Rapidly changing and unpredictable situations tend to generate anxiety in people. In the organizational context, anxious times could mean situations such as bad financial conditions, a recession, being taken over by another company, a blow to the company’s reputation or a major calamity. On a more personal level, it could mean the loss of a bunch of co-workers, reorganization of the company, or performance anxiety due to fear of the possibility of losing one’s job. Thus, people become anxious when they feel they are being drawn into situations over which they have no control, and this affects their effective performance at work, which then further affects the organization.

Anxious times have the potential to spiral out of control—on the other hand, in the presence of effective leadership, the company can rally around and emerge much stronger. Effective leadership, particularly in this type of situation, is both crucial and very difficult. It always helps if the leader has a strong vision for the future and is able to impart this to employees.

Don’t Freeze Up

People often freeze as a reaction to fear—they are unable to move or make any decision. I vividly remember the time I went skydiving in an effort to conquer my fear of heights. I jumped out of the airplane, caught sight of the huge distance between myself and the ground below and completely froze. I knew I had a parachute I could deploy and I’d be fine—indeed, I could see the ripcord dangling within reach—but for the life of me I could do nothing but watch myself hurtling downward. Just then the instructor, who had jumped off right after I did, said, “Relax, I’m here to make sure you’re all right, and all you have to do is pull that cord. So do it, and enjoy the moment.” Those few words were all it took to calm me down and allow me to take action—and I enjoyed that unparalleled experience immensely.

Although the “fight or flight” mechanism has been the popularly accepted theory about the instinctive response of animals to threat, more recent research proposed updating this to the “fight-flight-freeze” reaction (Bracha, Ralston, Matsukawa, Williams, & Bracha; 2004). According to these scientists, “fight or flight”
mischaracterizes the ordered sequence of responses that mammals exhibit. The sequence begins with what ethologists call “the freeze response” or “freezing associated with fear,” corresponding to being on guard, watchful or hyper-alert. The next response is an attempt to flee, and once this has been exhausted, there is an attempt to fight—in that order. In this context, they may freeze out of extreme fear, but freezing also implies a sense of heightened awareness of danger, a
state of acute alertness and also sometimes a lifesaving tactic—if you literally remain motionless, you can remain unseen by your enemy.

The above responses have been extended to non life-threatening stress and anxiety, and personal experience has shown me that extreme stress at the workplace can cause people to react similarly, with the first response being one of freezing. Thus, in a time of anxiety, a leader is more than likely to first just freeze. Whether he/she does so in order to assess the situation and make a decision or out of sheer stress, this period necessarily needs to be extremely brief. The leader needs to remember that there are others depending on him/her for direction so he/she has to take stock and pull him/herself together to provide that direction. Being unable to do so can often have severe consequences. On the other hand, such a situation often brings out latent leadership talents in other members of the team. There may be a person who normally takes a back seat, but if the leader has become ineffectual for some reason, this person is able to take charge and lead the team successfully.

A case in point is an incident recounted by Stephen E. Ambrose in his book Band of Brothers: E Company, 506th Regiment, 101st Airborne from Normandy to Hitler’s Eagle’s Nest. The book is based on the World War II experiences of Easy Company, 506th Parachute Infantry Regiment commanded by Major Richard Winters, and later immortalized in the television series “Band of Brothers.” Ambrose tells the story of one particular time when the Company attacked the small village of Foy with the intention of aim of driving out the occupying Germans. However, what should have been a fairly straightforward mission resulted in many lives being lost because the leader suddenly froze. In the words of the author, “Lieutenant Dike, in Lipton’s [another Lieutenant] judgment, had ‘fallen
apart.’ He was frozen . . . he had no plan, he didn’t know what to do.”

In this situation, Major Winters sent another man, First Lieutenant Speirs, to assume command and continue the mission—and Speirs did a brilliant job of leading the soldiers on into a successful mission. In his book, Beyond Band of Brothers: The War Memoirs of Major Dick Winters, Major Winters says: “The big problem for a leader is keeping his wits and not freezing in fear—being able to think…” The leader thus needs to recognize the fact that he/she will probably freeze—knowing
this will likely help him/her minimize the time needed to snap out of it, so that he/she can help the team. In my personal opinion, based on extensive reading, one of the reasons that Winston Churchill was so successful as a leader during World War II is because he never froze, even during the worst of the battering by German bombs—he kept going and kept leading.

