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Most Gulf Executives Were Caught 
Unawares by Global Crisis: Study

DUBAI — More than half of the senior Gulf-based executives surveyed for a new study, yet to be released, said that the global financial crisis and its impact on their businesses had caught
 them by surprise.

However, most of the 254 GCC-based business leaders who took part in the survey agreed that the global economic downturn has highlighted the need for effective crisis planning, the study titled “Middle East Corporate Reputati
on Watch” shows.

The online survey, conducted by Real Opinions for Hill & Knowlton, a New York-based public relations firm, was launched early this year. The study will be released in full in the next few weeks, Hill & Knowlton said in a statement.

“Managing a crisis without up-to-date business intelligence is like boxing while blindfolded. It becomes harder to make the right decisions under pressure and to communicate those decisions in a manner that maintains trust and confidence,” said Dan Healy, Chief Executive Officer of Real Opinions, a market research company headquartered in Dubai.

“The findings underscore the importance of thorough research in a rapidly changing market, as 54 per cent did not feel they had enough information about the global financial crisis,” Healy said in the statement. Seventy-seven per cent of the executives who took part in the survey said that having a plan in place helped their companies manage the economic downturn. The survey found that only one in six, or 16 per cent, claimed that they had a complete plan to deal with the economic crisis, while 26 per cent agreed that their organisation was well prepared.

“The impact of the global downturn on the Gulf region was greater than generally predicted. When it hit, many companies in the GCC were caught unawares. Managers who had undertaken proper risk assessment and crisis planning fared better than those who were forced into making critical decisions on the run,” said Brian Shrowder, Director of Crisis & Training for Hill & Knowlton Middle East.

According to the study, only 36 per cent of executives believed their organisations had the resources to manage communication of difficult messages during a crisis. Less than a fifth thought their company had put out the right level of information to the media about the crisis. “In challenging times it is more important than ever to communicate clearly and effectively with employees, customers, investors and partners. Failure to do so can lead to rumours and speculation, resulting in a loss of confidence,” said Dave Robinson, Chief Executive Officer for Hill & Knowlton Middle East, Turkey & Africa.
— issacjohn@khaleejtimes.com