What are the most common mistakes leaders make in a crisis?

The proactive approach is always going to be your strongest. This is why I always emphasize the need of a cash reserve to weather the storms. Most people don't build enough of a cash reserve in their business, or they always spend any spare cash, often running the business without an adequate buffer. Two things to think about: how much cash you should have in your business, and what a good cash buffer would be per your company model.

Separate fixing the problem (step 1) from the later process of figuring out why it happened (step 2). The mistake most people fall into is trying to do both steps at the same time. It's too much to handle and creates distraction.

I agree! The proactive approach helps a leader to prepare for and anticipate a crisis. This approach will help to acknowledge the type of crisis a leader might face, draft responses for these crises, know how to respond to them, etc. In short, the proactive approach helps a leader to have a crisis communication plan in place and in advance. The reactive approach contributes to sporadic/unplanned, and hurried responses. This leads to misinformation, confusion, and eroded trust.

In the throes of a crisis, leaders often falter under pressure, adopting a reactive stance. One of the most detrimental missteps is delay or, worse, complete inaction. Such tardiness in response magnifies rumors, sows mistrust, and diminishes brand loyalty. As a seasoned executive, I advocate for a proactive approach. Engage swiftly with all concerned parties. Recognizing the issue promptly, demonstrating genuine concern, and transparently outlining rectification measures not only mitigates the damage but reinforces trust. Moreover, it sets a precedent for responsible leadership. In times of adversity, being proactive isn't just an option, it's a mandate.

When leaders lack the ability to emotionally regulate and master their energetic journey, they will either panic or become paralyzed in crisis situations. Unless leaders master self-responsibility, they will tend to blame conditions or others for the crisis which slows the momentum of finding fast and effective solutions. Leaders need to respond not react.

Crises introduce stress and stress sometimes makes people think they have to make decisions quickly. Other times stress paralyzes people. Train your staff to help you and the team recognize the times when you need a quick decision, and likewise, the times when you can slow down and be more deliberate. Faster isn’t always better.

Some leaders, instead of facing the issue head-on, choose to deflect blame, evade responsibility, or worse, resort to dishonesty. Choose Transparency to get it right: Admit Your Mistakes Acknowledging them demonstrates humility and self-awareness. Apologize Sincerely A heartfelt apology shows empathy and a willingness to make amends. Embrace Accountability Take actions to address it. This inspires confidence and trust. Share the Facts Be forthright about the facts, impact, and steps being taken to rectify the situation. Avoid Blame It erodes trust and credibility. Don't Hide Information Transparency means providing information promptly and openly. In a crisis, your reputation is on the line. Your stakeholders are watching closely.

In my leadership development work, I share this equation. If leaders apply this in everything they do, the chance of an unforeseen crisis is negligible. Truth + Transparency = Trust.

In times of crisis, a prevalent mistake leaders commit is neglecting their own fears and emotions, leading them to react impulsively rather than responding with mindfulness. They become reactive and defensive instead of responsive to the needs of the situation and employees. Defensive and reactive behavior not only risks exacerbating the crisis but also jeopardizes their credibility. By failing to acknowledge and manage their emotions, leaders miss the chance to connect genuinely with their team, which can be vital for fostering trust and unity. A leader's ability to recognize their vulnerability, coupled with a commitment to solution-oriented actions, can inspire trust, whereas ignoring their emotions can alienate those they aim to guide.

Clear Vision Amidst Crisis - Navigating a crisis, leaders sometimes err by adopting a defensive posture—sidestepping truths, casting blame, or masking the facts. Such tactics, while aimed at damage control, often intensify the crisis, eroding the public's trust and tarnishing the brand's image. My ethos as an experienced leader is grounded in transparency. When under duress, embrace honesty. Openly discuss the challenges, acknowledge oversights, and extend genuine apologies. Shun the temptation to shift blame or obfuscate details. True leadership shines when you exhibit accountability and prioritize the welfare of your stakeholders. In tumultuous times, transparency isn't just commendable—it's indispensable.

Having a crisis communication plan in place helps to draft possible messages for the crisis and establish who the spokesperson will be. Making contradicting messages will escalate the crisis, lead to confusion, and misinformation, and create mistrust among the publics. BE CONSISTENT IN YOUR MESSAGE DELIVERY!

Crisis Clarity - During a crisis, a perplexing pitfall for leaders is inconsistent or conflicting communication. Such disparities sow confusion, engender skepticism, and undermine stakeholder faith. My guiding principle in leadership has always been consistency. In challenging times, ensure your communication and actions are in harmony. Avoid mixed messages, fluctuating narratives, or self-contradictions. By maintaining a steady, unified front, you provide assurance, build trust, and fortify your organization's credibility. In adversity, it's consistency that emerges as a beacon, directing the way forward.

Having your core values and design principles defined helps solve you to make consistent policy which doesn't seem arbitrary and is aligned. Your team not knowing how you would react is the start of the fall of the domino.

When leadership and culture are aligned, consistency transforms average into excellence. Much is jeopardized by not having clearly defined and communicated company values, beliefs, vision, mission and goals in place before a crisis. Too late then to rally the team to action without the blueprint for successful outcomes.

