They say that there are only two certainties in life: death and taxes. In the corporate world, however, there is a third certainty. Is there a crisis? Indeed, the worst of the COVID-19 situation may be passed for some of us. However, you would be correct in assuming that another catastrophe is on the horizon. It might be a local issue. It might be worldwide. In any event, it is a catastrophe that you can predict and prepare for if you have the necessary abilities. Erica H James and Lynn Perry Wootton are the authors of this book. The prepared leader "Emerge from any crisis more resilient than before".
1. Humans aren't very good at anticipating future disasters, which is why we need to acquire specialized talents.
Didn't the COVID-19 pandemic catch us all off guard? Perhaps not everyone. For decades, journalists, scientists, and epidemiologists had been alerting us that a viral global pandemic was imminent. But, in the end, the majority of us were unprepared.
While it is difficult to calculate the damage in both human and economic terms, some experts believe the pandemic might result in a $12 trillion loss. Labor income losses totaled $3.7 trillion in 2020 alone.
True, we might have done a better job of heeding the warning signs, but human beings are just unsuited to planning for future disasters.
To put it simply, human evolution has taught us to prioritize recent dangers over the chance of future threats.
As a result, humans have some cognitive biases that prevent preparation.
Probability neglect is one such bias, which implies that even if we perceive a threat building halfway over the world, we prefer to disregard it or minimize the influence it may have on us.
The anchoring effect would be another. This refers to how we tend to hold to an initial impression and refuse to let go of it even though all indicators point to it being incorrect.
Similarly, the more time and money we spend on a potential solution, the more difficult it is to alter direction, even when it is clear that the solution will fail.
However, there is a silver lining. Once you're conscious of your prejudices, you may work to combat them. Once you're conscious of your biases, you may work to overcome them.
It will need some active work on your behalf, but there is no reason you can't become the type of leader who not only identifies and manages a crisis but also emerges victorious. You may be the manager who replaces fear and neglect with readiness and composure.
Adam Silver, the Commissioner of the National Basketball Association NBA, is one of the greatest instances of this. Silver suspended the NBA season on March 11, 2020, the same day the World Health Organization declared a pandemic. This had never happened in league history, but Silva had been paying close attention to what was going on over the last few months and took action based on what he viewed as the facts.
To create the first bubble, Silver hired a mixed team of healthcare and sports professionals. This was another costly choice, costing roughly $190 million because it included establishing what was virtually a mini city in Florida, where all the players into team members could live in isolation. However, with the bubble in place, the league was able to play 172 games with no COVID cases. In the end, Silver's choice not only kept people safe but also demonstrated to the world how a corporation could continue to function in the face of a raging epidemic.
It helped the NBA to win and collect $1.5 billion in revenue. What Silver accomplished is a textbook example of a crisis leadership agency. It is ultimately your obligation as a leader to take action. And in the parts that follow, we'll go through the abilities you can work on to become the best leader you can be.
2. There are five stages of crisis response.
There are three bottom lines that are widely acknowledged as being critically necessary for all leaders to consider. The triple bottom line paradigm is used to describe this. It entails a duty to care for people, the environment, and then profits.
This is right, however in order to appropriately handle these obligations, we must add a fourth bottom line. Leadership that is well-prepared. With this in mind, the authors have defined five crisis management phases that are essential for becoming a prepared leader.
First, let's review the five stages. The first is early warning and identification of signals. Some crises, such as natural disasters or unexpected acts of violence, can occur without notice. However, most crises include warning signals that may be identified and addressed. The prepared leader must have their senses tuned to these early warning indicators and the bravery and conviction to act on them before the crisis worsens, even if it means suffering some losses.
Preparation and prevention are the 2 phases of crisis management. You've noticed the danger sign, but what now? Do you have a crisis management team? Have you been practicing drills? Have you conducted any exercises to guarantee a quick and coordinated response? If this describes your actions, you're well on your way to handling the preparation and preventive phase.
Stage 3 Damage control. In general, this is the stage that most individuals consider when confronted with a catastrophe. How can we contain an issue and keep it from infecting all elements of the business? When the COVID-19 crisis struck, many firms did everything they could to mitigate the harm. However, some, such as the UK pub chain JD Wetherspoon, has failed at this point. During the initial lockdown, none of the company's 43,000 employees will be paid, according to Group Chairman Tim Martin. He also encouraged individuals to apply for employment at the Tesco retail business. To say the least, this crisis reaction was not well received. It just did additional harm to the organization and made people wonder whether this is how they handle their staff. Who would like to work for JD Wetherspoon? This is a perfect illustration of what to avoid.
The 4 phase is all about one thing. Recovery. This is another phase that will benefit from a well-staffed team. Because time is important in this situation, the recovery team should have open access to the proper information as well as short and long-term goals in place. We'll get into more detail later, but at this point, the question should always be, can we recover from the crisis in a way that makes us stronger and better than we were before?
This brings us to the 5 steps, learning and reflection. Many executives handle crisis management solely defensively. Often, it is a succession of reactions that may mitigate the acute injury but cause long-term harm. Sometimes, it consists of a sequence of reactions that may mitigate the immediate harm but do nothing to address the fundamental causes of the crisis. A prepared leader may emerge with a firm that is more efficient and effective than ever before by taking the time to investigate, learn, and reflect.
