Adversity is an Opportunity for Leadership to Shine (or not)
DRD ADVISORS, LLC
Crises undoubtedly take immense financial and emotional tolls on organizations. Faced with unprecedented circumstances and vast uncertainty, leaders are pressured to furlough and terminate employees, and to make painful changes within their businesses. As frightening and demoralizing as this harsh reality is for employees, it can be equally distressing for business leaders, who are faced with decisions they know will derail the lives of individuals for whom they care deeply, and who must come to grips with deeply unsettling financial and personal circumstances. This said, crises can be a gift to sponsors as they tend to unveil latent leaders within portfolio companies who possess the psychological and organizational competencies needed to keep the company afloat. They also reveal untapped leadership potential in preexisting leaders, who have not yet had to flex certain managerial muscles. Furthermore, crises reveal which corporate captains are committed to remaining the last passenger on the sinking ship compared to which captains are first to be concerned with their own safety at the first sight of peril. Despite the emotional and economic destruction crises may bring, they often illuminate latent talent and push leaders in their own development.
Different Crisis Leaders:
The Task Leader: This leader is most skilled in solving the group’s current and most pressing problems. Task-oriented leaders are known to delegate assignments, set clear processes and issue deadlines to ensure all team members maintain focus during challenging times.
The Procedural Leader: This leader helps coordinate the activities of the various members into a coherent whole, and ensures organizational actions are executed according to corporate governance.
The Socioemotional Leader: This leader is the most adept in helping members maintain positive emotional states and achieve a mutual understanding for one another. This leader is highly attuned to employee morale and is able to ensure it remains strong during difficult periods.
For managers during times of crisis, it is important to not only think about which type of leadership they will provide, but also to look at which employees emerge as leaders. As challenging and painful as the crisis may be, it can illuminate the most valuable members of the organization, including individuals that may have been overlooked during smoother times.
Managing versus Leading a Crisis
In addition to examining which individuals emerge as leaders, and which type of crisis leader a manager him or herself becomes, it is critical for business leaders to switch their orientation from managing the crisis to leading the crisis. Leaders who manage crises have short term lenses, are more reactive than proactive, are process-focused, and pay attention exclusively to the current crisis. They are often so immersed in the most recent and pressing issues that they fail to see the larger opportunities the crisis may afford them. On the other hand, leaders who lead crises take long-term views and look for opportunities, are responsive rather than reactive, and are able to focus on the current crisis without losing momentum. Additionally, crisis leaders are visible, confident, and on the front lines.
Successful Communication in Crisis
For leaders in particular, there is a common inclination to project a high degree of strength and confidence during times of crisis, and there is an assumption that revealing vulnerability may undermine authority, or worse, breed even more panic within the organization. While exuding strength and confidence is certainly important, leaders often overlook the necessity of displaying vulnerability as well. When business leaders disclose their own personal fears and anxieties, they connect more deeply with employees and are able to build trust by being fully transparent. In addition to displaying their honest emotions regarding the crisis, it is crucial that leaders remain available to employees and communicate frequently. During crises, employees rely most heavily on their leaders and find solace in hearing from them regularly. Even if communication does not provide critical information, simply hearing from business leaders indicates to employees that the person at the helm is concerned with their wellbeing and doing all he or she can to do damage control within the organization.
Despite the immense stress and strain crises inflict on organizations, they have the remarkable ability to illuminate latent leaders as well as latent leadership competencies within individuals. They also afford leaders the opportunity to connect to employees on a profound level, which can forever change the degree of loyalty and trust between leaders and their constituents. By viewing crises as opportunities and surmountable obstacles, leaders can actually stretch the boundaries of not only their own competencies, but also those of their employees.