Crisis Management and Mitigation
COVID-19 caused a health crisis in the world that every company has had to overcome. For many of us, in a couple of weeks, we went from operating as normal without any concerns to complete disaster. The US economy was continuing to grow. We were all in a season of ‘winning’. Then, we saw countless local, national, and international businesses experience unimaginable declines. The airlines, food, entertainment, and similar industries collapsed. And, although COVID has retreated, there will always be crises ahead. So how do we manage a crisis in a way that mitigates its negative effects?
First, as hard as it is to do it, you must not worry about tomorrow - it has enough to worry about on its own. A dear friend of mine routinely reminds his management team that they must only stress about those things that have to be stressed about at that time. All potential stresses are merely distractions from the current list of things that need your time. Another angle to this is prioritization. If you are worried about everything then you will handle or accomplish nothing. If you prioritize your stresses and allow yourself to only dwell and apply effort to the highest priorities, you can manage and mitigate negative effects. So when a crisis hits, don’t worry about ‘what if’ scenarios. Worry about what is needed to worry about and set everything aside for a future day.
Second, proper communication is key. You may have heard people prescribe ‘over-communication’ in these times. I don’t believe that more communication is always best. Sometimes the presence of more frequent communication can trigger greater alarm than necessary and invoke greater fear. Sometimes, more communication becomes watered down because of the regurgitation of topics. People then tune out frequently because they are aware of the diminishing quality of content in communication. More communication does not objectively mitigate the concern. Instead, proper communication does. You want to ensure you communicate so people are always kept up to date with the crisis. You want to communicate so people understand their expectations and how to prioritize them amid the current crisis. You want to communicate confidence and embolden people. You do not need larger volumes of communication but you definitely need proper communication at this time.
Third, set the tone of courage and resist overreaction. Leadership requires strength amid susceptibility. Whenever disaster strikes, citizens flock to their televisions or radios to hear from the national leaders. Think of Europe tuning into Winston Churchill to address the world amidst WW2. Think of President George W. Bush addressing the country after 9/11. When we are shaken, we look up for stability. We look to our leaders. In a crisis, your employees will look up to management and ownership. What they see in those times is of utmost importance. Leadership must show courage and strength. Courage does not mean the absence of fear, it means overcoming the actual presence of fear. Leaders are not required to be unafraid. They are required to overcome the fear they feel. So in crisis, mitigate people’s worry by setting the tone of courage and resisting overreaction.
The first three points have to do with the internal fears of people. These points are like the anchor for the ship. They must be in place to steady and stabilize the next efforts. Before you run to roll out all your crisis-management initiatives, first look inside and ensure that you are ready to handle the storm in a way that invokes confidence. I will close with several practical points to help guide the daily grind in crisis seasons.
Fourth, temporarily change your structures to be agile. A crisis usually involves fast and devastating changes. The landscape that you plan for is changing constantly. The best way to counteract a shifting landscape is to pivot your structures to have more agility. If you used to meet once a week or a day with your management team for an extended period, consider changing to several shorter meetings during the day or week. This will allow you to keep up to date on all changes and make helpful decisions. You may also need to suspend ‘best practices’ in a certain aspect of your business or operation. ‘Best practices’ are written assuming normal situations. A crisis arose because the normal situation had been suspended. You must not invoke anarchy in your business. Yet, use the freedom to temporarily change your structures to be agile in handling the present crisis.
Fifth, collaborate with other voices. Usually, a crisis impacts a wide area and is not confined to within your walls - although that happens too. In both cases, don’t be too proud to ask for help and reach outside of your walls. Call suppliers or customers to ask them what they are implementing to mitigate disaster. Talk with friends, family, and mentors for their guidance. Survey and listen to your team and employees. You do not need to be the hero. You don’t need to take the last-second game-winning shot. Your job is to ensure the company wins at the end of the day. Our pride could tempt us to not reach out for help because it could reveal our limits or weaknesses. It could also tempt us to wait until it is too late. Be quick to humbly ask for help. Greatness is not found in our self-sufficiency. Greatness is measured broadly. You win or lose as a team. So be quick to collaborate with other voices to help understand the depth of the crisis and the creative response techniques around you.
We will all face crises at different times in our lives. It is not a matter of ‘if’, it is a matter of ‘when’. If we give in to all potential fears and worries, practice improper communication, and set a tone of fear and overreaction we will experience misery. If we refuse to temporarily change our structures to enhance our agility in handling the ever-changing landscape and we let pride deceive us into not asking for help, we guarantee worse outcomes. Instead, slow down and only stress about the most important things today. Focus on proper communication and setting a tone of courage for your team. Utilize a war-time mindset and be flexible and agile in your structures. And remember that you don’t have to carry it all alone. Collaborate with others and be quick to humble yourself and seek guidance.
The wise use crisis as a teacher and grow under its tutelage. The foolish crumble under the pressures and burn bridges as they go tumbling down. There is nothing easy about a crisis but certain aspects are simple. I’d encourage you to have a bigger picture of ‘success’ than just staying in business. Make ‘success’ not just about the destination but also about the journey. If you follow these principles, you can manage a crisis in a way that mitigates its negative effects and sustains your business and team into a bigger and brighter future.
