Are You a Good Leader in Crisis or in Prosperity?
The following contribution is from the Psychology Today website. The author is Gabriela Cora, M.D., M.B.A., who hosts the program «Dr. Gaby’s Take: Make Life Interesting.» She is a physician and holds a master’s degree in business administration.
The Different Criteria for Leadership Styles in Crisis and Prosperity
Seven years ago, I gave an international talk on crisis management to a group of national managers with experience in security.
One of the attendees asked me if there were psychological tests that could help predict which leaders would operate effectively in a critical situation and which would not.
My response was that no such test existed. She persisted: couldn’t the Myers-Briggs test help predict who would thrive or founder in a crisis?
I started to explain other, more effective ways when someone else in the group chimed in.
One of our top leaders said he’d been prepared for disasters his entire life, and when a disaster struck, he went blank and couldn’t think. Everyone fell silent.
He said that during the disaster, his boss looked him straight in the eyes and gave him very clear, direct orders: A, B, and C, and he was able to snap out of his daze and take action.
Different Skills
The skills a leader needs to guide people through a crisis are different from those needed to help a group grow.
Some leaders have a flexible style, allowing them to implement one style or the other depending on the situation.
However, most people tend to prefer one style or the other: a leader who faces the crisis head on or a leader who helps a group grow and thrive.
There’s no right or wrong; the only problem is expecting a leader whose strength lies in operating through a crisis to be able to grow a company or organization. Excellent crisis leaders display these characteristics:
- Quick and clear understanding of the situation: This leader tends to analyze the problem with a 360-degree perspective and knows, almost in the blink of an eye, what is happening. He or she knows what to do and takes care of what is necessary without hesitation.
- Resolution: In critical situations, these leaders evaluate options, but they know that time is of the essence. They cannot obsess over all possible options; they need to make the best decision in a limited amount of time.
- Clear communication: They communicate concisely and effectively about what needs to be done to resolve the crisis and do not spend too much time explaining the «whys» or «hows.» These leaders take a «give-the-speak» approach, often explaining to everyone their role, the desired goal or achievement, and the deadline for completing the work.
- Don’t dwell on the «whys» of things: During a crisis, there is little time to blame others for what has already happened. Since this is a time to act and solve the problem, there’s always time to analyze and learn the lessons after overcoming it.
- Commanding Presence: When these leaders take control, they don’t hesitate to follow them or not. People know their leader is decisive and has the ability to follow a specific critical thinking process with clarity and leadership.
Excellent leaders in times of growth display these characteristics:
- They take time to assess the current situation and the different growth opportunities: These leaders are not in a hurry, so they may take a little longer to analyze all the possibilities and opportunities.
- They seek consensus: In times of growth and prosperity, great leaders create groups of opinion leaders to brainstorm ideas and benefit from collaboration to find the best options and growth opportunities. Sometimes, this leader’s style may allow consensus to govern the group, but at other times, this style relies on more people offering options for the leader to choose from—options they would not have been able to generate alone.
- Clarity of mission and vision: While a great leader in a crisis is very focused on resolving the crisis, making this their immediate mission and vision for the future, they do not operate in the same way as a prosperity leader.
A leader whose task is growth has a clear mission for what is happening in the present and a clear vision for what must be achieved for a desired future.
The leader can be involved in even the smallest details (as Steve Jobs did) or can operate by delegating and regularly monitoring achievements.
Creating a sense of urgency without turning the situation into a crisis can add resilience to the ultimate goal.
- Time to Plan: An excellent leader who knows how to grow can establish a clear vision and suggest clear strategies, tactics, and activities to achieve the overall goal. They will help others take ownership of the process so everyone is actively involved in achieving that goal, including the how and why of a project.
- Time to Delegate: Although responsibility falls on both leaders, a growth-focused leader has time to delegate and hold delegates accountable for results, while a leader in crisis doesn’t have time to delegate certain tasks and requires communication from delegates almost immediately.
And you? Have you been a leader who has primarily operated in crisis situations or contributed to the growth of your company or organization? Have you ever been in a crisis? What was your work style? Do you know how to develop additional leadership qualities to become a better leader?
