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In this edition
The higher up you are in an organization, the more it falls on your shoulders to handle the really hard problems. And when I’m talking about really hard problems, I mean really hard. From external events like COVID to internal improprieties, highly sensitive topics require us not only to find the right path, but to also act with discretion while withstanding pressures that, fairly or not, test our leadership, resolve, and integrity at every turn.
These situations demand a balance of transparency and confidentiality, quick yet thoughtful decision-making, and an unwavering commitment to ethical standards—all while maintaining the trust and morale of our team.
In this week’s newsletter, I offer a rough-and-ready process you can use to confront these situations. I’ve also shared how to withstand some of the pressures you’ll inevitably feel.
As always, let me know what you think. Just reply to this email, and thanks for reading!
Handing Highly Sensitive Situations
Introduction
Leadership often calls for handling a range of highly sensitive situations that can arise within the workplace. The more senior you are, the more people will look to you for guidance and action. While the substance of the issue may vary, the process you can follow to address these issues doesn’t—nor do the pressures you will face.
We can broadly categorize these situations into two groups: internal and external.
External Crisis Situations involve factors outside our control that impact our organization, such as:
- Health and Safety Concerns, like COVID and industrial accidents
- Political and Social Pressures, like wars, attacks, and protests
- Information Security Breaches, like cyber-attacks and data theft
- Legal Issues, like new litigation and regulatory challenges
- Financial Instability, like economic downturns and currency crises
Internal Business Changes are shifts within our organization that require careful handling, such as:
- HR Issues, like managing allegations of discrimination or harassment and resolving major internal conflicts
- Ethical Dilemmas, like dealing with theft or impropriety
- Leadership Transitions, like the departure of senior executives
- Mergers and Acquisitions, which require two different corporate cultures and ways of working to come together, and often imply job loss
Process
With these categories defined, here’s how we can effectively manage these situations:
Step 1: Lead with Discretion
Our initial response in highly sensitive situations should always be measured. We should act quickly, but discreetly. In situations where personnel matters are being discussed, it’s important to maintain strict privacy: “I am not at liberty to discuss personnel issues,” is a phrase you should learn by heart. For non-personnel issues, we gather facts before speaking: “We are currently investigating this matter and will provide updates as appropriate.”
Step 2: Define the Problem
It’s crucial to understand the full scope of the issue. What are the knowns and unknowns? What is the timeline of the issue? Who are the stakeholders and experts needed for a resolution?
Step 3: Engage Necessary Stakeholders
Discreetly bring together those who need to be part of the solution. Keeping this group informed and aligned is essential for maintaining confidentiality and effectiveness.
Step 4: Define the Solution
Formulating a strategic response that aligns with ethical standards and business objectives is critical. This often involves tough, yet necessary, decisions to steer the team and company in the right direction. If there is uncertainty in the solution, create a flexible plan that allows you to explore and resolve these uncertainties systematically. Scenario planning can be helpful as well. Thinking about your ideal outcome, other likely outcomes, and worst-case outcomes can help shape thinking about action.
Step 5: Communication Plan
An essential part of the solution is a communications plan that dictates how, when, and what will be shared. Effective communications will help you manage the narrative internally and externally, ensuring clarity and maintaining trust.
Step 6: Put the Plan in Motion
Work the plan. If you need to, update the plan as you go.
Step 7: Review and Learn
Post-crisis, it’s vital to reflect on our handling of the situation. This involves analyzing what went well and what didn’t, leading to actionable insights that can inform future policy updates and strategic adjustments.
The Pressures You Will Face
1. Maintaining Objectivity
Leaders often face the pressure of remaining objective despite personal biases or emotional reactions. And even if you believe you are being objective, others may perceive differently. In sensitive situations, particularly those related to personnel or ethics, it’s crucial for leaders to act based on facts and company policies, rather than personal feelings.
What you can do: Seek counsel from HR or legal advisors to ensure decisions are fair and grounded in the organization’s principles and legal standards.
2. Balancing Transparency and Confidentiality
Balancing transparency with (necessary) confidentiality will be challenging. In looking to you for leadership, people will expect you to share what’s going on. You must decide how much information should be disclosed to different stakeholders without compromising privacy or security.
What you can do: Consult with HR or legal advisors and adhere to established policies. If no policies exist, develop preliminary communication guidelines that clearly define what information can be shared and with whom.
3. Managing Stakeholder Expectations
Different stakeholders may have conflicting expectations on how situations should be handled. Leaders must navigate these expectations while ensuring the organization’s integrity and objectives are not compromised.
What you can do: Regularly engage with key stakeholders to understand their concerns and expectations. Use these insights to inform decision-making and ensure alignment.
4. Dealing with Public Scrutiny
In this age of social media and instant communication, you may face intense public scrutiny, which can be stressful and may create a sense of urgency that isn’t always helpful or necessary.
What you can do: Prepare by having a communication plan that includes predefined roles, responsibilities, and content. One way of defusing urgency is by communicating when you expect to have a response.
5. Monitoring Team Morale and Trust
Sensitive situations can strain team dynamics and reduce trust in leadership. Maintaining team morale becomes a significant pressure point, especially when dealing with layoffs, mergers, or public controversies.
What you can do: Keep communication frequent and honest to the maximum extent possible. Provide support mechanisms for employees, such as counseling or open forums for feedback, to help maintain morale and trust.
6. Personal Stress and Burnout
Leaders are not immune to the effects of stress and can face personal challenges like burnout, especially when dealing with prolonged or multiple crises.
What you can do: Learn to recognize the signs of stress, and make sure you and members of your team have the support they need, which may even include access to mental health resources.
Conclusion
Navigating highly sensitive situations demands a robust skill set and a resilient mindset. By understanding the pressures involved and adopting these strategic approaches, leaders can not only manage these situations more effectively but also emerge stronger by promoting a culture of trust and transparency within their organizations.
LinkedIn Roundup
Here are the things I talked about this past week on Linkedin.
- Talk about success and failure the same way
- OKRs or KPIs? Yes!
- Three essential leadership strengths
- When polarizing politics enter the workplace
- Why work will not be a family
Here are all my posts on LinkedIn.
You can also read my articles on topics related to leadership and execution right here at my website.
When you’re ready, there are two other ways I can help. Email me at hello@jddeitch.com for more information.
Business Advisory
I help growth-stage leaders and investors in B2B tech-enabled services businesses align strategy with execution. I focus on the twin engines of execution excellence—process and people—to transform your business, paving the way for growth and enhanced profitability.
Transaction Support
With 20+ years of operating experience and a substantial M&A track record, I help investors evaluate strategic and operational strengths and weaknesses and navigate post-deal risks to unlock value.