Every leader faces a business crisis during his or her career. It’s the defining moment of adversity that tests that person’s leadership competency. What decisions must be made now? What vital actions must urgently be taken?
Proven leaders consider 3 key questions when confronting a crisis.
1. What is the current real situation? Leaders first seek to gain a comprehensive understanding about the actual scope of the crisis. This is the diagnostic assessment. What caused the crisis? Who is affected? To what degree is each stakeholder group affected? Has it been contained or is it still evolving? What are the actual facts vs. assumptions?
2. What do we know that can resolve the crisis? In a crisis scenario, leaders consult all sources of acquired knowledge and experience that may apply to the critical situation at hand. Their efforts extend beyond themselves, seeking to learn about proven methods that could resolve it. This is the remedial evaluation, the objective of which is to identify a potential course of action that is validated in experience rather than by unsubstantiated opinion.
3. What is the right thing to do? Leaders are consistently challenged with preserving balance between their corporate responsibilities and their personal values. The closer these two influences are aligned, the more the leader’s actions will be judged as genuine. During a crisis, there is often a choice to be made, and all stakeholders pay attention to the synchronicity of leadership actions, company core values and the leader’s personal principles. Will values govern actions? Will behaviors match ideals? This is the true test of leadership.
Crises compel rapid decision making. Time for reflection and reexamination is short so leaders must depend on accumulated knowledge, a willingness to learn, and the strength to act with moral conviction as well as fiscal responsibility.
How can you prepare for a crisis that challenges your leadership?
How strongly are your responsibilities and values aligned?
