The Doctor Recommends Crisis Prevention – But It’s Your Choice

A doctor and a businessman standing beside each other

[Written with a healthcare industry slant, but obviously applicable to most organizations]

There’s a death or serious injury due to questionable circumstances. An employee is accused of impropriety. Your company is acquired by or is acquiring another. A natural disaster occurs. There’s an investigation of your facility by a regulatory or law enforcement agency. By the definition given above, all of these are crisis scenarios such as those routinely faced by most organizations. In any field, there is no such thing as a business in which crises do not occur.

Unfortunately, not all organizations are aware of the difference between marketing in routine situations versus marketing in crisis situations, namely:

Marketing’s routine function is to build the value of the business.

Marketing’s crisis communications function is to preserve the value of the business.

Often, organizations are prepared to respond to the operational components of a crisis (e.g., for a fire: call the fire department, evacuate the building, etc.). However, there are many audiences potentially affected by any crisis, and each of these will want to know the facts as soon as possible; members of each audience will start to worry and/or react inappropriately in the absence of such facts.

Typical audiences include clients/patients/customers, the media, employees, investors, community leaders, and regulatory agencies. Each of them requires a specific type of communication (e.g. phone call, fax, mail), and has differing information needs. If an organization is prepared, in advance, to respond to those needs promptly, confusion and damage is minimized.

I am aware of a health care company which operated for over ten years without a significant crisis, and then experienced a half dozen crises over a two month period. Some of these situations, lacking proper response, could have resulted in significant damage to the firm’s credibility and profitability.

Fortunately, and very atypically, the organization had recently commissioned a crisis communications plan which provided them with a system for coordinated, prompt, honest, informative and concerned response to crises. This plan consisted not only of a manual with scenarios and instructions, but also involved a comprehensive audit of the organization’s vulnerabilities that resulted in numerous recommendations for operational/system changes which, unchanged, created a potential for crises.

For example, the audit and subsequent analysis (conducted over a six-week period) revealed a lack of standard procedure on how to route media calls and who should handle the calls. Yet, particularly during a crisis, all employees need to know to whom a reporter should be referred or else a number of “loose cannons” are likely to be quoted instead of trained, authorized spokespersons.

Additionally, there were no fixed policies on some controversial issues such as the interaction of HIV-positive employees with patients nor was there a standard procedure for responding to needle sticks by medical personnel. This lack of policy could have resulted in significant criticism or worse, and the recommendations made during the crisis planning process ensured that the crisis would not happen. In some cases, the board of directors or administrative staff were aware of system weaknesses but hadn’t thought of the marketing communications/bottom-line impact of failure to quickly correct the problems.

Prevention, then, versus reaction, is the ultimate key to successful crisis communications. How many of my clients create a crisis plan BEFORE having a significant crisis? Less than five percent. That’s because they look at the one-time cost (typically under $15,000 for a single small to mid-size firm) and choose to avoid impacting their budget now versus giving significant thought to the fiscal impact of a crisis. I am usually asked to do a plan AFTER a damaging crisis, during which we have to spend considerable time, at client expense, attempting to minimize damage “fire fighting” in the public relations sense that would have been unnecessary if a plan was in place. Yes, crisis communications counsel will be needed even if a plan has been created but far less of it.

In conclusion, if I may risk a medical analogy presuming that I am, to crisis communications, what a highly trained physician is to his or her specialty: crises will occur, and they can be very damaging to your organization’s health. There is treatment available, now, which can eliminate many crises and minimize the impact of others. I recommend prevention, but you’re the patient it’s your choice.

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For more resources, see the Free Management Library topic: Crisis Management
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Sharing your Authentic Self

Businessman talking to someone on a call

You may feel compelled to shy away from who you are as a spiritual being when you are at work. Of course for some of you that might be the equivalent of deciding not to breath. You may not divide yourself into “spiritual” at home and “not spiritual at work”. Others of you may be struggling with what exactly it means to bring your spiritual self to work. I invite you today to step more fully into sharing your authentic self while at work. You just never know who you’ll impact or how.

I was in a leadership program as a participant with some government workers. For the warm up exercise we each had to say what some of our hobbies were. Well my hobbies are almost all focused on spirituality so I figured there was no way out of talking about this subject. I said that I did drumming and Sufi dances (Dances of Universal Peace). I wasn’t sure if anyone knew what Sufi Dances (Dances of Universal Peace) were so I figured I’d just put it out there and see what happened.

