Crisis Management Strategies for Corporate Firms

Arkın Kadaifci - Oct 4 - - Dev Community

While some firms continue to sink deeper due to the crises they face, others succeed in overcoming these crises by developing strategies on how to apply a reactive approach, with agile, dynamic, and swift perspectives. Through timely interventions, they manage to resolve problems. These firms stand out with their ability to make quick decisions in moments of uncertainty, minimize crises, and restructure their operational processes to regain control. A reactive approach, particularly in the face of unexpected events, is a significant strategy that yields effective short-term results in crisis management. Today, I will draw your attention to how corporate firms overcome crises by utilizing reactive approaches, training, and consultancy services, and how this affects their future progress.

Quality Crisis and Process Improvement Training

Case Study: Toyota

In 2009, Toyota had to recall millions of vehicles in the U.S. due to a faulty gas pedal. This was a quality crisis that shook customer confidence and incurred significant costs for the company. After the crisis, Toyota sought process improvement consultancy and initiated training programs to restructure its quality management systems. With training based on process improvement approaches such as Lean manufacturing techniques and Lean Six Sigma, Toyota minimized production errors. Additionally, Toyota organized customer-focused quality control training to improve customer satisfaction. The measures taken during this time seem to have enabled the company to continue its journey in a healthy manner today.

Reputation Crisis and Corporate Communication Training

Case Study: Volkswagen

In 2015, Volkswagen faced the "Dieselgate" scandal, involving emissions fraud. This reputation crisis caused the company to lose trust worldwide. Volkswagen managed the process by receiving crisis management and corporate communication consultancy. Corporate communication training was organized for company executives and public relations teams. These trainings focused on how to manage crisis communication, transparency, and customer relations. Thanks to these programs, Volkswagen managed to regain public trust and adopted a more transparent approach in emissions testing.

Safety Crisis and Safety Training

Case Study: Boeing 737 MAX Crisis

Boeing faced two major accidents involving its 737 MAX model aircraft in 2018 and 2019. These accidents caused the loss of hundreds of lives worldwide, leading to serious scrutiny of Boeing's safety standards. The crisis stemmed from issues with the Maneuvering Characteristics Augmentation System (MCAS), the safety software of the 737 MAX. The aircraft were grounded, and the company suffered a significant reputational loss.

To overcome this crisis, Boeing initiated extensive consultancy and training programs on aviation safety. As a first step, a comprehensive software update for the MCAS system was implemented, and the training provided to pilots was reviewed and updated. Working with crisis management and safety consultancy firms, Boeing organized global-scale training programs to address gaps in pilot knowledge about the MCAS system and to overcome trust issues that arose during the crisis.

These programs included flight safety training, and pilots were taught how to react during crises through flight simulations. Additionally, Boeing made substantial changes to its internal management processes to enhance process improvement and quality control mechanisms. Crisis management and safety training were provided to both technical staff and leadership teams, and new procedures were established to prevent similar errors in the future.

Through these consultancy and training efforts, Boeing reviewed its safety standards and was granted permission to resume flying its planes in 2020.

According to a recent report on Habertürk, Boeing hosted aviation editors, journalists, and content creators at its headquarters in Seattle. Elizabeth Lund, Boeing's Senior Vice President responsible for quality, gave a presentation on the work being done. Participants observed the production stages of the 737 MAX on-site. Boeing has implemented updates in safety and production. The company highlighted that the first step in correcting their quality approach was through training. It was also noted that after the 737 MAX accidents, there was a slowdown in production, followed by high costs in factories due to the COVID-19 pandemic. This situation led to working with a larger number of less experienced personnel, prompting a strengthened mentorship program. Additionally, Boeing decided to send auditors more frequently to its suppliers to ensure better quality control.

Boeing’s safety crisis once again highlights the importance of safety and quality control in production processes. Safety and crisis management training played a critical role in overcoming this crisis and helped Boeing establish a structure that prioritizes safety in the long run.

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