Join me for a dive into a high-stakes game of “Spot the Difference” between two seemingly similar concepts that can make or break organizations – a crisis and a business continuity disruption. I’ve often noticed these terms used interchangeably, but beware, confusing the two can lead to disaster. Not all disruptions, no matter how severe, lead to a crisis and not all crises are in relation with business disruptions.
So, let’s reveal the stark differences between these two troublemakers.
Crisis: Picture this – it’s like a thunderstorm in the vicinity. It’s dramatic, attention-grabbing, and has the potential to unleash chaos. A crisis is an event that threatens to harm an organization’s reputation, operations, or bottom line, and it comes with a side order of panic, urgency, and a dash of chaos. It might threaten the life and health of people, the reputation and sometimes the very existence of the organization. It is sudden, puts us under intense pressure and public scrutiny, and leaves us in dilemmas where most decisions are bad, and we shall choose the lesser of two (or more) evils.
It requires exceptional decision making and communication skills for anything we do in times of crises is consequential!
Think PR nightmares, massive product recalls, huge data breaches and disclosure on the dark net, natural disasters, or a global pandemic. Crises don’t knock politely on the door; they kick it down and demand immediate and undivided attention.
And of course, we have no plan to manage it, otherwise it would not be a crisis, would it? But we only know one thing: we shall overcome.
Ate the same time, not all crises are catastrophes, and often they are the right time and opportunity for making long awaited changes. Didn’t Winston Churchill himself said “Never waste a good crisis!” The Chinese word for crisis is “Wei Ji” translated as Danger & Opportunity.
Business Continuity Disruption: let’s shift gears to a business continuity disruption. It’s like a power outage on a sunny day – it’s disruptive, it’s annoying, I’ll give you that.
It is sometimes even painful, costly and very demanding but it is still manageable. A business continuity disruption is an event that interrupts normal operations but doesn’t always escalate to a full-blown crisis. It would also not require mobilizing the C-suite for immediate and strategic decision-making.
Imagine a server crash, a supply chain hiccup, or even a local power outage. These disruptions are like mischievous gremlins in the machinery of your organization. They’re irritating, they disrupt the flow, but if you are well prepared and follow the plans, they don’t typically send your stakeholders into a frenzy.
The business continuity disruptions are usually managed as close as possible to the field, pursuing the sacrosanct principle of subsidiarity.
Provocative Challenge: Can you spot the difference so far? Here’s a hint: a crisis is the Godzilla of organizational woes, while a business continuity disruption is more like a mischievous raccoon in the garbage cans of your daily operations. So, what’s the main criterion to differentiate?
Answer: The extent of the damage, the scope of impact: as an example, a supply chain hiccup is an irritating disruption, we’ll have to work longer hours, spend time and effort on non-value generating activities… “Damn! another disruption !!! ok let’s take our plan. We have the experience, we’ll manage.”
But a big container ship stranded in the middle of the Suez Canal, announcing days and weeks of delays for the just-in-time deliveries, affecting thousands of organizations, creating havoc in the procurement and supply chain services, generating waves and waves of knock-on effects, and consequently emptying the shelves of your preferred supermarket… is, indeed, a crisis.
When a crisis hits, it’s like a shockwave that ripples through the entire organization and much beyond. It affects your customers, their customers, the shareholders, the general public and even the politics are going to have they say on the matter. Your reputation is on the line, even if it is not your fault… and the stakes are sky-high.
On the flip side, business continuity disruptions allow for a more measured response. Despite the emergency, you can take a deep breath, roll up your sleeves, assess the situation, and proceed with a plan that doesn’t involve too much adrenaline.
In conclusion, folks, the line between a crisis and a business continuity disruption can be as thin as a tightrope wire. But make no mistake, mixing up the two can lead to unnecessary chaos or culpable complacency. So, next time your organization faces a bump in the road, ask yourself: Is this a mammoth-sized crisis, or just a rascal racoon scavenging in the backyard of your operations? Your response will make all the difference in the world.
Remember, in the thrilling world of business, knowing when to sound the alarms and when to take a breather is like being capable of surfing rogue waves and often the key to surviving and thriving.