Crisis mode the norm for CEOs
By Nick Easen for CNN
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Crises are not only common but costly. The answer -- proactivity.
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(CNN) -- Is corporate strife welling up in your office? If you are trying to stop a troubling situation from becoming a full-blown crisis, then you are probably the boss.
Managers spend a good proportion of their week "putting out fires" at work, leaving less time for strategic business issues, according to a recent poll.
In total, 71 percent of executives said they respond to unexpected crises a few times a week, and a third of this group even have to deal with work-related emergencies every day.
"It is difficult to foresee and proactively address potential crises when you are caught up in day-to-day demands," said Max Messmer, chairman of recruitment company Acountemps, in a statement.
"A good manager identifies ways to mitigate routine problems and respond quickly to unexpected ones, freeing up more time for bigger-picture issues."
The survey of 150 executives from the 1,000 largest U.S. companies included personnel from human resources, finance and marketing divisions.
Last year, a separate study by Fourth Floor Consulting also found that 70 percent of executives believe their companies waste vast amounts of money fighting fires.
Business plans were neither properly understood, nor well executed, the study said. There was also little confidence in the managers implementing them.
"A significant number of executives acknowledge they react slowly, waste a considerable amount of money putting out fires, and have ineffective planning processes," says Fourth Floor CEO Bob Zagotta.
Fire drills
Messmer's advice is to conduct "fire drills" where firms develop detailed plans that include solutions for handling worst-case scenarios.
This also involves practicing drills with staff and assigning responsibilities to other managers.
"Is the situation really a crisis? Do not treat every bump in the road as a disaster," Messmer says.
"It can cause undue stress and leave you and your staff unprepared for a true emergency."
In many companies overdue deadlines are a common concern, as project timelines are not adhered to and contingencies not built in for unexpected setbacks.
According to Messner firms also need to look at their business needs, take time to assess goals and proactively adopt change rather than reacting to the most pressing issues.
