Mastering the Crisis Paradox: 5 Steps for Leaders

Switzer told the graduates, “Often it’s the adversity in your life that gives you the greatest ideas. Sometimes the worst things in your life become the best.”

In our line of work, we call this the “Crisis Paradox” — when a crisis strikes an organization, it is wildly destructive . . . and positively transformational. John F. Kennedy described it this way: “The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger, but recognize the opportunity.” We have seen the danger and the opportunity in many different crises, at organizations large and small, before and after the advent of social media. A crisis almost always results in some degree of positive change, significantly shaped by the leader’s effectiveness.

We work with leaders who have guided their organizations through significant times of crisis, and leaders who haven’t yet faced a true crisis. They all share one thing in common: they want to feel prepared to lead when crisis hits.

To prepare to lead through crisis, there are simple steps every leader should take:

  1. Know your risks.If you don’t have a formal risk assessment process, you should at least have a means of reviewing your vulnerabilities on an informal basis once a year. Consider strategic, operational and reputational risks. It’s not possible – or practical – to anticipate every potential scenario, but a thoughtful, cross-functional approach to risk assessment goes a long way in helping your organization identify proactive steps to mitigate and manage risk.
  2. Plan and train. This doesn’t have to be an unwieldy or costly process. It’s as simple as consistently demonstrating that you recognize the importance of crisis preparation. Show the organization that you’re willing, as the leader, to engage in strategic discussions and decision-making about crisis management. Practice crisis leadership. Convey your openness to feedback. Ask “What if?” of yourself and others. A plan on the shelf or on the hard drive is just a plan – but a core team, with clear roles and responsibilities, armed with basic crisis response checklists and templates, that comes together at least annually to discuss crisis scenarios, is a strategic business investment that pays dividends when the organization faces unprecedented, unexpected challenges.
  3. Lead from a place of purpose and values.Leading through a crisis is challenging. It can be a time of great sorrow and outrage. Crises take a toll on everyone involved — and it can be tempting, as the leader, to move fast and favor expediency over thoughtfulness. While speed is certainly important in crisis response, it should never supersede thoughtful reflection. Your crisis response should authentically reflect and align with the core ideology of your organization, reinforcing what your stakeholders most value about you. Ideally, your purpose and values are designed to guide your decision-making for all time, including the worst of times. Rely on them to show you the way.
  4. Follow the Truth-Action-Trust model to guide your crisis response. Be honest and forthcoming; take decisive, informed action, and build trust with stakeholders. This model is shaped by four key trust factors: empathy (putting yourself in the shoes of those affected by the situation and demonstrating that you understand their pain); transparency(communicating what you know when you know it), commitment(conveying that this is serious to you and you are focused on making it right), and expertise(demonstrating that you have the necessary knowledge and capabilities, are seeking appropriate counsel and working with the right experts).
  5. Be visible. As the leader of an organization in crisis, people inside and outside need to see you, hear from you, and believe that you are solving the problem. Be as transparent as possible. Invite input. Truly listen to different points of view. If you’re shaken and unsure of what to do, you’re not alone. Seek advice from your staff and/or consultants who, ideally, you’ve already identified as your core crisis team.

By definition, a crisis is a time of intense difficulty with the distinct possibility of a highly desirable outcome. It is a moment of truth that tests an organization’s readiness, resilience, and character. Through preparedness, planning and effective leadership, it can also provide an opportunity for renewal, growth and positive transformation. In Kathrine Switzer’s words, your worst crisis can become your best experience.

Modeling Grit and Grace to Build Great Teams

As big believers in the role of grit in advancing individual and team success, we were intrigued by this February 2018 HBR article, titled How to Cultivate Gratitude, Compassion and Pride on Your Team. Author David DeSteno proposes that grace, in tandem with grit, is the two-part formula for successful, resilient teams. He defines grace as “qualities of decency, respect, and generosity, all of which mark a person as someone with whom others want to cooperate.”

The article suggests that by cultivating gratitude, compassion and pride, you build your team’s grit and grace. A team who feels appreciated, valued and proud will be more connected to one another, more committed to the cause, and more willing to share both the work and the reward.

Makes sense to us.

But as we reflected on the author’s definition of grace, we were especially struck by the power of decency, respect and generosity to build effective teams and a healthy workplace.

Decency is defined as “conformity to standards of taste, propriety, or quality” – subjective standards, to be sure, and becoming ever more so in today’s culture. In the workplace, decency should be a basic expectation – and standards should be crystal clear. Unfortunately, we know from the growing tally of #MeToo cases – and the “bad manager” stories we’ve all heard or examples we’ve witnessed first-hand – that decency is too often in short supply. “Psychological safety” is when members of a team feel safe – and are willing to be vulnerable – with one another. This concept surfaced as one of five key dynamics that set successful teams apart in a two-year study at Google. How people feel in the workplace matters: decency drives both talent retention and business innovation.

Respect is “an act of giving particular attention” – simple yet powerful. We all want some degree of attention – to feel seen and heard and valued. According to Mental Health America’s 2017 Workplace Wellness Report: Mind the Workplace, feeling “respected, appreciated, incentivized and rewarded” is – not surprisingly – a top characteristic of a healthy workplace, while bullying, sexual harassment, and fear are absent. In the same report, an employee’s relationship with her immediate supervisor is both a top five reason for staying at a job (positive relationship) – and a top five reason for leaving (negative relationship). Again, not surprising. And most organizations can proudly say that respect is an expectation in their culture, maybe even a stated value. And yet employee engagement surveys continue to surface significant blocks of employees who say they do not feel valued.

