emergency decision making in business

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Mike Shama

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Page 1: Emergency Decision Making in Business

Mike Shama

Page 2: Emergency Decision Making in Business

AIM

The aim of this briefing is to provide some useful tips to handling

emergencies as well as to outline the dangers of not employing good EDM

Page 3: Emergency Decision Making in Business

CONTENTS

• Critical Operational Situation

• R.C.D.I.

• Recognise

• Control

• Diagnose

• Initiate

• The OODA Loop

Page 4: Emergency Decision Making in Business

Critical Operational Situation

• You have a big 24hr sales promotion going live that has been heavily marketed

• You’ e withi 24 hou s of the lau ch whe a key pa t e ale ts you team that they are having a problem with the sales platform.

• On checking your team finds that there is a critical issue that could cause service interuption on the platform

• What actions do you take? What should you do first? What does the Staff Operating Protocols say?

• The following tips will help improve your decision making process

Page 5: Emergency Decision Making in Business

R.C.D.I.

• Firstly: DO NOT RUSH • A rushed poor decision can make your situation far worse

• The following acronym will help order your actions: • R – Recognise

• C – Control

• D – Diagnose

• I – Initiate

Page 6: Emergency Decision Making in Business

Recognise

• What has happened? • Do I know? Maybe? Don't guess or make quick assumptions

• Does my team know? Do my managers know? • Warn them with the symptoms, not diagnosis

• "Platform not registering new users", "Payments not co pleti g", Pa t e i fo atio ot displayi g co ectly etc.

• Jumping to conclusions will slow you down rather than speed up your response

Page 7: Emergency Decision Making in Business

Control

• Contain the immediate situation

• Communicating vital information to key personnel is critical

• Activate relevant account manager/s

• They will handle partner relations

• Initial Management briefing

• Key managers briefed with critical information asap

• Allows for a measured, coordinated response

• Ensures key resources will be made available

Page 8: Emergency Decision Making in Business

Diagnose

• Now the initial situation is under control let's understand what is going wrong

• Use Staff Operating Protocols (SOPs)

• They will provide easy to follow flow charts

• They are focussed on making sure the right information is flowing to the right decision makers

• Get the relevant specialist to issue a diagnosis of the problem and critical consequences

• Use your team resources regardless of your seniority

Page 9: Emergency Decision Making in Business

Initiate

• What now? What are we going to do?

• Ensure key personnel have the information & resources they need to fix the issue

• Ensure Account Manager/s have all they need to be effective

• If you have spare capacity see where you can be supportive

• Effective Communication is CRITICAL

• A good plan now is better than a perfect plan never

• The only way to fix the situation is to ACT!

Page 10: Emergency Decision Making in Business

Remember

• If you are acting in a critical situation you need to make sure you operate smartly in order to be effective and not to make the situation worse

• Numerous examples of good businesses making critical errors by acting hastily

• When under pressure keep this in mind

• D – DIAGNOSE

• D – DOUBLE CHECK

• D – DO

• Stop, think, check, and make sure, ACT!

Page 11: Emergency Decision Making in Business

The OODA Loop

Another method that is used is referred to as the OODA Loop.

• Observe

• Orientate

• Decide

• Act

The idea is that the above forms a decision making/action loop, and as you act you are immediately beginning the loop again.

The key is to tighten your OODA loop in order that your decision aki g/actio cycle is tighte o uicke tha the situatio o

competitor behaviour, and in so doing you emerge victorius from any situation

Page 12: Emergency Decision Making in Business

SUMMARY

• Don't Rush: Think R.C.D.I.

• Recognise the symptoms and Warn the team

• Control and contain the situation: Get into a controlled operational configuration

• Diagnose. Use SOPs

• Diagnose, Double Check, Do

• Initiate: A good plan now is better than a perfect plan never

• The consequences of not applying a measured approach to an emergency situation will only lengthen your response time and potentially result in your response to fail

Page 13: Emergency Decision Making in Business

Mike Shama