CRISIS LEADERSHIP

A crisis by its very nature tends to be short but intense. A series of unforeseen events in one’s personal or professional life suddenly takes priority, relegating all other issues to secondary status. We read about various crises daily and almost become desensitized to them. Perhaps we may think the term is overused. However, there is no problem recognizing and feeling their pain when they affect us directly. From a business standpoint, cash flow issues, bankruptcy, embezzlement, severe downsizing, the loss of a key customer, product failure, and loss of employment are some possible examples.Remaining calm and positive is an absolute requirement during a crisis. The leader must think clearly and set an example that inspires confidence. A crisis is no time for diffidence. All eyes are glued on a leader during a crisis. Everyone is looking for leadership and if the leader is unable to provide it, then what hope is there for the organization?

During a crisis all things move fast, very fast. Events unfold quickly and our reactions must keep pace. Having a high caliber leadership team adds an incredible amount of value during these times. Decisions of all sizes must be made with very incomplete information - From the larger: Can we manage through this ourselves? Do we need outside help? To the smaller: Which invoice do we pay and when? These decisions must be made without procrastination. This is not easy but if a strong team surrounds the leader the process becomes more manageable. A leader may lose perspective for a time, become frustrated, grow impatient, lay blame, and engage in self-pity. Yet none of these are acceptable. The leadership team must support one another so that together they remain focused on the solution.

One of the most difficult aspects of crisis leadership is that the competencies required are not ones most leaders use daily. The temptation is to hope the crisis goes away so the leader can keep running things the way they always have. Denial guarantees failure. A crisis demands that the leadership quickly face reality. They must make the complex simple and understandable. Critical decisions must be made with inadequate information. In addition, the leadership must realize that every wrong decision sets one back when there is too little time already. This is not the way we normally run a business and it is uncomfortable. Recognizing that the situation has changed and that different behaviors are required is an essential step if success is to be achieved.

In a crisis the leader’s inner strength is put to the test. Each of us can handle so much more than we think we can. The temptation to give up must be resisted. Successful navigation of a crisis demands that no one give up. The attitude must be to go down fighting. There are ample opportunities and reason to throw in the towel but the leader must refuse.

Avoiding self-pity and the second-guessing that naturally flows from crisis management is healthier and more productive. Wallowing in what could have been or dwelling on the “what ifs” are energy killers. A clear and laser like focus on the work is what is needed. When these unproductive thoughts and feelings saunter back on stage they must be recognized for what they are and shown the exit.

Virtually all of us will face a crisis sometime in our career. It is the leader’s responsibility to see that their actions add value and move the process forward. By remaining calm and clear-headed and having a strong leadership team we dramatically improve the odds that we will pass one of leadership’s most difficult tests.