A crisis is a defining moment in any organization’s life. Below, Kai Hammerich and Richard D. Lewis consider eight of the most typical sources of an existential corporate crisis to better understand root causes and highlight the influence of national culture.
Acrisis is a defining moment in any organization’s life. Will it prevail or falter? Overcoming a crisis often embeds deep values in the psyche of the corporation. A company facing financial disaster where, in its view, it was mistreated by the banks, may decide never again to be reliant on external funding – if it survives the experience. However, some organizations like P&G, Siemens, Shell, GE and Exxon have prevailed over many decades, and continue to add value to society. By enhancing insight into their own cultural strengths and history, we believe more companies could prosper for longer. Here are eight of the most typical sources of an existential corporate crisis to better understand the root cause and highlight the influence of the national culture.