How great companies turn crisis into opportunity

turn crisis into opportunity Peter Crocker In a recent interview in Fortune magazine, management guru Jim Collins, author of business classics Built to Last and Good to Great, discussed what a business needs to to turn a crisis into opportunity.

Collins has spent several years studying how successful companies navigate turbulent times. He’s examined history including recent events such as 9/11 and the dot-com crash. His view is that the rollercoaster is here to stay.

“…it turns out that 1952 to 2000 was an aberration,” says Collins. “What we’re experiencing now, get used to it! It’s life, and it’s the normal life!”

His underlying message is a positive one: he believes that when responded to well “turbulence is your friend” and crisis presents a fantastic business opportunity.

His comments focus on big business, but many of the principles on how to turn a crisis into opportunity are the same for us. The full article is worth a read, but here are some of the quotes that stuck with me.

Maintain informed optimism:
“You have to have the combination of believing that you will prevail, but not also be the Pollyanna who ignores the brutal facts.”

Manage expectations:
“The right people do what they say they will do, which means being really careful about what they say they will do. It’s key in difficult times.”

Be accountable:
“People who take credit in good times and blame external forces in bad times do not deserve to lead. End of story.”

Don’t panic or become paralysed:
“As a rock climber, the one thing you learn is that those who panic, die on the mountain. You either go up or go down. You don’t just sit there and get clobbered.”

Think long-term:
“…we find that great companies manage for the quarter-century.”

“I don’t care how hard this period is. You have to say that we will be in this for a long time and we will turn this into a defining event, a big catalyst to make ourselves a much stronger enterprise.”

Thanks Jim, nicely said.

What about you? Are you seeing clouds or silver lining right now? Are you able to turn crisis into opportunity? Please share your view.

Love your work,

Peter Crocker is a director of Flying Solo responsible for the areas of marketing and advertising. He is a business copywriter specialising in websites, videos and marketing communications.

10 Mar 09

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I am staying positive, but rethinking stratedgies. I am also keeping an ear out for government initiatives for small business - the capital acquisitions incentives will not really help me, however I have just signed up to the QLD smart state small business mentor programme - they have waived the entrance fee, and the first 9 hours fee - a saving of $1350. Heather Smith from CAMP HILL, BRISBANE
Silver lining, silver lining! I am loving the market at the moment, it is full of what-ifs which make it exhilarating. It is making me think, really think about how to continue a solid, sound business that will thrive in the next 20 years. I'm no longer on autopilot, I'm flying the plane through the eye of the storm. Louise Gorrie from Sydney | Read my articles
The bottom line never changes - people will always buy when they perceive real value! Grant Hyman from Sydney | Read my articles
Global Recession? What Global Recession? I am busier than I have ever been ! Value is definitely the key - I offer a personalised travel service, I am available after hours and on weekends, and I have extensive experience in the travel industry. My clients love that they can trust me, I offer good value, and do what I say I am going to do. Pretty simple, but it works ! Kathy Purves from Perth
There is no doubt that the current market has it's challenges, but I always say that "when the going gets tough, the tough get going". I'm refocusing and diversifying a little, but overall, I reckon this is going to be a good time for business with low debt and low overheads to make good. Allan Brownsdon from Canberra
We've seen great growth in our business over the past few months. We recently put out an article on "Economic Crisis Doesn't Mean Fashion Crisis" and described how people still want to look good regardless of the global markets. We had a great response from our fan's, and sales kept on increasing. We are actually looking at expanding this year. All Good...
Stay Funky! Chris Ledden from Brisbane

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