How Leaders Behave in Crisis Times: The Business Leaders’ Playbook

In the unpredictable world of business, crises are inevitable. The true measure of a leader is not how they perform in times of stability, but how they navigate through turbulence. Effective leaders adopt a mix of strategic agility, emotional intelligence, and innovative thinking to turn challenges into opportunities. Here’s a playbook on how leaders behave during crises, with real-world examples to illustrate these principles in action.

1. ASK QUESTIONS No One Is Asking

Demonstrate openness to new ideas, innovative thinking, and willingness to adapt. Great leaders challenge the status quo by asking provocative questions that others overlook. Example: During the COVID-19 pandemic, Airbnb’s CEO, Brian Chesky, asked: What will travel look like post-pandemic? This question led to a pivot towards longer-term stays and local tourism, helping Airbnb stay relevant as global travel plummeted.

2. SCAN THE HORIZON

Identify immediate opportunities and threats. Leaders look beyond the present chaos to spot emerging trends and risks. Example: Microsoft’s Satya Nadella recognized early that cloud computing was the future. During the pandemic, Microsoft quickly scaled its Azure services, enabling millions of businesses to transition to remote operations seamlessly.

3. ACT FAST

Communicate clearly and focus on actions that deliver the greatest impact or address critical vulnerabilities. Speed is essential in a crisis, and leaders who act decisively inspire confidence. Example: In 2020, Zoom’s CEO Eric Yuan swiftly expanded infrastructure and security measures to handle an unprecedented surge in demand, growing the platform’s user base from 10 million to 300 million in a matter of months.

4. ADAPT THEIR STRATEGY

Adjust operating models, product offerings, or service delivery to fit the new reality. Leaders who embrace flexibility thrive during disruption. Example: When restaurants faced shutdowns, Domino's Pizza accelerated its digital transformation, focusing on contactless delivery and curbside pickup, ensuring business continuity while meeting customer needs.

5. OBSESS WITH CUSTOMER-CENTRICITY

Use customer pain points to drive service innovation and enhanced experience. Customer-first thinking fuels innovation. Example: Amazon doubled down on Prime delivery and invested heavily in its supply chain during the pandemic to address customer frustration with delays, maintaining its reputation as the most customer-centric company.

6. CREATE A LEARNING CULTURE

Fail fast. Learn. Practice agile prototyping. Have Innovation Labs. Experiment with new ideas, technologies, and models. Crises are fertile grounds for experimentation. Example: Tesla, under Elon Musk, exemplifies this with rapid prototyping and testing. The company’s constant innovation in battery technology and self-driving systems ensures it remains ahead, even in volatile markets.

7. STAY FUTURE-FOCUSED

Keep an eye on long-term goals and use the crisis as an opportunity to rethink outdated practices. Visionary leaders view crises as catalysts for transformation. Example: Patagonia used economic downturns to double down on its sustainability mission, proving that long-term brand loyalty outweighs short-term profits.

8. SET INNOVATION GOALS AND METRICS

Define clear innovation-related objectives and measure progress. Metrics ensure accountability and momentum. Example: Google encourages teams to allocate 20% of their time to innovation, leading to products like Gmail and Google Maps—showcasing how measured creativity drives success.

9. INCENTIVIZE IDEA GENERATION

Maintain morale through recognition, praise, and reward for new ideas and calculated risks. Leaders know innovation thrives in a culture of encouragement. Example: Adobe’s “Kickbox” initiative provides employees with resources and funding to experiment with their ideas, fostering a vibrant culture of innovation.

10. SUPPORT INTRAPRENEURSHIP

Encourage employees to propose and lead their own innovation projects. Empowered employees lead transformative change. Example: At 3M, employees are encouraged to dedicate 15% of their time to personal projects, leading to breakthroughs like Post-it Notes.

11. SPONSOR CONTINUOUS LEARNING AND DEVELOPMENT

Offer access to learning resources in emerging technologies, design thinking, or creative problem-solving. Investing in people drives organizational resilience. Example: IBM retrained its workforce in AI and blockchain during market shifts, ensuring its teams stayed relevant amidst technological disruption.

12. PROMOTE COGNITIVE DIVERSITY

Involve minority groups in innovation. Diverse perspectives spark groundbreaking ideas. Example: Salesforce’s inclusion programs fostered the creation of tools like “Tableau for All,” which democratizes data access for underrepresented communities.

13. MAKE PARTNERSHIPS HAPPEN

Enable cross-functional internal collaboration and joint ventures with external partners. Collaboration drives scale and impact. Example: Apple and Google joined forces to create COVID-19 exposure notification systems, showcasing how competitors can unite for the greater good.

14. PRACTICE STORYTELLING

Share challenges, successes, and best practices to inspire, empower, and foster resilience. Stories humanize leadership and build trust. Example: Howard Schultz, Starbucks' CEO, often shares personal stories of how the company overcame past challenges, creating a culture of shared resilience and optimism.

Conclusion: A Blueprint for Modern Leaders

Crises reveal the essence of leadership. By asking bold questions, adapting quickly, prioritizing customers, and fostering innovation, leaders not only survive but thrive during times of upheaval. The playbook above offers a roadmap for turning challenges into opportunities, ensuring businesses emerge stronger, more resilient, and future ready.