3 key actions a leader must do in a crisis: (1) Take the blame. The captain goes down with the ship. Do not allow others to be blamed. (2) Realize that whoever was remotely involved in the problem feels bad. We all want to succeed and none of us want to let teammates down. You do not need to tell any good performer they fell short. They have already told themselves this much more harshly. You have to show them the path to growth and success from where they are. (3) See crisis and problems as learning and growth, not personal flaws.

Being empathetic along with an open mind will lead you to become a better leader. This will lead you into conversations with a mindset to learn and grow, since we are able to learn from anyone. Empathy allows us to deepen this understanding of customers, employees, and partners without being dismissal of them due to arrogance.

Never make excuses! Take responsibility by responding, not reacting. Being right is not as important as helping clients, colleagues and stakeholders to feel good. Listen and lean into their concerns. Remember, this too shall pass....

The paradox is that while the urgency of a crisis demands immediate action, a nimble mindset is equally crucial. If you're cemented in past practices, you're not just anchoring yourself to a sinking ship—you're throwing away the lifebuoy of innovation. Learn to view crises as complex puzzles that require evolving strategies. Welcome feedback as a treasure map guiding you through uncharted territory. Relinquishing the desire for control allows you to surf the waves of uncertainty, transforming a tumultuous sea into a landscape of possibility. Being adaptive turns crises into classrooms of resilience and innovation.

Observe, orient, decide, act, and repeat. That is the cornerstone of every military veteran. It translates just as easily on the battlefield as it does in every business. This quality of professionalism allows goals, obstacles, and any unexpected crisis to become "just another day at the office." See us in action, read our history, talk to the few and the proud. Our lesson is out there for anyone to master.

Adaptability in Crisis - During tumultuous times, an unfortunate pitfall for some leaders is rigidity. Such inflexibility curtails potential solutions, stifles progress, and exacerbates problems. My cardinal rule in leadership is adaptability. In crises, it's essential to remain malleable, welcoming changes and innovations. Seize the moment as a learning opportunity, valuing feedback and hunting for silver linings. Steer clear of denial and avoid retracing past missteps. By championing adaptability, leaders can pivot effectively, ensuring resilience and continued growth amidst challenges.

Adaptability is crucial in the face of evolving circumstances. Maintaining a steadfast commitment to core goals and values, along with open communication and collaboration, will indeed help teams navigate the crisis successfully. Adaptability allows teams to prototype, test, and innovate without unnecessary concerns or fear, fostering an environment where creativity can thrive and solutions can be developed more efficiently.

In leadership, resistance is the fastest road to nowhere. Instead, be open, curious, and willing for new ideas and innovative solutions to be delivered, whether through other people or through your creativity. Approach everything with positive expectation and ease.

As a leader, closely look for: (1) Was the error accidental, negligent, or nearly willful (intentional)? (2) What systems were in place to avoid relying on human diligence (which we know will always fail in the end)?

An earlier portion of this article hit on proactivity vs reactivity. But, on the topic of collaboration, there's also something to be said for deliberate opinions vs reactive opinions. I recently read Claire Hughes Johnson's (former Stripe COO) thoughts on this. She said: "when someone comes to me with a problem, I force myself to ask a follow-up question instead of rendering an opinion quickly. (And then, the next trick is to listen to the answer!) It’s a way of retraining my muscle memory and making me a better, more present listener." This not only forges a better relationship with whomever your collaborator is, but also leads to managing through crisis with focused decisions rather than frantic ones.

The old saying of 'two minds are better than one' is true. Mastermind the issue. Bring in your best and brightest, roll up your sleeves and get it done. The energy the group think-tank can generate is a force of nature. Use it...

Micromanaging instead of empowering others - In a crisis, leaders need to resist the urge to micromanage and instead empower their teams to make decisions. Micromanaging slows response time. Undercommunicating instead of overcommunicating - Leaders often go silent during crises, but need to overcommunicate to provide clarity and reassurance. Undercommunicating breeds confusion and anxiety. Pointing fingers instead of taking responsibility - Blaming others worsens crises. Leaders need to step up and take responsibility, even if the crisis wasn't their fault. Making emotional decisions instead of logical ones - Crises provoke emotions, but leaders need to stay calm and make decisions logically.

Lack of communication is a major set back to solving the crisis at hand. Leaders who do not communicate with their staff and team members isolate themselves and the team. Add open and transparent communication to your ways of inspiring your team members to be on board with you as you lead them out of the crisis, especially, uncertain ones. In my experience, leaders who communicate openly with their team members tend to create an environment of trust, loyalty and can do attitude. Even though the situation is in a crisis mode, anxiety is not the norm in such environment -- because team members / staff / employees feel appreciated and their contribution is valued as they assist leadership find a solution to the crisis.

The prime time to prepare for a crisis is before the crisis occurs. A good leader will surround themselves with key individuals that will provide counsel, advice, and skill to whatever is at hand. These people are typically trusted decision makers who have the authority to make split-second decisions within the purview of their jurisdiction. For protracted crises, the group of decision makers will meet regularly and counsel together regarding resolution, with one person deciding all final decisions. Remaining calm, avoiding knee-jerk decisions, and always considering the end-game are key. And finally, protection of life should always top the list of priorities.

Expect the best but prepare for the worst is often uttered from leaders' lips. I like to expect and prepare for the best right from the start. Ensure that a quality management system is the foundation of the business from Day 1 so at the slightest hint of crisis, everyone knows what processes to follow. A QMS Manual is an essential risk management, training and reference resource.