A crisis can provide a unique opportunity to make changes that would not be possible under ordinary circumstances. A world-leading expert on the causes and consequences of corporate crisis explains how challenges can serve as a catalyst for improving organizational performance.

A crisis is a bad thing, right? Not necessarily, says Dr. JT Kostman, an Industrial/Organizational Psychologist and President of the Crisis Leadership Research Institute. “If it’s managed effectively, a crisis can provide a unique opportunity for leaders, teams and organizations to make changes that would not be possible under ordinary circumstances.”

Kostman should know. He and his team have worked with companies of every size and in nearly every sector to develop strategies, tactics and abilities for avoiding dangers and finding opportunities in crises of every kind. “Psychologists have long recognized the potential value of a crisis.” says Kostman. “The hardest thing to overcome when trying to make a change is inertia. By upsetting the status quo a crisis can serve as a catalyst for changing old habits and ingrained patterns of behavior.”

While improving their client’s crisis-response capabilities is CLRI’s first priority, Kostman considers promoting an expanded awareness of unrecognized possibilities to be an integral part of their mission. “Some of our most gratifying moments,” he says, “come from helping companies realize that they can become better prepared for a crisis and dramatically improve their everyday performance, productivity, profitability and customer service in the process.”

Case in point: Kostman and his team recently simulated a major system failure for one of their clients, only to discover that the solutions they helped develop were more efficient than the processes being used during normal operations. The company ended up saving several million dollars because they approached the drill as an opportunity to stretch their thinking and discover new ways of doing business. Kostman and his team have similarly helped clients improve their service, create more committed cultures, and dramatically increase employee engagement, while at the same time developing more robust and resilient organizations.

CLRI takes a very pragmatic, no-nonsense approach to developing solutions that have a direct impact on the bottom line. According to Kostman: “Every leader we work with has to make a decision about where they want their company to be on the ostrich-to-eagle continuum. By ignoring the threats they will inevitably face, they are just setting themselves up for failure. By preparing for and anticipating disruptions, they can take advantage of new opportunities and make changes that help their organizations grow in ways they couldn’t previously imagine. The decision is up to them.”