In one line: Crises, meaning rare, high-impact events that threaten an organization, are now common enough that every leader will face one. Leading well through them is mostly about preparation, and about seeing the crisis as a chance to learn and improve.
Core idea
Product recalls, accidents, scandals, cyberattacks, pandemics and environmental disasters now arrive with striking frequency, and their costs (lawsuits, lost business, damaged reputation) can be enormous. Researchers Erika James and Lynn Wooten argue that crisis leadership is a distinct competency, needed at every level and not just in the executive suite. Leaders should aim not merely to survive a crisis but to come out of it stronger.
How it works
Crises unfold in phases, and each one demands something different:
- Before (signal detection and preparation). Notice weak warning signs, build relationships and plans in advance, and create a climate where people report bad news early.
- During (containment). Act decisively with incomplete information, communicate early, honestly and often, and put people’s safety and the organization’s integrity first.
- After (recovery and learning). Restore operations and trust, then learn from what happened, so that the organization is better prepared and possibly more competitive than before.
Competencies that recur:
- Building trust before it’s needed.
- Adopting an organization-wide perspective.
- Making wise decisions fast.
- Taking courageous action.
- Learning from the crisis rather than burying it.
In practice
Crises expose the habits leaders already have. Those who practiced calm, independent thinking (see Solitude and Leadership), built trust, and kept risk registers honest (see Risk Management) have something to draw on. Those who hid problems or relied on positional power do not. Historical expeditions in extreme conditions (see Leading at the Edge) and corporate collapses (see Enron and Unethical Leadership) illustrate both ends.
Questions to ask yourself
- What weak signal in my area could grow into a crisis?
- Who would I need to trust me in a crisis, and have I built that trust?
- After the last failure on my team, what did we actually change?
Connections
- Preparation: Solitude and Leadership, Risk Management. Historical study: Leading at the Edge.
- Ethical stakes: Moral Injury, Enron and Unethical Leadership.
- Capabilities exercised: Courage, Decision Making, Communicating and Advocacy, Ethical Actions and Integrity.