Leading organisations in difficult times

Leading in a crisis situation is very different from leading in a time of normal conditions. Currently Zimbabwe and the rest of the world are embroiled in the catastrophic impact of a pandemic. Recently the ZCTU called for the government to bail out companies in distress so as to serve jobs for many. For many a leader out there it is not business as usual. As if it's not enough the government has extended the Covid-19 lockdown by a further two weeks. As such tension and stress are the order of the day. It is not an illusion that many leaders of organisations are thrust into a stressful and tense environment which puts them under enormous psychological, mental, and physical strain. While many companies could have pondered a crisis plan, the inordinate nature of the current crisis defies any contingencies any organisation may have planned. This situation simply defies any economic logic.

Understanding nature of crisis

Crises can be divided into two types: routine and novel. Routine events are the known risks for which organisations can plan and develop procedures. Examples include safety plans for manufacturers, recall plans for food companies and liquidity plans for financial institutions, as well as disaster recovery and security plans for companies across industries.

Novel crises such as we are facing now (Covid-19) exhibit unusual frequency and impact. Organisations typically don’t have plans for such events. Novel crises may be a confluence of two or three events that strike at the same time. Simply put, they may be too big or unusual to be imagined. This is the type of crisis we are currently facing.

In the absence of predetermined procedures, novel crises—whether they be natural disasters, economic crunch, terror attacks, cyber breaches or malevolence such as shootings or inside sabotage and fraud— can test leadership’s decision-making and strategic-thinking abilities.

Managing the unexpected

A crisis puts to the test the decision-making skills of an organisation’s management and employees. If you are too quick to make a decision, you might be basing the decision on incorrect or inadequate information; by the same token, waiting for the perfect set of data can lead to analysis paralysis and slow decision-making or no decisions being made at all.

Leading decisively

The CEO may not always be the ideal choice to lead a response to an unexpected or unusual crisis as it could distract him or her from the day-to-day business and other important matters. In a crisis, other C-level executives, such as the chief operations officer, chief risk officer, chief legal officer in the case of a major legal challenge, can step forward to lend support, as can an outside crisis expert. Effective turnarounds are not made out of micro-incrementalism, but of very bold and decisive acts.

Continuous framing of the crisis

Rather than holding fast to the first impression and analysis of the crisis, be flexible to embrace new information as it comes along. If new analysis suggests a remake of the original plan, remake the plan. One of the most important things for any crisis leader is to identify what the crisis is and to constantly look at that identification every couple of hours, days and weeks because crises can change and they can become multiple events. What you thought was unimportant yesterday can become extremely important tomorrow. In today’s age of social media and 24 x7 press coverage, some things can become much more in a crisis than originally expected. So continually framing the crisis, having the ability to assess on a continuous basis, and having a process to do that is extremely effective in managing any crisis.

Actively communicate

During a crisis, it’s important to constantly communicate up to lenders and owners, down to employees and vendors, and outside to the media and public. Control the message by designating a crisis manager to be the sole spokesperson and to be the source of honest, consistent information. It’s also critical to keep a record of the facts that the crisis manager knows at each point of the process in order to respond to potential lawsuits that may arise. It is extremely important to actively communicate up and down in an organisation, as well as to customers, clients and employees. Honesty and transparency are critical. Stay calm. Take a deep breath and refuse to become upset or angry. Lower your emotional flashpoint by asking questions, listening carefully, and thinking only about possible solutions.

Be ready for the unexpected

Under extreme pressure, leaders should understand that individuals may act differently than during normal circumstances, and that the usual organisational roles may not apply during a crisis. This can further add to the unpredictability of a critical event. To counteract that, any one manager should have limitations and should not be the only one to deal with a crisis. In advance, plot out when and how external parties might be brought in to help address the crisis. Be confident in your abilities. Remind yourself: you have handled all kinds of difficulties in the past, and you can handle this problem as well. Dare to go forward. Unexpected reversals and setbacks often stun you into a form of paralysis. Don’t give in to these feelings. Instead, think of specific actions you can take immediately to remedy the situation.

Drive toward actionable intelligence

In the midst of a crisis, leadership must often navigate confusing data and intelligence. It’s important, therefore, to cast a wide net, as crucial information can come from a range of sources, including customers and employees. But those sources must be qualified, as misinformation can be as prevalent as information. It’s important to consider sources carefully. Multiple viewpoints from the right sources can provide more objective and actionable information. Identify your constraints.

Determine the key goal for getting out of the crunch you are in, and the key factor restricting your progress toward attaining it. Focus on alleviating that single constraint. Under such circumstances, unleash your creativity.

Mandeya is a certified executive leadership coach, corporate education trainer and management consultant and founder of Leadership Institute of Research and Development (LiRD). — robert@ lird.co.zw/ or info@lird.co.zw, Facebook: @lirdzim and Mobile/WhatsApp: +263 719 466 925.