! · Hard times
Every business hits a crisis eventually: a big client leaves, cash runs short, a mistake reaches a customer. You can't always prevent it. You can decide in advance how you'll respond. You won't be the first owner to face it, and with a plan, you won't face it unprepared.
In normal times, good owners ask for input and decide carefully. In a crisis, slow group discussion can make things worse. This is when the directive management style fits: clear assignments, short timelines, one person in charge. Once the danger passes, switch back and ask the team what to learn from it.
The owner's job is to be the calm one. Panic spreads fast. So does steadiness.
■ In order
Do whatever keeps the problem from getting bigger right now, even if it's temporary.
What happened, who's affected, how bad. Separate facts from rumors, just like the S step.
Affected clients and staff should hear it from you first, even before you have every answer.
Who does what by when. One owner per task. Write it down.
Note decisions and times as you go. You'll need it for the review.
Once things are stable, run the review while memories are fresh. What happened? What warning signs did we miss? Which response worked, and which didn't? What will we change so it doesn't happen again? Treat it as the R step of the Dossier Method, and focus on the system, not on blame.
Many crises turn out to be the end of a long drift, the kind described on the Tight Ship page. The best crisis plan is a business that catches small problems early.
A fictional example
Tasha manages a busy family restaurant for an owner who lives out of town. At 7:15 on a Friday night, a grease fire started in the kitchen. The fire suppression system worked, and nobody was hurt, but the kitchen was shut down and 60 guests were seated.
Tasha had practiced for this. Six months earlier, she and the owner had written a one-page crisis plan and walked the staff through it. That plan put people first, then communication, then the business.
The kitchen was closed for nine days. Tasha kept staff informed every day and found shifts for some of them at the owner's other location. When the restaurant reopened, many of the guests from that night came back. Several said they remembered how calmly it was handled.
"Today we had [what happened]. Everyone is safe. We're [closed / delayed] while we [fix it]. We'll update you by [time]. Thank you for your patience. We'll be back as soon as we can."
"Here's what we know right now: [facts]. Here's what we don't know yet: [unknowns]. Here's what happens with your shifts and pay: [details]. I'll update you again by [time]."
| Mistake | Fix |
|---|---|
| Having no plan until the crisis starts | Write a one-page plan now, when you're calm. |
| Going silent while you figure it out | Say what you know, what you don't, and when you'll update. |
| Forgetting the staff | Tell staff early and often. They're your best messengers. |
| Skipping the review after it's over | Every crisis is training. Review it and update the plan. |