Most businesses rehearse their response to a calamity of some sort. Almost everyone, for example, conducts fire drills. Many test their business continuity contingency plans. The problem is that most organizations do not rehearse for the real threats that are most likely to have a significant impact on the business. How many companies run a drill for a product launch failure? Or an M&A bomb? A high-profile bad hire? These failures can have a significant, material impact on your financial condition or even imperil your ability to operate. If you don’t prepare for them, you are more likely to fumble the response.
[…] Many firms engage in scenario planning, but that tends to be an intellectual exercise. A good rehearsal involves emotional stress as well because an actual failure is a highly charged experience. You need to identify your “crown jewels” — your reputation, a signature product, certain intellectual property, or whatever — and know how you will protect them when it looks like the walls are crumbling around you. That is what rehearsal buys you.
Click to Add the First »