Published 28 November 2023 in Human Resources • 5 min read • 
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As baby-boomer CEOs retire, a new wave of leaders is taking over. These new CEOs are full of fresh ideas and perspectives. However, many inevitably will face their first time leading a large organization through a crisis.
This is a tough but unavoidable challenge. Even if these leaders have experienced crisis management challenges earlier in their careers, managing a crisis as CEO is a different order. Most of the incoming millennial CEOs are well-versed in technology and change. They’ve dealt with market ups and downs, tech shifts, and cultural changes.
But leading an entire company through a crisis is a unique challenge that tests leadership skills in a way nothing else does. The responsibility is greater, the attention more intense, and the risks higher. As a CEO in a crisis, you’re tested in ways that require both managerial and visionary leadership skills.
This article serves as a guide for these new CEOs facing crises. You’ll find advice here from experienced leaders who have faced similar challenges. The aim is to provide clear direction for what lies ahead. The challenge for this new generation of leaders is tough, but it’s also a chance to show strong leadership and come out even stronger. Here are seven pieces of advice to guide you through these challenging times.
The first and perhaps most important challenge arises in the immediate aftermath of a crisis breaking. “The first few hours after a crisis breaks are critical,” says John D Rockefeller, “How a company responds can mean the difference between a quick recovery and a prolonged disaster.”
“Good judgment comes from experience, and experience comes from bad judgments.”- Aphorism attributed to various sources
As a CEO, you must swiftly assemble a crisis management team with clear roles and responsibilities. This team should be a cross-functional group that can make quick decisions based on available data. Speed is of the essence, but so is a calm and measured approach to avoid knee-jerk reactions that could exacerbate the situation.
Warren Buffett famously advised, “Get it right, get it fast, get it out, get it over.” In a crisis, the way a company communicates can either restore confidence or destroy it. Transparency is your ally. Regularly update your stakeholders, admitting what you know and what you don’t. This level of honesty can build more trust than pretending to have all the answers. Moreover, a single source of truth, like a dedicated crisis webpage, can serve as the official medium for updates, preventing misinformation and speculation.
In a crisis, not all stakeholders are affected equally. It’s essential to identify who is most impacted and tailor your communication and response strategies to their needs. This doesn’t mean other stakeholders are less important, but it does mean some require immediate attention to mitigate impact. As management consultant Peter Drucker said, “The most important thing in communication is hearing what isn’t said.” Listening to your stakeholders, understanding their concerns, and responding accordingly can turn critics into allies.
While immediate actions are critical, one must not lose sight of the horizon. Strategic planning involves crafting a dual-focused plan that addresses both the immediate crisis and the path to long-term recovery. “Plans are worthless, but planning is everything,” Dwight D. Eisenhower noted, highlighting the importance of the planning process in navigating uncertainty. Establishing clear KPIs to monitor the effectiveness of your response will help you to make data-driven decisions and pivot as necessary.
Transparency is your ally. Regularly update your stakeholders, admitting what you know and what you don't. This level of honesty can build more trust than pretending to have all the answers.
Every crisis has legal and regulatory implications. Non-compliance during a crisis can lead to a secondary crisis, often legal, that can further tarnish the company’s reputation. Consulting with legal counsel is not just a step in the process; it’s an ongoing requirement. As said the saying goes, “Good judgment comes from experience, and experience comes from bad judgments.” The guidance of experienced legal professionals can prevent the repeat of past mistakes.
A crisis is not just a business challenge, it’s a human one. Employees and customers alike are looking for strength, empathy, and leadership. Daniel Goleman, the father of Emotional Intelligence theory, argues, “Leadership is not domination, but the art of persuading people to work toward a common goal.” During a crisis, showing that you care can foster a spirit of teamwork and dedication that can see your company through the toughest of times.
After the storm has passed, the learning begins. A crisis should be a catalyst for growth, not just a badge of survival. Analyzing what went wrong, what was handled well, and how processes can be improved is critical. “We are too much in a state of perpetual preparation, always reading, never doing,” said management thinker Peter F Drucker. Take the insights gained and turn them into action. Adapt your crisis management plan and educate your team so that the next time a crisis arises, your company is even more resilient.
In conclusion, your role as a new CEO in a crisis is akin to that of a captain in a storm. You must be decisive, yet adaptable; strong, yet empathetic; strategic, yet tactically aware. Remember, crises are not just tests of your business acumen, but of your values, your team, and your company’s culture. Lead with integrity, and you will navigate not just to safe harbor, but to new horizons.
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