Crisis leadership demands that you empower yourself before trying to lead your team.
We were working with “Vance,” a human-centered CEO during a tumultuous season for his business—regulations changed by the week, unpredictable political landscapes made no sense, and his competitors brazenly cheated. Life became very hard for his business, and he wanted help with crisis leadership.
Sitting alone with us in his conference room, he looked up and asked, “How do I lead when I don’t know what’s going to happen next? Everything feels like it’s falling apart. I’m not even sure how to keep myself motivated.”
If you feel that way now, we want to start with the same encouragement we gave Vance.
You can’t choose what you show up to.
But you always choose how you show up.
That’s where real leadership begins. Leading yourself first. Because in uncertain, high-stakes moments, how you show up is the one thing you control. And before you can lead your team, you must empower yourself.
Two Mindsets to Help Your Crisis Leadership
We’ve found two mindset tools that help leaders stay grounded in times like these—whether you’re navigating layoffs, market upheaval, or just a thousand unknowns.
1. The Stockdale Paradox
If you’ve read Jim Collins’ Good to Great, you’ll remember Admiral Stockdale’s story about being the highest-ranking US officer in the Hanoi-Hilton prisoner of war camp. Studying American POWs in the Vietnam War, researchers found two extremes:
The naïve optimists—“We’ll be out by Christmas… by Easter… by June.” Every missed date crushed their hope, and they despaired.
The fatalists—“We’ll never get out.” They sank quickly into despair.
But there was a third group—the survivors. They held realistic hope: “We will get out someday. And in the meantime, today we need to… clean the cell, exercise, connect with each other.” They faced reality and kept hope alive by taking meaningful action today.
That’s self-leadership in crisis. Clear-eyed about the facts. Grounded in purposeful action.
2. The “Gift From Past Me” Approach
You probably remember the sunk-cost fallacy from an economics class. Seth Godin reframes the sunk cost fallacy into a very practical way of thinking about what to do next:
Today’s you received gifts from past you.
And like any gift—even a scratchy, ugly sweater from Uncle Earl or Aunt Edna—you can choose what to do with it now.
Your past work, your team’s work, the resources you’ve built—they’re gifts. But today’s you gets to decide: Given what’s real now, what will I do with this gift?
This reframing separates you from the “should haves” and “if onlys” that lead to shame or paralysis. It helps you enter the Stockdale Paradox with open eyes, ready to face what is—not what was.
Your Leadership Journey Through Loss
Of course, it’s never as clean as “just choose hope.” Genuine leaders also take time to grieve. Feel the pain. Let it move through you. Then let go of what was and face what is.
As Andy in The Shawshank Redemption put it:
“I guess it comes down to a simple choice, really. Get busy living or get busy dying.”
And once you’ve steadied yourself, you can turn to the leadership practices that help teams survive—and even thrive—through upheaval.
Seven Crisis Leadership Practices to Navigate the Storm
Many of these practices are universal skills that serve you well when everything runs smoothly. Invest in them early, before you’re in a crisis, and you’ll have more trust and credibility with your team when the hard times inevitably arrive.
1. Double down on values.
Ask, “What does it mean to be us when we’ve downsized from 200 to 30?” How will we treat one another, our potential investors, and partners during these times? Yes, in business, the “win” might be getting the pharmaceutical to people who need it and reaping financial rewards—but there’s also a process win: being proud of who we are and how we work together during adversity. That’s a win you always control.
2. Clarify what isn’t changing.
When it feels like everything is changing, one powerful stabilizer is to clarify—first for yourself, then for your team—what is known and not changing. “Here’s what we know for sure…” Make a catalog of those items. During crisis leadership, revisit this list regularly to center your team.
3. Be honest about the environment, what it will take to weather the storm, and communicate with empathy.
This one is vital. Your team needs to look at you and believe what you say. If the news reports tell a different story than you do, trust evaporates. If there’s no additional funding coming for a while, what does that mean? What will it look like? It’s the Stockdale Paradox in action: “We’re going to be here for a while. And here’s how we’re going to navigate it.” Lay out the assets, the challenges, and what it will take to meet them—unflinchingly. It may feel uncomfortable, especially if you’ve been rallying people with more optimistic circumstances in the past.
Additionally, when the choices you face create hardships for people, don’t ignore them or pretend the consequences don’t exist. Address the changes directly, with understanding, empathy, and what you are doing to minimize the negative consequences.
4. Own your past.
Say, “I know in the past, I’ve said… And at the time, we had good reason to believe that. Now, however, things have changed, and we need to respond.” This is about acknowledging what you said before—not apologizing for it—because the intent was never to mislead. Circumstances have shifted, and so must you.
5. Increase your communication cadence.
In chaotic times, silence breeds fear. Anchor your crisis leadership with a steady rhythm of updates: “Here’s what we know, here’s what we’re doing now, and here’s how and when you’ll hear what’s new as soon as we know it.” The greater the uncertainty, the more often you need to communicate. And to be credible, this requires the transparency and honesty you established in #3.
6. Double down on detail about next steps and specific actions.
Spell it out: What, specifically, does each person need to do today to help the business succeed? Check for understanding. Schedule the finish. Keep everyone focused on the work at hand. Specific, tangible actions not only move the business forward—they boost morale.
7. Re-recruit your A-players.
When you find yourself in crisis leadership, you need your best team more than ever. Work to retain your A-players. Have one-on-one conversations with the people you most want to keep. Acknowledge the challenges, name their unique gifts, talents, and expertise, then express your confidence in their ability to succeed in the work ahead. Help them see themselves as essential to the future you’re building.
Choose How You Show Up
You may not have chosen this season—or have ever wanted to master crisis leadership. You may not like the cards you’ve been dealt. But you get to choose—today, and every day—how you show up.
Face the brutal facts. Hold onto real hope. Lead yourself first.
Because in the storm, your steadiness is the gift your team needs most.
You may also want to read:
- Leading Through Low Morale: How to Stay Strong When Everything Feels Uncertain
- How to Help Your Team Gain Clarity During Serious Uncertainty [VIDEO]
- 10 Ways Fear Undermines Your Leadership Skills and What to Do to Fight Burnout (PODCAST)
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