Three Insights for Restoring Your Enterprise Following the Unforeseen Catastrophe
Three Insights for Restoring Your Enterprise Following the Unforeseen Catastrophe
Nobody anticipates things going awry. As business dynamics evolve and economic cycles unfurl, things don't always turn out as planned – and at times, they can spiral out of control.
In such situations, companies and their stakeholders may feel the brunt of the fallout. Such instances can drive some to call it quits and begin anew. Others may resort to blame-shifting, deceit, and even underhanded tactics to evade repercussions.
During a recent chat with Scribe Media's CEO, Eric Jorgenson, we discovered that rebounding from a crisis necessitates bravery, ingenuity, and resilience. In the guise of new ownership, Jorgenson and his crew are leading the revival of the once-prosperous publishing company, negotiating the aftermath of ethical missteps and the sudden departure of the prior CEO.
Here are some key takeaways from a genuine business setback and the arduous path to regain control.
1. Implement Your Core Values
Some 25-45% of businesses fail to survive post-major financial crisis, forced to close shop due to financial strain. Establishing intentional actions is crucial in charting a course towards recovery.
When things take a turn for the worse, reassess your business ethics and values. What do you stand for as a company? Are you upholding your principles, or do you require enhancement?
Jorgenson joined Scribe Media in August 2023, following the company's involvement in an ethical scandal. It had declared bankruptcy and let go of many employees. The organization was struggling.
In addition to rehiring as many people as possible, Jorgenson discovered that Scribe Media had strayed from its core principles. “One unique challenge in this situation was that former leadership had professed to uphold key values like transparency and dependability – then deviated from them,” he said. “My approach was to not just talk the talk but to walk the walk. We had to demonstrate transparency and dependability to rebuild that trust.”
To epitomize the value of dependability, Jorgenson and his team focused on the fundamentals of exceptional service. For instance, the previous management had shifted to multiple touchpoints for authors, causing confusion and inefficiencies. Instead, the company reverted to a singular, dedicated point of contact for authors. This adjustment, along with others, was implemented to streamline and improve the author's experience, ultimately resulting in a superb book.
In the face of adversity, communicate your company's core values internally. Once your team is aligned, identify practical ways to integrate them into daily operations. Demonstrating a willingness to put words into action signals to employees and stakeholders that you are committed to standing your ground and fighting for what is right.
2. Offer Consistent “Right” as Redress for Past “Wrong”
Trust can crumble in an instant, but it takes sustained, consistent investment in the “right” to regain it. To counterbalance a solitary past mistake, prioritize the “right” actions over the long term.
Jorgenson's primary objective was to restore trust, beginning with the Scribe Team. He knew that if team members had a clear vision, their confidence would radiate to their authors.
Implementing this approach involved countless one-on-one conversations. “It was about getting to know everyone, listening to their ideas, and being truthful about both the challenges and opportunities ahead. From there, we extended the same approach to our authors and partners, fostering open dialogue and rebuilding trust step by step,” he said.
In the 2024 Global Human Capital Trends survey, 86% of leaders agreed that transparency within the organization increases workforce trust. Transparency and open discourse with your team and customers are instrumental in restoring trust.
To mend trust, focus on consistent, truthful communication, and make continuous efforts to remedy past errors. Build confidence by actively listening and reinforcing your vision incrementally.
3. Establish a Clear Route to Victory
In the wake of a major setback, it's essential to clearly articulate priorities and define a route to victory. For the Scribe Media team, this meant ensuring their work was flawless and their authors were well taken care of.
Jorgenson's guiding principle has been "impatient with action; patient with results." Restoring trust requires tangible evidence, which can only be achieved through sustained effort over time. Once your priorities are in place, leverage technology to your advantage to pinpoint efficiencies, strengths, and opportunities for long-term growth strategy construction. Data can shed light on aspects that may not have been immediately apparent on the surface.
For Scribe Media, this meant reverting to an older, less complex project management system.
Charles Gaudet, CEO of Predictable Profits, a company that guides entrepreneurs in business expansion, emphasizes the value of data in crafting a sustainable recovery path. “Leveraging a company faster and more predictably isn't about performing more tasks—it's about doing the right things. Data unveils constraints and opportunities, enabling a CEO to make informed decisions that foster an efficient and swift recovery,” he said.
Start by identifying your top three priorities—these should align with the most crucial components of your recovery or growth. Once your priorities are established, put a system in place to monitor progress consistently—use tools such as project management software, CRM systems, or performance tracking dashboards. Swiftly deliver exceptional results on these priorities, and regularly analyze your data to identify patterns or gaps. Utilize that insight to optimize strategies, boost effectiveness, and focus on the components that truly drive momentum. This tactic not only restores trust but also lays down a clear, data-backed trajectory for long-term achievement.
The tale from Scribe Media underlines the pivotal role of a genuine restoration's cornerstone: faith. Staggering setbacks have the power to demolish faith and jeopardize predictions.
In such instances, leaders need to offer genuine resolutions. They must translate their words into actions, proving their readiness to embrace and embody these principles. Moreover, they should exhibit patience and unwavering commitment, understanding that faith is a long-term commitment.
Should you find yourself headed a company amidst adversity, hold these lessons close. Consistency and authentic action can propel a business beyond even its darkest times.
[Paraphrased from the original text]
- Small entrepreneurs faced with business crises can learn from Scribe Media's recovery. Just as Eric Jorgenson did, they should evaluate their company's values and ensure they align with their actions.
- Supporting small business owners, Jorgenson emphasized the importance of consistency in demonstrating commitment to core values. By providing consistent "right" actions over time, entrepreneurs can gradually regain trust after a misstep.