The Relationship Between Contingency and Crisis Planning

Establish contingency and crisis plans.

Practitioners: tactical, integrative, and strategic

The first idea that pops into my head is when I think about establishing contingency and crisis plans is ‘concurrent solution set’. As an engineering manager in the Machine Design Center, we practiced concurrent product and process development. We evaluated multiple solutions through the process until the best one revealed itself. We had all sorts of criteria to evaluate these solutions as they passed through the process, but the best solution always showed itself.

The next thought to surface is the paint system simulation my team and I created to evaluate the multiple methods for operating a system that seemed antiquated and outdated. We discovered that, over the decades of its use, we have evolved into a process that was counter to the original design intent. As we explored multiple contingencies, we discovered the best use of the system, realigned our process and reduced the annual operating budget by 60%. We also averted a $20 million expenditure to replace the system with the solution we implemented.

When we take the time to understand the systems and processes within them, we can predict the outcomes we will experience. Is there a relationship to be recognized between contingency and crisis planning?

Contingency and Crisis

Crisis planning on the other hand, comes at this from the other direction. We have an outcome that is impacting the system and process in a clear and certain manner. How do we continue to operate given these specific conditions. The tools, techniques, and practices are the same, but the situation is very different.

In a recent conversation with an executive client, we explored the connection between operational excellence and raising the performance bar. My challenge to the organizational leader was to create an outcome that was significantly different than the performance he was achieving today. The concept did not change. The measurement increased in terms of the target, but also in terms of the variation. When the idea landed, he responded, “Oh, tighten it up”! Yes, tighten it up. Whatever the language you want to use, OpEx is about raising the bar or tightening it up.

Performance, just like culture, is a reflection of the things we tolerate and correct. If you are tired of the performance you are realizing, then stop tolerating it.