2. Redefine crisis management (outside the category)

Last week, I spoke with several clients in the private and Public sector. As a result of the coronavirus crisis, some organizations have seen 70%–100% of their revenue plummet in most divisions and business units over the course of two weeks. In such a situation, “standard contingency and crisis management”—if crisis management can ever be considered standard—isn’t enough. And “waiting it out” is not an option.

One executive I spoke with was absolutely shocked when he realized that his fellow executives were planning to dryly dust off the crisis plan from the 2008 crisis (which was no small affair, either) and put it back into action in the coming weeks. This crisis could be far more severe than the one in 2008. No one knows for sure, but the rule is: hope for the best, plan for the worst. An extraordinary crisis calls for extraordinary measures.

“Run” and “change” must now be managed by a single team. The distinction remains relevant even now, because the store (run) must remain open while being adapted immediately (change). However, the priorities for Changing the Business (Execution Excellence) must be radically adjusted: focused on necessary Innovation and cost control.

3. Execution Coalitions (CEC) on the Spot

For the critical objectives of crisis management, you want to build strong coalitions made up of people who are all hands-on and have skin in the game. The composition of these Execution Coalitions cuts across existing structures and spans the entire ecosystem.

4. Common sense instead of a sense of urgency or a sense of panic

Utility and necessity are one and the same. Make the most of it.

Everything is up for discussion, even withdrawing the 2020 salary offer. But also limiting and delaying the dividend.

One client told me: “The honeymoon phase of the crisis is over; we don’t have time to dwell on it.” Organizations that were hit hard had one week to work through all the stages of grief.[i]

[i]Psychiatrist Elisabeth Kübler-Ross (2006) described the stages of grief: denial, protest (or anger), bargaining and/or fighting, depression, and acceptance.

5. Governance and Decision-Making = Execution, Not Debate

Know your position, the scenarios, and your options. Uncertainty and the unknown reign supreme. Face it. Rutte said, “With 50% of the information, you have to make 100% of the decisions.” You can’t put it any better than that.

What are the facts? What does the best possible conservative and realistic forecast look like? Don’t let any unrealistic expectations creep into the forecasts and the pipeline. Opportunism is unethical right now. Prepare a forecast for revenue, costs, margin, and liquidity. What government measures has Wopke Hoekstra announced? Have we already applied for them, and when will they have an impact on liquidity—structural and/or one-time? What can we do ourselves in terms of cost control and liquidity measures? Implement these in phases and with urgency. What is the deadline?

Decision-making = execution. There is no time or reason to engage in debates. As leaders, we are poised for execution. That has always been the case, but now it has suddenly become obvious.

A week can feel like half a year. That’s why you should set up a weekly rotation and sort items into categories, or “bins.” Bin 1 is for urgent tasks: obviously, do them right away. Bin 2 is for urgent tasks: review them immediately, then decide and act right away. Bin 3 is for reviewing and preparing items for decisions on whether to move them to Bin 1 or 2. Bin 4 contains items that are on the long list for Bin 1, 2, or 3.

Look beyond the immediate issue. Make short-term decisions with as clear a picture as possible of how they contribute to the long-term strategy and Innovation—provided that this does not lead to paralysis.

6. Innovation with Seven-League Boots and Two-Track Approaches in 24 Hours

Suddenly, all processes have to go digital—within hours and days. You can’t pull that off with the existing organizational structure and consultation infrastructure. Set up an ad hoc team (Two-Track Approach) with a clear mandate immediately. Within 24 hours.

Everything has to be digital—unless. An international change and program manager noted that she’s used to handling all execution processes remotely and digitally anyway—even kick-off meetings with new people. At Turner, we’ve been working on e-change for a long time (see: now). Currently, the number of e-change processes is being doubled.

The Success Factor here is a radical shift in the paradigm: everything is digital unless otherwise specified. Only then will everyone who wasn’t yet used to this way of working come on board (not just a little bit, not half-hearted).

7. Execution in 72-hour blocks

Modern Strategy Execution is organized into blocks, in waves of six to eight weeks. These should now be 72-hour blocks. Devote 80% of your time to this. Do not spend time on meta-discussions about the crisis response.

8. Responsible Freedom

“It’s incredible what’s unfolding,” say most of the executives I spoke with. Like me, they are deeply impressed by the resilience of people and organizations.

