Crisis management 101

posted on July 19th 2010 14:38 by jan.cifra

So you and your company are facing a crisis. Maybe a big customer is not satisfied with the quality of your service or product, maybe you have messed up in some way that has shaken the confidence of your shareholders and/or customers. Whatever the crisis you're probably backed against a wall with very little room to maneuver and the next few days will be make or break for you and/or the company. Well I am here to tell you that it's happened before and it will probably happen again. I will try to summarize what I have learned from my experiences and maybe give you a few hints on how to take control of the situation.

Don't panic

This seems to be obvious advice. But believe me many people underestimate this and the moment they face a crisis they panic. They act before thinking, communicate before clearly understanding the issue and usually make things much worse. Take the time to calm yourself down, calm your team down and try to get everyone focused on the issue at hand.

Establish control

To face a crisis it will take concentrated effort, no big sweeping action will help so forget that. The most important thing is to establish a place where your team will be physically present if possible or at least from where you will coordinate and communicate your response to the crisis. To put your feet on the ground and to understand the issue you will need data. Setup a process to collect and analyze data in regards to the issue, document it well and have your best people analyze it. This will allow you to understand the scope of the crisis and hopefully show you where to start looking for the problem.

Work systematically

Establish a process – usually it goes like this:

  1. Collect data
  2. Analyze & Detect issues
  3. Suggest action
  4. Challenge action
  5. Approve
  6. Take action
  7. Go to 1.

I can't tell you how many iterations you will need but from my experience this works. In the first iterations you will maybe catch only few issues but once your team gets into this process the iterations will be quick and you will be able to pin-point issues much better and therefore solve them much quicker. Try to keep everyone focused on the process – people tend to celebrate the first detected issue as the root cause but usually it's not. It takes time to find the root cause (that is why it's a crisis) and there is no quick-fix.

Communicate to stakeholders

Communication with your stakeholders is obviously very important. Not only the pissed off customer but also your management, owners, shareholders, partners.  Communication is important because usually to solve a crisis you will need help. And your stakeholders are usually the key to additional resources so be sure to get them involved asap. Be clear about the scope and the impact of the crisis and give them data to support your assessment of the situation. Before communicating make sure what you tell them is accurate and that they really want or need to hear it right now. In times of crisis patience is in short supply so make sure you don't waste their time with useless information.

Show progress

As soon as everyone (you, your team, the stakeholders) understand the situation it is important to show progress. You have put everyone on alert, you have asked for emergency resources so everyone will expect you to deliver results. Usually this does take some time but as soon as you make progress do share it but again with hard data. Saying: "We are doing our best and have already made some progress!" is not going to cut it and is in the "useless information" category. Share exactly what you have achieved and what are the next steps.

There I hope this helps. It may seem this is focused on technological problems but I can tell you most of these recommendations are applicable in any type of crisis. Someone please send this to BP.

Heading to business school soon

posted on June 30th 2010 16:47 by jan.cifra

As of august I will be leaving my position as director at my current employer and will be heading to business school. I got admitted to Vlerick Leuven Gent Management School for a full-time international MBA program. Although I will miss Slovakia a bit I am really looking forward to the new environment and all the new challenges I will face there. And tbh it's not about "jump starting my career" or "taking my career to another level" it's about doing something I am really passionate about and changing to a really international environment. So I am resurrecting this blog and am going to use it to post about my experience there and hopefully talk about stuff I learn. Btw I am starting on September 1st, 2010 in Leuven, Belgium.

On vacation in Croatia

posted on September 1st 2009 13:21 by jan.cifra

So I am on vacation with friends hoping to get some well deserved rest. There is no wifi where we are staying so the only connection possibility is edge (no 3G here). Can you imagine 100k data costs 26 cents? Unbelieveable. The EU should crack down much harder on the european carriers to lower the roaming data costs. Thank god Blackberry email doesn’t need much data.

The Pirate Bay got taken down… for 3 hours

posted on August 25th 2009 21:45 by jan.cifra

Not suThe Pirate Bayre whether you noticed but yesterday the Swedish authorities attempted to take down The Pirate Bay. I don’t want to go into details of what happened – you can read all about it here, here and here (actually on most of the internet) – suffice to say the page was back up in 3 hours due to the fact the TPB crew was ready for a move like this.

Today I don’t want to talk about whether pirating music/movies is morally ok or not.

