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Mitroff (2005)Management > Crisis Management > Lectures > Independent Research > Mitroff's book
Mitroff (2005) Why some companies emerge stronger and better from a crisis"The costs of crisis are severe not only in terms of dollars but also in terms of emotional distress"
The Rise of the AbnormalConventional ways of thinking about crises are not enough in today's turbulent environment. They are too rational and cannot cope with "abnormal states of mind". Abnormal crises are those which are intentionally created, such as terrorism, as compared with normal crises, which are unintentional. Many crises have a combination of both normal and abnormal elements. Abnormal accidents have more devastating consequences, affecting entire organisational and social systems. Business need to be wary, as 80% of terrorist attacks happen to private businesses, not to the government. The devastating effect terrorism has on a part of society easily spreads and affects many other parts, as we are living in a time of great interdependency. If a firm is prepared, then not only will they be better prepared for crises, but it actually improves their business. For example, over a three-year period, crisis-prone firms experienced 44% more crises than crisis-prepared ones and saw 2% return on assets, compared to 6% for crisis-prepared organisations.
The effects of abnormal crises General Motors - outdated responses to crises Corporate emotional intelligence Additional myths - a rather harsh criticism of America
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