The trouble with most companies is that they react to an issue or crisis after it has happened—very few companies actually manage issues before they become a crisis. This is particularly true in China.

Other more urgent things always seem to cross the CEOs desk. Then when the crisis breaks the CEO exclaims— “Where is the action plan?” “Where is the crisis team?”

Two years ago company “X” prolonged a crisis that was largely avoidable because the issue was poorly monitored and inadequately managed when it became a crisis.

Everybody in the company had “heard” of a specific change of policy that was coming up within the organization. You would think the management team would be preparing to talk to all its audiences on this specific change.

It seemed it was prepared to speak to some and not others. Well the “others” turned out to be probably the two most significant stakeholders to a company—below c-suite employees and the oft-feared media.

After the announcement was made, employees read about it in newspapers and were upset as it affected their very livelihoods. Disgruntled employees then spoke to the media and so the tsunami began—and what’s worse the company did not talk to the media after this issue broke thereby prolonging the “crisis.”

The effect was significant “bad blood” with the media and the departure of several key employees. Since then this company has seen an erosion of its market share.

But all this could have been very easily prevented. It was simply mishandled. Too often we see communications overlooked—you can’t do that. Especially in China.

So how do you prevent issues affecting your company?

Well the simple truth is that you can’t. But you can put in place a system whereby you constantly monitor issues. You can in effect create a hierarchy of tripwires in an organization.

But if it doesn’t have the support of executives at the highest level it’s going to be a toothless tiger.

The first step is identifying potential issues and prioritizing them.

The best way to do this initially is to review past issues, look at competitors’ issues and “brainstorm” potential issues that you might face based on the “Seven Deadly Sins” above.

This then gives the organization a “360 degree” view of issues that could compromise the effective operation of the company.

The lesson here is that there is no textbook solution for managing a crisis or an issue. No rules and formulas. The rule is there is no rule. That’s why we need to form “issues aware” organizations.

Dr Robert Allinson, of the Graduate Faculty and the Department of Philosophy at the Chinese University of Hong Kong, and author of the book Global Disasters: Inquiries Into Management Ethics, cites the root cause of failures as a prevailing belief that these corporate disasters could not be prevented.

Most people within organizations, Dr Allinson found, believe crises are inevitable, and if your company is unlucky enough to have a major crisis, then it must be dealt with.

Thus the practice of "crisis management" came into being. Crisis management is an after-the-fact mentality.

Dr Allinson argues for "conceptual preparedness"—a frame of mind rather than a particular plan or structure that ensures everyone in an organization is constantly alert to problems or situations which may lead to accidents, issues or any other disruption to business. And, most importantly, everyone feels able to bring the possibility of a problem to the attention of senior management and be taken seriously.

But let’s get on to detection now. Simply creating good tripwires in an organization can prevent many crises. At its very basic it requires the daily monitoring of media with analysis of issues where required.

It also requires monitoring of relevant industry and regulatory bodies that affect your particular industry. You need to keep your finger on the pulse. For example, China has started to conduct more and more public hearings on proposed regulations. But a recent study by Weber Shandwick showed that many MNCs are either not participating or are not aware of these.

While no organization can escape a crisis, you can manage your issues by creating an “issues aware” organization to survive and thrive in a rapidly changing environment.

On a positive note, proactive issues tracking also allows you to take offensive steps ahead of competitors and first leader advantages in where prudent.

As the Greek philosopher Hercalitus once said “the only thing certain is change.”

He might have been talking about China in 2007.

To contact Darren Burns, please e-mail to dburns@webershandwick.com or call (86-21) 2411 0008