Friday, May 11, 2012

20th Annual ICM Crisis Report

It was a "relatively peaceful" year for business and organizational crises -- but the crises that did strike were whoppers!

The 20th Annual ICM Crisis Report was published this week, with the airline/air transport industry leading the Top Ten Most Crisis Prone Industry list and, no surprise, News Corporation, Ltd., at number one on the Most Crisis Prone Business List for 2011.  BP, PLC was number two, Transocean at number eight, both still reeling from the Gulf Oil disaster from the year before.

BP/Transocean reinforce our argument that major crises never really end, at least not quickly.

The data for 2011 shows only a minor fluctuation in the average of two-thirds of all crisis that are what we call "smoldering crises" -- the kind of things that start out small, and usually internal, but not always, and should be recognized by someone as a potentially serious problem and fixed before it becomes a public embarrassment, or worse, a public disaster.

And, the more things change, the more some things stay the same.  Managers and executives continue to ignore those smoldering issues, or hope that if they ignore them they will go away.  And, they don't.

People with decision making responsibilities are still responsible for half of all crises while, on average over the past ten years, 32-percent of all crises were caused by "employees" and 18-percent were caused by outside forces, such as activists, disgruntled customers/patients/employees and natural disasters.

White Collar Crime accounted for 19-percent of all business crises, mismanagement for 11-percent, workplace violence for 10-percent and defects/recalls for 5-percent.

And the 2011/2012 ICM Crisis Report includes an example of how "not" having a crisis "crisis" cost Taco Bell at least $3-million to defend itself!

Read the complete report:

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