The True Test of Leadership is How You Lead in Times of Crisis : Understanding Crises in Organizations
Lampinen, Jenni (2020)
Lampinen, Jenni
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020052614041
https://urn.fi/URN:NBN:fi:amk-2020052614041
Tiivistelmä
Crisis is a true test of leadership in any organization, but it is not fully clear how to effectively lead an organization through crisis. A crisis surfaces out the elements of both effective and ineffective leadership and in crisis situations the leadership is prone to lead based on key performance indicators. In crisis the pace on decision making needs to be fast and decisive. The values and the culture of the organization are put to a true test, together with the communication skills to bring the message across. In the heavy industry sector legacies of companies are long and the way of working is often rigid, where leadership is based on position and less on the skills that would be needed today.
The objective of this study was to form an understanding of whether there are early warning signals of a company heading into a crisis. Understanding these signals aim to help the leadership team to make decisions, that help the organization overcome the crisis better, or in best case avoid it completely.
The primary data source for the empirical study was semi-structured interviews with eight senior leaders in the heavy industry sector. The aim of the qualitative method was to gain insights on the types of crises encountered and which early warning signals they had noticed. A secondary level to the study is what leadership could do in order to be better prepared for the future. The findings indicated that early indicators for an organization heading into crisis could be identified and that understanding the history of crises in any organization is a key element for better leadership. Understanding the history of crises helps in identifying future crises and take the right steps to help the organization overcome the crisis.
Additional research is needed in order to understand crisis across all levels of the organization. Further on, the findings need to be validated in other industries to understand whether further generalizations can be made.
The objective of this study was to form an understanding of whether there are early warning signals of a company heading into a crisis. Understanding these signals aim to help the leadership team to make decisions, that help the organization overcome the crisis better, or in best case avoid it completely.
The primary data source for the empirical study was semi-structured interviews with eight senior leaders in the heavy industry sector. The aim of the qualitative method was to gain insights on the types of crises encountered and which early warning signals they had noticed. A secondary level to the study is what leadership could do in order to be better prepared for the future. The findings indicated that early indicators for an organization heading into crisis could be identified and that understanding the history of crises in any organization is a key element for better leadership. Understanding the history of crises helps in identifying future crises and take the right steps to help the organization overcome the crisis.
Additional research is needed in order to understand crisis across all levels of the organization. Further on, the findings need to be validated in other industries to understand whether further generalizations can be made.