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Getting caught lost and unprepared, if not naked and afraid

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You probably remember some headline-grabbing stories of companies suddenly faced with crisis. Companies that have come under fire in recent times include the following (and we don’t mean to purposely shame these ones, as the list could be lengthened almost exponentially):

 Volkswagen and diesel engine emissions: The German-based automaker was caught altering emission-control devices to reduce pollution on millions of its diesel-powered products so they would “defeat” legally required standards and increase power and MPG fuel consumption — all the while touting its green credentials and deep respect for the environment. Top executives ultimately were terminated, and billions in fines were imposed.

 Target Roofing & Sheet Metal and COVID-19 relief funds: It’s not just the big dogs who do this stuff, though they do get the most media attention. The owner of this small business in Fort Myers, Florida, was charged with fraudulently diverting $2 million in government funds intended to provide relief for his company’s employees hurt by the COVID-19 pandemic and buying himself a flashy new $700,000 40-foot boat, among other purchases.

The Hall of Shame Fame list could include episodes involving companies of every size in all industries in all countries, from day-care centers to giant investment firms. Faced with unexpected events, unprepared companies often react as though they’re in total disarray, the classic deer caught in the headlights. When a company lacks stated values that everybody subscribes to, the interpretation of important issues is left up to anyone and everyone. The company is likely to find itself speaking with many voices and going in several directions, resulting in confused employees, unhappy customers, an angry public, disappointed investors, and sharp-eyed law enforcement officials.

As you begin to think about your own business values, remember the following:

 A values statement is a summary of the beliefs and principles that guide your company’s activities.

 Clearly stated values can help your company react quickly and decisively when the unexpected strikes.

 Everybody in your company must understand and embrace your company values.

Business Plans For Dummies

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