Are you prepared for the challenge of a recession? Here’s how to make sure you are.
The following contribution is from the IMD portal, which defines itself as follows: We are an independent academic institution with close ties to the business world and a strong focus on impact. Through our Executive Education, MBA, Executive MBA, and consulting programs, we help leaders and policymakers navigate complexity and change.
We support the transition to a new model that balances prosperity and growth with ecological sustainability and social inclusion. Sustainability, diversity, equity, and inclusion are part of our DNA.
And the author is Merete Wedell-Wedellsborg, Adjunct Professor at IMD
Merete Wedell-Wedellsborg is a clinical psychologist specializing in organizational psychology. As an executive coach, she has more than two decades of experience developing executive teams and leaders. She runs her own business psychology practice with leading clients in Europe and the United States, in the financial, pharmaceutical, consumer products, and defense sectors, as well as family offices. Merete is the author of Battle Mind: How to Navigate Chaos and Perform Under Pressure.
Our new normal turned out to be bleaker than many anticipated. Ask yourself these seven questions to find out if you and your team are ready to face the difficult road ahead.
The Signs Are All Around Us
Around the world, we are witnessing the harsh realities of war, trade tensions, rising prices, and falling consumer confidence.
At home, people are overwhelmed by gloomy headlines and struggle to connect with the problems of others. Even smokers who have quit are returning.
These are just a few of the comments that come up in my coaching sessions with business leaders right now:
“Things are going to be tough, maybe for a long time. I don’t know if we’re up to it, and frankly, neither am I.” “Lately, I need a strong cup of coffee in the morning before reading the news.”
“I even wear noise-cancelling headphones to walk my dog. I used to chat with other dog owners, but now I’m like, ‘Just get out of here.’”
It’s well known that crises create opportunities, but first, you need to make sure you and your teams are ready for battle.
Ask yourself these questions to figure out how to navigate a crisis:
- Are you willing to sacrifice privileges for a purpose?
In good times, we quietly accumulate benefits: flexible hours, performance bonuses, free food, wellness initiatives, and even in-office baristas.
But we also acquire certain freedoms and perhaps even a sense of entitlement as part of an unspoken psychological contract: Good times for us should also be good times for me.
In a recession, you need to readjust your contract.
Suddenly, your «non-negotiables,» like hybrid workdays and holiday parties, are up for renegotiation, and you may find yourself resisting them, either openly or secretly.
If the answer is no:
Holding onto privilege is a sign you’re not facing reality. Downgrade to arm yourself and focus on trading comfort for meaning.
Don’t slam on the brakes, but cut your benefits.
Reconsider why you accepted this position in the first place, how it connects to your purpose and values, and consider what matters most to those you serve: your customers, students, colleagues, and society.
A global consumer goods company, for example, reduced daily office benefits but doubled down on an annual «bring your family to work» day so employees could show their loved ones the work they do and why it matters.
Control what you can, reduce the noise, and focus on offering your core service, product, or advice.
- Are you open about your moments of doubt?
When fatigue and uncertainty take hold, we often find ourselves in a state of denial, acting on autopilot when what we need is time for introspection.
– Do you share your uncertainties openly with others instead of hiding in denial?
– Do you make decisions efficiently without over-deliberation?
Opacity fosters isolation, both for you and your team.
True courage isn’t projecting confidence, but identifying what’s unclear and being open about your vulnerabilities.
If the answer is no:
Overcome your pride and overconfidence.
By sharing your doubts appropriately, you normalize discomfort and invite others to open up.
Build on what has worked in past crises. Control what you can, eliminate the noise, and focus on delivering your core service, product, or advice to the best of your ability.
Team Brainstorming
Help people take responsibility for what feels overwhelming and delegate again if you notice you’ve started to «take over» everyone.
- Can you still resist the temptation to disengage?
Rising to the occasion isn’t something to be taken for granted.
You or your team members might feel a sense of paralysis.
Leaders retreat behind dashboards. Teams return to familiar routines.
The organizational pace slows. But disengaging isn’t the same as saving energy: it’s giving in to inertia.
