We are in a World of crisis for the 21st century and there is no sign for the stability so far at least for the near future. The first thing that is reminded by this fact is the necessity of crisis management for any business. And as the business gets smaller in size, crisis management narrows down to the ability of the owner. That’s why the role of the business owner will be even more crucial for the upcoming years, at least a decade, when the world will be strolling through instability times.
A good business leader manages her/his company by strong strategic decisions and provides necessary resources and support for the operations to be run for success. This is true for the periods of crisis too with the addition of executing it in the environment of ultimate stress, concern, fear and rush. The role and responsibilities of the business leaders has shifted mandatorily towards a multi focal point. In one side, there are still subjects of innovation, profitability, market share and they maintain their importance while resolving the struggles of cost control, cash flow and supply chain has become another important focus by the recent development in the country and the world. A powerful leader is the one that resolves the urgent struggles while taking into consideration the subject matters to be at the agenda after the crisis period as well.
The topics given below is presented for the attitudes to be exhibited during the unexpected crisis moments for the business leaders practically the business owner for a Micro, Small and medium Sized Business (MSME):
Fast Decision Making
It is required the prompt assessment of information that can be achieved and fast decision making since the state of affairs changes very fast during the crisis situation. For this reason, setting the priorities, preference of speed over being meticulous, renounce out of some targets, solid description of fight against the crisis, encouraging for getting into act and tolerating the faults are the traits to be mentioned in this regard.
Motivating the Staff
There is a potential for a decrease in motivation of the staff during the period of crises. The staff should be informed on the targets, decisions and measures on crisis in order to increase the motivation. Adoption of new targets and making efforts towards them can be ensured by making new priorities visible and repeating them continuously. In this regard a particular emphasis should be given to the frontier staff who are in direct contact to the clients. The leader (the owner) should not hesitate to take opinion from the staff whenever it is needed in addition to the opinion of some experts. It would also be wise to support the leadership talents of the employee that will turn into a qualitative supporting for the owner.
Flexibility and Discipline
It is important to keep flexibility and discipline balance even though it seems there is a contradiction in between. For example, the panic level at the beginning of a crisis can vary within the staff. The leader should be aware of the fact that every staff is unique and she/he should feel an empathy with them. It is important to earn employee’s trust and to derive quiescence in this duration. But it is required to keep the works performed in discipline since it is likely to have financial and other problems aroused from the crisis. The discipline must be seen first in the leader to serve as a model in the hard times.
It will lead to a mental relaxation to appreciate the clients, the staff and the suppliers in the vicinity of the crisis. There is also a fringe benefit of this attitude for the company which, it will contribute to take appreciation and acknowledging into corporate culture that is normally neglected during the growth of MSMEs.
The periods of crisis are a means to innovate, making innovative ideas happen and getting out of the comfort zone besides the critical losses during that time. Being drowned in the vortex of the crisis or rejuvenescence with the crisis are the two different potential results of the leadership talent of the owner.