- A crisis can come at any time
“If a man will begin with certainties he shall end in doubts; but if he will be content to begin with doubts he may end in certainties” (Francis Bacon). Crisis management is the ability to manage the disruptive and unannounced event that has potential to harm the institution. A small measure of uncertainty is good, for it keeps the leadership continuousy agile. To create order out of randomness is the art of handling an event of crisis. The ambiguity of the future is a reality all types of leadership have to contend with.
The manager or leader is expected to follow the policy directives of the board. To gain allegiance to a cohesive thinking pattern, he ought to be an infectious-vibrant result-oriented personality. Timelessness is one major indicator of true leadership. Leaders foresee looming crises and never shy away from rolling up their sleeves to make a formidable opposition to the event. Quaid-e-Azam Mohammad Ali Jinnah, China’s Zhou En-lai, Zulfiqar Ali Bhutto, etc. were known for the long hours they would put in working out solutions for possible future scenarios. In corporate language, we call it disruption management or contingency plans.
Post crisis, measure the damage done, quantify the loss and go into finding more details. The unexpectedness and suddenness of crises remains and will remain a formidable threat
In the handling of any crisis, the role of individual workers is as critical as of the man at the helm. Loyalty to individual versus loyalty to work. What is important? What does the supervisor demand? Is loyalty to the individual a significant aspect in the handling of a challenge? The answer is both ‘yes’ and ‘no’. It is ‘yes’ to the extent that no colleague should become the fifth columnist, team members must remain loyal to the leader for all his business and organisation demands. It is ‘no’, to the extent that personal loyalty must not outstrip loyalty to work. As a CEO, I brushed aside any information brought to me about personal disloyalty, so long as the individual’s loyalty to his work or assignment remained unchanged. There is no need for currying favour with the supervisor at the cost of organisational goals.
When beset with any crisis, no organisation can hand to a single person for resolution, as doing so can be disastrous; instead it should be tackled by a team; which does not mean, ’all and sundry’. The team members need to have exceptional skills. A manager must know the value of each member, of what they can do and what not. Abraham Lincoln, had many of his opponents as Cabinet members, because he knew he could draw on special skills they possessed.
To handle any crisis, it is important is to get full and accurate details. I have seen managers losing both their shirt and sense of judgment, in reaction to unconfirmed information.
Apprehensiveness is no trait for one who leads. Managers aren’t supposed to perpetrate crisis or even become active catalysts. In real life most seniors are vulnerable to hearing rumours, backbiting and hearsay. Suspicion is enemy number one of all initiatives, likely to be taken for resolution of a matter. Crisis management is to sift through inaccurate information to seek the real issue and to discard the element of ‘desire’ of what the crisis should be about instead of what it is!
Leadership, corporate or otherwise, must be able to know what the threats are and to identify them, timely and accurately. The adequate knowledge of what could ail the institution will eventually lead to better preparedness. The suddenness of an event shouldn’t overturn the vessel; the management must put in place enough rafts and oars, to tide over the unexpected ’big wave’. Following possession of knowledge, the leader has to set about creating relevant task forces, who are likely to possess ability to create conditions that will firstly either prevent the occurrence of a damaging event or will develop a sound strategy to deal with it, if it eventually happens.
The greatest tragedy perhaps is when either the organisation or country remains oblivious to being faced with crises. “Don’t fret”, can never be a solution. Geology shouldn’t be understood only after an earthquake has struck. The occurrence of the crisis must be swiftly recognised.
A manager, while deliberating solutions must remain in possession of his narrative. So that, while diverse solutions are heard from all, there is enough interaction between individuals, to arrive at a harmonious solution. In the great oil spill along the cost of Alaska, the company responsible for it was in disarray in its narrative. This created more fears.
All strategies for managing crises should be documented; in the sudden emergence of a crisis you may not be able to fight it tooth and nail, but at least the basic design to handle it must be there or the actual happening of the event that will significantly impact the performance of the organization, and will always remain handy.
A plan must include several possibilities, ranging from changes of performance towards your products or services by the consumer to the changes in your human resource composition. What if the creative production manager has an accident? It is just one example, but if this wasn’t thought out by the leader, through the process of ‘succession planning’, he may face a severe crisis in seeking a quick replacement.
Who will be in charge in a crisis must be known, especially if the leader gets incapacitated suddenly. An unsuccessful attempt was made on US President Ronald Reagan in 1981. While he was being rushed to the hospital, his secretary of state, Alexander Haig promptly declared, “I am in charge”. Haig disregarded that the vice-president clearly takes over! In organisations too, there must be no ambiguity aboutwho will be in command, if the leader passes away, gets incapacitated or is indisposed.
During crisis, all staff must speak in unison. This can happen only if there is a sound system of communication within the entity. Periodic bulletins must come from either the CEO’s office or the corporate communication unit, citing latest developments. This will allow all to be on the same page. While internally the flow of information is being handled, the focus must not be lost on keeping the market informed. There should be formal and informal sessions with suppliers, contractors, clients, etc.
Bad news sells. So, an organisation facing any type of crisis will receive an overdose of media attention. At a UAE-owned bank, as CEO, I faced a run on the bank, other banks were suffering from similar onslaught, but for an unexplainable reason, this institution received, more media attention. Or sufficient liquidity did not placate concern. I went on a media offensive along with colleagues, where we provided honest answers and swift solutions to complaints. The issue faded in about 15 days. It is important to use TV, radio and social media platforms for relaying honest and up-to-date information. By being open, the leadership actually disperses a storm even before it starts gathering. In times of crisis, rumor mills run overtime.
Post crisis, measure the damage done, quantify the loss and go into finding more details. The unexpectedness and suddenness of crises remains and will remain a formidable threat.