On the break a very large, middle aged Sheriff came up to meet me and say hello. Picture in your mind a heavy set Sheriff wearing his full gear, with bullet proof vest and pistol, approaching me. I had no idea what was going to happen next. He wore the sweetest smile when he asked me if I had been to the Coleman Barks program the year earlier at our town. Coleman Barks is the poet largely responsible for bringing the Sufi poet Rumi to a wider audience of Americans. I was surprised that this sheriff had attended the Rumi program. He said that he and his wife went to the program and that he was into all sorts of drumming. We talked for about 20 minutes about how marvelous the Rumi program had been and later swapped titles of CDs we had of world drummers. I’m so glad to this day that I took the risk to share my gifts and passion and meet with wonderful man. I believe in the process I was able to help him claim his own gifts and passion more fully.

Examine what parts of yourself you feel you need to hide at work. What holds you back and what would help you feel more comfortable sharing your authentic self at work? Are there areas of your spirituality you would like to share with others at work? Try one thing this week that would help you stretch your comfort zone and step more fully into Who You Are at work. Share here what happened when you more fully claimed your authentic self. You just never know who else at your workplace is on the same path. Here’s to the Magical Mystery Tour we all dance to.

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For more resources, see our Library topic Spirituality in the Workplace.

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What are You Tolerating?

Work colleagues tolerating each other at work

Years ago, I met Thomas J Leonard, the Founder of Coach University.

He introduced the concept of “Tolerations” – those things that annoy you, drain your energy, and hold you back yet can be eliminated from your life.

Tolerations show up in most areas – work, home, school, relationships, equipment, cars and your habits.

Here are some Common Tolerations:

  • Office – Piles of papers on your desk, sticky notes all over, computer repairs
  • Home – loose door knob, leaky faucet, slow drain, squeaky door, needing paint
  • People – those who drain our energy, relationships that aren’t working
  • Your habits – not dealing with overwhelm, not exercising, not eating healthy
  • Work – not knowing what is expected, not knowing how to deal with change, poor communication

Dealing with Tolerations:

Tolerations are all about energy. Eliminating tolerations will give you more energy for what is important to you. You’ll be happier, more confident and won’t waste time stepping around things.

A great way to deal with tolerations is to write a list. Look around and record what things are draining you. Once you have your list, rank the items – which ones can you change or eliminate right away? This will give you momentum to tackle the ones that are more complex. Intentionally decide which ones you will put on hold. It is OK to “procrastinate with a purpose” but give yourself a timeline.

What tolerations will you eliminate?

For more resources, see the Library topic Personal and Professional Coaching.

RipOff Report – The Inside Story (coming soon to an ezine near you)

A young businesswoman holding a paper file

The consumer complaint site, RipOff Report, has been the bane of many companies’ existence and a challenge for crisis managers everywhere. ED Magedson (yes, he capitalizes his first name), Founder of the site, agreed to a lengthy exclusive interview for my ezine, Crisis Manager, that I plan to publish on Thursday, April 29, along with my own editorial comments and teaching points. If you visit the Crisis Manager Archives, you’ll find a place where you can subscribe – it’s free.

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For more resources, see the Free Management Library topic: Crisis Management
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What’s a “Mature” Organization?

Male employee gesticulating in an office space

I conducted a workshop two weeks ago in which a participant mentioned that some of the other participants in the room were not from “mature organizations.” He went on to explain that their organizations were still somewhat small.

I countered that it’s often an illusion to assess the maturity of an organization based on it size. I suggested that maturity depends more on the nature of activities in the organization — that a small or large organization can be immature if, for example, its internal practices are more reactive and crisis-driven than proactive and plan-driven.

I added, even that depends on the culture of the people in the organization. Some cultures don’t do planning in the typical “linear” approach that we so often talk about. Rather than establishing goals, objectives, responsibilities and deadlines, those cultures might do planning in more of an “organic,” unfolding and dynamic approach.

One of the most useful, recent perspectives on organizations is that of life cycles. The view is that, just like people, organizations must evolve through life cycles, for example, birth, growth and maturity. Life cycles apply to many systems, including products and teams. If a system does not successfully evolve to the next stage, it can stagnate or even decline.

