KEY FEATURES: This innovative text takes a transformative approach, emphasizing how organizations can seek to be excellent, learn and build organizational capacity, maintain trust and goodwill of their key stakeholders, and rebuild after crises. A chapter on transformative leaders underscores the crucial role of leadership, mindset, and values. Real-world cases analyze the cause and impact of crises at organizations including Apple, Uber, SpaceX, and Wells Fargo, keeping readers on the front line of the field. Case Analysis boxes feature questions designed for students to directly apply knowledge learned from the text to real-world situations. Global Insight boxes examine cultural differences around the world and how they impact managerial decisions during trying times. Ethical Insight boxes highlight the importance of moral ownership and courage during crises. Self Organizational Assessments and Experiential Exercises encourage readers to apply knowledge to one’s own context and experience. Interwoven discussions of how modern technologies are changing the business landscape demonstrate how organizations are working to remain competitive and maintain the trust of their stakeholders.
Chapter 1: The Nature of Organizational Crises
When faced with a radical crisis, when the old way of being in the world, of interacting with each other and with the realm of nature doesn’t work anymore, when survival is threatened by seemingly insurmountable problems, an individual life-form—or a species—will either die or become extinct or rise above the limitations of its condition through an evolutionary leap.
Today, we live in a time of diverse and frequent crises. Just turning on the TV or responding to an alert on one’s phone brings to our attention the range of crises that are a threat to organizations and societies. A crisis is an event or a situation that can threaten the survival and goals ...