Communicate Crisply,Precisely, Frequently
Precise and frequent communication plays a vital role in the management of a crisis situation. The leader might not have all the answers, but needs to communicate frankly and honestly to the greatest extent possible in order to reassure all stakeholders about the uncertainties the organization is facing. Being honest will help allay some of the (possibly unfounded and imaginary) fears of employees. During anxious times, employees will generally ask two basic questions: “Is everything going to be all right?” and “How is this going to affect me?” The leader needs to read between the lines and cut to what people are really
asking. For example, when the employee asks, “Is everything going to be all right?” what they really mean is “What will it take for everything to be all right?” They need to be told clearly what the organization is doing to resolve the situation, and to be given the assurance that the company’s leaders are doing their best. At the same time, in their rush to provide reassurance at that instant, leaders can go too far in terms of making promises that they might not be able to honor—for example, the promise that there will be no downsizing. The reality, however, is that they just cannot be sure. If the situation further deteriorates, management might have to, among other options, prune the workforce. Thus, while being candid is highly advisable, there are often factors beyond the leader’s control that do not permit him to be as open as he’d like. The leader would be better advised to say something like, “The organization has done its best based on the data it has, to make as good a decision as it can with everyone’s interests in mind; however, there are no guarantees.”

The team will understand that a leader need not necessarily have all the answers, and being as straightforward and candid as possible will evoke a good response and support from them. All leaders should be uniform in their communication to their respective teams, and firmly refute rumors and speculation by sharing as much information as possible. At the same time, be careful about responding to rumors. Suppose you have pruned the workforce and now there’s a rumor going around that a second layoff is imminent. Wishing to quash the rumor and prevent panic, you say firmly that it is just a rumor and no more layoffs will occur. However, you are putting yourself in a position of jeopardy because 1) if worsening circumstances leave the management with no other option than another layoff, you will be perceived as having lied and will lose the goodwill of the remaining employees, and 2) people will assume that any rumor you did not address is probably true.

Show Compassion
The third requirement at this stage is compassion. Do not forget the human angle—be compassionate, listen and talk to people, lend an ear when needed. The leader should not forget that building character and credibility is a lifelong endeavor that becomes enhanced during times of anxiety. The strength of the relationships built up to this time will help the leader judge what to say and how to say it, and will also determine the extent to which he/she will be believed and trusted. When people are possibly going lose their jobs, or not receive their bonus or expected raise, they will not want to hear what they (or the company) did wrong. It is better if the leader explains the situation, and acknowledges that he/she understands their problems and is going to try to be as helpful as possible. A
common belief people have is that to show comfort you need to speak and give verbal reassurance—actually listening or lending a shoulder of support can convey compassion to the same extent as words.

Garner Support
While leaders need to be decisive in anxious times, they should also emphasize to employees that only by working together as a team can they help the organization get through the crisis. Sharing concerns, asking employees for their ideas on how to face the current problems and suggesting what they can do to help is an effective way to deal with the situation. Since it is in employees’ best interests that the company should recover as soon as possible, they will respond positively and many will be willing to put in the extra time and energy to get the company through the crisis.

Provide a Positive Vision
Next, be positive about the future—after all, bad times never last forever. Emphasize that the strengths and values of the company are going to help it emerge from these trying times much stronger. Time and patience does dispel anxiety, and the leader’s job is to get people to focus on the future with the understanding that certain measures must be taken in the present to build a strong future.

Be Available
Finally, leaders should be constantly visible and available—their physical presence and body language can reinforce the message they wish to convey. To return
to the example of Easy Company, Major Winters says in his book, “As a leader, you must begin circulating among the men…Even if a soldier remains fixed on his own feelings and his own fear, and if his leader is moving the men, the soldier realizes that his leader is sharing the same hardship he himself is experiencing.”

Leaders should not hide truths that are evident. While acknowledging that the company is going through trying times, they should ensure that all senior leaders are engaged and well-informed and able to convey an upbeat feeling—this will help employees be far more confident about the future. During times of crisis, employees and stakeholders wish to hear from leaders and they want their voice to be heard, so leaders should use every opportunity they get to communicate.

Handling an anxious situation ultimately depends on the nature and cause of the situation—there cannot be a one-size-fits all solution. However, if the leader keeps in mind the key ingredients—communication, compassion, core values, future vision and approachability—this will go a long way toward taking the organization forward successfully through the crisis.

References
Bracha, H. S., Ralston T.C., Matsukawa J.M., Williams, A.E. and Bracha, A.S. 2004. Does “Fight or Flight” Need Updating? Psychosomatics 45:448-449. Retrieved from the World Wide Web on November 10th, 2008 from http://psy.psychiatryonline.org/cgi/content/full/45/5/448.