What I want to talk about is the fact that the music labels and studios still don’t get their own customer.  Why do people pirate music/movies? The RIAA and MPAA would like you to believe that it’s because it’s easier to pirate than to buy CDs and DVDs. And you know what? They are RIGHT.

But it’s not easier because pirating enables you to get music/movies for free but because the user experience is much better when pirating.  Imagine until the arrival of the Apple iTunes store and later the Amazon MP3 store the only legal option to get media was to buy it on a CD/DVD. If you heard a great tune somewhere on the radio there was no way for you to get it immediately. You had to jump in your car, drive to a mall and get a CD. Same goes for movies.

The arrival of iTunes a few years back should have been a wake-up call. On every Apple keynote (WWDC or Macworld) Steve Jobs reminded everyone how well the music store was doing. With each passing keynote we saw the rise iTunes on the list of top sellers of music in the US. Did the labels/studios get it? No way. They put pressure on Apple to have all the music DRMed just so none of that music would get pirated. They got the chance to get it again when iTunes introduced movies or when Amazon started it’s own MP3 store but they still didn’t get it. The final straw came when iTunes became the top seller of music in the US.

Pirating is the best competition for the distributors of CDs/DVDs – the user experience is much better. You think of a song and in minutes you can have it with little effort and free.

So why is iTunes successful?

Because the user experience is much better than to go and buy a CD or to pirate music. It’s just that simple. If you think pirating music is easier than to buy stuff of the iTunes store just try it. You have to install a torrent download application. Find the right file that is not compromised by a virus and that contains what you want, you have to hope you got enough seeds for you to download at a reasonable speed and you have the thought in the back of your mind that you are doing something illegal.  Yes you are getting the song/album for free but is it worth the effort compared to the 5-10 $ you would pay for the high quality song/album from iTunes? I don’t think so. 

My point is the RIAA and MPAA should treat TPB as a competitor to the distributors of music. They should step-up their effort in online distribution and try to create space in the online music/movie retail market for an iTunes/Amazon competitor. They should help Apple and Amazon setup licensing of music/movies in Europe so that these companies can make their services available in more countries. I understand that a better service will never kill pirating – there will always be pirates – but the music/movie industry can go a long way of getting a much bigger piece of the music/movies downloads pie and even get paid for it. Isn’t it all about money in the end?

 

RIM shows it means business

posted on August 22nd 2009 13:32 by jan.cifra

In the past few days 2 interesting bits of information were released by RIM and Google.

Now this would normally be cool but well nothing special. But in the past weeks many have wondered whether RIM is capable of keeping up with the competition, especially the iPhone. For me these releases are signs that RIM acknowledges the shortcomings of it’s current platform and is not hiding it’s head in the sand. The fact that Google has released it’s connector for the Blackberry Enterprise Server means that there are enough installations of BES on top of Google Apps already that this combo needs to be taken seriously. The company I work for does in fact run on Google Apps so I am very happy about both of these releases.

One big advantage that RIM has in the fight vs the iPhone and other competitors is it’s push infrastructure. Not only is it quite unique even today but also it’s infrastructure is spread well and built up for the future. The most important thing now for RIM is to consider this not as a locked up proprietary service but to open it up to developers to build great apps on. Although the Blackberry SDK is already out there for some time many argue it is yet to be powerful enough to build serious apps on. The success or failure of the Blackberry platform depends on this as in regards to hardware – the berries themselves were always great devices.

And this brings me to my last point. RIM started a developer blog recently (11/08/2009) which is again an indication of where they are heading. Since it’s start it had 10 post in 10 days each rich with detailed information for developers. These guys mean business.

The most current post is about the new Blackberry 5.0 SDK beta that is now available to developers. If you read through the feature list the key from my perspective is

Push API

(net.rim.blackberry.api.push.*)

Makes using Push APIs even easier and more powerful for developers.

This is exactly what I meant earlier. The best move for RIM now is to empower it’s developer community with the access to the unique features of it’s platform. Apple only recently released it’s push functionality and compared to RIM it has still a long way to go.

In the past weeks I have been considering getting an iPhone 3GS to supplement my Blackberry Bold because I felt the Blackberry platform stagnating. Not anymore. I have high hopes for the Blackberry and I also wish the rumors about the browser upgrades are true. Full Flash/Silverlight capabilities on the Blackberry? iPhone beware!

 

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