Crisis management
Tom Ruetgers (Talk | contribs) |
Tom Ruetgers (Talk | contribs) |
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* financial crises (Project budget exceeded so drastically, that it's not continue-able) | * financial crises (Project budget exceeded so drastically, that it's not continue-able) | ||
* schedule crises (It became impossible to finish the project before deadline) | * schedule crises (It became impossible to finish the project before deadline) | ||
| − | * legal crisis ( | + | * legal crisis (the project is threaten to fail due to law changes, e.g. Brexit) |
* crisis caused by an accident (most common situation, which leads immediately to a crisis: construction accident with harmful consequences for humans and environment) | * crisis caused by an accident (most common situation, which leads immediately to a crisis: construction accident with harmful consequences for humans and environment) | ||
Revision as of 18:44, 18 February 2019
Developed by Tom Ruetgers
Contents |
Abstract
Crisis Management in general terms defines how an organization or Individuum respond to an unwanted (suddenly) occurred event. The terminology gets used in several different contexts. The most popular are: politic, nature, financial and organization sector. This wiki article focus on crisis management within an organization in a project management environment. It will introduce how project management teams can identify crises and state varying approaches to deal with crises and how to recover a troubled projects. No matter how well a project is planed and prepared, due to the rapidly changing world and constraints it is impossible to eliminate all unknown variables. therefore, a special focus on risk management should be set in the preparation of a project to prevent events which could lead to a crisis as much as possible. Which sounds theoretical spoken quite simple is in the practical world often more difficult. Almost all projects run under tough conditions regarding all resources as budget, manpower and time. Subsequently, it is not surprising that approximately 70% of all major projects and programs fail to achieve their objectives. [1]
Initial Situation
A crisis can emerge in two different ways: On the one hand by a suddenly occurred fatal event, collapse of a construction for instance. On the other hand, a crisis can also occur slowly. Due to badly monitoring or even suppressed expenditures projects can get out of control and exceed objectives drastically. In such a situation it is necessary, that the project manager realizes that the current circumstances are no longer manageable to meet requirements of the project. A crisis in general is defined as a time of intense danger or when a difficult and important decision must be made. [2]. Related to project management, a crisis can usually be aligned to one of the following rubrics:
- financial crises (Project budget exceeded so drastically, that it's not continue-able)
- schedule crises (It became impossible to finish the project before deadline)
- legal crisis (the project is threaten to fail due to law changes, e.g. Brexit)
- crisis caused by an accident (most common situation, which leads immediately to a crisis: construction accident with harmful consequences for humans and environment)
Most likely, the project and the associated companies are also attract negative public attention, which harms the firms reputation and puts even more pressure on the project management team.
Emergency Management
First Aid
Crisis Management
3R approach
Step 1: Regret
Step 2: Reason
Root to causes Data collection and analysis
Step 3: Remedy
Decision making
Recovery and prevention
back on track
Literature
- [1]: Is written by Stephen Carter, a Senior lecturer Professor in Project & Programme Management at Cranfield University. He worked on projects for the oil business before moving on to work at Virgin before working directly for a global CEO as head of Project & Programme Management Strategy.
