Week 3 Seminar Task: Crisis Incubation

Prior to week 3 seminar, you should read the HBR article by Bazerman & Watkins. Link below:
Roux-Dufort (2007) identified four stages in the development of crisis that corresponds to four
varying degrees of imperfection:
— Anomalies: They take the forms of negligence, errors or whatever unexpected events. They
can remain invisible (i.e. latency) as far as they do not visibly threaten the organization.
— Vulnerabilities: They are produced by an accumulation and a combination of unmanaged or
mismanaged organisational anomalies.
— Disruptions: They may surface when vulnerabilities have reached a level of saturation upon
which individual have no more control. Disruption relates to the notion of ultimate failure
and of triggering event.
— Crisis: They are the ultimate degree of imperfection and the last stage of a series of
destabilisation within a system. This is the stage where events move incredibly quickly
necessitating immediate intervention.

Task 1
Create a scenario of any event of your choice (e.g. Data breach, Supply chain disruption, Industrial
accident, Financial scandal, Defective product) and show where each of the four stages lie starting
from anomalies to crisis.

Task 2
List 5 warning signs that indicate an organisation may be heading for a crisis? Why are these signs
often not obvious to organisational leaders and policy makers?

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