There were an abundance of key issues raised by our two panelists. This reflects the fact that both of them are highly seasoned, successful ex-Chairmen and CEOs. At the risk of over-simplifying, however, here are the firm issues that I found to be particularly important:
Communication: Communication is key. This must come from the top – one voice! And this includes communication with the press. Be clear, and totally honest. Say it all, how it is! And communicate quickly. If you don’t say it, the press will. It is important to control the communication as much as possible.
Decision making and leadership: When a crisis is emerging, be decisive at the top! It is the role of the CEO to take firm control as soon as possible. Top-down leadership is absolutely paramount. There is no time for debates. The CEO is the undisputed boss! This is not a participative/democratic process!
Management: In contrast, when a crisis is tapering off, then the CEO might shift his/her leadership style back to be more inclusive, allowing for more participation by other members of the leadership team.
Progress and performance: It is crucial to report on progress in a speedy way, and this must be totally honest and accurate too. In this way the CEO develops and maintains the trust that he/she must enjoy from all stakeholders – employees, customers, shareholders, banks, suppliers, and so on. Trust, and the undisputed authority that comes with this, is key!
Values, responsibility and accountability: “When in doubt do the right thing”, as General Schwarzkopf was heard to say*. The CEO must do what is needed to firmly ameliorate his/her firm’s problems/challenges. To hesitate, so as to “play it more safe” by considering potential negative impacts on one’s own career is a “No No”! The CEO should be able to count on the support from a firm Chairman when it comes to handling the crisis. And, it also helps when the CEO him/herself shall have invested in the company – “skin in the game”.
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