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Mitroff (2005)

Management > Crisis Management > Lectures > Independent Research > Mitroff's book >The effects of abnormal crises > Defence mechanisms > Victim and villain > Complexity

 

Complexity

Mitroff criticises Peters and Waterman's book, In Search of Excellence, which defines excellent firms as "sticking to their knitting". Organisations which do this are often doomed to failure, as they stick to their one way of doing things, even when the situation becomes abnormal, resulting in failure.

Indeed we need limits and boundaries to make sense of our complex world, but those boundaries need to be flexible. This is due to the interdependent nature of organisations.

For example, a firm has numerous production processes and an abnormal crisis can occur in any one of them and which will affect the whole business. In addition, the firm sits within a value system, making it interconnected with dozens of other organisations, with each those organisations existing within a network of dozens more firms and so on. If an abnormal crisis hits any one of those businesses, then our firm will also be affected.

This perspective suddenly makes a major crisis all the more likely and threatening.

The major types of crisis include:

  • Economic - labour issues, hostile takeovers, market crash
  • Informational - loss of or false information, tampered records
  • Physical - loss of key equipment or facilities, explosions
  • Human Resources - loss of key executives or personnel, corruption
  • Reputational - slander, gossip, rumours
  • Psychopathic Acts - product tampering, kidnapping, terrorism
  • Natural disasters - earthquakes, fires, hurricanes

 

Four styles of thinking

Assumptions

Structured problems

Four views of crises

Crisis tool kit

Controlled Paranoia

General Motors - outdated responses to crises

Needed action

A well-designed organisation

Spirituality

Benetton-Turkey

Corporate emotional intelligence

CM and betrayal

Myths

Additional myths

 

 Copyright Heledd Straker 2006

Go placidly amid the noise and haste