Business is going great. Sales is closing deals, the team is fulfilling what has been promised, and cash flow is steady.
You’re considering opening a new office to serve clients in a different part of the world. You begin to entertain thoughts that you’re among the greats of leadership. As you survey the kingdom, you determine that life is good.
Then, overnight, the market shifts.
One move by a major client changes everything. The plans for opening a new office are scratched. Now, you’re entertaining the possibility of closing a department and laying off a percentage of the workforce.
Doubts and fears become the prevailing voices in your head. You realize how foolish it was to consider yourself among the greats of leadership.
An organizational crisis can appear at any moment.
Leaders do not have the luxury of sitting in the corner contemplating their feelings or hoping someone will stroke their egos. A leader must be prepared to take bold and swift action that will result in the company remaining viable for the next phase of its existence.
When a crisis occurs, the first thing a leader must do is determine the cause.
What brought all this on? How did we arrive at this destination? What is it that we did not see?
Let’s use cash flow as an example.
When a company begins to run low on cash, that is a crisis. But minimal cash flow isn’t the cause of the crisis. It is the result of something larger.
When a patient shows up complaining of pain in their back, the doctor will investigate what is causing the pain. As the leader, you must become the doctor. You must determine the cause of the problems the company is facing and establish a course of action.
In this scenario, what caused the cash flow crunch?
Did two or three major clients move away to another brand? If so, why?
With that information, you can begin to repair the organization.
You can’t simply hope things will get better.
Hope isn’t a strategy.
Belief in yourself, the team, and the quality of your work are all vital to the future of the company. But simply hoping things will bounce back is a recipe for disaster.
Perform an autopsy on the crisis.
Is there an opportunity emerging that we can use to position the company as a solution to changing market forces? Should we consider entering a new area of service if this sector is shifting toward AI?
Be willing to face reality as it is, not as you want it to be.
When there is a crisis, always identify its cause.
Simply listing the symptoms of the crisis provides no long-term benefit. Prescribing Tylenol to a patient who continually complains of back pain will not solve what ails them.
You must go deeper and find the cause of the pain.
Leadership doesn’t fear the problem it faces. It finds the courage to name it and then conquer it. That courage provides a path forward.
Embrace the fact that things will change. To survive any crisis, you must discover the cause and provide a solution for it.
Creating Unparalleled Experiences,
Chris Adams
Ellis Adams Group is always updating our blogs with the latest and greatest, view more below.
Whether you’re developing a new hospitality concept, refining an existing brand, or expanding into new markets, our team is ready to collaborate and create custom solutions to fit your project.
