How crises challenge leadership

A crisis strips away the comfort of routine and forces leaders into high stakes, accelerated decision-making environments 

Disasters are unexpected events which occur, sometimes without warning, and demand those involved to change their normal daily activities to an immediate and focused response to the event 

Disasters are unexpected events which occur, sometimes without warning, and demand those involved to change their normal daily activities to an immediate and focused response to the event. While forecasting weather-related disasters has been improved in the recent past, it is far from perfect. Continuous improvements have been made but the risks have also been increased. No two disaster responses will ever be the same because no two disasters will be the same.

Most leaders are trained to lead corporations. In the face of crises, like the recent floods in Sri Lanka, people choose to react differently, and we can group them as follows:

1. Wait and see approach: if the crisis does not affect me or my business, just wait and see how others sort things out.

2. Criticise and even sabotage the work undertaken: this is simply the finger pointing approach. Some appear to enjoy this without realising in crises, good enough solutions are accepted without waiting for perfect solutions. Time is of essence.

3. Seek chances to profit, even if it means exploiting others' difficulties. Political point scoring is common. Decisions taken are criticised using social media.

4. Act if directly affected: attend to looking after self and the immediate family only if they are affected.

5. React immediately and take responsibility and do whatever possible to ease the burden of others. Do whatever possible with the aim of contributing to the recovery.

Whether it is the Tsunami, COVID-19 or recent floods, only some belong to the last two groups. The others are just observers waiting to see how things work out.

“Any fool can criticise, condemn, and complain but it takes character and self-control to be understanding and forgiving.” — Dale Carnegie

Why crises test leadership differently

A crisis strips away the comfort of routine and forces leaders into high stakes, accelerated decision-making environments. Unlike normal operations, crises involve:

• Compressed timelines – Decisions must be made quickly, often with incomplete information. Often an average solution must be accepted without waiting for the perfect solution. “Today’s average solution is better than tomorrow’s best solution” is the rule.
• High risk – reputational damage due to high visibility of decisions and outcomes. Critics are watching. Critics should not be allowed to stifle the progress.
• Heightened visibility – Every action is scrutinised internally and externally. Criticisms are directed on social media and while taking note of these, the focus should be the recovery.
• Emotional intensity – Fear, uncertainty, and stress amplify the need for empathy and clarity. Compassion is key.

Core skills tested

The following leadership capabilities are most tested during crises:

1. Mental and physical resilience

• Crises drain energy. Long hours are the norm. Physical fitness and mental agility should be maintained to minimise mishaps.

2. Decisive communication

• Leaders must communicate clearly, frequently, and honestly. Ambiguity or silence erodes trust. They should also counter negative and misleading communication without substance.
• Transparency, authenticity and empathy are essential to maintain morale and credibility. 

3. Strategic decision-making

• Crises demand rapid prioritisation and “good enough” decisions rather than perfect ones. Often exact solutions are too late to be useful.
• Leaders who freeze or delay often worsen the situation. Action and urgency are the need of the hour, not the perfect solution months later.

4. Emotional Intelligence

• Demonstrating empathy and calm under pressure reassures teams. Facing criticism with a positive attitude and carrying on with the tasks at hand.
• “Bounded optimism”—balancing hope with realism—helps sustain confidence. 

5. Adaptability

• Conditions change fast; rigid plans fail. Adaptive leaders pivot strategies while keeping purpose clear. Create solutions as you go identifying the critical links like transportation, communication, health, sanitisation etc.

6. Ethical integrity

• Crises expose values. Leaders who prioritise safety and fairness above short term deliver results. Stay the course of beliefs and values. Face the critics with absolute conviction to the cause – recovery.

Real-world examples

• Johnson & Johnson (Tylenol Crisis): Immediate nationwide recall despite financial cost—showed transparency and prioritisation of public safety.
• Jacinda Ardern (COVID-19 Response): Empathetic communication and decisive lockdown measures earned global praise.
• BP Oil Spill: Poor communication and lack of empathy damaged reputation—an example of leadership failure. 
• 2010 Haiti Earthquake: Global aid efforts provided medical care, food, and shelter: Organisations conducted quick evaluations to prioritise needs and allocate resources effectively.

Leadership during a crisis like a natural disaster will require careful consideration for every decision that is to be made keeping focus on the desired outcomes. Encouragement and support are key to preserving the stamina necessary to lead during the event and during the recovery from the disaster

How are leadership skills tested?

• Pressure amplifies weaknesses and strengths.
• Decisions have immediate, visible consequences.
• Human factors—trust, empathy, and communication—become as important as technical 
• Often baseless criticism demands mental resilience and calm. Political point scoring is common

10 Crisis Leadership skills needed

1. Clear and transparent communication

Ability to convey accurate, timely, and reassuring information to all stakeholders. This includes listening actively and maintaining open channels. 

2. Decisiveness under pressure

Making quick, informed decisions even with incomplete data. Hesitation can worsen the crisis, so leaders must act confidently and responsibly. 

3. Emotional Intelligence

Recognising and managing emotions of both your own and others’. Empathy and composure help maintain morale and trust during uncertainty. 

4. Adaptability and agility

Crises evolve rapidly; leaders must pivot strategies, embrace change, and experiment when old solutions fail. There are no “off the shelf” solutions for each crisis is unique.

5. Strategic thinking and prioritisation

Seeing the bigger picture, anticipating risks, and focusing on what matters most to stabilise operations and protect people. 

6. Integrity and ethical decision-making

Acting with honesty and fairness builds credibility. Admit what you don’t know and avoid sugar-coating reality. 

7. Resilience and stress management

Staying calm under pressure and modelling perseverance inspires confidence in teams. 

8. Collaboration and team building

Mobilising people, fostering trust, and creating a sense of shared purpose are essential for coordinated action. 

9. Clarity of vision and values

Providing a clear direction and reinforcing organisational values helps guide decisions and maintain alignment. 

10. Learning agility

Quickly absorbing lessons from unfolding events and applying them to new challenges ensures continuous improvement during crises. 

Why these skills matter

Crises amplify uncertainty and emotional strain. Leaders who combine human-centred qualities (empathy, communication) with strategic capabilities (decisiveness, adaptability) are far more likely to stabilise the situation and emerge stronger.

Pay close attention every day, to the welfare of your front-line staff and to your leadership teams. They need encouragement, education, transparency, food, understanding, and situational updates. For disasters that are prolonged, do not become blind to the ongoing needs of team members including coaching and counselling.  

Leadership during a crisis like a natural disaster will require careful consideration for every decision that is to be made keeping focus on the desired outcomes. Encouragement and support are key to preserving the stamina necessary to lead during the event and during the recovery from the disaster.

(The author is a Management Consultant and Executive Coach based in Sydney, He could be reached via email at [email protected])