"It is natural for government and business leaders to want to make the best of a bad situation. For example, articles on Watergate postulated that we are now better off because the crisis demonstrated the strength of a democracy. Some contend that the Exxon Valdez oil spill had a good side in that there were many "lessons learned". THIS IS UNACCEPTABLE! I do not subscribe to the "I have to fail to learn and improve" theory. A set-back leading to "experience and growth" is one thing; total failure is another. Few corporations could sustain as much bad press as Exxon, not to mention the opportunity cost of billions of dollars that could have been applied more profitably elsewhere. An organization's most precious resources are its time, energy and capital. They should be directed toward increasing profit, providing better service and improving the organization's reputation. They should not be wasted on damage control. Yet we continue to hear stories of crisis situations that drain organizations of that valuable energy and focus."

“Poorly managed corporations, disorganized businesses, and badly led service agencies experience crisis daily and most will eventually fail. In contrast, the danger is to well organized, smooth running institutions that may not recognize a building crisis. Too often, sound organizations rely on their normal modus operandi to pull them through a crisis. It might. But at what cost? And what if it does not pull them through?”

“In 1972, Americans watched in disbelief as the Nixon Presidency was virtually brought to collapse, not because of the Watergate "break-in," but by the cover-up and its entanglements. What if the Watergate Scandal had been handled differently? The illegal activities of a few bungling second-story men pale in comparison to the colossal management blunders by the White House inner circle.”

“For almost all of us, recognizing a crisis can be difficult unless we have significant warning, or are prepared before-hand to deal with change. It is also important in an emergency, as it was in Dan's situation, to identify and focus on the actual crisis, not the cause. It is time to "put out the fire" not waste precious time figuring out how the fire started.”

“When an individual's or group's basic survival is threatened, stress becomes tremendous, and productivity drops. Under these conditions a manager's ability to reason and maintain a proper focus on developing plans or solutions to a crisis is extremely difficult.”

“Leaders and managers do not have to risk lives, profit, or mission failure because they failed to plan for a crisis. Do not allow yourself to be put on the defense by changing circumstances. No one enjoys wasting time, but don't be reluctant to call a meeting just to discuss something that might happen. Remember the oil filter theory. Rather than disobey your instincts and proceed with the status quo or embark on a risky course, invest some planning time in your business. Control your risks. Identify important decision points. Forecast potential crisis. Apply the six hour model. A little time spent discussing your business is never wasted.”

“Not too many years ago a television ad depicted a service station attended selling oil filters. His pitch was, "you can pay me now or you can pay me later." The difference was an eight dollar oil filter or a new engine.”