Coaching in times of crisis - navigating through turbulent times
How global crises affect managers and why they should not face the challenges alone
Most CEOs are facing a major problem: they are neither sufficiently prepared nor have they developed a clear strategy for dealing with global crisis situations. A recently published survey by the company Headspace showed that this uncertainty even leads some top managers to pretend to their employees that everything is under control - although this is often not the case (2). But how important is it really to have an open and honest dialog in times of crisis? What role do managers need to play and how can they successfully navigate themselves and their employees through turbulent times?
A contribution from Lisa Rätze
Global crises and their impact on the world of work
The world of work has changed significantly since the outbreak of the COVID-19 pandemic and beyond. The pandemic forced organizations around the world to quickly adapt to new working models as remote working and digital communication became critical elements. The flexibility and resilience of organizations were put to the test as they struggled to maintain operations while protecting the health of their employees. Home office became the norm, virtual meetings replaced face-to-face interactions, and previously little or unused technologies became an indispensable tool to continue business processes.
In addition to the ongoing or lingering challenges posed by the pandemic, companies are now also facing other global crises: The Ukraine war and inflation are current geopolitical events that are creating additional uncertainty and impacting the economy. Geopolitical tensions are having an impact on global supply chains, trade relations and economic stability. Companies are faced with rising costs and volatile markets, leading to strategic adjustments and an increased need for agile decision-making structures.
The changes in the world of work are not only limited to physical aspects, but also affect the psychological strain on employees. The constant uncertainty, both in connection with the pandemic and with geopolitical developments, can lead to increased stress, anxiety and a sense of instability. In this context, it is clear that the ability to adapt and cope with uncertainty has become a key competence for managers and organizations.
The word 'crisis' comes from the ancient Greek word "krisis" and describes the turning point for sailing ships in competition - at this point, the crew must use all their skills and abilities to decide whether to win or lose. But just as turning points in a competition determine victory or defeat, crises are situations for companies in which they either gamble away their future or gain decisive competitive advantages and emerge stronger. (5)
In this sense, it becomes clear that crises are not only challenges, but also opportunities for change and transformation. The role of coaching becomes even more important in this context, as it enables managers and employees alike to deal with the many challenges, strengthen their psychological resilience and steer the course towards positive development.
Communication is key - the role of transparent communication
A transparent approach to global times of crisis is of great importance. During a crisis, companies should communicate openly and honestly about the current challenges. Secrecy or trivialization can affect the trust of employees and lead to uncertainty. When companies act transparently, they create a culture of open communication in which information flows freely. This enables employees to make better-informed decisions and actively participate in finding solutions. Transparency can also prevent fears and rumors, as all relevant information is clearly communicated.
Open communication during a crisis can also help to strengthen the trust of customers and business partners. When a company talks transparently about its challenges and presents solutions, it demonstrates its ability to manage a crisis and signals stability.
There are numerous examples of successful companies that use transparency as the key to success. One well-known example is Google, which regularly shares internal information with its employees, giving them a comprehensive insight into the company's strategy. This not only promotes employee trust, but also their motivation and identification with the company. Deloitte has also developed a phase model for crisis management in which the "respond phase", i.e. dealing with the peak of the crisis, describes both rapid and directive action as well as empathetic, transparent communication as highly effective. (1)
Overall, a transparent approach to the effects of global crises is therefore of great importance. Transparency can help to reduce uncertainty, promote solutions and ultimately support the success of the company.
Managers in a challenging dual role
While the communication strategy is defined at company level, managers are confronted with a challenging dual role in times of crisis. They are not only the communicators of the corporate message, but also on the front line and must address the concerns and fears of their employees.
