Navigating a Crisis Situation

I've always felt that the most important aspect of crisis management is leadership. I've seen leaders fail as well as succeed beautifully. Those that do poorly in a crisis are paralyzed, unable to make judgments, and overconfident, whilst those who are doomed to fail are unable to communicate effectively with the team, among other things.

However, the finest leaders recognize that the road ahead will be difficult and understand that they must rely on making decisions and adapting to what lies ahead. They are self-assured because they have a team behind them, one that feeds off their leader's confidence.

There are 3 aspects to a great leadership during crisis management:

1. Always lead from the front and be involved in every key decision that is being made. Take charge during a crisis and make sure everyone knows what you're doing. You're the boss and it's your responsibility to make sure that employees aren't left in the dark. You're not going to be able to make all of the decisions yourself, but you need to be around so that employees know who they can turn to when they have questions or concerns (whether they have them or not).
2. Restructure the organization that better fit the crisis needs. In a crisis, the organization chart may have to be restructured to ensure that the right people are in charge of the right functions. A lot of things will likely be happening at once. The leader has to see the big picture, while their staff has to take care of the details. In many cases, this means that the organization chart has to change. When moving the team around, leverage their core skills rather than what they were doing in their roles before the crisis hit. Shuffle them around specifically in a way that will help them respond to the crisis.
3. If you have built relationships within your organization, communicate with people proactively. Ask them what they are hearing from other businesses, what they thought, and what the situation on the ground was. This could become incredibly important in the decision-making process. It could also inform you as to how and what you are going to communicate up the chain in your organization.

As a decision-maker, you can never be sure if you're making the right decision. As long as you have a framework in place, the right people around you, and the conviction that you will emerge from this and adjust to the circumstances on the ground, you will be okay. I generally use the following approach when making tactical decisions.

Learn the facts

When in crisis, everything you have learned may no longer be true. The first step of the tactical decision-making framework is to be fact-oriented. This means identifying the facts that you know or can find out. List these down. Note that it may take some research to do properly.

Next, identify your objectives and goals. What are you trying to achieve? What are the critical factors that need to be considered in order to achieve your goals?

Once you know what information you have and what your goals are, you can start exploring different options for achieving those goals. Think about what would happen if one option was exercised over another. What are the potential consequences?

After considering all these factors, which option seems best? Consider whether there are any other options that could be added or eliminated based on new information that came up as you explored other options.

Rely on your internal console

Tactical decision-making requires immediate action and is often based on experience and knowledge. This is why you should rely on your internal console – people who may not know your business very well but who understand the dynamics of the business, and who offer a different perspective on the problem. I like to talk to two or three people that are not involved in the situation and listen to their thoughts and ideas. A lot of times, their insight might spark a new way of looking at the situation.

For instance, during the 2008 Financial crisis, we knew everything from a lending perspective. I reached out to a friend who ran a firm that invested in commercial real estate - a completely different perspective. But what I wanted to know was what was happening on the ground. How were business owners, and investors coping with it, and how were they going to address the issue? I then incorporated this into my tactical decision-making.

Move quickly

When it comes to making tactical decisions in a crisis situation, you must move quickly before the situation worsens. In some situations, you may have the luxury of spending time to look deeper. However, in a crisis, you cannot afford to spend too much time attempting to comprehend everything that you end up delaying the decision-making. After you've gathered enough information, you'll need to make a decision. Strike a balance between obtaining external information such as facts and perspectives and relying on your intuition to bridge the gap.

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Communicate with Stakeholders Effectively

As I like to simply put it, effective communication is honest, transparent, and regular. One of your key stakeholders is your actual team of business that works for you and it’s extremely important to directly communicate with them. Because when there is an absence of information, more times than not, people will fill it in with what they think is right. So whether it's a crisis in your organization or something that's happening on the global stage, be the one to communicate with your people first. Another major stakeholder is your shareholders. Communicate with them in person as much as you can on a regular basis. Inform them of the issues you’re dealing with, how bad things might get, your plan of action, and how you will measure your success. This will instill a sense of confidence that the business is doing what it should through the crisis. Stress levels and emotions may run high but resist the urge to paint a rosy picture. Tell the story as it is. Transparency will pay off in the long term.

Communicate Proactively

Communicate with people in and outside of your organization to gain control of any situation. Keep your team and stakeholders apprised of what’s happening and the corrective actions you’ll be taking. This also gives everyone a chance to provide input on how best to move forward as a united front.

Gather Facts from All Sources

The initial step is to acquire information from all available sources. Begin by speaking with anybody who may have observed the occurrence, assessing the organization's health from top to bottom.

Be Confident in Your Actions and Decisions

If you're scared or stressed about the situation, this will likely spill over to your employees too, so keep your composure throughout. Maintain confidence in your actions and decisions, even if you don't have all the answers right away. Your stakeholders, as well as your subordinates, will be reassured by your demeanor.