! · Hard times

Crisis mode: what to do when things go wrong

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.

3 min readTools: Readiness check

Crisis changes the rules for a short time

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

The first 24 hours

  1. 1

    Stop the damage

    Do whatever keeps the problem from getting bigger right now, even if it's temporary.

  2. 2

    Get the facts

    What happened, who's affected, how bad. Separate facts from rumors, just like the S step.

  3. 3

    Tell people early

    Affected clients and staff should hear it from you first, even before you have every answer.

  4. 4

    Decide and assign

    Who does what by when. One owner per task. Write it down.

  5. 5

    Keep a record

    Note decisions and times as you go. You'll need it for the review.

Playbooks for common crises

Playbook ACash

Cash is running short

Today
Call every client who owes you money. Offer a small discount for paying now if needed.
This week
Talk to vendors and lenders before you miss a payment. Most will work with you if you call first.
Cut
Pause anything that fails the Dollar Test. Protect payroll and taxes first.
Playbook BRevenue

A big client just left

Today
Ask them why, calmly. The answer is evidence. Update your cash forecast.
This week
Reach out to past clients and warm leads. Tell your team what's happening and what isn't changing.
After
Fix concentration risk so no single client can do this again. See Clients & Pricing.
Playbook CMistake

A mistake reached a client

Today
Tell them before they find it. Own it without excuses, explain the fix and the timeline.
This week
Fix it fully, then check other clients for the same mistake.
After
Find which step in your process let it through, and add a check. How you say sorry matters; see Clear at Work.
Playbook DPeople

A key employee quits

Today
Thank them, agree on a last day, and list everything only they know how to do.
This week
Have them write down their processes and introduce whoever will take over to key clients.
After
Cross-train so no single person is the only one who knows a critical task.
Tool · prepare before it happens

Crisis readiness check

Check each one that's true today.

After the crisis: review it like a dossier

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.