinking
Rural Books collapsed because of the perception that it was a bigger firm than it really was. Due to the decentralization of the business operations, derivative losses were not revealed. Conventionally, they thought their accounting practices were effective but they failed to reveal the real losses.
Although conventional thinking is significant in decision making, sometime it can lead to poor decision making. For instance, the conventional thinking holds that a large economy of scale is better in an organization. However, the higher the production level, the higher level of uncertainty. For instance, although one large machine encounters lower cost than many small machines, it is more prone to inefficiency than the small machines.
Crisis Management, Risk Management, and Continuity of Operations Planning
Risk management is about prediction of the potential threats and formulating the best strategy to mitigate those threats. Crisis management involves the policies of measures to mitigate the risks after they have occurred. In other words crisis management seems to be b more reactive while risk management is proactive. On the other hand, continuity of operation deals with continued performance of essential functions during a long period of potential threats. These differences are important for a manager to determine what, how, and when to put those strategies into actions.
Discuss denial, trauma, and betrayal.
Denial is a process by which individuals in various situation pretends that they are not when in fact they are. Denial occurs consciously, for instance, when a person lies to cover up, and unconsciously, for example when person sincerely believes that they have no problem. Trauma can be defined as is the experience that one’s brain perceives that it is threat psychology or physical safety and invokes feelings of extreme powerlessness, terror and utter hopelessness. It affects how people see themselves and the environment. Betrayal is violation of a convincing trust, confidence or contract that results to psychological conflict between people.
In crisis action planning, why is it necessary?
Crisis action planning is necessary because of the benefits that it can bring when properly implemented. This is because it planning will ensure that the authority is alert and ready to deal with any future threat that might present itself unexpectedly. The action plan will guide a faster decision making process that comes with directions on the steps that are supposed to be carried out in case of a disaster strike in the society. In my opinion, crisis action planning questions the authority on whether they are well prepared with resources and equipment’s of dealing with emerging threats.
Why the Impact of Rural Books' business model and system was more complex than they thought
Rural books’ business model and system was very complex than the expectation that people had about the fir. This is because the decentralization of the operations of the business led to massive derivative losses. This is because the accounting practices that they had implemented failed terribly and they were unable to show the loss that they received.
My organization model is more complex that we think because it does not indicate the new consumers that ask for services in the company. This comes with a challenge of detecting the real supply and demand curves about the purchase of goods and services.
What are the four distinct styles of thinking?
The four distinctive styles of thinking include concrete sequential, concrete random, abstract random and abstract sequential. It is important to recognize these distinctive styles since they are needed in crisis action planning. This is because the policy makers have to think critically so that they decision will sound valid and useful to counteract any threat that may face the society. A perfect thinking is necessary for a perfect mind.
Authors assumptions and the evolution
James, E. (Spring 2007). "Leadership as (Un)usual: How to Display Competence InTimes of Crisis". Leadership Preview. Retrieved 2010-06-22
Boin, A.; P. Hart and E. Stern (2005). The politics of crisis management: Public leadership under pressure. New York: Cambridge University Press.
Barton, L. (2007). Crisis leadership now: A real-world guide to preparing for threats, disaster, sabotage, and scandal. New York, NY: McGraw-Hill.
Borodzicz, Edward P. (2005). Risk, Crisis and Security Management. West Sussex, England: John Wiley and Sons Ltd.