Crisis Leadership

1. Crisis Leadership

2. Crisis Leadership • What are the qualities and skills that make an effective leader during crisis? • How would you go about assessing these qualities and skills? • Why are some leaders who are effective during stable times, less effective during crisis? • What are the effects of  stress on leadership decision making? What is the role of experience vs. intelligence in decision making? (see Fiedler & Garcia) • Assume you are a consultant coaching leaders on their behavior during a crisis-- what are some of the key areas of performance that they should practice and be prepared for?

3. 40 years of leadership research finds some traits are necessary but not sufficient: • Intelligence (but not too much), scholarship initiative, independence, inventiveness (correlated with age, drops after age 40) • Self assurance, confidence, aspiration, perceived occupational level • Reflection-- the “helicopter factor" (being able to hover above and reflect on self and team), objectivity • Demographic characteristics: good health, above or below average height, upper SES • Enthusiasm, sociability, integrity, courage, imagination, decisiveness, determination, energy • Sociability: dependable, responsible, active, socially participate, cooperative, popular • Motivation: show initiative and persistence • Cognitive ability: intelligent, scholarly, insightful, verbal, adaptable

6. Flawed Leadership

7. Trends • In the past five years nearly 2/3 of all major companies worldwide replaced their CEOs • 35% of all new executives entering a new position will fail (Center for Creative Leadership) • 40 percent of all executives entering into new positions will either leave voluntarily, be terminated or receive an unsatisfactory review within 18 months (Manchester Partners International) • 70% of CEO have considered quitting, and 35% of top executives would say no to CEO position (Burson-Marsteller CEO reputation study) • The typical Fortune 500 company has had 2.3 CEOs in the last decade (Center for Executive Options) • 15% of the problems a consultant was hired to solve were related to narcissistic managers. • Hertzberg (1968), and more recently Hogan, Raskin, and Fazzini (1990) report that the base rate for flawed leadership is between 60-75% in organizations • the failure rate of corporate executives in the US  from the 1980's-90's was about 50% (DeVries, 1992).

9. Overview of GroupThink Team Stages of Development Leadership Promotion of Team Cohesion Advantages of Cohesion 3 2 4 1 Team Pressure to Perform Flawed Organizational Structures Symptoms of GroupThink Consequences of GroupThink Counter measures (Defective decision making, low probability of success)

10. What makes an organizational culture a winner, in the extreme, can make it a loser

12. Experience impairs performance in low stress, but contributes to performance in high stress situations Under high stress, leaders focus on relations and don’t focus intellect on the job—IQ is more effective in low stress situations • Premises • cognitive resources refer to the leader's intelligence, ability, technical competence • leaders make the best use of their cognitive resources under different situations • stress is an important situational variable • use of intelligence & rationality is best under conditions of low stress and high follower support and competence • use of prior experience/intuition is best under conditions of very high stress

13. Requisite Crisis Leadership

14. Leadership during crises • Lateral bonds of identification and association • Vertical bonds of trust in authority • Shared language, purpose, and values • Shared history of problem solving The key– develop these before a crisis Ronald A. Heifetz, Founding Director for the Center for Public Leadership at the Kennedy School of Government, Harvard University, and author of Leadership Without Easy Answers

15. Survey of crisis leadership qualities http://trevorcook.typepad.com/weblog/files/crisis_leadership_allan_schoenberg.pdf

16. Vision is nice, but doers and team players are more successful

17. Rudy Giuliani & Crisis Leadership • Onsite interview with Peter Jennings • 9-28 reflection

18. Communication • Convey the bad news without speculating or horrifying • Use expert knowledge from others • Lead people through facts to conclusion • Relate to survival and recovery of similar incidents • Return to normal soon as possible • Use technology & media to cover & communicate • Ask people to help create solutions • Frequent press conferences • Focus on others and the task • Provide needed information frequently • Provide reassurance and that situation is under control • Ask questions that others are asking to shield from blame • Expect long term impact • Encourage stress management • Praise others • Rally and enthuse others • Show optimism and speak to the future • Remind of opportunities to change & fix broken system • Leader Presentation & Behavior • Be visible and present • Respond immediately • Show confidence, poise, calm • Emotional IQ: show compassion, empathy • Clarity of vision & values • Consistency & unified voice • Role model: strength, resiliency, endurance, persistence, determination • Delegate to others • Practice stress management • Rehearse & practice

19. The Change Management Lessons of Mayor Guiliani • Articulate a positive vision of what you foresee as the future • Maintain absolute integrity– do the right thing • Know your stuff– be fully informed, minimize politics, and get the job done • Keep people informed and involved– encourage them to create answers to important questions • Declare your expectations– you can’t get “there” until you know where “there is, and communicate it to employees • Show uncommon commitment– they won’t unless you do • Set clear limits with compassion– give people a choice in stark, clear terms (“iron hand in velvet glove”) • Expect positive results– the higher your expectations, the higher you achieve

20. 9. Get out in front– lead by pulling, not pushing; get out front where you can see and be seen • 10. Create a graceful exit for those who want to leave, so long as they behave constructively • 11.Take care of your people– and they’ll take care of you (& vice versa) • 12.Lavish praise on those who choose to make a positive contribution– a most powerful weapon in maintaining order & success • Maintain a moral compass-- Put duty before self; mission and people come first • Find meaning in negative events and learn from even the most trying circumstances

21. Crisis Leadership Model http://trevorcook.typepad.com/weblog/files/crisis_leadership_allan_schoenberg.pdf