| In a weak economy it is not surprising to discover | | | | Malvern, PA and special advisor to the Nonprofit Risk |
| one of the fastest growing fields of business | | | | Management Center and co-authored the Center's |
| management is crisis management. Often a crisis | | | | book, "Enlightened Risk Taking: A Guide To Strategic |
| situation occurs before it is fully realized by a | | | | Risk Management For Nonprofits". |
| business and an expert must be brought in to | | | | Head says, "Economic downturns bring both threats |
| intervene. The goal of crisis manager is to identify | | | | and opportunities to which a resourceful nonprofit |
| the nature of the crisis and plan a turnaround or | | | | can and should respond constructively - both for its |
| liquidation strategy. The crisis manager is often | | | | own protection and for the greater well-being of its |
| struggling with multiple factors including the | | | | clients and of the general community of which that |
| company's public image during the analysis of | | | | nonprofit is a contributing part. In hard times, it is |
| company's current profitability and recovery viability. | | | | easy to find and bemoan the threats. It is more |
| Many businesses try to restructure their way out of | | | | rewarding for everyone, however, to seek out and |
| the crisis deploying many of the same strategies | | | | seize the opportunities. In all of these circumstances, |
| which lead to the current failures. A crisis manager will | | | | the discipline of risk management can provide |
| see the company's structure with a fresh pair of | | | | resources and tools for sustaining a nonprofit and the |
| eyes and can implement a plan from an impartial point | | | | clients and communities it serves". |
| of view. Turnaround or liquidation may well be related | | | | The slowing economy has created a need for crisis |
| to how soon a crisis experienced outside manager is | | | | managers within retail apparel sector. A veteran |
| brought in. | | | | retailing expert, Milton Waldoff of The Waldoff group |
| Recently US Automaker Chrysler was deemed "not | | | | says, "The world of retail is fierce, competitive and |
| salvageable" by both the media and the Federal | | | | unforgiving, more so today than at any time since |
| Government. Detroit area turnaround specialist Jim | | | | the Great Depression of the 1930's, surviving is not a |
| McTevia of McTevia & Associates of Bingham | | | | given, nor is a successful closing." He continues, "A |
| Farms stated, "Ultimately you're talking about a set | | | | crisis management expert knows every situation |
| of circumstances that means a liquidation of | | | | cannot be turned around, some situations simply call |
| Chrysler's assets, that's what everybody's been | | | | for liquidation and management must have the |
| talking about but nobody's saying it." As of this | | | | experience, knowledge and expertise to know what |
| writing, to our knowledge, Chrysler has not brought in | | | | works and what does not, and which situations might |
| a crisis manager to take over. It is said to be losing | | | | be turned around very successfully! Both take |
| more money than it ever has. | | | | professional unemotional analysis and planning." |
| Circuit City tried to restructure by firing its best sales | | | | Waldoff has been involved in numerous successful |
| people beginning in 2007. The internal decision made | | | | retail crisis management situations. |
| by Phil Schoonover former Circuit City chairman, CEO | | | | As the economy becomes less forgiving and |
| and president to transform Circuit City in to Best Buy | | | | consumers have less to spend, the marketplace will |
| was a critical factor in the company's failure. Had a | | | | continue to contract to accommodate the loss of |
| crisis manager been brought in prior to the 2007 | | | | incoming revenue. Businesses large, small or non-profit |
| decision perhaps they could have developed a | | | | can benefit from the services of a professional |
| turnaround strategy, rather than succumbing to the | | | | business crisis manager. Knowing when to hire a crisis |
| eventual liquidation. | | | | manager to assess the health of your business could |
| There is even help for crisis management in the | | | | mean the difference between a turnaround or |
| nonprofit sector. Dr. George Head, PhD and director | | | | liquidation of your business. |
| emeritus of the Insurance Institute of America in | | | | |