I’ve sometimes wondered about the life-cycle theory — if an organization reaches “maturity,” then does it remain there forever, or does it regress to earlier stages whenever there’s a sudden crisis, for example, a major recession? Or, does that organization, by the fact that it’s mature, evolve through the recession in a mature way?

What do you think is a “mature” organization?

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For more resources, see the Library topics Consulting and Organizational Development.

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Carter McNamara, MBA, PhD – Authenticity Consulting, LLC – 800-971-2250
Read my weekly blogs: Boards, Consulting and OD, Nonprofits and Strategic Planning.

The Hope Theory of Leadership

Th text "hope" written with paper cards

I came to the overlapping fields of Leadership Development and Coaching through the stage door. I studied Theatre in college, have a graduate degree in Acting and started my adult life performing in Chicago’s Off-Loop theaters. Like my father in the newspaper business, I’ve grown up right alongside both the coaching profession and the field of “Leadership Studies,” just a few years to old to have discovered them as more viable alternatives for my higher education.

That’s okay.

Sitting beside me at my kitchen table tonight are two books that (in concert with 15 years in the nonprofit trenches and another 6+ as a coach) stand out as pinnacles of my self-styled higher education in leadership. They each connect profoundly, from different perspectives, with my own vision of a meaningful life.

They are:

  1. The Practice of Adaptive Leadership: Tools and Tactics for Changing Your Organization and the World by Ronald Heifetz, Alexander Grashow and Marty Linsky, and
  2. Turning to One Another: Simple Conversations to Restore Hope to the Future, by Margaret J. Wheatley.

The first is about purpose, perspective, connection, working outside your comfort zone, listening, risk, experimentation, failure, and trying again.

The second is about listening, connection, purpose, the common good, and hope.

Havel on Hope

Vaclav Havel wrote in Disturbing the Peace, “Hope … is not the same as joy that things are going well, or willingness to invest in enterprises that are obviously headed for early success, but, rather, an ability to work for something because it is good, not just because it stands a chance to succeed. The more unpropitious the situation in which we demonstrate hope, the deeper that hope is. Hope is definitely not same thing as optimism. It is not the conviction that something will turn out well, but the certainty that something makes sense, regardless of how it turns out. In short, I think that the deepest and most important form of hope, the only one that can keep us above water and urge us to good works, and the only true source of the breathtaking dimension of the human spirit and its efforts, is something we get, as it were, from “elsewhere.” It is also this hope, above all, which gives us the strength to live and continually to try new things, even in conditions that seem as hopeless as ours do, here and now.”

The Hope Theory of Leadership suggests that each of the other theories of leadership is useful in certain situations. And not a single one is useful without the kind of hope, which Havel describes, that lives, and works, and continually tries new things.

Leadership is not leadership without hope. What are your hopes? What will you try? What else?

When Good Words Go Bad

A man wearing grey suit typing on his laptop

“Capacity building” is a term from the Grantonese language usually referring to an organization’s systemic effort to secure ever greater amounts of money on a consistent basis. It is not to be confused with “sustainability,” another word from the original Grantonese, referring to that state of fiscal nirvana in which a nonprofit believes it will not have to worry about money for any foreseeable future. It is believed that this mythical state is the “pot” at the end of the capacity building “rainbow,” but as so few charities have ever come back to tell us about that perfect state of sustainability, there is little empirical evidence to prove it actually exists.

I admit I am biased when it comes to the use of these two terms. That’s because I am a lover of language, and a lover of the very essence – and presumed end — of the not-for-profit movement.

Thus, I would banish “capacity building” from all discourse on the topic of making change in the community and the world. For one, it’s not language I would use in the company of growing children sitting around the dinner table. And if I can’t use it there, what hope do I have of successfully using it to inspire busy, distracted adult volunteers sitting around the board table once a month (or less)?

As for “sustainability,” I simply find to be a sad little word, and for that reason would abolish its use in our sector. “Sustainability” admits defeat. It implies that our organization – alone or in concert with other community initiatives – has no hope of ever vanquishing the social or community “wrong,” or deficit, our charity seeks to “right.” It sets our organizational bar at being around forever rather than succeeding in making itself obsolete.

So I beg, dear gentle Reader, that you forgive me in advance for restraining myself from using those terms except when I’m traveling in Grantland, just as I only toss “ciao” about when in Italy, or “dog” when I’m watching American Idol.

