The Loki Equipment Exercise Part 2: Crisis Management

Abstract

We present a case-based role-play exercise that effectively simulates a crisis students must manage. In the exercise, a farm equipment manufacturing company has decided to redirect its product line, and this change requires laying off a significant portion of its workforce. Students must grapple with the fact that a local news report will be released soon to inform the public about the company’s plans, possibly before the company’s employees learn about them. Students assume one of five roles in the executive team and discuss how to resolve the crisis. The objective of the exercise is to help students learn ways to lead in an organizational crisis. To meet this objective, we discuss how instructors can implement and debrief the exercise. This exercise was designed as the second in a two-part series (the first part focusing on organizational change), but it can also be used as a stand-alone exercise.