CRISIS - Center For Creative Leadership
Gene KlannCRISISL E A D E R S H I PUsing Military Lessons,Organizational Experiences, andthe Power of Influence to Lessenthe Impact of Chaos on thePeople You LeadCENTER FOR CREATIVE LEADERSHIP
CRISISLEADERSHIP
The Center for Creative Leadership is an international, nonprofit educationalinstitution founded in 1970 to advance the understanding, practice, anddevelopment of leadership for the benefit of society worldwide. As a part ofthis mission, it publishes books and reports that aim to contribute to a generalprocess of inquiry and understanding in which ideas related to leadership areraised, exchanged, and evaluated. The ideas presented in its publications arethose of the author or authors.The Center thanks you for supporting its work through the purchase of thisvolume. If you have comments, suggestions, or questions about any CCLPress publication, please contact the Director of Publications at the addressgiven below.Center for Creative LeadershipPost Office Box 26300Greensboro, North Carolina 27438-6300Telephone 336 288 7210www.ccl.org
Gene KlannCRISISLEADERSHIPUsing Military Lessons,Organizational Experiences, andthe Power of Influence to Lessenthe Impact of Chaos on thePeople You LeadCENTER FOR CREATIVE LEADERSHIPGreensboro, North Carolina
CCL Stock No. 185 2003 Center for Creative LeadershipAll rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,mechanical, photocopying, recording, or otherwise, without the prior writtenpermission of the publisher. Printed in the United States of America.Published by CCL PressMartin Wilcox, Director of PublicationsPeter Scisco, Editor, CCL PressJoanne Ferguson, Production EditorCover design by Joanne FergusonLibrary of Congress Cataloging-in-Publication DataKlann, Gene.Crisis leadership : using military lessons, organizational experiences, and thepower of influence to lessen the impact of chaos on the people you lead / GeneKlann.p. cm.Includes bibliographical references.ISBN 1-882197-75-51. Leadership. 2. Crisis management. I. Title.HD57.7.K547 2003658.4'092—dc212003046010
CONTENTSPrologue . viiPreface . ixIntroduction . 1Chapter 1: What Is Crisis? . 3The Panic Button . 4Opportunity or Chaos? . 8Chapter 2: What Is Crisis Leadership? . 11A Definition of Leadership . 11Leadership’s Role in a Crisis . 20Chapter 3: Preparing for Crisis . 27Communication as Crisis Preparation . 28Planning with Vision and Values . 30Caring and Connecting as Preparation for Crisis . 32Chapter 4: Leading During Crisis . 41Communicating During the Crisis . 44Clarity of Vision and Values . 50Caring During a Crisis . 52Chapter 5: Leadership After the Crisis . 59Rebuild and Reassure . 59Review and Revise . 60Reflect and Renew . 64Restore and Reinvigorate . 66Conclusion . 69Epilogue . 73Appendix A: The Crisis Action Plan (CAP) . 75Appendix B: What Leaders Can Do to Take Care ofThemselves During a Crisis . 81Suggested Readings . 83CRISIS LEADERSHIP v
PROLOGUEDecember 1944. The Second World War is grinding to what appearsto be an inevitable conclusion. Almost all of the Allied commanders inthe European theatre of operations believe that the German Army is onthe verge of collapse. But on December 16 the Germans launch asurprise attack. Several armored and infantry divisions strike the Alliedlines and threaten to break through to the harbor of Antwerp, to cut offsome Allied forces in Holland and Belgium, while surrounding others.At the time of the attack, not all of the Allied commanders wereconvinced that the German Army stood on the brink of defeat. Amongthem was George S. Patton Jr. Intelligence reports that the Germanswere massing for a major attack did not pass Patton’s commandunnoticed or without reflection. Patton directed his staff to prepare aresponse just in case—he paid attention to the signs of an impendingcrisis, took them seriously, and made preparations to meet it head on.When General Eisenhower asked his subordinate leaders what theycould do to meet this emergency, Patton declared he would lead threeof his divisions out of the front line, turn them north, travel 120 mileson icy roads in the middle of winter, and attack the Germans. And, hesaid, he would do it in 72 hours. . . .(To be continued)CRISIS LEADERSHIP vii
