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Brain Circuits
Can your board navigate a crisis? How to step up and step in Â
In a crisis, the pressure on the board and senior management can feel overwhelming. Here are five key behaviors your board should adopt to navigate a path through the turbulent waters.
1. Know when to step in – and when to keep out
When a business is in crisis, board directors must roll up their sleeves and step into the action – but must not try to micromanage every decision the CEO makes or lose sight of the long-term vision. Rather, boards must be ready to adapt to the needs, timelines, and capabilities of the CEO and executive team.
2. Maintain independence
A good relationship between the chair, board members, and CEO is key, but never more so than during a crisis. Trust and proactive communication are crucial for the board to oversee and support management decisions effectively. At the same time, the board must preserve its independence; assessing all possible options thoroughly to make swift decisions based on the information available.
3. Manage emotions (yours and others)
In a crisis the stakes are high, and emotions run deep – careers and reputations are on the line, with the threat of job losses and potential long-term legal action. Yet these moments can forge unity. The chair’s pivotal role is to create a safe place for open challenge and dialogue, remaining accessible to fellow directors, the CEO, and senior executives. Chairs serve as a crucial conduit between the board and senior management, ensuring the board stays informed without swamping management with demands.
4. Lead by example
Board directors and senior leaders are constantly under scrutiny – not just for their decisions and actions but also for their behavior, commitment, and values. Directors and senior leaders must model healthy behaviors and emotional self-regulation and avoid negative comments. The chair and CEO should present a unified front, showing a shared commitment to managing the crisis with confidence and decisiveness.
5. Stay positive
Despite all the challenges, it’s crucial to approach meetings with a positive attitude and productive energy. Board members and senior leadership must maintain high energy levels and work to reduce stress. Celebrating small wins and practicing gratitude can also counteract negativity bias and help maintain morale.
Key takeaway
The best boards have contingency plans in place long before a crisis arrives but, when it hits, step up and step in; assuming a more active role to reassess priorities, ensure robust governance, and restore operations.
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