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se Your Head……

Crisis Leadership:A Practical Applicationto the Chaos of a Crisis

Gordon Meriwether, MBA, PMPThe Leadership Challenge Forum 2010

August 5, 2010


“Living in a cave doesn’t make you a geologist.” HBR

No more than being a manager makes you a leader….


Our goal today is to keep it simple…….

Simplicity wins in a crisis!Simplicity wins in a crisis!


Teaching the Rules of the Crisis

Road1. Keep it simple….2. Make it real….3. Be seriously funny…..4. Declare victory!


Today

• Ground Rules– There are no rules!– Cell Phones– Interactive– Follow up– Hot Wash & Takeaways

Impacts on Leaders in Crisis

• Tension and Stress– Psychological, mental, & physical

• Speed – Warp or tedious

• Personal– Availability of the right people…making due.

• Organizational– Rigidity or flexibility

• Stakeholder variance– New players and expectations

• Communications– New channels

• Media– Exponentially more attentive and focused

• Simplicity wins in Crisis– More complexity less likely success.


Elements ofAny Crisis

Crisis!

Oxygen(your business environment)

Fuel(Press, employees, politicians,

lawyers, regulators…etc.)

Heat(the incident)

FIRE!


You can be a Leadership Star & Lose

Crisis Event + Human Factors – Leadership = Chaos

Crisis Event + Human Factors + Leadership = Chaos


CrisisLeadership

Cycle

• Preventing• Preparing• Responding• Recovering


Impacts of a Catastrophe

(Disaster/Pandemic/Man-made)

Economic

Social Health

• Financial• Employment• Immigration

• Physical• Psychological

• Cultural• Political• Communication

Learn to Embrace Chaos

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“Katrina underscored the thin line between stability and chaos.”

- Wall Street Journal09.07.05


Stability vs. Chaos?

• Stable Systems (Newton’s laws of motion)– Cause and effect– Possibility of long-term predictions

• Chaotic systems (weather prediction)– Minute variations introducing enormous uncertainty– You can never get an accurate measurement– Dynamic instabilities = Chaos

* Trump, University of Texas, Austin

Long-term predictions for chaotic systems are no more accurate than predictionsmade from random choice.

Long-term predictions for chaotic systems are no more accurate than predictionsmade from random choice.


Minute Variations = Chaos1 2 3 4 5 6 7 8 9

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-2

-1.75

-1.5

-1.25

-1

-0.75

-0.5

-0.25

0

0.25

0.5

0.75

1

1.25

1.5

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Series1

Series2

Series 1 Series 2

0.5 0.50001-1.75 -1.74999

1.0625 1.062465-0.87109 -0.87117

-1.2412 -1.24107-0.45943 -0.45975-1.78892 -1.788631.200239 1.199181-0.55943 -0.56197-1.68704 -1.684190.846107 0.836513

-1.2841 -1.30025-0.35108 -0.30936-1.87674 -1.90431.522163 1.6263490.316982 0.645011-1.89952 -1.583961.608186 0.5089310.586263 -1.74099

-1.6563 1.0310420.743315 -0.93695-1.44748 -1.122120.095207 -0.74084-1.99094 -1.451151.963825 0.1058411.856608 -1.98881.446993 1.9553170.093788 1.823263

-1.9912 1.324287

1.9649 -0.246


Ingredient A

Ingredient C

Ingredient B

Ingredient D

Ingredient E

Ingredient F

Ingredient G

Ingredient H

CoolerShipper

Dry packaging

Cooler/Shipper Processor

ConsolidatorRepacker

PackerShipper

Ingredient I Packer Shipper

IngredientSupplier

FinishedProduct

FoodserviceDistributor

ConsumerDistribution

IndependentOutlets

Hospitals

Chain Retail DC

Retail

Restaurant

Always on the Brink…Always on the Brink…Trevor Suslow; UC-Davis


Lessons Learned

1. Quick Response to a crisis is mandatory. 2. Continually build teams around empowered

managers. 3. Take guidance from your core values. 4. Maintain your personal balance. 5. Maintain control over the team, the crisis,

and your assets.


The Human FactorIn a Crisis


How do we React to a Crisis?

• Humans will react to a crisis in 4 steps with:

1. Our Instinct2. Our Emotion3. Our Head4. Our Plan

The trick is to get to step 4 as quickly as possible….but…


When the Plan doesn’t

work……• Instinctively• Emotionally

• Use Your Head!• The Plan


The Application: The Five Practice of Exemplary

Leadership


What disasters awaits you….


The 5 Practices of Exemplary Leadership

• Model the Way–Clarify Values–Set the example

• Inspire a Shared Vision–Envision the Future–Enlist others

• Challenge the Process–Search for opportunities–Experiment & take risk

• Enable Others to Act–Foster collaboration–Strengthening others

• Encourage the Heart–Recognize contributions–Celebrate accomplishments

Model the Way

• Clarify Values by finding your voice and affirming shared ideals.

• Set the Example by aligning actions with shared values.

Wendy’s

Inspire a Shared Vision

• Envision the future by imagining exciting and ennobling possibilities.

– “I have nothing to offer but blood, toil, tears and sweat.” Churchill

• Enlist others in a common vision by appealing to shared aspirations.

– “….let me assert my firm belief that the only thing we have to fear is fear itself…” FDR

Toyota

Challenge the Process

• Search for opportunities by seizing the initiative and by looking outward for innovative ways to improve.

• Experiment and take risks by constantly generating small wins and learning from experience.

John Deere

Enable Others to Act

• Foster collaboration by building trust and facilitating relationships.

• Strengthen others by increasing self-determination and developing competence.

Tylenol


Encourage the Heart

• Recognize contributions by showing appreciation for individual excellence.

• Celebrate the values and victories by creating a spirit of community.

Mayor Rudy Giuliani


What’sImportant?

1. Quick Response to a crisis is mandatory. (Challenge the Process)

2. Continually build teams around empowered managers. (Enable others to act)

3. Take guidance from your core values. (Model the Way, Inspire a Shared Vision)

4. Maintain your personal balance. (Encourage the Heart)

5. Maintain control over the team, the crisis, and your assets. (Enable others to Act, Encourage the Heart)


Have all the laws of leadership been written?

30


Lessons!• Dynamics at play

– Human nature• Fragmentation of decision-

making authority• Psychological impact of fear• Ego• Self interest

– Crisis management• Turmoil ignition and

sustainment• Risk communications• Conflict management• Conflict between personal and

community priorities– Expectations management

• Public/Media impacts• Litigation influences• Political impacts

– Community development• Procedural ignorance and

arrogance• Preparedness • Team building • Relationship development

and sustainment• Organizational dependencies• Recovery impacts and

requirements• Stovepipe vs. integrated

training

The Individual has a major impact on any and all crisis

The Individual has a major impact on any and all crisis


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