As previously said, there are nine related traits that any prepared leader should possess in order to prosper in these stages.
3. The 9 crisis management skills.
Let's take a moment here to practice visualizing. Consider yourself a bird. But not just any bird will do. You're a swift, a type of migratory bird.
Swifts are unique in that they take flight twice a day and fly up to the sky. The birds can assess air currents, weather systems, and atmospheric conditions at such a great altitude to formulate the best possible arrangements. In other words, Swifts make it a habit to look at the larger picture, interpret the numerous indications around them, and prepare appropriately. That's a really sound method, and it's one that any prepared leader must have.
It is also the focus of the 1 phase of crisis management, early warning, and signal detection. There are two extremely useful talents to flourish in this period. Making sense and shifting perspectives. Going up and gazing around for signals of an impending disaster is useless unless you know how to make sense. This necessitates the formation of a crisis response team comprised of individuals with varied viewpoints. A squad that will be on the lookout for anything out of the norm and worthy of notice.
Moving on to the 2 steps, preparation, and prevention, three primary skills should be considered. Have an impact on organizational flexibility and innovation. Influence is the type of leader that people trust and admire, the type of leader that people will confidently follow. So here are some questions to consider. Do you place a premium on trust and openness in your leadership style? Do you distribute tasks to those with specific knowledge? Do you speak properly and explain why you make your decisions? If you responded yes to all of these questions, you should have the sort of influence that will aid you in crisis management.
Trust is also important in the second skill of organizational agility. When a crisis strikes, your emphasis as a leader will be on the broad picture. You'll need to surround yourself with teams that have some autonomy so that you can delegate tasks and feel confident that plans will be followed out and crucial choices will be made without you. If your business's communications are currently choked up in webs of bureaucracy and hierarchy, you must prioritize addressing this so that your organization can pivot seamlessly when a crisis strikes.
Creativity must also be recognized. Do you consistently encourage innovative problem-solving thinking? Could your teams benefit from more creative thinking? When a crisis strikes, having individuals in your business who understand the value of and are skilled in creative problem-solving is extremely beneficial. As a result, this is a talent that should be prioritized at all times.
There are two talents to keep in mind throughout the damage control phase. Risk-taking and effective communication. It goes without saying that clear and efficient communication is critical during crisis management. To be honest, this is a talent that is required at every stage of crisis management.
However, it is possibly most vital when trying to keep people calm, motivated, and confident even when circumstances are chaotic and unclear. During this stage, it is critical to stay empathetic to what employees require to execute their jobs and to maintain channels of communication open.
The last thing you want is for individuals to feel they can't ask inquiries or have their concerns dismissed. It should come as no surprise that taking risks is a vital talent in a crisis. After all, a crisis is intrinsically dangerous. It needs a leader who is willing and confident to make swift judgments.
Hemming and griping just won't cut it when it comes to damage containment, therefore you must be ready to take risks and make mistakes from time to time. It's just part of the job. This brings us to the final two abilities that promote resilience. As well as individual and systemic learning. The word "resilience" was on everyone's lips as towns and companies began to emerge from the COVID-19 disaster.
You may encourage and empower your teams to make decisions, experiment, learn from mistakes, and develop in terms of experience and confidence. Everyone should keep the prospect in mind that we can not only survive this crisis but even thrive. But perhaps even stronger than before.
Individual and systemic learning is the final quality, and it is possibly the most crucial when it comes to prepared leadership. There is no limit to your personal learning. It's continuing, and it'll always be important to be prepared since the world around you never stops changing. However, as a leader, you should also do all possible to support learning inside your business.
Employees in your organization are also the eyes and ears of your company, and they must be prepared to recognize and manage the next crisis.
Some of the main ideas
One or two dangers to watch out for in the new line The writers devote a significant amount of effort to art variety and trust. In terms of making decisions. It cannot be overstated how crucial it is to obtain a diverse range of thoughts and perspectives. Remember how we discussed cognitive biases in the first session?
The greatest method to overcome those preconceptions is to go out to other individuals and listen to what they have to say. Diversity is also important when putting together a crisis management team.
You should build a well-rounded club with a wide range of skill sets and no blind spots. You should also set clear goals focused on your company's common vision, which is where trust comes in again. You must create an environment in which people feel empowered, motivated, and at ease speaking up. This is all part of the corporate culture, which you have control over as the leader.
Finally, let us discuss technology. Many businesses nowadays are touched to some extent by technology and crises that might occur on a local or global scale. This is critical to remember for multiple reasons. Technology can aid in the development of a global mindset capable of successfully responding to a global crisis.
It enables you to seek knowledge from individuals all across the world and obtain unique cultural perspectives. Increasing the number of contacts you have throughout the world can result in what the authors refer to as a mega community, which can be quite valuable when dealing with a global catastrophe. There is a saying that
"Technology is only as good as the leader who employs it"
People will frequently refer to success stories and imply that we might learn from them.
