The Press

How one company’s crisis becomes a crisis in yours

It’s not so much what leaders do that frustrates staff; it’s what leaders don’t do, writes James Adonis.

- Employees' emotions are just as infectious, probably more so.

If you’re yet to experience a crisis in your business, it’s probably only a matter of time.

It’s a phenomenon that afflicts a majority of organisati­ons, usually once every few years.

If you’re lucky, it’ll be relatively easy to overcome. A slump in sales, for example, conquered by a clever marketing strategy, or an IT breakdown fixed by an urgent upgrade.

If you’re less fortunate, the crisis could be debilitati­ng. A natural disaster, for instance, or the accidental contaminat­ion of your products, thereby poisoning your customers.

Whatever the crisis, one thing’s a given: It’s contagious. Various recent cases that demonstrat­e this

OPINION:

to be true. One is the worldwide movement against acts of sexual harassment, which began in the entertainm­ent industry but has spread to many other sectors.

Another is wage theft, or at least dodgy payroll practices, which have spread from franchise to franchise. A further example is the questionab­le ethical standard of bankers and brokers breaking wallets and hearts, in finance firm after finance firm.

So yeah, crisis contagion is a real danger that could afflict your business sooner than you expect.

In a study published last month in the Business Horizons journal, scholars identified a combinatio­n of two factors that make it easier to predict when contagion is going to occur.

The first factor is known as ‘‘accessibil­ity’’, which means the type of business experienci­ng the crisis is similar to yours.

The second factor is known as ‘‘diagnostic­ity’’, which relates not so much to the type of organisati­on but to the type of crisis. If you look at, say, the humiliatio­n Coca-Cola endured when it released a Life product that contained more sugar than a healthy life would ever allow, it created a snowball effect whereby many other products were scrutinise­d for their excessive sugar content.

The ultimate question is what you do about it.

My PhD thesis was precisely on this topic. I researched the ways in which leaders influence their employees’ engagement during a crisis – the type of crisis serious enough to threaten an organisati­on’s survival.

What I discovered (among all but one of the participan­ts) was that employees are most disengaged by passive leadership.

Put differentl­y, it’s not so much what leaders do that frustrates staff; it’s what leaders don’t do. It’s inaction rather than action that angers them most.

At times when employees most desperatel­y want informatio­n, they rarely get it. At times when they want their leaders to be present and visible, they’re generally absent. What they end up getting instead is a dispiritin­g cocktail of indecision, vagueness and avoidance.

And it isn’t only a crisis that’s contagious. Employees’ emotions are just as infectious, probably more so. Any uncertaint­y or anxiety they’re feeling about a crisis afflicting a similar business, or any concern they have about an unrelated company experienci­ng a crisis they fear may be replicated in yours, and well…

Well, it ain’t pretty. In my own research, the most common emotions experience­d by employees during these turbulent periods were stress, sorrow, anger and exhaustion. Not a pleasant work environmen­t at all. –Sydney Morning Herald

James Adonis is the author of The Motivation Hoax: A smart person’s guide to inspiratio­nal nonsense.

 ?? PHOTO: 123RF ?? Recent heightened awareness of sexual harassment started in the entertainm­ent industry and has spread to many other sectors.
PHOTO: 123RF Recent heightened awareness of sexual harassment started in the entertainm­ent industry and has spread to many other sectors.

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