Leadership in times of crisis - when everything is melting down

Yesterday I addressed the Caribbean Association of Indigenous Banks 35th Annual Conference on the topic “Leadership in Times of Crisis”.

At this conference, the association members examined a number of issues that will or are affecting their organizations, and the Caribbean financial system in general. These include the European Economic Partnership Agreement, Global Financial Regulations, the Sub-Prime Crisis, Financing Opportunities in the Tourism Industry and Enterprise Risk Management. The factor that will pull all of this together and galvanize action is leadership.

As I prepared my speech, I found that the root of the word ““crisis” (Greek): krisis = decision. The dictionary further tells us that a crisis is a condition of instability or danger leading to decisive change. A crisis is therefore a turning point, or a time to decide, not to be paralysed. Our normal response in a crisis is to PANIC! We become paralyzed, not so much by what is happening but by our FEAR of what has happened in the past and that could happen in the future. The terrible thing about fear is that it feeds upon itself (contagion effect), and soon everyone else is in a panic. One cannot see clearly in this state, for a state of FEAR clouds our vision and therefore our ability to make decisions. Ironically, this is the very time that we MUST make decisions!

It is well known that the Chinese symbol for “crisis” is the same as for “opportunity”. Therefore, how do we see the opportunity within the crisis? This is the fundamental function of leadership – to see the opportunities, to give hope of a brighter future, since the present is so bleak and most people can’t see beyond that and to provide forward momentum – make decisions, keep vision alive

I identified 6 things that the leader must do:

C = Communicate
R = Respect
I = Independent
S = Stay on message
I = Invincibility
S = Smile

C = Communicate to build community; communicate not just to share and give news, but to invite feedback and gather information so that you can make better decisions. Communicate via all media possible – in person, by e-mail, intranet, bulletin boards – fill all information voids early, for failure to do so will result in speculation which is the food of fear

R = Respect the feelings and views of others. Allow people to vent their worst fears and insecurity. Listen more than talk

I = Independent – do not get pulled into the panic. I know of a CEO in Jamaica who locks himself in the bathroom every morning and laughs for 5 minutes. This immediately puts him in a good mood that last throughout the day. This allows him to stay clear and focused, aloof from, yet observing the panic, and so able to make the tough decisions that these times require

S = Stay on the message e.g. Obama – “yes we can”. Nothing must keep you from the message. Find something that resonates with your team, and stick to it. Every communication, every speech, every action must reflect this message. A good message to start with is “This too shall pass”

I = Invincible – help others to have courage, and the feeling that they can conquer the crisis situation

S = Smile - The July 17 issue of Time Magazine featured Nelson Mandela’s 8 lessons of leadership. Lesson #6 was “Appearances matter — and remember to smile”. The article noted about Mandela when he was running for President in 1994: “But more important was that dazzling, beatific, all-inclusive smile. For white South Africans, the smile symbolized Mandela's lack of bitterness and suggested that he was sympathetic to them. To black voters, it said, I am the happy warrior, and we will triumph. The ubiquitous ANC election poster was simply his smiling face. "The smile," says Ramaphosa, "was the message."

In closing, I reminded the conference delegates to find the opportunity in crisis, to remember what they need to do as a leader – C (Communicate) R (Respect) I(Independent) S (Stay on message) I(Invincibility) S(Smile), and to keep hope alive.