Effective Leadership in Times of Crisis
Unexpected events can cause leaders to overreact—at the very moment when they should stay the course.
Keeping Calm Amid the Chaos
In early August of this year, financial markets dropped sharply. The drop was precipitous and widespread, affecting markets around the world. Many who remembered the Great Recession of 2007 to 2009 were likely spooked by the news, thinking it possible that the market downturn could herald a repeat of that dark time.
Major events like the August market plunge do happen (for the record, after a couple of days of deep losses the markets quickly recovered). So do major geopolitical events, global pandemics, natural disasters, supply chain disruptions and competitors merging.
As leaders know, even far lesser events, such as an internal reorganization, a reduction in staff, the adoption of a new technology platform or the loss of a large client can send shockwaves through an organization.
In business, as in life, things happen. And when they do, leaders must choose how to react. Their choices fall on a continuum running from doing nothing to taking drastic action.
What’s a leader to do? Of course, there are no hard and fast right answers. Much depends on the situation, the organization, the team’s function and, of course, the leader.
But whatever they do, for the sake of their teams, leaders need to stay calm.
Maintaining the long view
Times of disruption can be difficult for employees who may feel anxious and uncertain about the future. They can make it difficult for distracted team members to focus and to be optimally productive.
“One of the most important roles of leadership in turbulent times is creating an environment of psychological safety,” says Simon Tattersfield, an EZRA Coach. “People look to their leaders for stability and reassurance. And the leaders need to provide it."
Tattersfield says that begins with their perspective. Rather than devoting all their attention to the disruption, they must focus on “playing a long game” and the importance of stability.
It also requires leaders to be attentive to the needs of their team.
Drawing on core leadership skills
The same skills that make a leader effective in times of stability are even more important during a period of disruption.
EZRA coach Troy Taylor insists the most important of these skills is the ability to communicate effectively—even if it means overcommunicating by checking in even when there is no news to share—to ensure team members have the information they need to be less anxious and more focused.
“In difficult times, leaders have set the tone, and to do so they must be authentic.”
Troy also points to the importance of coaching to help team members become more self-aware as they navigate through the uncertainty.
“Times of change require a balance between guiding people and allowing them to find their own direction. That’s the value of coaching. Knowing when to step in and when to step back is vital."
Your actions matter
Ultimately, leaders need to understand that in disruptive times their teams are closely watching them and the shadow they cast—and following their lead.
Leaders who overreact and abandon strategy and key objectives in favor of responding to the current crisis send a message to their team that they should do the same. That doesn’t always produce the best outcomes, especially when the disruption proves to be fleeting.
If, on the other hand, leaders remain calm and focused, their people are much more likely to follow suit—and keep working toward achieving long-term goals and objectives.
"It's important for leaders to live the words and actions they want to inspire in their teams," says Troy. “A leader sets the climate for their team, greatly influencing how they weather storms together.
“The key to leading during uncertainty is helping people see the bigger picture,” Simon says. “Crises come and go, but it’s important to ask how much of an impact a crisis will really have within even just a few years.
“That perspective helps leaders make better decisions in the midst of chaos.”
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