Richard Ghilarducci: How Leaders Handle a Business Crisis
A business crisis can be an event or a series of events that causes major disturbance for a company. A crisis typically occurs suddenly. It also poses an intense challenge or danger for the business. According to Richard Ghilarducci, a crisis typically happens in a situation where the amount of time to save the company is short and when decisions have to be made rather quickly.
Natural disasters are one such example. These include unpreventable environmental crises such as flooding due to heavy rains or strong storms that cause damage to infrastructure.
There are also technological disasters, which include IT system failures, malevolent cyberattacks, corrupt software, or faulty hardware, says Richard Ghilarducci. Tech disasters normally affect access to the more critical aspects of a business, such as data, an employee’s ability to work effectively, and more.
Another good example of a type of crisis is accidents, which happen unintentionally. These accidents include fires and power outages, as well as gas leaks, among others.
Ways Leaders Manage a Crisis
One of the major things that separates good and great leaders is the ability to turn a crisis around. The fact of the matter is any leader leading a group worth leading with always encounters adversity. After all, these are the challenges that lead to growth and, ultimately, greatness and glory. However, it takes a special kind of person, a special kind of leader, to cope with these challenges.
To help out, Richard Ghilarducci shares a few insights on how leaders can handle a crisis and lead their teams through the rough waters.
• In a crisis, the best leaders want to be the ones to take care of things. Not that they won’t be delegating tasks – they still will; but they will also be micro-managing, overseeing every little detail until the storm passes, adds Richard Ghilarducci.
• If and when the best leaders fall short of their plans, and their team gets affected by a crisis, these leaders immediately own up to it. Far too many people in power try to save face and cover up the wrong they’ve done. It can potentially be catastrophic for the team. Admitting one’s mistake is a mark of a true leader, and it gets everyone on the same page in the right way.
• Good leaders can communicate effectively – amid a crisis. Difficult situations can rattle even the sturdiest individuals, and everyone knows that when a person is fazed, they can communicate messages differently. The best leaders remain calm, respectful, and in control of themselves, even and especially when things seem to be crumbling apart.
During his career that spanned over 30 years, Richard Ghilarducci held leadership roles, including Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. For more of his insights on leadership, follow this page for updates.