Over the last couple years, I’ve provided three articles on leadership, specifically geared towards MSOs and with the intention of cultivating new leaders. I covered the difference between management and leadership. Briefly management is about strategy and organization and coordinating. Leadership is about social influence of others in accomplishing tasks. The difference is in ability to influence the hearts and minds of people. It is what that person feels inside that can be such a great motivator, caused by the words and/or actions of the leader. I established that leaders can be born and they can be developed or a combination thereof. I covered some practical applications of identifying and creating leaders. I suggested that you become a ‘coach’ to help turn some of your managers into leaders. I talked about what difference it makes in terms of business performance. I also covered leadership ‘style’, including attributes and behaviors. It included the following top 10 list:
1. A real leader listens first and acts second.
2. A real leader knows what they don't know.
3. A real leader doesn't make decisions in the heat of the moment.
4. A real leader gives constructive, not negative, feedback.
5. A real leader never acts like the smartest person in the room.
6. A leader focuses on the strengths of people.
7. A real leader cultivates a positive culture.
8. A real leader does what has to be done.
9. A real leader always finds a way.
10. A real leader celebrates the process as much as the rewards.
I covered how perfecting our own skills is the best place to start in passing leadership skills on to others. I also got into how as leaders we seek and generate specific behavioral traits in others including compliance, obedience, competence, enthusiasm, grit, and grace.
The crisis
Definitions of ‘crisis’ include “a time of intense difficulty, trouble, or danger” and “a time when a difficult or important decision must be made.”
We all deal with setbacks and issues regularly, but its not hard to recognize the big ones when they come. I was 16 when my father left the family. (Family life was getting in the way of dating and partying.) I had to grow up fast and take on responsibilities I hadn’t anticipated. I’ve experienced a divorce and a loss of a business. As a professional drag racer I experienced high speed fires and crashes. In business I’ve been in a leadership role three different times when an owner or key executive passed away leaving great uncertainty. And I’ve experienced market recessions. Of course now we are experiencing the stunning effects of the Coronavirus. Each of these crises is unique with its own challenges. Yet there are some leadership attributes and techniques that apply in virtually all.
Fear and uncertainty
Among the first reactions to a crisis is fear. Typically it starts with fear of the unknown. Many people within our organizations may assume the worst. They perceive the crisis and its attributes as a threat. Emotions can run high. It can feed upon itself, spreading and increasing in intensity. Biology can come into play as the brain releases cortisol, which is typically attributed to a “fight or flee” reaction. Studies reveal that the release of cortisol can diminish IQ by 20 points, making rational thinking more difficult. As leaders of people in fear our job then becomes even more challenging, but at the same time the significance of our reaction becomes far more important. We must consider how to allow ourselves and our staff to process emotions, then how we can move towards a level of calm.
Stability is of the utmost importance
There are two key elements to stability. The first is practical. Make sure staff has the tools, materials, equipment, and technology to function in the circumstances of the crisis. The second element is psychological stability. People want and need to know where the company is headed and that their job is secure. (Assuming that you can offer that security.) You must clearly define and communicate your decision-making principals, especially regarding employment and compensation. Focusing on employees’ emotional needs will help get them through the challenging times. People need some sense of normalcy. Regularly communicate your progress and accomplishments during this difficult time so it doesn’t seem like the world has collapsed. Highlight consistency where you can find it to prevent tunnel vision. For example, your customer service policies likely won’t change, though how you deliver it might.
Credibility and trust are crucial to establish stability. Be honest with your staff. Be as transparent as you can.
Hope is among your most precious assets during times of turmoil. It has an aspirational quality as well as motivational. It pulls people forward and invites them into creating a future that’s better than the present. Hopeful workers are more resilient, innovative, agile, and better able to navigate obstacles. But hope is built on trust and credibility. If you create false hope based on false confidence or false certainty it will blow up in your face. Rather demonstrate that you and your leadership team are focused on the trajectory and health of the enterprise; that the captain is at the helm and steering the ship through the proverbial storm.
People come first, period
Leaders must care deeply and consistently about their people, including their health and their needs and their fears. That includes big and small things such as insurance and some time off flexibility to address family issues.
During the recession in 2008 I was confronted with the necessity to lay off some people to keep the business viable. Over a period of months it came to a total of 18 people. I handled most myself. It was among the most difficult things I’ve ever had to do in upper management. I reminded myself and the management staff that of primary importance is to protect the good core group of people that we build our business upon. If we let the financial viability of the company disappear all would be lost for everyone. As best as we could we made decisions regarding who was to be laid off based on performance. As much as I dread laying anyone off I was responsible to protect the best performers. They were the most skilled, dedicated, responsible, conscientious, caring, and loyal.
People are our most valuable asset. The culture within your staff, including their dedication, motivation, and talent, is the heart and soul of your company. As leader you are responsible for its protection.
One shouldn’t navigate a crisis alone
Leaders must empower others so that everyone can contribute their skills to the needs of the moment. Align on what matters so that all have a clear ‘North Star’. Give teams room to operate. Show trust. Organizational agility and digital tools for real-time coordination and communication become ever so important in times of crisis so that all employees, regardless of level, can bring their expertise to bear.
Let your leadership emerge over time. The core of effective crisis leadership is processed through the following steps, all guided by your purpose (mission, vision, and values):
1. Evaluate the situation from physical, emotional, reputational, political, social, human resource, and financial standpoints.
2. Agree on near term objectives and intent. Focus on safety first, reputation second, and financial third.
3. Develop a list of options.
4. Predict risk rated outcomes for each option.
5. Prioritize the options and decide which will become an action step.
6. Delegate responsibility for the chosen action steps to an accountable leader and dedicate necessary resources.
7. Execute, monitor, evaluate, and adjust.
Add ‘rumor busting’ to your meeting agendas. Discuss ways to dispel them without coming across as defensive.
Create a sense of “we are all in this together”.
Shy away from inspirational messages that lack substance.
As the leader take charge of communication.
Exercise your fearlessness
Don’t allow your emotions to get the best of you. In times of crisis leaders invariably find themselves in the midst of a tense and stressful atmosphere. There can be enormous mental, physical, and psychological pressures. Now is the time to take charge of your thoughts, emotions, and the way you deal with problems. Often a periodic reminder of the big picture to yourself and your team can put things in perspective and promote self-control. Stop and realize you may have more control than you first thought. Exercise self-discipline. When things aren’t working get a good night’s sleep and start fresh the next day. Maintain a healthy lifestyle. A special confidant, such as a spouse, can be helpful to vent with or to bounce ideas off.
Fear is contagious. If your demeanor demonstrates fear your co-workers will sense it. You cannot afford to project yourself as someone unsure of their ability or lacking confidence. I often ask myself, “What is the worst thing that can happen?” In many cases it may not be as bad as one feared.
Understand that every strategy or decision will not yield positive results. Failure is part of life. It makes us smarter and tougher. Good leaders don’t take failures personally.
Winston Churchill said, “If you are going through hell, keep going.” That toughness, persistence, courage, and fortitude are what make the difference.
Things happen for a reason. Though hard to see at the time, there may be a silver lining to the dark cloud on the other side of the crisis. Many of my crisis situations have resulted in something better further down the road.
At the end of the day, it’s all about how you react to the crisis, including calling to action, making decisions, and embracing mistakes. Virtually every leader faces crisis at some point in their career. It’s when leadership really matters. How you react defines your ability as a true leader.
