Crisis
Throughout
prosperous moments, the leader should worry about giving the company
the necessary means (human, technological, financial, etc) to be able
to successfully face delicate situations that could come up at any
moment.
The success
of an organization in moments of crisis will mainly depend on a close,
competent and prepared team - a team that is able to face the situation.
One of
the main obligations of the leader is to be surrounded by a top quality
team that knows how to react in difficult moments.
In these
delicate moments the leader can not allow the smallest division within
the company. In situations of crisis the team has to act together.
On the
other hand, the leader needs to permanently look ahead. This vision
allows him to quickly detect any sign of difficulties.
The quicker
you face a problem, the more chances you have to overcome it successfully.
The leader
is the helmsman of the organization and if his role is important in
normal times, it will be even more important in moments of crisis.
It is in
moments of crisis when the leader needs to give his best.
In moment
of crisis the leader can not waste time looking for excuses, justification
or guilty parties: the leader has to look for solutions. There will
be time later to analyse what happened.
In these
uncertain and worrying situations, the employees have to perceive
the leader at the front.
The leader
should make himself visible, he should show staff that he is at the
front and that everything is under control (it is fundamental to show
his face and not hide away.
The leader
should remain calm and protect an image of serenity which in turn
will help the organization remain calm. Acting in this way will prove
that the leader can act efficiently.
The leader
will begin by evaluating the situation: he has to know precisely what
is going on, however hard it might be.
It is essential
to have all the information at hand, if necessary ask the different
hierarchical levels and contact the base of the organization.
It is important
to speak with all levels of the company, gather all the possible information.
In moments
of crisis, the leader has to know how to prioritize, know hot to differentiate
where to act first, he has to prioritize.
Time is
crucial and the leader must tackle the most urgent matters first.
The leader
has to be prepared to make decisions quickly.
These decisions
should be carried out immediately. The leader should establish a system
to follow and a system that evaluates the results.
In these
moments he can be playing with the future of the company, which will
sometimes make the leader face decisions that can demand great sacrifices
from the employees (reducing staff, lowering salaries, selling part
of the business, etc).
The leader
has to be capable of making these decisions, however painful they
may be. In fact, if the leader is at the head of the company he has
to defend his interests.
It is better
to make a decision which negatively affects half of the staff, than
not make a decision which could affect everyone.
Although
the leader is not competing in a popularity competition, he should
know that if he makes difficult but understandable and reasonable
decision, in a just and objective way, without discriminating anyone,
in the end he will gain more respect from people.
In these
moments you have to be transparent, not only on the inside but also
on the outside. Staff need to know what is going on, what the situation
is, what the dangers are and the measures that need to be taken.
Hiding
information only starts rumours, distrust, exaggerations and fear.
It is difficult to ask staff to get involved to ensure the company
succeeds when they aren’t aware of the real situation.
If the
management hide information and later this information is brought
to light, the management team will loose all credibility immediately
(which is very difficult to recover).
It is important
to inform staff of any small advances that are achieved as this will
increase the morale of the organization.
Once the
company is over the crisis, the leader should carry out a critical
analysis to know exactly what has happened: the origin of the crisis,
if it was due to an internal mistake, if it could have been seen or
avoided, if the organization was prepared, if they reacted well, what
the result have been, etc.
The objective
of this analysis is to make conclusions (learn) and bear things in
mind for the future.
If a member
of the team has not been on top of the circumstances, the leader should
demand responsibilities.
It is also
a moment to thank staff for their effort, to inform them of their
effort, to inform them of the crisis they have overcome and explain
that the future of the company is looking positive.
