Crisis leadership: why people matter most in a downturn

Executive overview

In a crisis, leaders default to spreadsheets and strategy. The real leverage is in human relationships — with your team, your customers, and yourself.

Tom Peters and Bill Gallagher argue that leadership effectiveness in a crisis is judged entirely by how you treat people, not by how clever your plan is. Excellence is not a destination — it's the next five minutes.

Resume virtues vs eulogy virtues

• David Brooks' distinction: resume virtues are credentials; eulogy virtues are how you treated people
• In a crisis, your behavior over the next few months is "judgment day" for your leadership legacy
• Leaders who show sacrifice alongside words earn trust; those who speak well but don't act lose it
• Airbnb example: eloquent layoff messaging rings hollow when the CEO hasn't reduced his own pay

Managing by wandering around (MBWA) in a remote world

• HP's MBWA principle: being present with front-line people is the core of effective leadership
• The real reason to do MBWA isn't information-gathering — it's because you genuinely enjoy being with people
• If you don't get a kick out of connecting with your team, you shouldn't be a manager
• Remote MBWA means calling people, dropping into video calls, and asking about their lives — not just their work
• Don't open a Zoom meeting with a long agenda; start with a human moment (duvet covers, show-and-tell objects, one-word check-ins)
• Phone calls often work better than video for genuine connection

The power of small gestures

• Henry Clay: "It is the tiniest courtesies which stick in your mind the longest"
• Starting an email with a name and ending with a sign-off is not trivial — it signals you give a damn
• Calling customers during Hurricane Sandy — "you're the only one who called" — built more loyalty than any marketing spend
• Lunch breaks down silos faster than ERP software; 15 minutes reveals common ground that changes working relationships

Listening as a leadership skill

• Dean Rusk: "The best way to persuade someone is with your ears"
• The best salespeople talk the least; they listen to what the other person actually wants
• Introverts are often better leaders precisely because they listen before speaking (ref: Susan Cain, Quiet)
• Listening excellence should be core value number one for any organisation

People networks and hiring

• "Sucking down" — building relationships three levels below you — matters more than managing up
• Hire nice people: in a sophisticated industry, technical talent is abundant; one bad apple damages culture disproportionately
• Give everyone in the hiring process genuine veto authority, including the receptionist
• Women in sales teams often outperform because they're willing to build relationships at every level of a customer's organisation

Engaging people through a crisis

• In 2001 and 2009, the answers only emerged through engaging the team collectively — no single leader had them alone
• In a crisis, productivity expectations should flex; role number one is taking care of people
• Layoffs done with care and humanity leave people wanting to help you; callous Zoom-and-freeze-accounts tactics destroy loyalty permanently
• This crisis will be a turning point: leaders who missed the human dimension will be remembered for it