Leaders who embody generosity give of themselves and put others first. They engage their teams in conversation, listen to their ideas, provide coaching and show gratitude for their efforts. While most leaders would enthusiastically nod to this definition and confirm their own generosity of spirit, the truth is, the days are busy, long and full of meetings – often with people other than members of one’s own team. Leaders are working around the clock just to put out fires and complete the most essential tasks. They’re showing a lot of grit in the face of a fast-changing world and shifting priorities . . . but are they showing grace?

While some leaders argue that any show of grace is a sign of weakness, we believe that grace, like grit, requires both courage and confidence. Grace is not a euphemism for “never rocking the boat.” On the contrary, it creates a culture that invites diverse perspectives and healthy debate. In his September 2017 New York Times Opinion piece, The Dying Art of Disagreement, Bret Stephens explains, “…to disagree well you must first understand well. You have to read deeply, listen carefully, watch closely. You need to grant your adversary moral respect; give him the intellectual benefit of doubt; have sympathy for his motives and participate empathically with his line of reasoning. And you need to allow for the possibility that you might yet be persuaded of what he has to say.” In other words, to disagree well, you must convey decency, respect and generosity.

With surveys pinpointing talent acquisition and retention as leaders’ No. 1 concern –  and studies predicting significant workforce shortages on the near horizon – now is a good time for leaders to assess their own effectiveness in building teams with grit and grace:

  • Am I exhibiting patience and compassion with my team?
  • Do I demonstrate an understanding that respect is about recognition (I see you), active listening (I hear you) and empathy (I understand you)?
  • Am I confident enough to invite my team’s opinions and share the “why” of decisions with clarity and thoughtfulness?
  • Do my employees feel confident and safe, able to make a mistake, share unpopular viewpoints, and be themselves without being disciplined or rebuked?

When leaders can emphatically answer “yes,” the results are likely worth the effort. Leaders with grit and grace have the power to build stronger teams and measurably increase the retention of talent in their organizations.

Where Yes Takes Us

Being a bright-eyed 22-year-old with $800 in graduation money, I threw caution to the wind and headed to Phoenix because I had been there once, loved the winter weather and believed the sprawling layout would make driving less stressful than it would be in the Twin Cities. Yes, those were my actual reasons for moving across the country with no friends or family. (And maybe just a little bit of curiosity to see if I could make it on my own.)

As it turned out, while my reasons for moving were impossibly naïve, the eight years I spent in Arizona were invaluable in shaping who I am today. I made wonderful friends and learned about cultures different from my own northern Minnesota upbringing. After a lengthy, character-building job search, I fell into a respectable pattern of hard work and advancement at the Phoenix Zoo that continued when I returned to Minnesota in 1999, finally brave enough to tackle those stressful Twin Cities freeways.

After almost nine years at the Phoenix Zoo, I spent 16 at Target Corporation. Without question, I learned and grew and changed throughout all those years – I don’t regret any of them. But what I now know is that I became “comfortable.” Once we get inside an organization, it doesn’t take long to figure out what’s expected and work to deliver on that expectation to “succeed.” To adapt to the norms of the culture and take comfort inside them. It becomes harder to throw caution to the wind and take bold leaps that change our life path. Sure, people do it. Especially millennials (though the statistics vary on how rapidly they change jobs today). But many of us hesitate, for many different reasons.

When I decided to leave Target, my goal was to find a similar role at another organization. After 16 years with a company, that’s hardly a bold goal. But it felt bold because I’d been there – comfortably – for so long. Working hard, slurping the Kool-Aid and making some of the best friends of my life.

When I started my job search, I quickly realized that finding a similar role at another organization, while entirely logical and in keeping with my respectable pattern of hard work and advancement, wasn’t the right next step. Instead, I took a leap and joined a former colleague to build a small communications firm. And of all the lessons I’ve learned during the past few years as a consultant, saying yes and being open to new ideas has had the biggest impact.

As Susie Moore wrote in 2014 on Huffpost Blog, “Yes leads to more doors, and no is often closing the door.” What strikes me about that phrase is what’s implied but not said: we can never know what we’re closing the door to when we say no. The only way to find out what’s behind the door is to go there. To say yes.

When you run your own consulting practice, business development is all about saying yes – to meeting new people, to attending new events, to exploring interesting ideas developed by others and incorporating those ideas into your own thinking. Saying yes is simply being curious.

Research shows that when we are curious, the limbic reward system in our brain illuminates and we increase our ability to learn and retain information. A 2002 University of Buffalo study concluded that the degree to which we are curious correlates with our level of openness to personal growth opportunities and our ability to connect with other people.

While I’ve always been naturally curious, I didn’t understand the power of saying yes until I became a consultant. At 44 Degrees North Partners, we believe inspiration can come from anywhere, and that every connection is a chance to learn something new. Every time we say yes in our business, we take note of what we learn. It’s not always earth-shattering (though sometimes it is), but it is fascinating to connect the disparate threads of inspiration, large and small, that come from curiosity and saying yes to new people and experiences.

When we focus on yes, our world gets bigger. Invisible connections become visible. Patterns emerge. Ideas form. We learn and grow. (Side note: In his book, If I Understood You, Would I Have This Look on My Face?, Alan Alda explores “Yes And,” the fundamental rule of improv. Interesting stuff to help teams collaborate and innovate.)

My advice is simple, and you don’t have to move across the country or start your own business to do it:  Start saying yes to more opportunities – especially to the hard things, the ones that give you butterflies. And start saying no more often to the easy things, the familiar ones that don’t scare you at all. No matter where you work or what you do, there is something to learn behind every new door.