10/7/2014 Crisis As Opportunity: Leadership, Change and Renewal | Ideas for Leaders http://www.ideasforleaders.com/ideas/crisis-as-opportunity-leadership-change-and-renewal 1/3 SEARCH tel. +44 (0)203 031 2900 CHALLENGE US PINNED ACCOUNT LOG OUT HOME ABOUT IDEAS LIBRARY IDEAS BY INSTITUTIONS Home Ideas Library Crisis As Opportunity: Leadership, Change and Renewal 10.13007/078 Ideas for Leaders #078 Crisis As Opportunity: Leadership, Change and Renewal Key Concept Arguably the greatest gift we can glean from a crisis is an improvement in our ability to see the next one coming, to prevent it coming if possible, and to lead our organization successfully through that next crisis situation. We learn Crisis Leadership. This is essential: crises are inevitable. Similarly, there are essential characteristics and skills required to navigate them, and to ensure your organization not only survives but emerges from the crisis better off. Idea Summary In recent years, the capability to lead teams under extreme pressure has become an important asset for leaders. In fact, developing competencies that can assist in leadership during a crisis is now mandatory. With greater natural demand, business schools have been challenged to reconsider and revisit the characteristics and challenges of crisis leadership; with near continual, sharp reminders that crisis events are inevitable. Crises can have a rippling effect and are experienced by all organizations in some magnitude or another. Leaders in a crisis situation will face a number of different pressures, including unusual circumstances, limited or conflicting information, and a need for immediate and decisive action. Thus, the demands on a leader will be unique, requiring a different set of abilities than general leadership. Beyond managing corporate communications and public relations, leaders need to work on building a foundation of trust—not only within the organization but with key stakeholders as well. This goes hand-in- hand with quick and ethical decision-making. Furthermore, a particular frame of mind accompanied by a key set of behaviours is the key to leading under pressure. Developing a mindset for reflecting, adapting and learning from the crisis situation and its aftermath is at the core of crisis leadership. Share Authors James, Erika Hayes Wooten, Lynn Perry Institutions University of Michigan Ross School of Business University of Virginia Darden Business School Source The European Financial Review Idea conceived 2011 Idea posted January 2013 DOI number Subject Crisis Management Leadership Decision Making