IntroBooks Team - Leadership in Turbulent Times

Leadership in

Turbulent Times

IntroBooks #417

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Turbulent times occur due to crises, which can happen at any time and in any organisation. Even if the firm is doing well today, it does not eradicate the possibility of the firm being thrown into trouble in the nearest future. No one can predict the future. While leaders of a company are enjoying the good times, they should equally consider the possibility of turbulent times; as a result, they should prepare for eventualities. They should get themselves ready for those times that crisis will be the order of the day. No one wishes for crises, but the crisis does not come by wishing for them; they come a random and the causes can be internal or external.

Preparing ahead of time can prevent the problems of under preparation for crises. A company and its management should understand how to manage crises situations when such arise. The leaders in a company should be visionary enough to get them set for any problem that may arise.

There is a clear difference between crises leadership and crisis management. Company A may thrive in times of crises, while company B may fail in the same situation. One major factor that differentiates the two is the quality of leadership being displayed during such period. A manager should show him or herself worthy of the place of leadership throughout the crisis-management process. In this text, emphasis will be laid on several competencies that a leader should have during crises for effective crisis management; lacking any of these qualities will not augur well for the company during those severe downturns. Leaders should develop top quality corporate communication strategies and also build a foundation of trust among the members of staff of the organization and those involved in the supply chain. The foundation thus built can then be used in preparing the organization for those difficult times.

The last statement indicates that learning about crisis management should not start when the problem begins, but should have been well versed long before such a situation arises. If well managed, the leader can leverage crises situations for creating a better organization via change creation. The organization should also not lag in public relations, which is an integral part of crisis management. PR activities and communication should not be limited to the members of the public, but should also involve and include members of staff; yes, it is crucial to carry the members of staff along during the crises situation. Despite the place of importance of communication and PR activities, they are not sufficient to see the company through the crisis period; more still needs to be done. It is essential to build a camaraderie spirit among the member of staff, which will buy the confidence and image of the organization among the staff member and the general public. Transparency and wise management of information are some of the essential factors a good leader should put into practice during crises management. Many members of staff will be more disposed to tag along faithfully if they feel carried along.

Failure to carry members of staff along can have a foreboding effect on leadership effectiveness, which will not augur well for the company. The leaders should see the big picture of the crisis and be able to spot an opportunity that can help the organization scale through this uncomfortable situation. It is mandatory for an organization to be professional and humane in its crisis management activities, considering the increased competitive state of the business environment.

Crises of various forms do arise in an organization. Each of these crises poses different forms of challenges to the organization. It must be stated that crisis management is never a one-way route; there are several options to crisis management. This is because each of these crises has its specific cause; it also indicates that a leader requires broad knowledge for effective crisis management.

One of the most outstanding factors that can lead to crises is the issue of economic recession. Recession can either be an internal or external occurrence. Both can have a crippling impact on the company. While the internal issue may be more manageable by the company, the external factors may be beyond the scope of the company. Even in such a situation, a leader should have what it takes to carry members of staff along and also to buoy the economic situation of the company. In all sincerity, it can take several years to put the crises being experienced by the company under control. Be that as it may, the leaders should know how to steer the course of the companys ship till it arrives at its desired haven, no matter how long it takes.

A business crisis is an emotionally charged occurrence. It can bring about negative reactions from the stakeholders of that company if the secret leaks to the general public. If things are not managed properly, it can result in a threat to the financial well-being of the business organization. The reputation of the company can also suffer, and its chance of survival can become very slim.

The two primary forms of crisis are

1. Smouldering crisis and

2. Sudden crises

Smouldering crisis

This type of crisis is seen as the fault of the management. It is the type of crisis that takes time to develop. It arises gradually with the management looking on without doing anything to curb it until it blows off in their faces. This form of crisis is due to poor management. The outcome can be costly if it is not nipped in the bud before it is too late. In this instance, the problem is not the cause of the crisis, but the management of the situation. If well managed, a smoldering crisis will not do much harm to the organization. However, poor management of a smoldering crisis can put the organization in a challenging position, and heads may roll in the process if things go south.

Sudden Crisis

Sudden types of crises occur unexpectedly, and the organization rarely has any country over it, making its prevention very difficult. In such instances, the company can be absolved of responsibility or fault. The crisis can vary in magnitude, depending on the cause. In most instances, a sudden crisis is external in origin. As a result, business leaders could rarely imagine that such would be possible because they have done their home works well and left no place to chances from their quarters. Consequently, they are mostly unprepared for this type of crisis.

A good example of a sudden crisis is the disruption in technology, like computer systems and phone lines, which can confuse members of staff on when and where to report to work. I can culminate to a workplace chaos and loss of productivity. Be that as it may, the management of the organization can be absolved of fault since the network disruption is most probably due to external factors.

Despite the fact that sudden crises are beyond the control of the management, it is still expected of them to put things under control and set the company on a smooth operational path again in as short a period as possible. Even though the crisis may be sudden and the company has no fault, the stakeholders will not expect any delay in service delivery. Such delay can bring the blame back to the management if it lingers on longer than necessary. The leadership of the company must be careful not to mishandle the situation. They may not be responsible for causing the crisis, but they are responsible for solving it. Steadfast leadership is required in this instance for effective crisis management. At the initial stage, the stakeholders may be empathetic; but their empathy may give place to blame if the crisis is not resolved timely enough.