In this dual role, managers are faced with the task of not only ensuring their own stability and ability to act, but also taking responsibility for the well-being of their employees. This requires a high degree of leadership qualities and empathy. Emotional support for employees is a particularly important dimension, as anxiety, uncertainty and stress can increase in times of crisis. In this situation, it is crucial for managers to act as role models and listen to their employees' concerns. By actively listening and having empathetic conversations, they can help employees to feel not only heard but also supported, which conveys a sense of security. However, a professional balance between empathy and effective management must always be maintained. A study by König et al. has shown that too much empathy can be detrimental to the effective handling of the crisis, as managers become increasingly burdened with the private issues of their employees and soon lack the "cool head" to look at the information soberly. (3)
As already explained, clear communication plays a central role, but it is important to emphasize that managers themselves operate in a field of tension between their own concerns and fears. In this dual role, they must not only provide transparent information and clear up possible misunderstandings, but also ensure that they themselves remain well informed. This prevents them from succumbing to unconfirmed rumors and false information, while at the same time maintaining an atmosphere of trust between employees and management.
The challenge lies not only in emotional support and clear communication, but also in the ability to self-reflect and lead. Managers have to manage their own stresses while keeping an eye on the needs of their teams.
How can coaching help?
Up to this point, we have explained in detail how current global crises affect and burden companies and managers. The study mentioned at the beginning shows that managers have hardly any strategies for dealing with these challenges. Coaching can support individual and organizational learning processes, make it easier to deal with change and promote the development of crisis management strategies.
An important coaching component at an individual level that plays a special role in times of crisis is resilience. You can already find a detailed article on this topic in our Insights, in which we explain the concept of resilience in detail: Learn more
Many individual resilience training courses are based on the work of Reivich and Shatté (2002). In the context of global times of crisis, in which managers face unique challenges, the importance of these resilience factors is becoming increasingly clear. (4)
1. emotion control - the power of inner distance:
In uncertain times, it is crucial to recognize negative emotions and deal with them constructively. For example, learning mindfulness exercises can help managers to maintain emotional distance and think clearly, even in turbulent situations.
2. impulse control - staying focused despite the pressure of the crisis:
By developing strategies to control impulses, managers can act in a considered manner even under pressure and keep long-term goals in view. One example could be the implementation of action plans in crisis situations to ensure a clear course of action.
3. causal analysis - learning from failure:
By thoroughly analyzing failures, managers can set learning processes in motion. Individual coaching promotes self-reflection and helps managers to draw constructive lessons from setbacks and avoid repeating mistakes.
4 Realistic optimism - seeing challenges as opportunities:
Promoting a positive mindset and developing coping strategies help managers to see challenges as opportunities. Coaching can help them to maintain a realistic, optimistic view of the future and make room for their own fears and worries.
5. self-efficacy conviction - influencing one's own skills:
Identifying and strengthening individual skills promotes the conviction that you are up to the challenges ahead. In 1:1 coaching, highlighting personal successes and developing strategies for self-motivation can be worked out together.
6. goal orientation - independent of external opinions:
In times of global crisis, it is important to set clear goals and pursue them consistently. Coaching helps managers to develop independently of external opinions and achieve self-determined goals.
7. empathy - understanding in interpersonal relationships:
Promoting empathic communication strengthens social support systems. Managers can be supported in understanding the feelings of their employees and putting themselves in their shoes.
In the context of global times of crisis, it is clear that these resilience factors are not only personal strengths, but also crucial leadership skills. Coaching offers a tailored approach to support leaders in this dual role, strengthening their own resilience while leading their teams successfully through uncertain times. If you are interested in supporting your managers in an individual setting, please get in touch with us.
Sources:
Deloitte (2020). Leadership styles of the future. How COVID-19 is shaping leadership beyond the crisis. https://www2.deloitte.com/de/de/pages/human-capital-consulting/articles/fuehrung-in-der-krise.html
Headspace (2023). A turn of the tide: Employee mental health in 2023. https://5327495.fs1.hubspotusercontent-na1.net/hubfs/5327495/workforceattitudes-MAY42023.pdf
König, A., Graf-Vlachy, L., Bundy, J., Little, L. (2020). A Blessing and a Curse: How CEOs' Trait Empathy Affects Their Management of Organizational Crises. Academy of Management Review. https://journals.aom.org/doi/10.5465/amr.2017.0387
Reivich, K., & Shatté, A. (2002). The resilience factor: 7 essential skills for overcoming life's inevitable obstacles. Broadway Books
Thommen, J. (2018). Organizational change in times of crisis. In Springer eBooks (pp. 715-738). https://doi.org/10.1007/978-3-658-04116-8_21
