Leading Through a Crisis�
Human Resource Management Association of Jamaica (HRMAJ)
Conference 31
November 18, 2011 Wyndham Hotel, Kingston
Dr. Terence Frater
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Leading Through a Crisis
Dr. Terence Frater
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AGENDA
1. How do we define a crisis?
2. Key steps in Crisis Leadership
3. A Crisis Management framework
4. Q & A
Leading Through a Crisis
Dr. Terence Frater
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Definition of a crisis
A critical period or state of affairs in an organisation, characterised by upheaval, danger or instability, with the distinct possibility of an undesirable outcome
Leading Through a Crisis
Dr. Terence Frater
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Business results can be produced by competent managers rather than inspiring leaders.
However it takes a great leader to guide an organisation through a crisis and produce lasting results.
Leading Through a Crisis
Dr. Terence Frater
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Key steps in Crisis Leadership
Step 1: Set expectations at the start.
Step 2: Get all relevant parties on board.
Step 3: Communicate effectively.
Step 4: Create Trust.
Step 5: Talk to persons on the ground; have a physical presence during pivotal moments.
Step 6: Manage Change.
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Set Expectations
Key steps in Crisis Leadership
Dr. Terence Frater
Leading Through a Crisis
Dr. Terence Frater
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"We have before us an ordeal of the most grievous kind. We have before us many, many long months of struggle and of suffering."
— Winston Churchill
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BP initially estimated 1,000 barrels of oil was leaking daily. Eight days later, they announced it was more like 5,000 barrels a day. By May 5, BP said it could be as much as 60,000 barrels
a day.
Dr. Terence Frater
Leading Through a Crisis
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Get Everyone on Board
Key steps in Crisis Leadership
Dr. Terence Frater
Leading Through a Crisis
“[CRISIS] LEADERSHIP FUELS AN INTRINSIC DRIVE THAT UNLEASHES ENTHUSIASM AND PASSION ABOUT THE ORGANISATION’S PURPOSE AND VALUES.”
—KARLENE KERFOOTE
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Communicate a compelling vision and build consensus.
Key steps in Crisis Leadership
Dr. Terence Frater
Leading Through a Crisis
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"We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender.”
— Winston Churchill
Dr. Terence Frater
Leading Through a Crisis
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Foster and Manage Trust
Key steps in Crisis Leadership
Dr. Terence Frater
Leading Through a Crisis
"IT IS OF NO USE FOR ONE TO DRINK WHEN MANY THIRST."
- ALEXANDER THE GREAT
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Leading Through a Crisis
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An environment of trust lends itself to employees taking risk. The ability to take risk is the surest path to innovation and progress.
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Former Prime Minister Golding had long denied knowledge of the hiring of a Los Angeles-based law firm that lobbied Washington on behalf of Mr Coke. He later apologised and said... "In hindsight, the party should never have become involved in the way that it did and I should never have allowed it, but I must accept responsibility for it and express my remorse to the nation."
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Make your presence felt at pivotal moments.
Key steps in Crisis Leadership
Dr. Terence Frater
Leading Through a Crisis
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Key steps in Crisis Leadership
Dr. Terence Frater
Leading Through a Crisis
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Manage change.
Key steps in Crisis Leadership
Dr. Terence Frater
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Though largely inert, organizations can and do change — and in a crisis it is the role of senior management, to anticipate changes and reconfigure organisational assets to help the firm survive. We must manage effectively and lead with inspiration.
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The management of the hedge firm Long Term Capital included two Nobel Laureates among its founders but collapsed in 1998, almost
bringing the U.S. financial markets to ruin.
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General Motors was arguably the largest and strongest manufacturing firm in the United States for much of the latter part of the 20th century, yet filed for bankruptcy in 2009.
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Times of adversity call for inspirational leadership – to engender the necessary motivation, commitment, and productivity.
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Being in a leadership position does not mean we have the qualities of a leader.
To pilot an organisation/unit through a crisis, requires inspirational leadership.
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Leading Through a Crisis
DEVELOPING A CRISIS MANAGEMENT FRAMEWORK.
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Where do we go from here?
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Sudden crises Smoldering crises
Natural disasters Product defects
Terrorist attack Rumors/scandals
Plant explosion Workplace safety
Workplace violence Bribery
Product tampering Sexual harassment
Sabotage Consumer activism
Hostile takeover Mismanagement
Executive kidnapping Whistle blowing
Environmental spill Class action lawsuits
Technology disruption Labor disputes
Dr. Terence Frater
Types of Organisational Crises
Leading Through a Crisis
A CRISIS MANAGEMENT FRAMEWORK?
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Pull the string, and it will follow wherever you wish. Push it, and it will go nowhere at all.�
-Dwight D. Eisenhower
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There will be casualties.�Lead boldly.
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LEADING THROUGH A CRISIS
Dr. Terence Frater