Crisis Management | CM

[CM] [ISO] Strategic Crisis Decision-Making [R 7]

Written by Moh Heng Goh | Mar 18, 2024 1:41:09 PM

ISO 22361:2022 Requirement 7

Under requirement "7 Strategic crisis decision-making", ISO 22361:2022 elaborates on the five topics: "7.1 General", "7.2 Why decision-making can be challenging", "7.3 Dillemas, decision delay, decision avoidance", "7.4 Decision-making issues",  and "7. 5 Effective crisis decision-making."

Strategic Crisis Decision-Making

Strategic crisis decision-making involves selecting a course of action from multiple options based on values, priorities, and available information. However, uncertainty, misinformation, and psychological pressures complicate the process.

Decision-makers must be aware of biases like hindsight bias and groupthink, which can undermine the quality of decisions.

Effective strategic crisis decision-making requires organisations to implement policies, structures, and training programs to support crisis management capabilities.

Additionally, fostering a culture of open communication and challenging assumptions can enhance decision-making outcomes.

Crisis management teams should receive training in decision-making techniques to mitigate the impact of uncertainty on cognitive abilities.

Encouraging proactive behaviour and providing alternative perspectives can also improve decision-making processes.

By recognising the challenges and implementing proactive strategies, organisations can empower their crisis management teams to make informed decisions that minimise the impact of crises on the organisation's reputation and value.

Navigating Crisis Decision-Making: Strategies and Challenges

ISO 22361 Requirement 7.1

As crisis management professionals, decision-making in turbulent times is a crucial skill and an ongoing challenge.

Decision-making in crises differs significantly from day-to-day operations, often leading to unexpected hurdles and complexities that can undermine even the most seasoned leaders.

Understanding the dynamics of crisis decision-making is essential for effective crisis response and organisational resilience.

Understanding Decision-Making in Crisis

ISO 22361 Requirement 7.2

Decision-making in crises involves selecting a course of action from various options and considering factors such as values, priorities, and available information.

However, the nature of crises introduces unique challenges that can derail rational decision processes.

The pressure of uncertainty and psychological factors like stress and anxiety can lead to errors, hasty reactions, or decision avoidance.

Challenges in Crisis Decision-Making

ISO 22361 Requirement 7.3

One of the fundamental challenges is the "hindsight bias," which occurs when decisions appear flawed in hindsight.

This bias underscores the importance of documenting decision-making processes with relevant context and information for justifications.

Additionally, crises often involve high levels of uncertainty, misinformation, and competing interests, further complicating decision-making.

Dilemmas and Decision-Making Issues

ISO 22361 Requirement 7.4

Crisis decision-making frequently presents dilemmas with no clear right or wrong solutions, leading to stress and anxiety for decision-makers.

Factors like accountability, external influences, and biases like groupthink and confirmation bias can hinder effective decision-making.

Understanding these biases and pitfalls is crucial for crisis leaders to navigate decision-making processes effectively.

Strategies for Effective Crisis Decision-Making

ISO 22361 Requirement 7.5

Organisations should implement policies, structures, and training programs to support crisis management capabilities and enhance crisis decision-making.

Training in decision-making techniques can help mitigate the impact of uncertainty on cognitive abilities.

Encouraging a culture of open communication, challenging assumptions, and providing alternative perspectives can also improve decision-making outcomes.

Summing Up ...

In conclusion, effective crisis decision-making requires a comprehensive understanding of the challenges involved and proactive strategies to address them.

By fostering a culture of preparedness, resilience, and continuous learning, organisations can empower crisis management teams to navigate uncertainty and make informed decisions that minimise the impact of crises on the organisation's reputation and value.

 

Goh, M. H. (2016). A Manager’s Guide to Implement Your Crisis Management Plan. Business Continuity Management Specialist Series (1st ed., p. 192). Singapore: GMH Pte Ltd.

 

 

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