At the same time, we noted: “Highly educated professionals—especially those in the Netherlands—believe that all interventions are necessary, but not for themselves.” Talk to each other about this.

9. Crisis Leadership? Too Much Applause Is a Bad Sign

When the weather is nice, everyone can (and wants to) go sailing. Adapt your leadership style accordingly. The task of taking action is as simple as it is difficult: by definition, it’s better to do too much too soon than too little too late. This applies both to opportunities in the areas of revenue and Innovation and to threats in the areas of costs and liquidity.

As leaders, stay true to your roles—don’t try to do everything with everyone. And don’t go overboard: communicate with each other often and openly.

Don’t let the so-called calm leaders lull you into a false sense of security. The first mistake in any crisis—and certainly in this one—is to remain supposedly calm and wait too long (until there is no room left to act).[i] In all the crises I’ve experienced, that has been the mistake that posed the greatest danger.

Don’t let anyone label you as a panicker. “Panic” is a term that’s often misused anyway. This word is often used to describe a decision made in a timely manner—not because the leader is certain of anything, but because, based on various scenarios, he or she is taking a position that is sufficiently safe to ensure the organization’s continuity. It’s all about deliberate calm and bounded optimism.[i]

The top priority of all: when it comes to layoffs, empathy is everything. Keep a cool head and a warm heart.

Ethics come first. Employees judge how trustworthy you are based on your behavior during a crisis. That doesn’t mean they have to like your interventions—that’s something entirely different.

Simple communication. It’s always been important. Now more than ever. When it comes down to it, you want there to be just one movie.

Cut the nonsense, period! All that old-fashioned “change management tea parties and whining” about even more bottom-up participation has been a thing of the past for a week now and has been relegated to mere drivel for good. A positive side effect of the crisis: if open-plan offices had already been declared dead in just about every study, they certainly are now. Finally, that 10 to 20% productivity leak can be plugged.

[i]See: Niall Ferguson, “The First Mistake in the COVID-19 Outbreak Was to Remain Calm,” fd.nl/economie-politiek/1338132/de-eerste-fout-bij-de-corona-uitbraak-was-kalm-blijven

[i]www.mckinsey.com/business-functions/organization/our-insights/leadership-in-a-crisis-responding-to-the-coronavirus-outbreak-and-future-challenges

10. Inventing the wheel “on the go”? Not right now!

I started this series of ten with the timeless number one rule of crisis management. There are others. The basics of crisis management remain important. You don’t want to reinvent the wheel during this crisis. Just put someone in charge for 72 hours. There are plenty of resources, including current ones—see the endnote. [i]

[i] See, for example, these practical resources:

• www.inc.com/bruce-condit/7-critical-steps-to-crisis-management.html
• hbr.org/2020/03/build-your-resiliency-in-the-face-of-a-crisis
• www.nfx.com/post/28-moves-survive-thrive-downturn/
• hbr.org/2020/03/coping-with-fatigue-fear-and-panic-during-a-crisis?utm_source=linkedin&utm_campaign=hbr&utm_medium=social
• hbr.org/2020/01/what-organizations-need-to-survive-a-pandemic?utm_source=linkedin&utm_medium=social&utm_campaign=hbr
• hbr.org/2020/03/slow-down-to-make-better-decisions-in-a-crisis?utm_campaign=hbr&utm_medium=social&utm_source=linkedin
• www.tiggelaar.nl/leiderschap-in-tijden-van-corona/
• www.mckinsey.com/business-functions/organization/our-insights/leadership-in-a-crisis-responding-to-the-coronavirus-outbreak-and-future-challenges
• fd.nl/opinie/1337866/de-crisisreflex-van-leiders-te-veel-sturing-en-te-weinig-vertrouwen
• fd.nl/achtergrond/1338084/vijf-tips-die-de-kapitein-door-de-coronastorm-kunnen-loodsen
• And these scientific guidelines: www.sciencedirect.com/topics/nursing-and-health-professions/crisis-management

A request. I’d love to receive your examples. Now more than ever, I want to collect, share, and apply what works. The more specific, the better. Below are a few examples. Thanks to our clients and the Turner professionals.

Finally. These are strange times. My son Nathan told me about a conversation between a teacher and a classmate. Teacher: “You’re late; go get a digital note.” Classmate: “I couldn’t find the classroom.” Humor is a serious matter. I’m glad that people are also sharing lots of jokes and fun on social media. Take good care of yourselves and each other.