The CEO in a Time of Crisis
By: Trey Taylor Trinity-Blue
Tags: Entrepreneurship, Startup, CEO, Management, Leadership

The CEO in a Time of Crisis

Part Two: Rising to the Challenge

It’s always there. You can plan. Run the numbers. Play the scenarios. But it’s always there, waiting just beyond the horizon line; the unforeseen occurrence ready to rear its ugly head and turn your world upside down. The black swan.

Is the Coronavirus a black swan? Only in the sense that we refused to see it. Like so many other unpleasant possibilities in both life and business, we shut our eyes, told ourselves that it was unimportant, that it could never happen here.

But it was important and it did happen here, and now we are paying the consequences.

As I write, the business world has fallen into a state of crisis. The stock market has plummeted, supply chains have been disrupted, companies have shuttered, and workers have been sent home. Over the coming weeks — perhaps months — the situation is expected to become more dire.

In a time such as this — a time of economic and social disruption — we all have responsibilities: to ourselves, to our families, and to our neighbors. But it is the CEO who has the greatest responsibility. As CEO, you must not only steer your company through uncharted waters but must also serve as a beacon in the community, a light towards which we can turn for assurance. For this to happen, the CEO must adhere to certain practices during a crisis.

The CEO Must Remain Visible

We’ve seen it far too often: When bad times appear, CEOs disappear. Rather than step forward, they turn to their legal staff and communications department and ask them to draft a response. Press releases, emails and social media posts then go out.

The message is almost always about how serious the company takes the current situation; how the company is making every effort to respond; and how it is committed to supporting all of its stakeholders during the crisis. The effort is always professional and almost always rings hollow. Rather than a human response to a human tragedy, it sounds like an automated recording you get when you call the Department of Motor Vehicles.

The role of the CEO is iconic. Many companies are identified, not by their products or services but by the individual who leads them. In a time of crisis, leadership means stepping to the forefront with total transparency.

Transparency requires the CEO to communicate often and personally — not through proxies. The CEO must clearly demonstrate that he is following every aspect of the evolving situation and adjusting the company’s response accordingly.

The CEO must be honest about what he knows and does not know. If necessary, the CEO must detail everything he and his team are doing to address the crisis. Members of the team should be introduced and allowed to take part in the public discussion.

The CEO Must be Decisive

Modern business is driven by the numbers; facts and figures that enable us to plot the trends that predict the outcomes. Being dependent on the numbers, far too many CEOs are prone to suspend decisions for long stretches of time as they wait for the full body of facts to emerge. Waiting for all of the facts to come in before determining what to do is a mistake. Because a crisis is constantly evolving, it’s never possible to have all the facts.

The CEO cannot allow uncertainty to breed indecisiveness. During a crisis, a company’s stakeholders want reassurance. And the only way for them to feel reassured is to know that the CEO is not only acting decisively but with intent.

Equally important: the CEO must recognize that there is no single, all-encompassing decision. Some decisions will be incremental, others temporary. The CEO may announce a work-from-home policy, implement collaboration tools, or expand paid sick leave.

What’s most important is that the CEO is seen by the company’s stakeholders as being proactive and in charge, rather than simply reacting — often too late — to events as they unfold.

The CEO Must Be Compassionate

The rise of the Coronavirus is not simply a business challenge but a human tragedy that will impact the lives and health of virtually every one of your company’s stakeholders. Which is why one of the key responsibilities of the CEO during a time of crisis is to have a positive impact on people’s lives — not just economically but on a personal level.

Fear and isolation generate a variety of responses. Some people become angry while others fall into depression. When this occurs, the fabric of society begins to shred. One of the roles of the CEO is to prevent the shredding.

The key is maintaining the human touch. With so many people either laid off or working from home, this can prove to be a challenge. But with the aid of technology, it is a challenge the CEO can easily overcome.

Today we have a multitude of apps and platforms that enable us to hold online meetings, conferences and seminars. Many of these contain video functionality that allows us to see and hear the other participants.

Recognizing the need for the company’s stakeholders to stay connected, the CEO can leverage these tools to build a virtual community in the midst of crisis. The CEO can also create a video blog where each week he reaches out to his company’s virtual community, then invites comment and feedback. The solutions are many. All that is required is the will to make them happen.

The Coronavirus has hit us hard. While we need to acknowledge its deadly effects, we must also not succumb to fear and paranoia. Throughout our nation’s history, we have been confronted by crises that seemed to be insurmountable. And yet we not only overcame these crises but emerged stronger and more united. Working together and with the leadership of our country’s businesses and CEOs, we will do so again.

Stay Safe. Be Well.