In most cases, the leaders find themselves in confusion while choosing between urgent and important tasks. When any crisis on business strikes, implication blurs. Leaders try to focus on solving the issues with the best possible solutions. They effectively learn from past experiences to predict forthcoming perils. Crisis in business refers to unplanned or unexpected events which lead to instability in the work balance. Every company has to face critical situations at some point in time, but it is the leader who handles the whole team and maintains their rhythm. Kelly Sills Coastal Bridge, the owner and president of Coastal Bridge Company, has led his company to great achievements.
Types of Crisis
A crisis is a set of disturbing events which harms the overall well-being of the organization. A crisis can be noticed in the short term, but it might cause a long-lasting impact on business. Following are the major types of crisis which are often faced by companies.
- Natural Crisis – The imbalance caused due to natural consequences or catastrophes, e.g., disasters.
- Technical Crisis – The problems caused by technical failure e.g. machine breakdown, software corruption.
- Organizational Misdeeds – The harmful consequences arise when the senior management takes a decision even after knowing about its outcomes with respect to stakeholders and external parties.
- Confrontation Crisis – The crises arise due to internal conflicts among employees on a particular subject resulting in strikes, boycotts, etc.
- Bankruptcy – A crisis may occur due to a lack of funds. When the company fails to repay debts to creditors or other parties, it gives rise to bankruptcy.
Role of Leader in Crisis Management
The leader has the authority to lead and provide guidance to the team in any tough circumstances. Leaders like Kelly Sills play a crucial role during crises as well. They analyze every situation even small issues are neglected in the initial stages; otherwise, it may turn out to be a big problem. Below we’ve listed the responsibilities of leaders during a crisis.
- Leaders should provide guidance
Only those people can become effective leaders who have a strong spirit to deal with critical situations. The leaders shouldn’t stop leading the team from the front so that teams couldn’t disintegrate. Leaders like Mary Barra develop a vision and set direction to inspire the team. They should maintain the proper alignment of the responsibilities of leaders.
- Focus on creating backup plans
Leaders can only predict the outcomes of a particular plan, but no one knows what would happen in the future. Therefore, leaders need to formulate backup plans which should be operational and implementable during a crisis. The plan must contain appropriate orders and instructions to keep the company levitating.
- Maintain the workflow
During a crisis, workflow within the organization must be smooth; otherwise, the company couldn’t remain protected for longer. Leaders ensure that the projects are accomplished in a way planned. An employee may panic or dread due to the threatening situations that arise due to a crisis.
Leadership during crisis management is undeniably tough. Leaders need to support their team like a strong pillar to reduce the fallback of employees. They shouldn’t let negativity haunt the employees and try to balance to function the team. Therefore, strategic planning is considered crucial to run the organization smoothly. Once the team is out of the crisis, they should emphasize learning the lessons from it.