Crisis Management: Leading vs. Managing

Crisis Phases

  • Unfolding Over Time: Each crisis has a beginning, middle, and end.
    • Past: Relative stability and predictability.
    • Present: Chaos and disruption.
    • Future: Will vary by organization; may be resilient or catastrophic.

Dual Role of Leaders

  • Management: Focus on immediate needs; allocate resources; make quick decisions.
  • Leadership: Guide organizations toward the best future outcomes; anticipate obstacles beyond the immediate situation.

Leadership Traps

  1. Taking a Narrow View

    • Human Instinct: Focus narrows when facing a threat, hindering broader analysis.
    • Meta-Leadership: Cultivating a holistic view of challenges and opportunities; example from Admiral Peter Neffenger during the Deepwater Horizon spill.
  2. Getting Seduced by Managing

    • Thrill of Action: Crisis management can feel exciting, leading to over-involvement in operations instead of strategic foresight.
    • Long View: Leaders must anticipate future changes rather than focus solely on current issues; trust subordinates to make decisions.
  3. Over-centralizing the Response

    • Control vs. Order: Attempts to oversee every detail can stifle responsiveness; leaders should delegate decision-making and focus on establishing guiding principles.
    • Example: Deval Patrick's leadership during the Boston Marathon bombings involved facilitating, not controlling, operations.
  4. Forgetting Human Factors

    • People vs. Metrics: Crises influence people, and leaders should prioritize human elements over metrics like revenue.
    • Common Mission: A clear mission fosters unity and purpose; example from James Dunne post-9/11 - balancing business goals with personal care for employees.

Venn Diagram of Leading and Managing

  • Overlapping Circles: At the crisis onset, leading and managing overlap; as time progresses, they diverge.
  • Interdependence: Present management must be balanced with future leadership focus; effective leaders ensure management functions adequately while focusing on leading into the future.