Until next week, farewell and fare well …

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For more resources, see our Library topic Nonprofit Capacity Building.

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How to Describe Spirit in the Workplace – Another Perspective.

A woman meditating while raising her arms

It’s an honor to be co-hosting this blog with Linda and we look forward to exploring this meaningful topic with you! Linda shared with you her insights on what spirituality at work is and I’m going to do the same. As I’ve been studying and living out this topic for the past 15 years all I know is that I’m grateful to have this passion because it’s changed the way I work and live.

What is it?

Some refer to it as a sense of enthusiasm. Others relate it to interconnectedness. Some describe it as the whole self. Others think it is associated with religion. So what is “it” that people have different interpretations of? It is referred to as spirit in the workplace.

My description of spirit in the workplace is that it allows you to feel a greater sense of connection by bringing your whole self, the essence of who you are, to a supportive environment. It is not associated with religion. Let’s explore some key elements within this description.

Connection. People are yearning to connect with others. Connections provide people with meaning and a sense of belonging to something greater.

Whole self. The whole self concept encourages people to look at their life holistically – that they aren’t one person in their personal life and then another person in their professional lives. In fact, business poet David Whyte explains how most of us only bring 60 percent of ourselves to the workplace and leave the other 40 percent of our real self in the car.

Essence. Essence is about getting to your core, your inner self. Author Alexandra Stoddard said that “your spirit, your essence, is at the heart of everything about you.” The only way that you can get to the core is to go within and find your heart’s deepest desires.

Supportive environment. The other key piece is the environment. Whether it is at home or on the job, a supportive environment is how the spirit is embraced and fostered.

Not associated with religion. Spirit in the workplace does not promote a specific religion, it promotes an all-inclusive and interconnected view similar to spirituality.

How about you? We invite you to share your perspective!

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For more resources, see our Library topic Spirituality in the Workplace.

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Running On Empty

A businessman holding money while working in his office

Way too many social enterprises are way too undercapitalized. They don’t have the cash on hand to make rational spending decisions on staffing, inventory, professional expertise, marketing, and so on, to grow their venture. Their tendency is not only to go cheap, but to go without for things they desperately need to turn their social enterprise idea into successful reality.

This is not unique to the social enterprise world. Many failures in the business world come as a result of cash flow problems. Numerous companies go under because they run out of money, even while they’re profitable on paper. They can’t pay their bills, so their suppliers or creditors or staff walk out on them, and it’s all over.

And I would say that most social enterprises are cash poor, running on fumes, never realizing their full potential due to insufficient cash flow.

What to do about it? Well, to come back to an important point, write a solid business plan. Or update the one you’ve got. Carefully prepare monthly cash flow projections for at least your first full year in business. Track payables (when you have to pay for stuff) and receivables (when you get paid). Most likely there’ll be some months when you won’t have enough cash to pay your bills. Develop strategies such as a line of credit or an angel investor to get over those bumps in the road. And keep your fixed costs as low as possible.

Starting and operating a social enterprise is difficult enough. Don’t start your venture until you’re confident you won’t be running on empty. In cars and in business, you need gas or you won’t go anywhere.

Leadership Theories

A business leader on a phone call

There is a wide and ever growing variety of theories to explain the concept and practice of leadership. I will provide a brief overview of the more dominant or better known theories. I hope that others will share their thoughts on whether this list neglects any theories of note. In the future we can discuss some of the emerging leadership theories/approaches such as adaptive, authentic, and appreciative. It is important to note that this submission attempts to provide an overview of leadership theories versus models. I view models as attempts to functionalize the more theoretical aspects of leadership and make them easier to put into play by organizations and consultants. This is, in and of itself, an important activity.

Most theories view leadership as grounded in one or more of the following three perspectives: leadership as a process or relationship, leadership as a combination of traits or personality characteristics, or leadership as certain behaviors or, as they are more commonly referred to, leadership skills. In virtually all of the more dominant theories there exist the notions that, at least to some degree, leadership is a process that involves influence with a group of people toward the realization of goals. I will say on the front end that, in my opinion, leadership is a dynamic and complex process, and that much of what is written these days tends to over-simplify this process. My goal here is to provide an overview that keeps things simple, without crossing into over-simplification, and for the most part refraining from any critiquing of the various theories. I will leave that to my fellow bloggers for now.

