The three most critical things a leader should do during corporate crisis:
1 – Articulate a rational perception of reality that is reasonably optimistic. This is the most dangerous point and can be more a matter of art than research, but it is the best way to answer the need for someone to be in charge. The perception of reality must be factual and there must be express recognition that there is another, better day. The danger is that the articulation of reality will be so inaccurate that credibility is lost.
2 – Review this perception of reality with those in the business who can affect its course and revise the perception as appropriate. The initial statement of reality hopefully is just that, but if the employees who can make a difference do not perceive the reality in the same way, there will be additional problems. It is important at this point to ask open ended questions and listen. Information should be gathered effectively (not at open meetings where employees are inclined to agree with the meeting leader) by confidential, one-on-one conversations designed to elicit candid responses. This effective polling will produce a more realistic statement of reality that is supported by employees. Revise the perception and document it in writing.
3 – Communicate the revised perception to the customers of the business’ products or services. Leadership and employee contacts must sincerely provide the same information about the company’s situation and future. The accurate perception of reality will establish credibility for statements concerning the company’s future performance.
Conterminously with this work (hopefully as a matter of course), a written strategic plan should be developed and operational planning modified appropriately.
