The Crisis Playbook: Business Lessons from Admiral McRaven
By George Carralejo
How Great Leaders Respond in Times of Chaos and Unrest
Years ago, as I was scrolling through YouTube videos, I came across a fantastic commencement speech delivered by Admiral William McRaven. Admiral McRaven, a retired U.S. Navy officer, oversaw some of the most important military operations in history. Whether it’s Make Your Bed, The Hero Code, Wisdom of the Bullfrog, or his most recent release, Conquering Crisis, the simple wisdom and powerful examples in his books offer lifelong lessons and share stories that resonate with readers for years to come.
I’ve found that businesses today face a wide range of potential challenges. How leaders handle these challenges—and perhaps more importantly, how they initially react—often determines whether the outcome is positive or negative. One of the best examples of effective crisis management in business is the way Johnson & Johnson handled the Tylenol poisoning spree in 1982. In Chicago that year, seven people died after taking cyanide-laced capsules. Johnson & Johnson’s response became a model for doing what’s right: putting the interests of the customer first and, ultimately, strengthening the organization’s reputation.
It’s always important to learn from the past. Doing so can help you avoid making the same mistakes yourself. History can be one of the greatest teaching tools for navigating present-day issues—so let it be your guide.
Here is Time magazine’s case study on the handling of the Tylenol crisis in 1982:
https://time.com/3423136/tylenol-deaths-1982/
Below are the Ten Lessons Admiral McRaven offers for Conquering Crisis.
1) First Reports Are Always Wrong – Due to the chaotic nature of how information comes in during a potential crisis, first reports always lack the full scope of information and can be both misleading and inaccurate.
2) Have Trusted Advisors – Identify who can be trusted and who has expertise in handling the specific issue. Know that the people you lean on will do what’s best for the organization regardless of the personal cost to them.
3) Bad News Doesn’t Get Better with Age – The sooner you face the issue at hand, the quicker you can resolve it.
4) Weaponize the Truth – The truth can be a weapon against misperception and distrust. Once you have gathered the correct information and assessed the situation, get in front of the issue and frame the story from the proper perspective. If the public gets hold of a false narrative, it is often difficult to change the perception.
5) Move All Your Options Forward – Always have multiple options/strategies available at the ready.
6) Take Action – Crises never get better through inaction. I have seen organizations sit back and hope issues resolve themselves. This tends to lead to frustration from customers and an erosion of trust. Everyone makes mistakes, detail a plan to rectify the issue as quickly as possible.
7) Don’t Rush to Failure – While it’s important to take action, do so after you have the correct information and have properly assessed the situation. Don’t outpace your resources, planning, preparation or strategy.
8) Micromanagement Is Not an Ugly Word – Moments of turmoil are not the most opportune time for an organization to worry about micromanagement. Strict attention to detail is needed during chaotic times. Morale can be best managed by putting the issue to rest and allowing everyone to move forward and get back to producing the results they were hired to deliver. It’s of vital importance to make sure those responsible for managing the outcome know precisely what is expected of them.
9) Dictate the Tempo – Take control of the issue at hand and utilize the above steps to control the pace, flow of information and necessary steps to rectify the problem.
10) There is Always Time for a Morale Check – The leader must manage their time so they can dedicate sufficient effort into maintaining the morale of the team. Without high morale, the quality of the organization’s work will suffer, and the team’s response will be less effective. A leader must be able to empathize and then refocus the team on the task at hand.
George Carralejo