Trait Theory

This theory postulates that people are either born or not born with the qualities that predispose them to success in leadership roles. That is, that certain inherited qualities, such as personality and cognitive ability, are what underlie effective leadership. There have been hundreds of studies to determine the most important leadership traits, and while there is always going to be some disagreement, intelligence, sociability, and drive (aka determination) are consistently cited as key qualities.

Skills Theory

This theory states that learned knowledge and acquired skills/abilities are significant factors in the practice of effective leadership. Skills theory by no means disavows the connection between inherited traits and the capacity to be an effective leader – it simply argues that learned skills, a developed style, and acquired knowledge, are the real keys to leadership performance. It is of course the belief that skills theory is true that warrants all the effort and resources devoted to leadership training and development

Situational Theory

This theory suggests that different situations require different styles of leadership. That is, to be effective in leadership requires the ability to adapt or adjust one’s style to the circumstances of the situation. The primary factors that determine how to adapt are an assessment of the competence and commitment of a leader’s followers. The assessment of these factors determines if a leader should use a more directive or supportive style.

Contingency Theory

This theory states that a leader’s effectiveness is contingent on how well the leader’s style matches a specific setting or situation. And how, you may ask, is this different from situational theory? In situational the focus is on adapting to the situation, whereas contingency states that effective leadership depends on the degree of fit between a leader’s qualities and style and that of a specific situation or context.

Path-Goal Theory

This theory is about how leaders motivate followers to accomplish identified objectives. It postulates that effective leaders have the ability to improve the motivation of followers by clarifying the paths and removing obstacles to high performance and desired objectives. The underlying beliefs of path-goal theory (grounded in expectancy theory) are that people will be more focused and motivated if they believe they are capable of high performance, believe their effort will result in desired outcomes, and believe their work is worthwhile.

Transformational Theory

This theory states that leadership is the process by which a person engages with others and is able to create a connection that results in increased motivation and morality in both followers and leaders. It is often likened to the theory of charismatic leadership that espouses that leaders with certain qualities, such as confidence, extroversion, and clearly stated values, are best able to motivate followers. The key in transformational leadership is for the leader to be attentive to the needs and motives of followers in an attempt to help them reach their maximum potential. In addition, transformational leadership typically describes how leaders can initiate, develop, and implement important changes in an organization. This theory is often discussed in contrast with transactional leadership.

Transactional Theory

This is a theory that focuses on the exchanges that take place between leaders and followers. It is based in the notion that a leader’s job is to create structures that make it abundantly clear what is expected of his/her followers and also the consequences (i.e. rewards and punishments) for meeting or not meeting these expectations. This theory is often likened to the concept and practice of management and continues to be an extremely common component of many leadership models and organizational structures.

Servant Leadership Theory

This conceptualization of leadership reflects a philosophy that leaders should be servants first. It suggests that leaders must place the needs of followers, customers, and the community ahead of their own interests in order to be effective. The idea of servant leadership has a significant amount of popularity within leadership circles – but it is difficult to describe it as a theory inasmuch as a set of beliefs and values that leaders are encouraged to embrace.

Closing Comments and Questions

I have a bias toward trait, skills, and transformational theories. I am a psychologist and there is no doubt in my mind that people are born with certain qualities. But I am equally sure innate traits inevitably become fully interwoven with a person’s acquired knowledge and skills. And I lean toward transformational theory because of how it views the practice of leadership as, more than anything else, relational interaction.

So how can these theories apply to one’s work? Well, in my work, if I am hired to help an organization select a leader via an assessment process, some of the theories become readily apparent. To start, it is important that the first step in the assessment is a meeting in which the client clarifies the qualities needed for the specific role and paint a picture for me of the organizational culture. By doing this I am able to be look for those qualities, skills, knowledge, to assure finding someone that is a good fit for the job and the culture (Contingency Theory). The assessment process includes tools to measure personality, cognitive abilities, and drive (Trait Theory), adaptability (Situational Theory), and sociability (Transformational Theory). It also involves, through interviews and work simulations, an evaluation of a person’s work-related skills and knowledge of the business (Skills Theory).

So what are your biases? Does theory inform any of your work — knowingly or unkowingly? Maybe you have your own theory of leadership. Let’s hear it.