Organisational crisis is inevitable. Leaders, even the very best of us, have experienced that overwhelming feeling when crisis hits their organisations. A closer look at crisis moments can reveal some benefits they bring along with them. So, what may appear initially as a threat could end up becoming an opportunity for you as a leader and your organisation when you engage constructively with the crisis. For one, every crisis, changes your organisation in some way and that is a good thing if that change makes your organisation better than it was. In many cases, what determines whether a crisis in your organisation is a real threat or an opportunity for you is your mindset and attitude towards the crisis and the conditions that brought it about.
In a 4-part series, I will explore with you, what I mean by your mindset and attitude when confronting crisis situations in your organisation. Each part of this blog will highlight a leader with a different mindset in relation to crisis. This will enable you assess whether your approach to the crisis is the bigger problem than the crisis itself and if so, what you can do about it. If you are working to either stem or use crisis moments as opportunities for the development of your organisation, may I invite you to explore this together with me.
Working With Maximum Capacity
One of the ways to invite crisis into your organisation is when you are leading an organisation that is operationally sound but strategically deficient. Strategic deficiency refers to lack of attention being given to strategic thinking, planning and development either by omission or commission. In that state of operation, an opportunity that calls for strategic development or utilisation will appear as a threat because it will seem to disrupt the operational efficiency of your organisation. Take for example, a situation where, you have everything under control and efficiency is high at the operational level. This means that on day-to-day operations, your organisation’s policies and procedures on recruitment and selection, training and development, employee engagement, employee performance and reward system are well entrenched and functioning at capacity. It may even be that because of the level of your operational efficiency in your organisation, your bottom line is rewarding of your leadership efforts as everyone is busy taking care of tactical and short-term objectives.
Change
Having trained your staff to think and function operationally without seeing the need for or encouraging your team members to think and work to develop strategic capabilities alongside operational efficiency, any external intervention like a government policy, for instance, is most likely to destabilise your smooth- running machinery. This external intervention would of course not sync well with the functional framework that has been producing results for you. It will, therefore, constitute a crisis because your organisation has not developed a flexible and robust capacity to accommodate this new development on a practical level. The omission of engagement with strategic developments will become obvious to any casual observer. Since strategic capabilities take a while to develop out of scenario planning, the external intervention or intrusion will come to you as an emergency and most of your thinking and action at this point will be on how to ‘fight the fires.’ It is highly unlikely, therefore, that you will view this development as an opportunity. The smooth operational functioning of the organisation, as good as it is, without the complementary strategic development will be unable to withstand emergencies because that has not been factored in within the operational scheme of things.
In general, organisations that focus on operational efficiency at the expense of strategic thinking, planning and execution run the risk of falling into crisis unexpectedly. Operational efficiency without strategic effectiveness is a clear invitation to frequent crisis moments that will leave you constantly operating on emergency mode. I am not implying here that changes are easy to deal with or that opportunities will automatically come with every change. What change means here, is that it demands that important decisions be made to accommodate it. This introduces the possibility of identifying opportunities within the change. If, however, you view change as an intrusion or disruption of the smooth running of your organisation, you are unlikely to view changes favourably and will, therefore, be preoccupied with developing survival strategies instead of growth and development strategies.
Leadership Mindset
The challenge with change, is less of the crisis it causes in your organisation but more of your mindset that is dictating your actions and leadership of your organisation. You know from your experience that an organisation is the lengthened shadow of the leader. This means that the crisis in your organisation may be a function of your mindset which may be on the lines of ‘don’t fix it, if it is not broken.’ In other words, you may be unconsciously communicating your management team and staff members that there is no need to do anything about the state of your organisation since you have been having good enough outcomes especially on the bottom line as things stand.
On the face of this mindset, there is nothing wrong with it except that it keeps you and your organisation on the platform of being a good organisation. If this is your goal, then you don’t need to do anything except to keep maintaining the status quo. If, however, your goal is to become a great organisation, then you will need to listen to and incorporate the wisdom of Jim Collins that said that good is the enemy of great. To move from good to great, strategic thinking, planning and consistent development is a sin qua non for your organisation. If you are happy with the status quo and investing time and resources to maintain it, it will be useful to also bear in mind that ‘what got you here, [may not] get you there,’ wherever there is for you because we live and operate in a dynamic environment where change is a constant. Running an organisation with the mindset of ‘don’t fix it if it is not broken’ could be the main problem you have as a leader rather than the challenges of the crisis you have experienced, currently experiencing or will experience. A different mindset may avert the crisis entirely or minimise its impact on your organisation.
Dealing With the Situation
To turn your crisis into an opportunity, it is important that you consider incorporating a different mindset. This is the place where you may need to work with an executive coach who will explore the intricacies of these with you and hold you accountable to the changes and the implementation of your action plans. If I were to work with you, as an executive coach, one of the preliminary inputs I would suggest you consider adding to or activating in your portfolio of mindsets, if it is not there or activated yet, would be the ‘what if…’ mindset.
This mindset is anticipatory of changes and possible solutions before the changes occur. It is a proactive mindset and will produce a compelling need for you to maintain or even improve the level of your operational efficiency and at the same time, invest some resources into thinking, planning and developing the strategic capabilities of your organisation. These strategic capabilities will then accommodate unexpected changes in your organisation and make them less severe if they occur because you have given it a serious thought and developed probable solutions prior to their occurrence. Your approach in the event of a crisis will then be to assess the situation and its likely impact and duration in the light of the pre-planned framework for possible adjustments in the functioning of your organisation. You will then be in a good position to focus on the cost-benefit analysis and engage with it from an informed position rather than from a point of fear, overwhelm and uncertainty. This approach will enable you to find opportunities in an otherwise threatening situation.