PREFACEThe idea to write this book was not inspired by the terrorist acts ofSeptember 11, 2001. I did not write it to confirm or critique theleaders involved in the 9/11 crisis. However, that event certainlyunderscored my desire to put these ideas about crisis leadership intoa book that would be applicable across a large range of traumaticsituations. My personal interest in the subject of crisis leadership,coupled with the almost daily news reports of both natural andman-made crises, encouraged me to share my experiences, research,and understanding of what it takes to lead during such times.There are many books written about crisis management, butfew focus on crisis leadership. Managing a crisis and providingleadership in a crisis are not the same thing, although each addressesdifferent aspects of a difficult situation. I would differentiate thetwo by saying that crisis management relates mainly to operationalissues, while crisis leadership principally deals with how leadershandle the human responses to a crisis, including their own. We allhave natural behavioral responses to crisis situations based on ourneeds and emotions. We may not be conscious of this, but ourbehaviors send messages to others about our underlying needs andemotions. It is within this set of behaviors that we find the core ofcrisis leadership.I write about leading in difficult situations from the vantagepoint of more than 25 years of crisis leadership training andexperience during a career as an active duty officer in the UnitedStates Army. This includes decorated service as an infantry company advisor in the Vietnam War and as a battalion commander of600 paratroopers during the Gulf War. My contention, which Ibelieve is shared by many others, is that the United States military(and particularly its army) ranks among the best organizations inthe world for crisis leadership planning, training, research, andCRISIS LEADERSHIP ix
experience. Many of the notions I share in this book come from thearmy’s vast database in the areas of crisis leadership and crisisplanning, which documents best practices and failed experiences ofsoldiers in combat, a grueling crisis by anyone’s definition.But this book is not just a litany of the army way of leadership,useful only to those few people who must lead in the mostharrowing situations. Leaders in the private sector can readily adoptmany of the army’s crisis leadership lessons. But what is theargument for civilian leaders’ adopting such tactics? The answer liesin the army’s dramatic and well-documented post–Vietnam changein leadership philosophy, which brought about one of the mostsuccessful organizational transformations in recent history. Gone isthe popular Hollywood and news media image of the yelling,abusive, and irrational military leader. The combination of themilitary’s high-tech equipment, its growing participation in international missions, and its extremely diverse volunteer force hascreated a very different mid- and upper-level army leader.The average army officer’s experience and training with crisissituations is extensive. The necessity of training for and the experience of leading in high-stress situations has resulted in the officerhaving a high degree of flexibility, a calm and coolness under fire(literally), a degree of comfort in making quick decisions, and anappreciation for teamwork. These are leaders who have had severalglobal assignments, can speak more than one language, are educated beyond their civilian counterparts, and, even as junior leaders,have had responsibilities that equal those of mid-level and someupper-level corporate leaders. This is not profit-and-loss responsibility, but life-and-death responsibility. For these reasons alone,there is much that the civilian leader can learn from the army’sleadership renaissance.I wish to extend special recognition to a number of individuals whose support, encouragement, and cooperation made thisx Preface
work possible. At the top of the list is my wife, Kathy, who is my bestfriend as well as my most trusted confidante, critic, and counselor.I also want to recognize my mentor, Dr. Hubert Dethier, whoshared with me the challenge, excitement, and rewards of soundscholarship. Thanks also go to my friend Dr. Claude Ragan, whoassisted in my understanding of the relationships between needs,emotions, feelings, and behaviors.I would also like to express my sincere appreciation to thosecolleagues who reviewed this work and offered comments, suggestions, ideas, and criticisms. A special thanks must go to Peter Sciscowhose accomplished editing skills made this book a reality.CRISIS LEADERSHIP xi
