Contents• Leadership in a permanent crisis• Economic crisis• Sustained crisis v/s permanent crisis• Crisis leadership• Phases of crisis leadership• Solutions to boost up economy• Need of skilled crisis leaders• Essential leadership skills required
Leadership in a permanent crisis• When the economy recovers ,things won’t return to normal and a different mode of leadership will be required.• -- Ronald Heifetz, Alexander Grashow, and Marty Linsky
Economic crisis• Economies cannot erect a firewall against intensifying global competition , energy constraints, climate change and political instability .• An economic crisis is a sharp transition to a recession. See for example 1994 economic crisis in Mexico, Argentine economic crisis (1999–2002), South American economic crisis of 2002, Economic crisis of Cameroon.
Example• Consider the heart attack that strikes in the middle of the night1. Having recovery from the surgery ,how does the patient prevent another attack ?2. Having survived, how does he adapt to the uncertainty of a new reality in order to thrive ?
Sustained crisis or permanent crisis• Sustained crisis are types of crisis that can persist for months or even years. These types of crises can result from media rumors or speculation.
Permanent crisis• Recession stands for long term may have ill effects on each and every business.• Amalgamation, or merging of industrial units, is made unfavorable by the dead weight of closed-down unit.• Wage-cutting and intensified exploitation also have their limits.
Sustained crisis : crisis leadership• crisis leadership involves high leverage skills that are vital to corporate.• Divided into two distinct phases :-• 1.Emergency phase• 2.Adaptive phase
Emergency phase• When your task is to stabilize the situation and buy time
Adaptive phaseWhen you tackle the underlying causes of the crisisand build the capacity to thrive in a new reality
waitQuestion arises :- work actionAre we still waiting for things to return to normal in our economy as well as in our organisation ?
Solutions to boost up economy: FOSTER ADAPTION EMBRACE DISEQUILIBRIUM GENERATE LEADERSHIP
Keep your hand on the thermostat• If the heat’s too low , people won’t make difficult decision. If it’s too high, they might panic.
Adaptive leadership is required:-• Adaptive Leadership is a practical leadership framework that helps individuals and organizations adapt and thrive in challenging environments.• It is being able, both individually and collectively, to take on the gradual but meaningful process of adaptation.• It is about diagnosing the essential from the expendable and bringing about a real challenge to the status quo.
Crisis leadership is requiredCrisis leadership is more about who you are than what you know.No learned crisis leadership skill will overcome a lack of character, ethics or integrity. An effective crisis leader must act deliberately, quickly, and effectively with honesty, high moral values and ethical standards.
Skills required to meet crisisleadership responsibilities:- components BE BE of KNOW KNOW leadership DO DO
The Need for Skilled Crisis Leaders• Acute threats; natural and human-caused.• A crisis causes dramatic systems change.• There are differences between management and leadership.• A crisis will affect multiple systems; there is a need to manage conflicting goals, values, and responsibilities
Essential Leadership Skill Set• Collaborative leadership• Systems thinking• Creativity• Emotional intelligence• Risk communication• Influence and negotiation• Conflict management
Leadership’s Role in a Crisis• Leaders set the tone by their example and conduct.• Leaders must pay attention to the components of influence.• Leaders can have a significant positive impact on the very human, emotionally charged climate.• Leaders cannot rely only on authoritarian or fear tactics to get results during a crisis.
Preparing for Crisis• It’s never too early to prepare• Leaders should begin with a self-assessment• Need to conduct an organizational assessment• Systems View ▫ Community Assessment; Intra/Inter-agency assessment