4 Trust Building Rules & 4 Crisis Management Rules

4 Rules for Organizations’ Firm Foundation

When an organization loses trust, the consequences can be detrimental in every aspect. Assoc. Prof. Dr. Ake thus emphasizes that it is necessary to build a solid foundation from within. This can be achieved through 4 principles: Fact, Diversify, Upskill/Reskill, and Resilience.

Fact holds key to organizations’ efforts to manage situations effectively. Organizations, after all, need accurate, precise, and comprehensive data, especially during times of panic or uncertainty. Incomplete or incorrect information can lead to poor decisions, worsening the situation. Organizations thus should invest in data collection and analytics, paying attention to not just national and global news but also social trends. With modern technology making fact-checking more challenging, using Social Listening Tools can help executives better understand situations. If a brand faces negative publicity, these tools can assess whether it is a minor issue that can be overlooked or a major crisis requiring immediate action. Accurate facts are the important basis of sound decision-making.

Diversify is a key principle for risk reduction. Enterprises that rely on a single revenue stream are highly vulnerable to industry disruptions. For example, auto mechanics specializing only in internal combustion engines may lose their importance as the market shifts toward electric vehicles (EVs). Businesses, therefore, must plan ahead and develop contingency strategies. Those that diversify and expand into new businesses will enjoy greater security and get better equipped to deal with unexpected changes.

Upskill/Reskill is at the heart of organizations’ capability building. Their members at all levels, from employees to executives, must continuously learn and develop new skills. As the business landscape evolves rapidly, organizations that fail to adapt will be left behind. For instance, executives unfamiliar with fundraising may need to study and acquire an understanding of global financial markets, while employees unaccustomed to AI must learn to leverage the new technology efficiently. Professional standards in various industries are constantly changing too. Accountants, for example, must stay updated on new practices and new forms of assets in the wake of technological disruptions. Only organizations that adapt well and constantly upskill/reskill will maintain a competitive edge.

Resilience, the ability to recover and adapt quickly, is another key factor. No organization is immune to problems and setbacks, so the ability to fail fast and bounce back is critical. In the future, speed and flexibility—also known as agility—will play a crucial role in organizational management. Traditional corporate cultures that punish mistakes can create environments that stifle learning and innovation. Encouraging employees to experiment with new ideas and recover quickly from any failure, on the other hand, will strengthen the organization.