Anti-crisis management: tasks, principles, stages, strategies
Posted: Mon Jan 20, 2025 8:13 am
What are we talking about? Anti-crisis management is temporary management in difficult conditions for an enterprise, which are provoked by various factors and have serious consequences. It is carried out in stages, characterized by the adoption of unpopular measures and strategies.
What to do? The first thing to do is to understand the causes of the crisis, analyze the company's business processes, the work of the staff, relations with contractors, and the target audience. Based on the results of the analysis, an anti-crisis management strategy is developed.
In this article:
Diagnosis of the truemoney database company's crisis state
The concept of crisis management
Tasks of anti-crisis management
Principles and resources of crisis management
Types of crisis management
Stages of anti-crisis management
5 Crisis Management Strategies
Successful examples of crisis management
Frequently Asked Questions about Crisis Management
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
Diagnosis of the company's crisis state
Timely detection of a crisis and determination of its severity guarantees the adoption of well-founded decisions on its overcoming. Such choices are made solely on the basis of an analysis of changes in the enterprise's performance indicators and the establishment of the reasons that led to the development of such a situation. The measures that need to be taken to resolve the crisis situation depend on the complex of these reasons.
Diagnosis of the company's crisis state
Source: shutterstock.com
Before considering the principles of anti-crisis management of an enterprise, let us understand what types of aggravation exist:
Sales crisis - develops under the influence of external and internal reasons. The first factors are low competitiveness of the product, decreased purchasing power of customers, competitors' behavior, etc. Internal factors are an illiterate policy of the enterprise in terms of marketing or pricing. As a result, the sales volume decreases to indicators that cannot cover the company's constant and variable expenses.
Cost crisis - occurs mainly under the influence of internal factors, such as insufficient control over the dynamics of variable costs, incorrect construction of business processes, excessively high fixed costs, poor productivity, etc. A cost crisis requires an increase in the selling price of products or services so that the business does not become unprofitable.
Financial crisis - also largely depends on internal factors. For example, poor financial management of the company, non-compliance with the balance of debts, unreasonable credit policy of the organization. The aggravation is manifested in the lack of finances for conducting business activities and paying off the credit obligations of the enterprise.
It must be said that critical conditions at enterprises do not appear overnight; their development consists of several stages:
Pre-crisis state - a decrease in revenue and profitability is observed, cash gaps appear more and more often, overdue accounts receivable are increasing.
Entering a crisis - the company's profitability is at its lowest, the volume of borrowed funds increases, cash gaps increase, and the company experiences constant problems in repaying debts to creditors.
Crisis situation - business activity brings losses, cash gaps occur on a permanent basis, solvency decreases, and external financing cannot be attracted. Overdue debts on loans grow faster than current accounts payable.
Bankruptcy - an organization cannot carry out business activities and pay debts to creditors.
From all of the above it follows that to overcome a crisis, an organization needs a management tool that will allow it to detect the emergence of negative trends in the company's activities in a timely manner, and will also help to prevent them or minimize negative consequences. The anti-crisis management mode is used as such a tool.
Read also!
What to do? The first thing to do is to understand the causes of the crisis, analyze the company's business processes, the work of the staff, relations with contractors, and the target audience. Based on the results of the analysis, an anti-crisis management strategy is developed.
In this article:
Diagnosis of the truemoney database company's crisis state
The concept of crisis management
Tasks of anti-crisis management
Principles and resources of crisis management
Types of crisis management
Stages of anti-crisis management
5 Crisis Management Strategies
Successful examples of crisis management
Frequently Asked Questions about Crisis Management
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
Diagnosis of the company's crisis state
Timely detection of a crisis and determination of its severity guarantees the adoption of well-founded decisions on its overcoming. Such choices are made solely on the basis of an analysis of changes in the enterprise's performance indicators and the establishment of the reasons that led to the development of such a situation. The measures that need to be taken to resolve the crisis situation depend on the complex of these reasons.
Diagnosis of the company's crisis state
Source: shutterstock.com
Before considering the principles of anti-crisis management of an enterprise, let us understand what types of aggravation exist:
Sales crisis - develops under the influence of external and internal reasons. The first factors are low competitiveness of the product, decreased purchasing power of customers, competitors' behavior, etc. Internal factors are an illiterate policy of the enterprise in terms of marketing or pricing. As a result, the sales volume decreases to indicators that cannot cover the company's constant and variable expenses.
Cost crisis - occurs mainly under the influence of internal factors, such as insufficient control over the dynamics of variable costs, incorrect construction of business processes, excessively high fixed costs, poor productivity, etc. A cost crisis requires an increase in the selling price of products or services so that the business does not become unprofitable.
Financial crisis - also largely depends on internal factors. For example, poor financial management of the company, non-compliance with the balance of debts, unreasonable credit policy of the organization. The aggravation is manifested in the lack of finances for conducting business activities and paying off the credit obligations of the enterprise.
It must be said that critical conditions at enterprises do not appear overnight; their development consists of several stages:
Pre-crisis state - a decrease in revenue and profitability is observed, cash gaps appear more and more often, overdue accounts receivable are increasing.
Entering a crisis - the company's profitability is at its lowest, the volume of borrowed funds increases, cash gaps increase, and the company experiences constant problems in repaying debts to creditors.
Crisis situation - business activity brings losses, cash gaps occur on a permanent basis, solvency decreases, and external financing cannot be attracted. Overdue debts on loans grow faster than current accounts payable.
Bankruptcy - an organization cannot carry out business activities and pay debts to creditors.
From all of the above it follows that to overcome a crisis, an organization needs a management tool that will allow it to detect the emergence of negative trends in the company's activities in a timely manner, and will also help to prevent them or minimize negative consequences. The anti-crisis management mode is used as such a tool.
Read also!