Aotearoa New Zealand is no stranger to sudden, severe and long-lasting disasters. These events have left indelible marks across all communities, regions and industries, and have tested - and in many ways strengthened - our collective resilience.
The frequency, severity and complexity of disasters continues to increase, as has been witnessed over the past year. While natural disasters - floods, earthquakes, tsunamis and volcanic eruption, to name a few - will continue to be front-of-mind, organisations must also consider a range of crisis scenarios. The pace of technological change, while a huge enabler for organisations’ growth strategies, also presents exposure to a number of new or emerging threats.
We’ve identified five realities of crisis management in 2023, along with common pitfalls and practical steps every organisation can take to strengthen their preparedness.
Every organisation can - and should - have clearly documented plans and procedures to assist in the time of crisis. Even the best-written and best-rehearsed plans cannot be relied upon in every circumstance, and - as with running any organisation - successful crisis management relies on clear leadership supported by capable teams.
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While social media has changed expectations on the speed and transparency of communications from organisations, in a crisis these pressures can be amplified and shared by all media consumers. While customers, partners, consumers and the public expect timely information, they also expect an organisation to communicate honestly, authentically, and to acknowledge the actions being taken to address any current gaps.
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When crises hit, it’s easy for everyone to get into the detail; it’s human nature to want to help deal with the immediate need. Crises can have lasting and wide-reaching impacts on strategy and, in many cases, strategic choices will need to be rapidly re-assessed and adjusted. Organisations that manage crises well have a clear delineation between tactical and strategic responses, and allocate responsibilities accordingly.
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There is no good or right time to invest in readiness work, but most organisations don’t have the luxury of regular, dedicated time for intensive crisis preparation. While an annual exercise and six-monthly reviews of plans may have been the norm historically, the pace of change inside and outside organisations means a constant state of readiness is needed.
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It’s a simple equation really: organisations that manage crises well build trust and confidence with their key stakeholders. Customers, consumers, investors, suppliers and communities. Trust and confidence translates directly to value, whether that be through quicker-than-expected improvements in profitability or indirectly through a strengthened and trusted organisational brand.
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While it may not be possible to predict when the next crisis will hit, businesses can prepare by identifying the right leadership, refining crisis processes, thinking beyond the immediate response, prioritising investment in readiness activities and engaging with stakeholders every step of the way. At PwC, we’re helping clients change the way they see risk.
PwC’s management publication strategy+business recently released a podcast titled “How can business prepare for the next disaster?” Featuring Craig Fugate, Former Administrator of FEMA, and Bobbie Ramsden-Knowles, PwC Crisis and Resilience Partner, the podcast looks at how businesses can help society and organisations to be better prepared before the next disaster strikes.
Check out the podcast
Curtis Morton