If the answer is no:
Help people take responsibility for what feels overwhelming and delegate again if you notice you’ve started «taking over» everyone.
Look for signs of learned helplessness when people feel it’s «just not worth the effort» or when someone says, «Why bother? We won’t get there anyway.» Point out silences in meetings, missed follow-ups, lack of resilience, or canceled team seminars. Increase your presence, visibility, and vigor, and demonstrate commitment to challenges.
- Are you prepared for criticism and ridicule?
Winning is a hard habit to break. Success breeds more success, along with guilty pleasures like admiration, recognition, and prestige.
When the wind changes, you’ll soon discover that you’ve never made it past your final quarter, that your hero status has been shaken, and that your leadership authority is being questioned.
Behaviors once considered advantages are now considered disadvantages: your humanity, too bland; your strategic vision, too removed from the daily grind; and your inventiveness, a distraction from core performance. Prepare for your critics to become more visible.
If the answer is no:
Stand firm and connect with who you are as a person. Don’t seek applause.
Instead, show variety and nuance.
Demonstrate your attention to detail if you’re a dreamer, your penchant for action if you’re a thinker, and your empathy, even if you have a harsh tone. Criticism will come. Show that you can accept it and that you won’t back down. Be prepared to absorb it.
If you feel burned out in one area, you’re at risk in all.
- Do you have enough reserves to get by?
«Only when the tide goes out do you discover who’s been swimming naked,» as Warren Buffett said.
This is true both emotionally and financially.
Crises require physical stamina, cognitive acuity, emotional capacity, and free time. If you feel burned out in one area, you’re at risk in all.
If the answer is no:
Focus on others, instead of coddling yourself.
Show appreciation for your colleagues. Recognize the unsung heroes in your system: the people who rarely get the spotlight but hold it together.
Giving appreciation isn’t easy; it’s a mutual benefit. Empowering others creates a strong bond and is immediately rewarded.
- Do you see a vision of a better future on the other side?
When you’re going through a difficult time, keep going. But if the road ahead seems hopeless, what do you do?
Leading through a recession isn’t just about surviving the storm; it’s about aiming for clearer skies.
If you can’t imagine a better future, neither will your team. People can tolerate hardship, but not hopelessness.
If the answer is no:
Don’t assume your teams have a long-term vision. Crises make us short-sighted.
A leader’s job is to set the course and see things from above: to distance themselves from the daily work of putting out fires.
Take some time to restate your goals or, if necessary, redraw the future and the roadmap to get there, even in the urgency of the crisis.
You’ll need more than simply «Let’s make it through the quarter.»
Clarify not only where you’re going, but why it’s worth going. People can survive difficulties, but only if they lead somewhere. Some teams disintegrate suddenly, but most quietly fracture.
- Are they really united in this?
Doubt about leaders, doubts about the strength and future of the company, or about oneself, quickly lead to high-profile departures, further undermining trust.
Crises test the balance between self-interest, self-preservation, altruism, and self-sacrifice. Fracture is never far away.
Some teams disintegrate suddenly, but most quietly fracture: a colleague withdraws, a high-performing employee quietly disengages, and a once-solid relationship begins to feel like a transaction.
If the answer is no:
During a crisis, our confidence and self-esteem tend to decline. There is no refuge in the strength of numbers, and mistakes are viewed more negatively.
Managing tension is essential to keeping a team together.
Prioritize renewing your commitment and professional promises.
Remind people, through words and actions, that their presence matters and that setbacks are part of your quest. That you see them. That they are not alone.
The hardest thing during a recession is constantly disappointing others.
Prepare for action. Acting in a recession requires very different discipline and dynamics.
Perhaps you need to change the image of success and how to achieve it.
Perhaps you need to change the composition of your team and renew your personal commitment.
An experienced crisis leader will tell you that you must build capacity and commitment before things get complicated, not in the middle of the crisis.
This applies to both you and your team. And as one of my clients says, «The hardest thing during a recession is constantly disappointing others.»
Saying «I don’t know» when others are looking for certainty. Leave comfort behind to protect what truly matters. When facing the next wave of disruption, don’t confuse firm
