Welch, a long-serving CEO of General Electric (1981-2001), is an expert on leadership development, and in 2010 he founded his own business school, the Jack Welch Management Institute at Strayer University in Virginia. He regularly publishes his reflections on LinkedIn.
This time, he focused on managing crises. He described the following steps to prevent crises and manage them if they occur.
Steps for the prevention of crisis situations
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Build a culture of open communication where people don't have to be afraid to raise concerns.
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Regularly check and revise what types of behavior you reward and make sure that employees understand the whole system of rewards.
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Treat everybody with respect, including employees you have to dismiss due to insufficient performance.
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Be an exemplary member of the community. Engage yourself even when no crisis occurs.
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Create your profiles on social networks so that you can inform your supporters from among the general public personally about a crisis.
What to assume when a crisis comes
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Assume that the problem is serious. Prepare for the worst possible scenario.
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Assume that all information can get out. There are no secrets you should try to hide.
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Assume that your company or work group will be dragged through the mud.
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Assume that you have to make changes in the way you manage people and processes.
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Assume that you will handle the crisis and become stronger.
No matter what kind of crisis you face, face it directly. Solve the situation quickly and learn from it so that it never happens again.
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