INTRODUCTIONNothing tests a leader like a crisis. There is an element of the leader’sdeepest character that is revealed during highly charged, dramaticevents. A crisis can quickly expose a leader’s hidden strengths andcore weaknesses. It can show the world if the leader has what it takesto function effectively when the heat is on. Will the leader addressthe crisis head-on, take those actions needed to fix it, and, ifappropriate, take responsibility for the crisis? Will the leader freeze,or worse, claim to be a victim and pass off the responsibility toothers? What can and should a leader do to find out what wentwrong and to ensure it doesn’t happen again?This book is a brief but sincere attempt to address those kindsof questions. It’s not the definitive work on crisis leadership, nor isit a technical manual of crisis procedures. It approaches its subjectby describing how a leader can handle the human side of a crisis andexamining what leaders can do to effectively deal with the emotions, behaviors, and attitudes of the people involved in or facing acrisis. It defines a crisis and argues for a style of leadership that isparticularly effective during a time of crisis. This book also includesinformation about human nature that is essential for leaders tounderstand if they are to be effective in a crisis situation.At its center, this book deals with three key themes of crisisleadership and their impact on helping people and organizationsthrough perilous times. These themes—communication, clarity ofvision and values, and caring relationships—are certainly important to leaders in normal operations, but their importance ismagnified during a crisis. By paying attention to these themes,leaders can hope to increase their understanding of practices thathandle the human dimension of a crisis. The result is a leader moreprepared to contain the crisis, regain control of the situation, ensurethe minimum amount of damage is done to the organization, andCRISIS LEADERSHIP 1
effectively prevent, defuse, and reduce the duration of these extremely difficult leadership situations.Practicing leaders all along the organizational chain can findmany of the ideas presented here useful, not just for their dailymanagerial tasks but also for their personal leadership development. As a means to understanding these leadership issues, readerscan use this book to assess their strengths and weaknesses, learn newcompetencies, and prepare for events that are as unpredictable asthey are unavoidable.The anxiety, insecurity, and confusion that a crisis generatesare huge challenges for civilian leaders. They must be prepared toprovide leadership not only to those in their organization, but alsoto those in the greater orbit of their influence: clients and customers, the surrounding community, stockholders, suppliers, vendors,local government, concerned organizations, activist groups, andthe media. And, of course, leaders must also lead themselves. Theymust deal with their own emotions and needs a crisis triggers. Forsome leaders, this may be the biggest challenge of all.2 Introduction
1WHAT IS CRISIS?Crises have no borders or boundaries. They can happen anytime,anywhere, and to any organization—profit, not-for-profit, public,or private. The interconnectedness of the global economy and itspolitical realities can magnify the ripple effect of any single crisis,making it a common feature of corporate life. A crisis affecting oneorganization can, among other things, cause layoffs and closingsamong that organization’s suppliers, customers, and partners;bring about a loss of investor confidence that can cause a dip in thestock market; and even bring about environmental damage andpsychological angst. The financial implosion that bankrupted theU.S.-based energy-trading company Enron in the fall and winter of2001, for example, also sparked a financial crisis at Arthur Andersen,a consulting and auditing services firm. The publicity surroundingthe subsequent investigation into both companies led investors toquestion financial records at scores of other publicly traded companies, which in turn suffered their own crises—some more damagingthan the Enron debacle.Because of their unpredictable nature and their accompanying ripple effect, crisis situations are unlikely to leave any organization untouched forever. Leaders should not pretend otherwise.They can realistically count on facing some kind of organizationalcrisis at some point during their careers. Such a crisis will negativelyaffect people in an organization, which is often the most perniciousand difficult challenge leaders face in dealing with a crisis. But theycan act to reduce the probability of a crisis reoccurring, reduce theduration of a crisis, and soften the negative impact by addressing thehuman element of a crisis before, during, and after it occurs.CRISIS LEADERSHIP 3
