Crisis leadership: it’s a question of style

Crisis leadership: it’s a question of style    

Don’t underestimate the power of a positive work climate

A tough economic climate can take the wind out of the sails of both your employees and leaders. A vicious circle develops: no matter how much extra effort it exerts, the company continues on a downward trajectory. However there are effective ways to tackle the problem.

During economic downturns, people focus is often on the things they can’t control and stop taking positive action. Effective crisis leadership will create an engaging work climate despite the bad economic news and fear it can generate.

And the power of a positive work climate and the extra effort it encourages should not be underestimated. Research shows that employees working in engaging climates outperform peers in a less robust environment by as much as 30 per cent.

Good leaders call on a full range of leadership styles. And the very best keep focused on what they must achieve, adapting their style where appropriate.

The new US President offers a good example. He used his inaugural address to inspire the nation. He has also consulted with the opposition and made unilateral decisions to overturn prior policies. Here’s some practical advice on what leaders can do.

Keep employees energized

Businesses that win in a downturn provide clear direction in the face of uncertainty, reassuring when necessary, all the while continuing to push for results. These leaders create energizing, engaging work climates by using the full range of leadership styles.

1. Effective leaders create clarity and buy-in while keeping people focused on the work at hand. They do this by being authoritative – creating the vision, providing the context and gaining commitment. They know it’s important not to leave employees in the dark about the company’s strategy and are aware of how an information vacuum is immediately filled by rumor. These leaders make decisions quickly and then communicate them. Rather than concentrating on negatives like cost cutting, redundancies and closures, which leave employees feeling fearful and helpless, they focus people on what they can do to feel empowered and energized and help the company through the downturn.

2. Occasionally during times of real crisis leaders become coercive, directing people to specific actions and warning of the consequences if they are not followed in a timely fashion. When the airliner recently crashed into New York’s Hudson River, for example, the passengers were told to move directly to the exit doors and out onto the rafts or the wings. Such direct leadership can become overbearing or downright boring if overused, but it undoubtedly saved lives that day. It has also rescued more than a few floundering businesses.

3. When required, effective leaders reach out to others for help and expertise, taking a more democratic approach. But they do so only after they have framed the issue and established the parameters. For people to be involved in the decision-making process they must have the necessary clarity. It is difficult to arrive at the best course of action if they don’t know the ultimate objective. Once the playing field and the rules of the game have been authoritatively laid out, a team can develop an innovative approach through active participation. 

4. Good leaders are supportive. In times like these, a little affiliative leadership can also be important. People are scared. They’re worried about their jobs and their ability to pay bills and their self-esteem is often under attack. Sometimes the best leadership involves just bringing in the lunch, listening and understanding. 

5. It’s also important continue to coach and develop people. They may not hold regular, coaching sessions. They may be too busy dealing with the crisis at hand. But in those quiet moments, perhaps at the end of a meeting, over a beer or glass of wine, or in the parking lot at the end of a long day they take a few minutes to listen, to help, to provide a bit of feedback and to impart a bit of wisdom. Such coaching moments can be brief but profound. 

6.Effective downturn leaders become more visible, using elements of the pacesetting style. By putting your shoulder to the wheel and leading by example, you demonstrate that you are there with employees – and for – them. However beware, your role is to lead, not micromanage or disempower employees. If you spend too much time in the weeds dealing with the detail, you will miss critical opportunities and subtle shifts in the bigger strategic picture. Use this style sparingly. 

Don’t rely on one style
Combining these styles fosters a better work climate. It gives employees goals to focus on and room to innovate, while also encouraging them to work collaboratively. This is important because employees that are engaged by the right kind of leadership will go the extra mile.

What leaders have to watch for is overusing any particular style. Be particularly sensitive to the style you use most often. If all you do is talk big picture or hold meetings, you will have a minimal impact. If you’re too empathetic, people start feeling sorry for themselves. If you’re always leading by example, you miss the strategic piece. You have teams to do the work. Let them do it. You’re the leader.

Avoid bad habits
During a downturn it’s easy to fall into bad habits. Perhaps the biggest risk is adopting a command and control approach and become coercive. At its worst, this involves micromanaging employees. We also see frustrated leaders simply take over in an attempt to solve problems rather than seeking the input of others. If you’re always jumping in and doing the work yourself – pacesetting – you miss the strategic piece. Used in isolation both of these styles can adversely affect the overall work climate within an organization and frustrate people’s natural motives.

Communicate, communicate, communicate
Successful leaders avoid these common pitfalls and concentrate on creating positive work climates. Get people looking at what they can do, so that they feel empowered and energized to help the company through the downturn.

They know it’s important not to leave employees in the dark about the company’s strategy. These leaders make decisions quickly and then communicate them effectively to staff so people have an area to focus on moving forward.

For example, rather than simply cutting down on meetings to save travel costs, these leaders look for other, cost effective ways to keep people connected so they are encouraged to collaborate and innovate.

Untapped energy
When leaders use a mixture of styles they create the clarity, flexibility and the responsibility employees need to be effective. The also are able to maintain a focus on high standards and improvement and provide crucial feedback. And, they create much needed team commitment that is often in short supply during tough times.

It is this set of elements that together create an engaging, empowering work climate. In many cases it may be enough to offset the cuts companies have had to make elsewhere, so it’s plain to see that improving leadership styles really can offer extraordinary value to an organization.

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