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Personal Effectiveness · 3 min read

How to Handle a Crisis Situation

Master crisis management with a clear six-step cycle: get facts, rank them, set moral goals, plan, act and refine to stay calm, limit damage and recover faster.

Chris Farmer, Founder of Corporate Coach Group

“Strong crisis management means you stay calm, gather checked facts, sort them, set a clear moral goal, write a short plan, act fast, watch what happens and repeat until things improve.”

Chris Farmer — Founder, Corporate Coach Group

How to Handle a Crisis Situation

How to Handle a Crisis Situation

Whenever you face a crisis situation, it is easy to become overwhelmed and disheartened.

Instead of that, take the following steps:

  1. Get the facts (apart from the speculations and uninformed opinions).
  2. Sort the facts into four categories: Fundamentals, major, minor and details.
  3. Set your goals.
  4. Formulate your best plans designed to deliver the goal.
  5. Implement the plans and observe their results.
  6. Go back to step one and repeat the process.

1. Get the facts (apart from the speculations and uninformed opinions).

Whatever response you make to the crisis situation, it should be based upon a logical evaluation of all the available facts.

In science, there is no room for the arbitrary, or guesswork. Therefore, make the distinction between:

  • Facts and speculations,
  • Facts and opinions.
  • Facts and predictions.

Base your actions on facts, as measured by people who are in a position to know, by direct personal experience.

2. Sort the facts into four categories, Fundamentals, majors, minors and details.

When you have the facts, sort them into four sets.

  • Fundamentals are the most essential facts.
  • Majors are subsets of the fundamentals.
  • Minors are subsets of the majors.
  • Details are subsets of the minors.

Think of facts as being interrelated, in a hierarchical manner, like a tree.

The trunk is the fundamental. The related main branches are the majors.

The associated smaller branches are the minors and the twigs are the details.

3. Set your goals.

Now you have a clear mental map of your current situation, it is time to set your goals.

In general, your goal is "To improve upon the current situation and move one step closer to a state of perfection".

We all have different ideas of what a State of Perfection would look like, but we should all be striving to make progress to our personal conception of perfection.

Ensure your goals are clearly and specifically defined, and moral.

Immoral goals are not allowed!

4. Formulate your best plans designed to improve upon your current situation.

Now you have your goals, you need a practical plan that is capable of delivering the goal.

You need to know who will do what, how and when.

The plan should be in writing and should be as detailed as possible.

5. Implement the plans and observe their results.

A plan is a theory. And all theories need to be tested against reality. So, implement the plan with gusto, and with as much skill as you can.

As you act, observe the reaction.

Since nobody is perfect, neither your plan nor your actions will be perfect, and you probably wont solve the crisis in one attempt, but you will have made some progress.

Then, you should.....

6. Go back to step one and repeat the process.

Life is a reiterative routine of gathering and understanding facts, setting goals, making and implementing plans, and observing their results.

You should be always trying to move towards your conception of perfection.

You may never attain perfection, but it is fun trying.

six-step crisis management cycle

In business, the six-step crisis management cycle is a process that helps teams face trouble in a calm, logical way. It gathers hard facts, orders them by value, fixes a firm moral goal, writes and carries out a detailed plan, then checks results and repeats the loop. If any of these steps is missed, the cycle no longer works.

CG4D Definition

Context: Business
Genus: Process

  • Starts by collecting facts and discarding guesswork
  • Ranks facts as fundamental, major, minor or detail
  • Sets clear, moral goals to improve the situation
  • Builds, acts on, reviews and repeats a written plan until the goal is met

Article Summary

Strong crisis management means you stay calm, gather checked facts, sort them, set a clear moral goal, write a short plan, act fast, watch what happens and repeat until things improve.

Chris Farmer, Founder of Corporate Coach Group

Written by Chris Farmer

Founder & Lead Trainer, Corporate Coach Group

Chris Farmer is the founder of the Corporate Coach Group and has over 25 years experience designing and delivering leadership and management training across both the public and private sectors. His programmes are structured, practical and built around real-world performance. Read more about Chris and the story of how the Corporate Coach Group was founded.

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Key Statistics

The 2024 BCI Horizon Scan Report found that 82% of firms had to use a crisis plan in the last 12 months.

Deloitte’s 2024 Global Resilience Report says firms that test their crisis plans at least once a year are 60% more likely to fully recover inside 30 days.

Frequently Asked Questions

Common questions about this topic

Start crisis management by gathering checked facts only. Ignore rumours and opinions until you have reliable data to guide every next step.
Ask for evidence, seek direct witnesses and measure events yourself. Anything that lacks proof is opinion, not fact, and should not drive fact-based decisions.
Sorting facts shows what truly drives the problem when you handle a crisis. Fundamentals guide big choices; details fine-tune later. It keeps decision making under pressure focused.
Write a short picture of the better state you want, check it harms no one, and link it to shared values. Clear goal setting in crisis restores calm and purpose.
A strong action plan for crisis lists who does what, how and when, ties each task to the goal, and fits on one page so everyone can use it fast.
Track results as soon as actions begin. Review daily, or hourly in fast moves, then adjust. This implement-and-review plan rhythm keeps you ahead of further shocks.
The crisis scene changes, so the continuous improvement cycle must loop. Each pass refreshes facts, refines plans and edges you closer to recovery.

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