Leadership During Crisis

“Crises Magnify the significance of small weaknesses” - Bruce T. Blythe

Charlotte DelcroixFrederik Schellekens Yaling DengPieter-Jan Janssens Maria Sami

Agenda

1. Brainstorming

2. Activity: Lead your Team in the Darkest Hour

3. Experiences & Theories

4. Case study: Ducati

5. Closing

2 Teams:- Go from Point A to B without touching

the obstacles or falling

- Each team 1 Leader at the beginning of the line, one receiver at the end

- 2 disruptive members for the other team

- Rest of the team to be blindfolded- Need to reach Point B by just listening

to your leader despite the disruptions

- Not allowed to touch any player- Touching an obstacle, falling or

cheating → -2 points for the whole team

- Solve the Puzzle at the end!

Lead Your Team in the Darkest Hour (Game)

BrainstormingWhat Do you Define as Crisis?What do you define as effective leader during crisis?Real Life Examples?

What is a Crisis?

Definition

Any emotionally charged situation that, once it becomes public, invites negative stakeholder reaction and thereby has the potential to threaten the financial wellbeing, reputation, or survival of the firm.

Phases of solving a crisis Leadership as (un)usual – E.H. James, L.P Wooten

Signal detection

Prevention/Preparation

Damage control

Business control Learning

Using crisis to promote organizational change Leadership as (un)usual – E.H. James, L.P Wooten

1. Build a foundation of trust2. Create a new corporate mindset3. Identify the (not so) obvious vulnerabilities4. Make wise and rapid decisions5. Take courageous action6. Learning from crisis to effect change

A Strong Leader…

Will have more influence during periods of crisis- Influence Ratio- Acceptance Ratio

A Weak Leader…- Will be quicker replaced

Leadership and Crises – R.L. Hamblin

Two Forms of Charismatic LeadershipThe effects of visionary an crisis-responsive charisma on followers – J.G. Hunt, K. B. Boal, G. E. Dodge

Crisis + response = Charisma

In crisis: vision or response = sufficient condition

Crisis = necessary condition

Vision = sufficient condition

Visionary leadership

Crisis-responsive leadership

Charismatic Leadership in CrisisThe effects of visionary an crisis-responsive charisma on followers – J.G. Hunt, K. B. Boal, G. E. Dodge

Crisis plays a role in charisma

Limited temporal effects

Crisis Responsive Leadership

Effects decay over

time

Vision matters

Restoring Hope during Trying TimesBy Gretchen M. Spreitzer

Target During Crisis- Create feeling of Hope for followers to keep moving

Leadership plays an important role in facilitating hopeful responses. People turn to the leader during trying times and even the smallest leadership actions get noticed

What should the Leader be protecting during times of crisis/Economic DownturnStrategic Crisis Leadership - Bruce T. Blythe

10 Attributes for Leaders during Times of Crisis

Focus

Self-awareness

Empathy

Agility

Transparency

Perspective

Optimism

Imagination

Appreciation

Humor

Case in Point: Ducati

Motorcycle brand

Long history in successful and technologically superior motorcycles

Italian based

Founded in 1926

Sophisticated/technical superior mortorcycles

Years of growth in 60’s – 70’s

Successes in international racing circuits

Case in Point: Ducati – Cont’d

Problems in 80-90’s:

Liquidity Problems

No Differentiation

Lack of Marketing

Seen as Unreliable

Leak in Factory Roof

Case in Point: Ducati – Cont’d

HOW DID DUCATI SOLVE THE PROBLEM?

Case in Point: Ducati – Cont’d

3 Possibilities & 20 Billion Lire Available

Continuity Development of a new motor

Gran Prix Championships

Product Investment

Process Rationalization

Case in Point: Ducati – Cont’d

Creativity & Strong Vision

Global Brand Heritage of Ducati in Racing Competitions

Mechanical To Entertainment

S.C Restructuring

in line with Brand

Creation

Case in Point: Ducati – Cont’d

WHAT SKILLS ARE NEEDED TO IMPLEMENT SUCH A STRATEGY?

Case in Point: Ducati – Cont’d Skills needed

Seeing things for wat they are Strategy & detail Multiple options

Decisiveness Collaboration Take risk in the face of risk

Listen to unpopular advice

Calm, courageous &

positive 80% rule

Prepare to admit mistakes

OPENING MINDSTO IMPACTTHE WORLD