Emergency Decision Making in Business
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Transcript of Emergency Decision Making in Business
![Page 1: Emergency Decision Making in Business](https://reader031.fdocuments.us/reader031/viewer/2022022202/587a4d751a28ab00148b6b57/html5/thumbnails/1.jpg)
Mike Shama
![Page 2: Emergency Decision Making in Business](https://reader031.fdocuments.us/reader031/viewer/2022022202/587a4d751a28ab00148b6b57/html5/thumbnails/2.jpg)
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
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CONTENTS
• Critical Operational Situation
• R.C.D.I.
• Recognise
• Control
• Diagnose
• Initiate
• The OODA Loop
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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
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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
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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
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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
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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
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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!
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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!
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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
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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
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Mike Shama