Leadership tips for tough times

Whether a crisis is immediate and unexpected (such as Hurricane Andrew or the attacks on the World Trade Center) or gradual and long- term (such as a slowing economy), effective leadership is what sets one organization apart from its competitors and often determines its fate.

With that in mind, the following are some guidelines for leaders on how to proceed in the face of uncertainty.

Before A Crisis Occurs:

Determine a chain of command. You should have your leadership team in place and ready to go immediately. If you wait until a crisis occurs, you will waste valuable time getting your team up to speed. Keep in mind that accountability becomes localized during a crisis.

Rely on seasoned leaders. Whether it's an immediate crisis or a long period of economic instability, there's no time for trial and error. Stack your leadership deck with experienced leaders who have weathered the storm in the past.

Ensure that your organization is nimble and able to respond quickly. Hopefully, your company or organization will never face a dramatic disaster, but being flexible and able to respond rapidly to change is sound advice - even during the good times.

Focus energy and effort on the things you can control. Set your priorities clearly and simply, and then communicate and re- communicate them to your company or organization.

Be aware of your employees' needs. Employees who are satisfied with their jobs are much more likely to go above and beyond the call of duty during a crisis, pitching in to help out their co-workers and the company or organization.

Create an engaged, loyal workforce. In the absence of a disaster recovery plan that adequately anticipates the crisis, your existing culture will take control and determine the quality of your response.

During A Crisis:

React thoughtfully, but quickly. During a crisis, there is no time to waste. Act rapidly and deliberately by deploying a plan. Don't become paralyzed. You need to be able to mobilize immediately.

Communicate to reassure. The fact that the situation is being monitored and managed is a message that employees need to hear immediately, even if things aren't yet stabilized or under control. If possible, deliver this message personally and often.

Reduce helplessness. A danger that appears uncontrollable creates much more fear than one that is perceived as controllable. Put the danger and likelihood of personal risk in perspective.

Give the "all clear." As potential risk is lowered, communicate the news of the improved situation as soon as it is practical to do so.

Set an example. People look to leaders for how to behave. When a leader makes a personal commitment, employees are much more willing to make sacrifices during a difficult period.

Give employees a sense of purpose. During a difficult period, people want to effect positive change. Help employees channel their energies by setting up appropriate mechanisms like a donation center or other volunteer efforts.

After A Crisis:

Continue to reassure employees. Fear and anxiety may remain even after the immediate danger has passed. Be aware of feelings and emotions that may negatively impact creativity and focus. Clear, honest and continuing communication that reaches the lowest levels in a personal way is critical.

Help the organization deal with poor business results that stem from the crisis. Recognize increments of progress and best performances.

Create a sense of optimism. Assure employees that the worst has passed and that the future looks bright. The shared experience of a crisis can actually present an opportunity to build loyalty and strengthen teamwork.

Demonstrate courage. Fear is contagious, but so is courage. Set an example of steadiness and professional demeanor, and employees will follow your lead.

Michelle M. Cain, CPA is a Senior Manager with Mengel, Metzger, Barr & Co. LLP. She can be reached at Mcain@mmb-co.com.

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