How businesses can remain operational even in emergencies
What happens if the boss in a craft business suddenly becomes incapacitated? How does the business continue to operate? The team at Elektro Knedel GmbH, led by Oliver Knedel, has simulated this scenario and developed an emergency management plan.
Imagine the boss suddenly falls into a coma after a sports accident. Or the female boss suffers a heart attack. How is communication handled in such a situation? Is much of it done verbally, or are important processes documented, and is there a backup plan?
Can the business continue to operate for days or even weeks if management is unavailable? Can wages and invoices still be paid, questions from important customers and business partners answered, and new orders secured? These questions don't arise in day-to-day operations. But when something unexpected happens, the strong dependence on the owner becomes a challenge.
The employees developed the emergency plan without their boss, since he wouldn't be available in an emergency. Photo: © Kirsten FreundMany company leaders have now set aside a so-called "emergency kit" – containing access data (passwords for IT, accounts and the PC), powers of attorney, insurance information and important contacts.
However, such emergency folders are often not updated and usually only help in the initial stages. If a manager is unexpectedly absent for an extended period – if no one knows what's going on or what will happen next – then the concept will sooner or later reach its limits.
➡️ Here you can download the free emergency folder from the trade organization and fill it out immediately (pdf file).
Master electrician Oliver Knedel from Meerbusch (North Rhine-Westphalia) founded his company, Elektro Knedel GmbH , in his home garage in 2015 at the age of 28. Three years later, he moved to an industrial park with a warehouse and office. The company has grown steadily.
Eleven years after its founding, the company already has 28 employees, including twelve trainees – a young, dedicated team with flat hierarchies. The focus is on photovoltaics, electrical installations such as smart building technology, and electromobility.
"We are very well positioned, everything is running perfectly, but I've realized that I need to rethink and optimize a few things for emergencies," the 39-year-old explains. "I'm no longer a startup founder or young entrepreneur, but an entrepreneur with responsibility for almost 30 employees."
That's why he booked a workshop for his entire team at the Düsseldorf Chamber of Skilled Crafts (HWK) . The goal: to jointly simulate the scenario and develop an emergency management plan in case Oliver – everyone here is on a first-name basis – is unexpectedly unavailable for an extended period. He's had an emergency binder since the company's founding, but that's not enough for him. He wants a more comprehensive approach to contingency planning.
The workshop with Oliver Knedel's team (center) is led by business consultant André-Alexander Maaß and Hanna Middendorf, consultant for innovation and technology at the Düsseldorf Chamber of Skilled Crafts. Photo: © Kirsten FreundThe workshop is led by business consultant André-Alexander Maaß and Hanna Middendorf, an innovation and technology consultant at the Düsseldorf Chamber of Skilled Crafts. They divide the team into six groups of five people each. Project managers, customer service representatives, trainees, and office staff are a diverse mix. Of the 28 employees, 27 attend – only one is ill and unable to participate.
Oliver Knedel himself is deliberately not present. They are working in two phases. First, they aim to document the status quo. What are the processes for invoicing, materials, work organization, and scheduling? How are things currently running, and what would happen if the boss were unavailable?
In the second part of the workshop, the team switches perspectives. They are now in charge, tasked with formulating solutions, wishes, and expectations. Here, too, ideas flow freely at the six tables in the Chamber of Skilled Crafts' seminar room. Everyone works diligently, developing ideas and proposed solutions. For example, a more consistent documentation of projects in a program accessible to everyone.
Emergency management is also helpful if a colleague is absent or planning an extended vacation. Photo: © Kirsten FreundThe employees have realized that clearly defined responsibilities and backup plans also help with their own vacations and sick leave. Everyone agrees that the team functions extremely well, that there is a high level of mutual respect, and that they can trust one another.
After the results were compiled, Oliver Knedel received them from the Chamber of Skilled Crafts in a prepared form.
How does he personally view the topic of emergency management, how did he feel about having his own failure scenario simulated – and what specific changes does he now intend to make? "The workshop clearly demonstrated what we can improve. My employees have always had a lot of responsibility, but I was always the one who ultimately pushed the final button. Now there are designated representatives for that."
Kirsten Freund
An emergency plan should contain the following minimum content General power of attorney and advance healthcare directives: For example, powers of attorney for bank accounts.
List of activities: Activities that are solely under the control of management
Company personnel structure: Knowledge, tasks, skills and responsibilities of all employees
Company contacts: (Employees) and consultants (guild, chamber of crafts, tax advisor, lawyer) as well as a list of other important addresses
Regulations for the temporary management of the company: Even if life partners or family members (so-called "widow's privilege" according to Section 4 of the German Crafts Code) were to step in during an emergency, this does not automatically guarantee the continued existence of the business, as individuals with family ties are generally under enormous psychological strain during this time. Therefore, it is advisable to discuss with the family which employee could take over the management of the company – at least for a transitional period – and to inform the family of this decision so that they can act accordingly in an emergency.
Inheritance and estate regulations: The simplest way to regulate inheritance is to write a handwritten will. However, the Leipzig Chamber of Skilled Crafts advises that a community of heirs should be strictly avoided, as joint administration and management can quickly lead to disputes among the heirs and ultimately paralyze the business. Special precautions must be taken with minor children to prevent the involvement of a court-appointed guardian in business decisions.
Statement of assets: For example, real estate (land registry extracts), bank accounts (bank power of attorney and contact person at the bank) and other assets
List of liabilities: For example, loans and associated real security rights (land charges, mortgages)
Copies of all relevant contracts: Articles of association, loan agreements, employment contracts, rental, lease and leasing agreements, cooperation agreements with other companies, supply and maintenance contracts; list of existing insurance policies: health, pension, disability and life insurance; customer and supplier lists: including contact details for each.
ITList of all computer code words and other operator codes
Personal directives: Advance healthcare directive, guardianship directive
Source: HWK Leipzig
➡️ Here you can find the free Emergency folder of the trade organization Download and fill out immediately (PDF file)
DHB now also available digitally! Simply click here and register for the digital German Crafts Journal (DHB)!
Text:
Kirsten Freund /
handwerksblatt.de
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