'Crisis is just an unfortunate way to separate leaders.'
“Crisis is just an unfortunate way to separate leaders by name only, and leaders by character and ability.”
“These are the times that really tell the quality of leadership, more than when things go well,” concurred Randall Peterson, professor of organizational behavior and academic director of the Leadership Institute at London Business School. “A lot of sins are covered up by economic boom.” Peterson cited another psychological phenomenon: the “threat-rigidity effect.” Essentially, when people are threatened, they become more rigid, and they tend to “go back to things that have always worked in the past.”
Terry J. Lundgren, former chairman and chief executive officer of Macy’s Inc., noted that expectations are low in a crisis. “There’s nothing you can do in the short term that’s going to be any worse to your stock price, if you’re a publicly traded company, than what the virus has already done,” noted Lundgren. “Now is the time to take those risks as long as you think there’s a better answer on the other side.
Galli said in a globally interconnected world, it is paramount to be consistent in messaging. “If a company donates to a charity in its home country and then lays off employees in a subsidiary away from home, the behavior can be sanctioned by customers as well as employees and business partners,” he warned.
Petriglieri suggested simply opening your local newspaper to see what small and medium-sized enterprises are doing to keep the lights on, protect their staffs and honor their customers. Angie’s Haquet said the worst pitfalls are “not telling the truth, hiding important things, or even worse, lying. If anyone finds it out, and the media pressure in times of crisis makes that likely, the leader loses all credibility. And even generates distrust.”
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