In business, one thing is for sure; you will always encounter a crisis. Whether it originates from an economic crisis, a Public Relations crisis, or a global crisis such as the COVID-19 pandemic, leaders are always challenged. Not only do successful CEOs navigate their firms through storms but they do so in a manner that leaves them better off.
This article discusses how three of the most successful CEOs, Satya Nadella of Microsoft, Mary Barra of General Motors, and Brian Chesky of Airbnb, managed their companies through turbulence and came out as worthy leaders to follow.
Satya Nadella: Embracing Empathy and Innovation
In 2014 when Satya Nadella was appointed the new and current chief executive officer of Microsoft, the company was at a standstill. It was no longer the clear leader in personal computing, and while it had tried to make its stand in the mobile market it had not succeeded. To regain its competitive advantage, Microsoft had to shift its focus and do so rather rapidly.
Nadella focused on two key areas: cloud computing and empathy-driven leadership. With his help, Microsoft changed its focus and became one of the leaders in cloud services with the help of the Azure platform. This shift proved beneficial and enabled Microsoft to attain a commanding position within the fast-growing cloud computing market and set a proper course for the company’s evolution. Nadella’s strategic approach to innovation and his ability to have a human touch saw Microsoft through the worst global calamity in a century.
Mary Barra: Clear Communication and Accountability
Mary Barra assumed the General Motors (GM) top position as the CEO in 2014 when the company faced some of its biggest challenges. This was especially so when GM was involved in a massive recall scandal triggered by faulty ignition switches that led to several deaths. It was therefore useful for Barra to provide a demonstration of her leadership style during this period of crisis.
Barra, unlike other executives, took full responsibility for the crises facing GM. She fired several workers who had ignored safety issues, and put in place measures not to allow such a lapse to recur.
As with other crises, Barra showcased her leadership during the pandemic. When its supply chain got disrupted and car sales slowed down across the world, the company changed gears and started making ventilators and other medical equipment. This not only served to address a need that was dire but also put GM on the right side of the social justice system at a time when the world was reeling from the effects of the global financial crisis.
Brian Chesky: Adaptability and Rebuilding in Times of Crisis
Another executive in the travel sector, Brian Chesky, co-founder and CEO of Airbnb, saw his business threatened by an existential risk in 2020 as the COVID-19 pandemic stopped international travel. Airbnb was under pressure because its business model relies on people traveling and staying in rented properties for a short time.
Chesky did not waste time; he knew the gravity of the situation from the start. He had to let go of almost a quarter of Airbnb’s employees because this was the only way the company could survive, very painful indeed. It was how Chesky managed the layoffs that put him out of the pack in that regard. Then in a heartfelt message, he explained why the decision had to be made, he gave out good packages for everyone who would be let go and even provided assistance in seeking other employment. He was well received owing to his honesty and compassion throughout the entire process.
The experience of Chesky in managing the pandemic crisis shows that flexibility and openness are critical components of leadership. Chesky was able to make the difficult choices for the company while also being empathetic and realigning the company to make it sustainable in the long term.
Common Lessons in Crisis Management
While Nadella, Barra, and Chesky faced different challenges, their leadership strategies during crises share common traits that any leader can apply:
1. Empathy in Leadership: All three CEOs showed concern toward their employees to motivate them and keep them working efficiently even during tough times. Nadella understands the importance of prioritizing his employees, Barra chooses to be truthful to the public, and Chesky is also sensitive towards laying off people.
2. Clear Communication: This was important for each CEO to achieve. Regardless of whether Barra is taking responsibility for the safety problem at GM or Chesky has to justify the reason for the layoffs, transparency helped to create a mutual understanding of respect between the companies and their employees.
4. Decisiveness: All three leaders had to make the hard but right choices during the time of crisis. One of the keys to managing crises is the ability to make fast evaluations and come to conclusions fast.
Conclusion
Managing a crisis is one of the most difficult tasks a chief executive officer has to undertake. Satya Nadella, Mary Barra, and Brian Chesky all learned the value of empathy, communication, adaptability, and decision making especially during a crisis. However, every crisis is different, and these leadership principles can help businesses navigate through a crisis and be on the right path when the storm is over.
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