How Leaders Manage and Understand Crises

Everybody in a leadership position has normally experienced several crises and has had to cope with the turbulence that they create. The stages of personal crises such as bereavement or divorce can be applied equally to organizations. There are consistent patterns of behavior through which people pass and this is replicated to a large degree within businesses as they progress through the crisis. Understanding these stages will help a leader to manage the situation to a successful conclusion.

The length of time that is spent in each of the stages cannot be accurately forecast. There are many variables and one of the most important aspect is the individual resilience of people in leadership and management positions. The four stages of crisis are, shock; defensive retreat; acceptance of reality; adaption and growth. Downsizing is frequently a trigger for all the stages.

It is possible to become locked into any one of these stages for a considerable amount of time and this can be seen when managers lose their power base because of structural changes within the business. Often, they are unable to accept the change reality and spend their time in stage two of "defensive retreat." They continue to behave as if they still retain the power and will gradually create alienation amongst their peers before they are removed completely from the position.

One of the downsides of structural change is the effect of changes in responsibility and power. Some managers dwell in the "defensive retreat" stage and they cannot advance to the next stage because of a mental unwillingness to dispense with their previous power base and long-standing networks. The attraction of their comfort zone stops them from moving on to the largely unknown next stage.

It must be remembered that the journey from stage two to stage three (acceptance of reality) can be quite painful and difficult for the people concerned. From a leadership perspective, it's necessary to give all the support and help to these managers so they can deal with the new reality and work on their contribution to the organization. Sometimes they have to be coached through this particular situation and get an assurance that they will be supported in the future as they take on a different and unknown role.

n terms of crisis management, the leader's role in helping managers to release positive energy for the organization is a critical task that requires courage, care and a lot of patience. Understanding the four stages and the difficulty of moving from stage 2 to stage 3 can be a potent skill in the leader's ability to manage change successfully.