Crisis Lessons

Does a crisis represent danger or opportunity? I have written that one must take full advantage of a business crisis, even amplifying it, by some modest amount, via clear and unvarnished communication to all constituent groups. When all members of a community, an organization, a business enterprise fully recognize that there is a crisis and that their lives will be significantly impacted by the effects of that crisis, previously rather unchangeable attitudes can be significantly changed. The reigning guru of human behavior theory, Bandura, in his acclaimed book "Social Learning Theory" states "Behavior is, in fact, extensively regulated by its consequences."

Rahm Emmanuel this week announced a parallel thought."Rule One: never let a crisis go to waste. They represent an opportunity to do big things."

There's a clear message here--one that i have discussed--and used--extensively. When your business is in trouble, don't do what many CEO's do and underplay it to your employees, directors, and all other constituencies (perhaps with an exception for customers). Don't mask it with feel-good proclamations in the fear that your employees will stampede out the doors. When you do, not only are you being a chicken, but you're thwarting one of the greatest elements of change available--necessary behavioral changes in your employees as they recognize the consequences of their normal attitudinal tendencies--maintaining status quo.

Comments

[Nichoas Vakkur]

There is a real danger here: because the information Tom provides is free to all, it may easily be taken for granted. I for one will not fall into that trap. Clearly, Tom knows volumes about what it means to function and succeed as an executive--that is clear in all of his lessons. What this most recent post indicates to me is the sublime nature of excellence. The chasm between success and failure, if you read carefully, is not that wide. Success for a CEO means reading between the lines, managing the battles which never make headlines, and now we learn, seizing apparent failure as a vehicle towards success. That tells me that all CEOs experience failure--or some type of suboptimal outcome. However, clearly not all manage to succeed. I eagerly await learning more with each new posting. (Maybe there is potential room for Tom as a member of the President-elect's administration, teaching these invaluable lessons to entrepeneurs, government employees, and even politicians? Who knows what positive outcomes might result?)