OFFICIAL PUBLICATION OF THE COMMUNITY BANKERS OF WASHINGTON

2025 Pub. 3 Issue 1

Leadership in Times of Crisis

A crisis within an organization can happen at any time, whether it be a new piece of legislation that turns the industry on its head, a pandemic that brings society to its knees, or something in between. Effective leadership during a crisis can significantly influence the eventual outcomes for your team and organization.

It goes without saying that when faced with a crisis, normal routines are disrupted. If a company is not prepared, policy and procedures often go out the window, leading to confusion and a breakdown of communication lines. Even the best employees can become reactionary, making decisions based on what they think is best to solve the problem that is happening in front of them.

Additionally, a crisis can cause a far-reaching domino effect of challenges. For example, if a supplier within a supply chain is disrupted, retailers in turn may not be able to meet customer demands, leading to poor customer satisfaction. And with today’s tech-savvy consumers, bad news can spread fast. We all know how a few poor online reviews can affect the financial bottom line.

As a leader, the way you handle a crisis sets the tone for the entire team, good or bad. If you are prepared for the unexpected, it can significantly reduce any fear and anxiety that your employees might be feeling. There are real benefits to being proactive and having a “just-in-case” backup plan ready to roll out at a moment’s notice.

Proactive leadership involves meticulous planning and preparation. It allows an organization, in the event of a crisis, to move from plan A to plan B and implement the necessary changes smoothly. And the good news is that you don’t have to make these plans alone. Involving the management team — and employees when appropriate — helps to foster a sense of commitment and plan ownership within your organization.

By not having a crisis management plan in place, employees can and most likely will lose trust in leadership.

Believe it or not, leading by influence on a day-to-day basis can help a company’s upper management prepare for a crisis. This type of leadership guides and inspires others through actions, words and ideas as opposed to solely relying on title, authority or position. It involves skills like active listening, setting a good example and building strong working relationships with the team.

Attention to and development of these skills is absolutely vital. The idea that a leader will be forged in a crisis — that they will rise to the occasion with skills previously unseen — is simply unrealistic. But if you have the skills that keep you involved and show a true interest in employee well-being, and you are consistent in your behavior, you’re more likely to conduct yourself in the same way during a crisis.

Taking a proactive and strategic approach to crisis management involves a number of core elements:

  • Identification: Conduct risk assessments to help identify potential crises before they occur.
  • Planning: Develop plans and procedures that specifically address various scenarios, including resource allocation and communication protocols.
  • Communication: Establish strong lines of communication. Without clear, transparent communication, no plan, no matter how good, will work. It’s been said that communication makes the world go round, and to that point, in a crisis, effective communication is vital to making it through difficult times successfully. Communication can make the difference between your business weathering the storm or suffering operational and/or reputational damage.
  • Response: Assign roles and responsibilities to implement your plan in the case of a crisis. This may involve taking immediate action to protect your people and property, as well as informing stakeholders. Leaders should be open to new approaches and willing to adjust strategies as the situation evolves.
  • Recovery: Assess your plan once normal operations are restored. What parts worked? What can be done better? Take this opportunity to learn and improve preparedness plans.

However, it’s important to remember that even the best plan can fail if people are not prioritized, both employees and leaders alike.

Strong leadership in action can help employees understand that a crisis does not have to lead to the destruction of the organization or the loss of their jobs. In fact, the ability of those in charge to be agile and make decisions may give employees hope as they realize that their leaders were prepared for the event and competent enough to get them through it safely.

Equally as important is self-care, especially during times of crisis. Leaders should take time to eat healthy and make sleep a priority. When possible, try to find a moment to step back from the situation, refocus and find perspective. And, don’t try to do it all yourself. After all, you’ve spent time planning and preparing your team — give your plan and your employees the chance to make things work.

Crises are bound to happen, but with a little planning and a lot of teamwork, you can successfully navigate the storm instead of bracing for impact.

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