Why It’s So Hard to Activate a Crisis Management Process

Imagine a small software company facing a massive cyberattack. Initial signs were a few reports of unusual system behavior, which seemed insignificant. Leaders hesitated, unsure whether to sound the alarm or wait for more information—perhaps “better” or more definitive information. Hours later, sensitive customer data was compromised, and the damage was irreversible.

This scenario underscores a recurring problem: the reluctance to activate a crisis management process. Despite having plans, organizations often struggle to act decisively in uncertainty.

Why is this hesitation so common?

The reasons span psychological, organizational, and external factors. Understanding these barriers can help organizations improve their crisis response and avoid catastrophic outcomes.

The Psychology of Decision-Making in a Crisis

Fear of Overreacting

One of the primary reasons leaders hesitate to activate a crisis management process is the fear of overreacting. Calling for a full-scale response to a minor situation might unnecessarily alarm stakeholders, damage the organization’s reputation, or expose vulnerabilities. Decision-makers often wrestle with the possibility of being seen as impulsive or alarmist.

For instance, in the early days of the COVID-19 pandemic, some organizations delayed implementing emergency measures, unsure if they were facing a short-term disruption or a global crisis. This delay led to preventable challenges, from supply chain breakdowns to employee health risks.

Cognitive Biases at Play

Psychological factors also cloud judgment during crises. One common bias is normalcy bias, which causes people to downplay the likelihood or impact of extraordinary events. Decision-makers often cling to the belief that things will “return to normal” soon, leading to delays in decisive action.

Another challenge is groupthink. In high-pressure situations, teams may prioritize consensus over critical evaluation. This dynamic can stifle dissenting voices and prevent proactive steps. Similarly, anchoring bias—the tendency to rely too heavily on initial information—can lead teams to misjudge a rapidly evolving crisis.

Emotional Stakes

The fear of personal or professional repercussions often paralyzes decision-makers. The higher the stakes, the greater the hesitation to act. Executives may worry about being blamed for false alarms or criticized for the consequences of activating crisis protocols prematurely. This emotional burden is amplified when accountability is unclear or past decisions are scrutinized harshly.

Organizational Barriers

Ambiguity in Roles and Responsibilities

One of the most significant barriers to timely crisis response is the lack of clarity around roles and responsibilities. It’s unclear who can declare a crisis in many organizations or what thresholds warrant such action. When accountability is vague, decision-makers may defer action, hoping someone else will take the lead.

Bureaucratic Delays

Hierarchical structures often slow down crisis response. Layers of approval processes can create bottlenecks, delaying critical decisions. For example, valuable time can be lost if an organization requires input from multiple departments before initiating a response.

Inadequate Training and Preparedness

Organizations that don’t invest in regular crisis drills or training will likely falter under pressure. When teams are unfamiliar with the crisis management process, hesitation is almost inevitable. Employees may be unsure how to escalate issues, leading to confusion and delays when most need quick action.

External Factors Contributing to Hesitation

Uncertain or Incomplete Information

Crises are rarely accompanied by perfect clarity. Decision-makers often struggle with incomplete or conflicting information, making it difficult to assess the situation accurately. For example, during a natural disaster, initial reports might underestimate the scope of the damage, leading to hesitation in mobilizing resources.

This uncertainty creates a risk-reward dilemma: act too soon, and you might waste resources; act too late, and the consequences could be devastating. Balancing these risks is a daunting task, even for seasoned leaders.

Stakeholder Perception

The fear of being judged harshly by stakeholders, including employees, customers, investors, the media, or the public, further complicates crisis decision-making. Organizations know their actions—or inactions—during a crisis will be scrutinized. This fear can lead to paralysis as leaders weigh the risks of being seen as overreacting versus being criticized for underreacting.

A notable example is BP’s response to the Deepwater Horizon oil spill in 2010. The company’s initial hesitation to fully acknowledge the severity of the crisis exacerbated public outrage and long-term reputational damage.

Consequences of Delayed Action

Escalation of Crisis Impact

Delaying a response often allows crises to spiral out of control. In cybersecurity breaches, for instance, even a few hours of inaction can result in millions of dollars in losses and irreparable damage to customer trust. Similarly, underestimated natural disasters can lead to preventable injuries or loss of life.

Case studies abound, showing how early intervention could have mitigated the severity of a crisis. For example, during the 2011 Fukushima nuclear disaster, delayed decisions about evacuations and containment measures exacerbated the human and environmental toll.

Erosion of Stakeholder Trust

Stakeholders expect organizations to act decisively in times of crisis. Hesitation can lead to frustration, eroding trust and confidence. Employees may feel unprotected, customers may lose faith in the organization’s reliability, and investors may question the leadership’s competence.

How to Overcome the Hesitation

Change Your Mindset (and Your Culture)

Overreacting is an emotional response characterized by an all-or-nothing mindset. It can escalate quickly, limiting options and eroding confidence over time. This reaction often amplifies the natural “swirl” of conversation and concern surrounding a situation.

Instead of reacting in this way, consider adopting a philosophy of “overresponding.” Over-responding is based on the principle that the organization consistently provides cross-functional support, typically through a crisis management team, even if information about the situation is limited or unclear. This approach builds stability by enhancing situational awareness, ensuring access to diverse resources and expertise, and positioning the organization to respond more effectively.

By fostering trust and confidence in the process, over-responding highlights that not every situation needs to become a crisis; instead, the appropriate level of support is always readily available.

Establish Clear Activation Criteria (As Appropriate)

One of the most effective ways to combat hesitation is to define clear thresholds for activating a crisis response. For example, a retail company might specify that any data breach involving customer information automatically triggers the crisis management process. Having predefined criteria removes ambiguity and empowers decision-makers to act quickly.

Build a Culture of Preparedness

Organizations that prioritize preparedness are better equipped to respond decisively. This includes conducting regular crisis exercises, training employees, and fostering a culture of valuing proactive decision-making. Encouraging teams to learn from past crises—both their own and others—can also help normalize decisive action.

Empower Decision-Makers

Flattening hierarchical structures during a crisis can significantly speed up decision-making. Clearly defining who has the authority to activate the organization’s response, along with training and support, minimizes bureaucratic delays and empowers leaders to act without fear of retribution.

Conclusion

Activating a crisis management process is inherently challenging, but understanding the barriers to timely decision-making can help organizations overcome them. By addressing psychological, organizational, and external factors, leaders can ensure that hesitation doesn’t lead to preventable consequences.

In moments of uncertainty, the courage to act decisively can make all the difference. As the adage goes, “It’s better to be prepared and not need it than to need it and not be prepared.” Investing in preparedness and fostering a culture of decisive action is essential to effective crisis management.

The next time your organization faces a potential crisis, ask yourself: will hesitation cost us more than action?

The answer may well determine the outcome.

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