CRISIS LEADERSHIP
Autumn 2009
Volume 6, Issue 3
The Kennedy School of Government at Harvard University defines crisis as “an unexpected, dramatic, and often unprecedented event that forces an organization into chaos and may destroy the organization without urgent and decisive action.” Furthermore, the Institute for Crises Management (ICM) places crises in two categories. The first is the “Sudden Crisis.” This is the unexpected, unpredicted calamity that confronts an organization and threatens its stability or existence. Examples include natural disasters, severe accidents, devastating fires, loss of an important leader, significant sickness and even death.
The second type is the “Smoldering Crisis,” an undetected condition that exists in the culture of an organization but has the potential to destroy it. Examples include unethical management practices, leaders who lack integrity, theological divisions, pervasive immorality, strife and division among the membership—or even a widespread attitude of apathy and malaise. According to ICM research, 77 percent of crises that confront organizations are of the "smoldering" type.
For the most part, this crisis may be detected by a few individuals but goes largely unaddressed. When left to smolder, there are two possible outcomes: eruption or erosion. Many smoldering crises have erupted into mayhems of controversy and contempt when scandals were exposed or agitated members launched campaigns of dissent against the leaders. On the other hand, some smoldering crises simply festered like unseen cancers until the organization eroded into ineffectiveness, lack of interest and bankruptcy.
Beyond the sudden and the smoldering crises is a third type of crisis which I call the “Strategic Crises.” It is the kind of crisis an organization may go through as a result of proactive initiatives on the part of the leadership. Rather than the typical model of crises management which is reactive and tries to repair an organization after some disastrous scandal or unforeseen tragedy, this crises is intentional. It occurs when leaders attempt to revitalize organizations that are mired in a comfort zone.
Groups of people typically try to achieve equilibrium. They move towards a place of comfort that serves their needs, provides security and avoids risk. But visionary leaders recognize the subtle danger in status quo. They understand that mediocrity is the enemy of productivity and therefore try to jolt the organization to higher levels of achievement. This usually involves change, risk and a sense of uncertainty. In many cases, such initiatives result in a personal crisis for some of their followers. But this kind of crisis is necessary.
While there may be different categories of crises, the principles for navigating them are the same. Leaders must take charge, be visible, remain calm, build their team and plan proactively. Such an approach will not only bring deliverance from crisis, it will turn the crisis into an opportunity for strengthening and growth. Whatever category of crisis an organization may be facing, the key to surviving and being triumphant over it is leadership. This edition of Leadership Teaching Magazine will provide basic practical principles of navigating crisis that will make your organization stronger, more cohesive and enduring through it.
