Survey reveals five ways that companies manage to create a competitive advantage from crises
- Published: Wednesday, 26 June 2019 07:24
PwC has published the results of it’s first-ever Global Crisis Survey with findings from across 43 countries with 2,084 respondents, surveyed in 15 different languages.
Although the definition of a crisis will vary by industry, it can be agreed that crises don’t discriminate. Nearly all business leaders (95 percent) expect to be hit by one in future, with 69 percent having already experienced a crisis within the last five years. Financial liquidity and technology failure crisis are the most common with both at a high of 23 percent of having experienced a crisis of this nature. Companies with 5,000 or more employees are most likely to experience crises related specifically to cyber crime (26 percent), natural disaster (22 percent), or leadership (17 percent) or ethical (16 percent) misconduct, including fraud, corruption and corporate malfeasance.
The survey lists 19 possible crisis triggers which are sorted into seven broad categories, operational, technological, humanitarian, financial, legal, human capital and reputational. Half of business leaders (53 percent) reported having experienced operational crisis. Tech-related crisis, triggered by technological failures and incidents of cyber crime were cited by one third, with humanitarian (29 percent) and legal (28 percent) categories of crisis close behind.
Based on the findings from the survey PwC has devised five ways in which the data reveals how companies manage to create a competitive advantage in the wake of crisis:
- Allocate budget to crisis management – before it hits;
- Have a plan - and test it;
- Adopt a fact-based approach – and don’t neglect key stakeholders;
- Perform a root-cause analysis – and follow up;
- Act as a team, and hold to your values.