Crisis Leadership Style

Crisis leadership is a very important part of leading in today's world. The skills a leader needs in order to guide people during a crisis are different from the skills needed to help a group grow. Are you a good crisis leader? What is your leadership style in case of a business crisis situation? A business crisis can test the strongest of leaders, read this article to explore how to ensure you’re ready to take action and weather the storm when one strikes you.

What is Crisis Leadership?

Dealing with difficult situations is an integral part of the job of any leader. You may call such situations as disaster recovery, crisis management; business continuity planning, or organizational resilience, dealing with difficult situations seems an ever-increasing part of a leader’s lot these days. Crisis leadership will become even more important in the future as the nature of crisis changes with the increasing complexities in the world we operate in.

In a moment of crisis, when things seem to be mostly falling apart, the followers turn to its leaders for a sense of reassurance and guidance on how to tackle the situation. These are times when leaders have to be smart about how they present themselves and deal with the crisis. A crisis occurs when policymakers experience “a serious threat to the basic structures or the fundamental values and norms of a system, which under time pressure and highly uncertain circumstances necessitates making vital decisions.” Leaders in such circumstances need to make calculated decisions to improve the chances of survival.

Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time. In a crisis, leaders are expected to reduce uncertainty and provide an authoritative account of what is going on, why it is happening, and what needs to be done.

Characteristics of Effective Crisis Leaders:

The skills a leader needs in order to guide people during a crisis are different from the skills needed to help a group grow. Some leaders have a flexible style, allowing them to execute one or another style depending on each situation. There is no right or wrong, and the following attributes have been identified by researchers being helpful in the situation of crisis from a leadership perspective:

1. Sense-Making: Leaders need to determine, even in the face of ambiguity and complexity, the likely level and impact of the threat. They need to get a fast and clear grasp of the situation and quickly analyze what’s going on and what needs to be done to take charge.

2. Decision Making: Leaders must make decisions amid conflicting information, values, and risks. They need to evaluate options realizing the importance of time lost in such situations. Finally, they need to make the best decision in a limited amount of time in the given set of constraints.

3. Coordinating: Leaders must recognize that a crisis cannot be managed in a linear, hierarchical fashion. They need to communicate succinctly and effectively about what needs to be done to resolve the crisis. They might need to get into “giving directions” mode, often telling everyone what their role is, what the desired goal or accomplishment is, and the deadline in which the job needs to get done.

4. Meaning Making: Meaning-making refers to crisis management as political communication. Leaders need to offer their stakeholders a coherent and credible account of what has happened. The normal channels of communication may not be operative or may be overloaded, requiring new channels and protocols that must be quickly mastered.

5. Terminating-Accounting: Terminating a crisis is only possible if the leader correctly handles the accountability question. Leaders need to know when the crisis has ended, operationally, and politically.

6. Learning: Leaders need to recognize that there are “lessons to be learned” from a crisis. They don’t dwell on why things happened till the crisis is resolved as they understand that there is little time to blame others for what has already happened and the immediate need of the hour is for action to resolve the problem. But they don’t forget the learning part and find the lessons learned after overcoming the problem to make the necessary changes in the face of a future crisis.