3 tips for how to lead during a crisis
“Plans are great until you get punched in the face.” Although Mike Tyson is not a role model for business leadership, this quote of his points to the necessity of being agile — willing to change or even abandon your plans in extreme situations. It reminded me of an old Jewish proverb, “Man plans and God laughs.”
If you were the CEO of an electric company in the southern U.S. in 2017, you are eminently well-qualified to talk about “Unexpected Outcomes: How to Survive a Crisis.” Three major hurricanes will test the resilience of any corporation. In his talk to the Executives’ Club of Chicago, Tom Fanning, CEO of Southern Company, offered astute advice about how business leaders can prepare for and navigate through disasters, both natural and otherwise. Here are some of his key points.
Be ready to turn your hierarchy upside down. The people in charge of crisis response need to be those on or close to the front lines, not the corporate honchos. Give the people close to the action ownership of small pieces of the response and let them figure it out. As Fanning said, “Eat the elephant one bite at a time.”In my experience, turning the hierarchy upside down is often an excellent leadership tactic, even when a company is not in crisis. Great innovations come from listening to the insights of people who are actually doing the work and who are closest to your customers.
Set up systems to gather and share information as rapidly as possible. This will facilitate your ability to pivot and do what needs to be done. Disseminating information rapidly is also key to business success. Communicating with your customers is valuable all the time, but during a crisis, information helps to calm panic and build a sense of community and common purpose.
It’s not enough to get the lights turned back on. You also have to deliver hope. Find ways to provide help that go beyond your usual niche. Community involvement and corporate responsibility build your brand, they inspires loyalty, and they are the right thing to do.
Fanning also offered some thoughtful advice about bigger-picture strategic business planning. He talked about the danger of complacency, saying “The greatest indicator of future failure is past success.” Fanning is a fan of “creative destruction” — continually looking for new ways to do your business better. Or as one of my clients once put it, “If it ain’t broke, break it.”
Fanning’s presentation was provocative and engaging. His approach to business leadership can be best summed up in his observation, “Life ain’t linear.”
