**
Introduction
“Managing Crises Before They Happen” by Ian I. Mitroff offers a comprehensive guide for executives and managers on the principles and practices of proactive crisis management. The book emphasizes the importance of anticipating potential crises and preparing for them in advance to mitigate damages and recover more quickly and effectively. Mitroff draws from both real-world examples and theoretical frameworks to provide actionable insights.

1. Understanding Crisis and Crisis Management
Mitroff begins by defining what constitutes a crisis and the basic models of crisis management. He argues that a crisis can be any unexpected event that poses a potential threat to an organization. This can range from natural disasters to man-made events, including internal problems like corporate fraud or external issues like economic downturns.

Specific Action: Conduct regular risk assessments to identify potential crisis scenarios. This could include simulations and brainstorming sessions with key stakeholders to explore possible vulnerabilities.

Example: In the book, Mitroff references the Exxon Valdez oil spill, illustrating how a lack of preparedness can exacerbate the impact of a crisis. An organization needs to have contingency plans in place and continually update them based on evolving risks.

2. Crisis Typology and Organizational Vulnerability
Mitroff provides a typology of crises, categorizing them based on their origins and impacts. He identifies four main types: economic, informational, physical, and human resources crises. For each category, he discusses typical vulnerabilities and potential preventive measures.

Specific Action: Develop a customized crisis management plan for each type of crisis. For instance, for informational crises such as data breaches, an organization should invest in cybersecurity measures and employee training programs.

Example: Mitroff cites the failure of Barings Bank due to unauthorized trading by a single employee as an example of a human resources crisis. The lack of oversight and proper controls made the bank vulnerable to this type of crisis.

3. The Role of Culture in Crisis Management
Mitroff underscores the critical role organizational culture plays in crisis management. A culture that encourages open communication, ethical behavior, and continuous learning is more resilient to crises. Companies must foster an environment where employees feel safe to report potential risks without fear of retribution.

Specific Action: Promote a culture of transparency and accountability. This can be achieved by implementing whistleblower policies and regular ethics training for all employees.

Example: The book refers to how Johnson & Johnson effectively managed the Tylenol tampering crisis by putting consumer safety first and being transparent with the public. This approach not only alleviated the crisis but also enhanced the company’s reputation.

4. Leadership and Decision-Making in Crisis
Effective crisis management requires strong leadership. Mitroff emphasizes that leaders must be decisive, calm under pressure, and willing to make tough choices. He also discusses the importance of having a crisis management team in place, composed of individuals with diverse skills and perspectives.

Specific Action: Establish a dedicated crisis management team and conduct regular training and drills. Leaders should practice scenario planning to prepare for making quick, informed decisions during a crisis.

Example: During the 9/11 attacks, Mayor Rudy Giuliani’s immediate and decisive actions helped manage the crisis in New York City. His leadership was characterized by clear communication and rapid decision-making.

5. Communication Strategies during Crisis
Mitroff dedicates considerable attention to the role of communication in crisis management. He asserts that how an organization communicates during a crisis can significantly impact its outcome. Effective communication should be timely, transparent, and consistent across all channels.

Specific Action: Develop a crisis communication plan that includes predefined messages, designated spokespersons, and strategies for different communication channels. Regularly update and practice this plan to ensure readiness.

Example: When PepsiCo faced the syringe scare crisis (allegations of syringes found in their soda cans), they managed the situation effectively through transparent media communication, quick action, and collaboration with the FDA, which helped restore public trust.

6. Learning from Past Crises
Mitroff advocates for learning from past crises to improve future responses. He suggests conducting post-crisis evaluations to understand what went wrong, what was done right, and how procedures can be improved. Organizations should maintain a crisis “audit trail” to document these lessons.

Specific Action: After a crisis, hold debriefing sessions with all involved parties to analyze the response and outcomes. Create detailed reports and update crisis management plans accordingly.

Example: NASA’s analysis of the Challenger disaster was a critical exercise in learning from failure. The subsequent report led to significant improvements in safety protocols and organizational culture.

7. Crisis Prevention through Comprehensive Risk Management
Preventing crises involves identifying potential risks and implementing controls to manage them. Mitroff discusses the need for comprehensive risk management, integrating it into all aspects of the organization’s operations.

Specific Action: Implement an enterprise risk management (ERM) framework that continuously monitors and assesses risks. Conduct regular audits and adjust risk management strategies based on new findings.

Example: The banking industry, after the 2008 financial crisis, adopted more stringent risk management practices, including stress testing and improved regulatory oversight to prevent future systemic failures.

8. Ethical Considerations in Crisis Management
Mitroff stresses that ethical behavior is central to effective crisis management. Organizations must balance the interests of various stakeholders and make decisions that are not only legal but also morally sound.

Specific Action: Establish a code of ethics and ensure that all decisions during a crisis adhere to these principles. Provide ethics training and create an ethics committee to oversee adherence to these standards.

Example: The book references the Ford Pinto case, where cost considerations were prioritized over safety, leading to fatalities. This highlights the importance of making ethically sound decisions even when they are not the most financially beneficial.

9. Building Resilience and Adaptive Capacity
Resilience is the ability of an organization to quickly recover from crises. Mitroff points out that resilience involves both pre-crisis preparation and post-crisis recovery strategies. Organizations must be adaptable and capable of learning and evolving from crises.

Specific Action: Invest in building organizational resilience by diversifying operations, creating redundancies, and fostering an agile corporate culture. Regularly review and update crisis response and business continuity plans.

Example: Mitroff discusses how Toyota’s Just-In-Time (JIT) production system, while efficient, was vulnerable to supply chain disruptions. After facing such issues, Toyota adapted by increasing inventory levels of critical parts, enhancing resilience.

10. The Need for Comprehensive Crisis Management Education
Finally, Mitroff advocates for comprehensive education and training in crisis management for all levels of an organization. He argues that crisis management should be a core component of executive training programs.

Specific Action: Integrate crisis management training into leadership development programs. Partner with academic institutions to offer specialized courses and certifications in crisis management.

Example: Leaders at Scandinavian Airlines (SAS) undertook crisis management training that equipped them with the skills to handle unexpected events, contributing to the company’s resilience and strong performance despite numerous global challenges.

Conclusion
Mitroff’s “Managing Crises Before They Happen” is a seminal work that highlights the importance of proactive crisis management. By understanding various types of crises, fostering an appropriate organizational culture, leading effectively, communicating transparently, learning from past events, managing risks comprehensively, making ethical decisions, and investing in resilience and education, organizations can better prepare for and navigate crises. Mitroff’s actionable insights and concrete examples serve as valuable guidelines for executives and managers aiming to safeguard their organizations against unforeseen threats.