Crisis Management when there is a Project Cost Overrun
Written by Durant Mangum
Crisis Management is defined by “broadly captures organizational leaders’ actions and communication that attempt to reduce the likelihood of a crisis, work to minimize harm from a crisis, and endeavor to reestablish order following a crisis,” while an Organizational crisis is “an event perceived by managers and stakeholders as highly salient, unexpected, and potentially disruptive.” According to Coombs, despite there being sustained interest across multiple disciplines, we have just began to explore the topic and understanding of crises and crisis management. That being said, This article will cover the basis of Crisis Management in relation to when projects when there is a project cost overrun. More specifically, the article will cover the reasons these crises occur and the various options and tools project managers have to deal with the crisis at hand. These tools include, but are not limited to activities acceleration, schedule crashing, Project Budget and scheduling optimization, and other Precrisis Prevention tools. Crisis management can also be viewed from an internal perspective and external perspective. This external Perspective can be classified by negative and positive stakeholder relationships. Satisfying these stakeholders can also be viewed as a key component to Crisis Management in relation to project cost overrun. Thus this article will also explore the various relationships and how to manage them.
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