Leading Effectively in a Crisis
/The qualities of excellent leadership in emergencies
These are unprecedented times for the world. Coronavirus is forcing everyone to adapt, live, and work in new ways until things get back to normal—and “normal” may very well have changed by the time it’s achieved.
Businesses will be impacted in numerous ways throughout this period. Some are more flexible than others. They're able to let employees work remotely or offer services on a limited basis. Others may have to shut down altogether and try to weather the storm.
It’s times like these that cause businesses to seriously consider how they react to and operate in a crisis. Whether it's a coronavirus, an economic crunch, or a hurricane, organizations need to have an action plan, so they aren't caught on their heels.
One key difference between those that survive and those that fail is excellent leadership. Times of crisis reveal the true ability of leaders to guide their organization through stormy seas to clearer skies ahead. Real leadership is more than good management and a positive attitude. It's an all-encompassing mindset that puts the well-being of employees and customers at the forefront of your actions.
Let’s take a look at the types of crises (big and small) businesses may face, as well as some best practices for leading your team through the situation effectively.
Types of business crises
Crises come in many forms, so businesses need to anticipate a wide range of possibilities. It may be as large as a hurricane destroying your entire physical operation or as small as a disgruntled employee hacking into your Twitter account and posting some unflattering content. And the current crisis is unprecedented, of course—having ground the entire economy to a halt.
Here are some general crisis categories to consider as you think about your leadership approach:
Employee crisis
These crises include employee misconduct both inside and outside the office. Employees are a representation of an organization whether they are on the clock or not, so any poor behavior and decision-making in their personal lives can also reflect on the business.
Financial crisis
Businesses may lose income and assets to the point where they can’t pay employees, pay back debts, order supplies, or perform basic company functions needed to survive. These situations may be localized to the company or widespread like the 2008 financial crisis or today’s current pandemic.
Ethics crisis
This type of crisis is due to unethical behavior on the part of the company, usually at the expense of customers and shareholders. One recent example is the Wells Fargo fake account scandal from 2016 in which the bank opened millions of fake accounts and credit cards in customers’ names without their consent, so pressured employees could fill quotas.
Technology crisis
These days, all businesses are dependent on technology, and thus, will feel an impact when it crashes. Some e-commerce and software organizations, however, stand to lose millions of dollars every day that their servers are down, their websites aren't working, or their payment processors aren't processing. A technological emergency can tank their revenue as well as their reputation.
Natural disasters
Different areas of the country are susceptible to various disasters, and thus certain risks can be proactively planned for. Whether it's a blizzard, a hurricane, or an earthquake, they all have the potential to put a company out of business for a period or permanently. Natural disasters also include health events like coronavirus and other pandemics that profoundly impact business operations and supply chains.
Leading in a time of crisis
So, how do you do more than just get through a crisis? How do you lead your organization purposefully? It comes down to a few fundamental principles that, when combined, will strengthen your team and set you up for a better recovery when the emergency passes.
Communication
Before a crisis arises, your organization needs to make some key decisions about communication. Who is the spokesperson, both internally and externally? What is the best way to communicate with employees, customers, and the public? What is the content of your messaging?
During a crisis, effective communication can make all the difference. A leader's goals should be to unite and inform. This is done by conveying a consistent and clear message with facts and concrete steps. Crises are only made worse when employees and customers are confused and frustrated.
Accountability
Of course, if the crisis is due to a mistake on the leader’s part, the best move is for the leader to take responsibility and step up to the plate (or down, if the case demands it). But accountability goes far beyond that. It means building trust with employees, customers, and vendors so they are aware of what’s going on and the actions being taken to mitigate the situation.
A quality leader doesn’t just show up for press conferences and interviews. He or she is involved behind the scenes, guiding the organization and being transparent along the way. This transparency builds trust and unity within the company, which makes weathering a crisis much more straightforward.
Emotional readiness
Fear, anxiety, and negativity are already pillars of most crises. Leaders don’t need to add to the stress by having a bad attitude. Organizations will often reflect the example their leaders are setting. If a leader is erratic and overly emotional, that signals the team to act similarly.
The best leaders focus on what they can control and let go of what they cannot. This reduces the chaos and allows successes to shine brighter, no matter how small.
Decisiveness
The last thing an organization needs in a time of crisis is an indecisive leader. Great leaders exude confidence in their abilities, even if they don’t feel that way on the inside.
As mentioned earlier, the best leaders focus on what they can control. In an emergency, it's easy to get overwhelmed with making the right decision. There is often a lot of confusion and misinformation that can derail efforts. Effective leaders can push these things aside and make the best possible decisions with the best information they have—quickly.
Learning from a crisis
The most adaptable organizations are those that learn from the mistakes they made and the successes they had in a previous emergency. What could’ve been done better? What were the small wins that made the difference? Use these answers to create and update a crisis plan. Practice scenarios with your team and make sure everyone is prepared for a variety of issues.
While leaders are often recognized in times of crisis, genuinely great leadership happens in the quiet moments out of the spotlight. Exhibit these behaviors consistently to help build a team that is ready for the present and future.
Carrington Legal Search is celebrating 20 years in business: we were in the trenches with our clients during 9/11 and 2008. We partner with our clients to identify leaders and mission critical talent to shore up and grow companies even during the most challenging times. We are here for you! To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com.