The Panic ButtonA crisis is generally characterized by a high degree of instability and carries the potential for extremely negative results that canendanger the continuity of the organization. It’s a key moment orcritical period that brings both surprise and dramatic change. Inthis way a crisis can be described as a turning point in the affairs ofan individual or an organization. It’s significant because the consequences of the situation will be decisive in determining the futureof that individual or organization. The word itself originates fromthe Greek krisis, which means “to sift or separate.” A crisis has thepotential to divide an organization’s past from its future, to replacesecurity with insecurity, and to separate effective leaders fromineffective ones. A crisis also has the potential to swap routine forcreativity and to shift an organization from “business as usual” intosignificant change.Many crises are generated by an emergency—a suddencondition or state of affairs that calls for immediate action. Thecrisis itself includes the emergency that served as its catalyst. Thesituation may be further aggravated by relentless media scrutiny, arestless and information-hungry workforce, and advanced technologies that are never 100 percent reliable. Think about the kindsof emergencies reported daily in the newspaper or on TV and howsuch emergencies lead to crisis situations. product failure/recall hostile takeover financial catastrophe hazardous material spill toxic chemical release/leak lawsuit crash or derailment natural disaster4 What Is Crisis?
employee sabotage/violence strike/boycott executive scandal/defection act of war industrial accident succession at the topAlthough no two crises are ever the same, they share somecommon traits. For example, a crisis isn’t usually expected orplanned for. It generally comes as a bombshell that frightens andstuns those on whom it falls. There may have been signs andindications of impending difficulties, but in the flow of dailyoperations they were ignored, placed on the back burner, or wishedaway. The element of shock and even terror can be sharp anddevastating if the crisis has an element of physical danger, if thecrisis causes a death or serious injury, or if the crisis results in thedestruction of property (for example, one’s office or place of work).For these reasons a crisis can exert a high impact on human needs,emotions, and behaviors.In defining a crisis it’s helpful to think about the seriousnessof the threat. The amount of impact a crisis will have on anorganization’s leadership, workers, and stakeholders often dependson its severity. Along these lines, a useful breakdown of a crisismight place it at one of three levels of severity.Level 1 crisis. In this situation the organization will bepublicly embarrassed and mission success is threatened. Commonexamples of this level of crisis include sexual harassment chargesbrought against a key leader of the organization; an insensitive orracially charged statement by a company leader; or an overt actiontaken by the organization that damages the environment, placesprofit over public welfare, or is viewed as unethical, politicallyincorrect, or socially irresponsible. A specific case in point is theCRISIS LEADERSHIP 5
racial discrimination lawsuit filed against Texaco, an American oilcompany. African Americans had been complaining for years aboutdiscrimination in hiring and promotions. In 1996 a taped conversation among four senior white Texaco executives came to light andrevealed vile and offensive attitudes toward African Americansemployed at the company. A class-action lawsuit demanded 520million in damages; Texaco settled out of court for 176 millionand drew the ire and a boycott from African Americans across thecountry.Level 2 crisis. At this level a situation exists in which there ispersonal injury, some property loss, possible loss of life, potentialfor serious damage to the company’s reputation, or a combinationof these and similar items. An example of a level 2 crisis can be foundat Johnson & Johnson. In the fall of 1982 seven people died in theChicago area from taking cyanide-laced Tylenol (one of thecompany’s premiere products). Public relations experts considerthe company’s handling of the crisis as one of the best examples ofcrisis leadership and corporate communications in the history ofAmerican business. Johnson & Johnson placed customer safetyover corporate profits by immediately recalling 10 million worthof Tylenol from store shelves and warehouses, stopping bothproduction and advertising of the product, cooperat
The Center for Creative Leadership is an international, nonprofit educational institution founded in 1970 to advance the understanding, practice, and development of leadership for the benefit of society worldwide. As a part of this mission, it publishes books and reports that aim to contribute to a general
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