Step 1 to Effective Disaster Planning: Don’t Learn from the Government

No matter where you turn these days, you will get the message that the state of the economy is hanging in a critical balance. Many recognize that the problems engulfing the U.S. financial system have reached the level of crisis- not only does the situation need to be fixed, but it must be done quickly.

So will the Bush Administration’s $700 billion, tax-payer financed bailout work? I think the million dollar (uh… billion dollar?!) question here is not so much where the money is coming from, but rather how the money will be used, how it will be replenished, and who will be held accountable.

In other words, is there a clear, detailed plan based on responsible decision-making that takes into consideration proper asset management and accountability? And does this proposal include a plan of action based on several possible outcomes that may result from the outlay of so many billions of dollars?

One of the biggest criticisms of the Bush administration’s bailout is that it appears to be a knee-jerk shot from the hip- and that could spell a disastrous failure.

Proper crisis or disaster management in any area of life means first and foremost having a plan in place. This plan should include a breakdown of responsibilities that details who will do what as well as how pertinent information will flow from one person or department to the other. There should be an explanation of how to mobilize available assets, including where to go for emergency funding, and the goals should should be clearly defined.

Bottom line: if your thinking of implementing a disaster or crisis management policy in your small business, don’t learn from the government.

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