Crisis management in parallel arenas – in the shadow of the Fourth Industrial Revolution

Erez Buganem

Corona time is undoubtedly a serious test time for executives.

We all hate uncertainty and so the business world. The business world is based on long-term plans and at least, annual plans. In the days, when contingency plans are a necessary matter, many businesses are required for maximum flexibility and significant change of all business plans in a dramatically short time, in order to maintain their survivability and profitability.

What is the maximum amount of flexibility required? Flexibility at the highest level. When the flexibility and ability to adapt the change will be higher, the product and the survival of the organization will be more significant.

In these days, we are in the midst of the fourth industrial revolution that is entering our lives rapidly and operating on all the organization fronts as well changing markets, changing the way  of the product consumption, changes in the employment market, distribution changes and how the employees are employed. All this, in the shadow of a change in the global and individual financial situation.

In the days when businesses are struggling to keep their heads above the water, it is very difficult for many managers to deal with multiple arenas. The profitability maintaining, or at least – the survivability, naturally, liable to divert the organization’s resources, while the human capital arena is abandoned, which may remain the people vulnerable to harm, economically and morally that inevitably will effect on the product as well.

Here, too, human capital is the key to change and the climbing on the success ladder. Companies that care about their workforce and deal with the challenges and opportunities that inherent in the current crisis, may deal well with another uncertainty, such as that presented by the rapid acceleration of the Fourth Industrial Revolution which means – moving beyond the digital world. Many organizations have already been moved and are preparing for a fundamental change in their activities due to the consequences of the coronavirus. While this process might have been relatively structured and planned, the vast majority of organizations in the world could not take it into the account and only reality of a sudden and forced global epidemic could put it at our doorstep. So, the response to the coronavirus may be instructive for companies and sectors that exposed to the ­­­­revolution due to the Fourth Industrial Revolution.

When the occupational certainty is at the top of the employee’s needs scale, we must maintain it in order to preserve productivity. The recommended way for a manager to successfully deal with most of the challenges is first and foremost to understand that the corona is going to be part of our life routine as well, that we are facing a situation that requires quick adaptation and an orderly plan that faxes the organization and reduces unnecessary stress. The message to employees should be: “We are aware of the threat and prepared for any scenario”, while creating a clear plan for employees in the organization detailing what each department does in each situation and what the work arrangements are at the personnel level.

The crisis must be managed.  Regular updates must be sent to employees while creating the message that matters are under control and in safe hands. At the same time, flexibility and understanding must be shown for the balance required of the employee between his private concerns and his commitment to work, which will inevitably lead to the creation of commitment on the part of the employee.

The ultimate manager in the corona days, remembers that his employees are his greatest asset and should be maintained despite and alongside dealing with the obstacles and challenges that characterize the corona days.

Proper crisis management within the organization and preparing employees for changing scenarios when employees know what they are doing in each situation, while delegating authority and reducing uncertainty and knowledge, will significantly reduce the pressure in the organization and lead to the human capital in the organization being shot, For extensive achievements precisely at this time.

Taking advantage of the opportunities inherent in the Fourth Industrial Revolution while properly managing the human resource will lead to maintaining the financial strength of the organization and even to growth.