Leading in Crises

Herman B. Leonard; Arnold M. Howitt

Chapter | Mega-Crises: Understanding the Prospects, Nature, Characteristics and the Effects of Cataclysmic Events | 2012

Leading in Crises: Observations on the Political and Decision-Making Dimensions of Response

by Herman B. Leonard and Arnold M. Howitt

Abstract

Emergency response organizations, as we have argued in earlier writing, must deal with both "routine emergencies" (dangerous events, perhaps extremely severe, that are routine because they can be anticipated and prepared for) and "true crises" (which, because of significant novelty, cannot be dealt with exclusively by pre-determined emergency plans and capabilities). These types of emergencies therefore require emergency response organizations to adopt very different leadership strategies if they are effectively to cope with the differential demands of these events. In this paper, we develop further ideas about leadership under crisis conditions, concentrating on the political leadership and decision making functions that are thrust to the center of concern during such crisis events.

Keywords: Strategy; Leadership; Decision Choices and Conditions; Crisis Management; Government and Politics;

Format: Print

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Citation:

Leonard, Herman B., and Arnold M. Howitt. "Leading in Crises: Observations on the Political and Decision-Making Dimensions of Response." Chap. 3 in Mega-Crises: Understanding the Prospects, Nature, Characteristics and the Effects of Cataclysmic Events, edited by Ira Helsloot, Arjen Boin, and Louise K. Comfort, 25–37. Springfield, IL: Charles C. Thomas, 2012.

Book | 2020

Capitalism at Risk: How Business Can Lead

Joseph L. Bower, Dutch Leonard and Lynn S. Paine

Who should take the lead in fixing market capitalism? Business—not government alone. The spread of capitalism worldwide has made people wealthier than ever before. But capitalism's future is far from assured. Pandemics, income inequality, resource depletion, mass migrations from poor to rich countries, religious fundamentalism, the misuse of social media, and cyberattacks—these are just a few of the threats to continuing prosperity that we see dominating the headlines every day. How can capitalism be sustained? And who should spearhead the effort? Critics turn to government. In their groundbreaking book, Capitalism at Risk, Harvard Business School professors Joseph Bower, Herman Leonard, and Lynn Paine argue that while robust governments must play a role, leadership by business is essential. For enterprising companies—whether large multinationals, established regional players, or small startups—the current threats to market capitalism present important opportunities. In this updated and expanded edition of Capitalism at Risk, Bower, Leonard, and Paine set forth a renewed and more urgent call to action. With three additional chapters and a new preface, the authors explain how the eleven original disruptors of the global market system clash with the digital age, and they provide lessons on how to take action. Presenting examples of companies already making a difference, Bower, Leonard, and Paine show how business must serve both as innovator and activist—developing corporate strategies that effect change at the community, national, and international levels. Filled with rich insights, this new edition of Capitalism at Risk presents a compelling and constructive vision for the future of market capitalism.

Keywords: Capitalism; business and society; Economic Systems; Economic Growth; Policy; Leading Change; Corporate Social Responsibility and Impact; Business and Community Relations; Corporate Strategy;

Citation:

Bower, Joseph L., Dutch Leonard, and Lynn S. Paine. Capitalism at Risk: How Business Can Lead. Updated and expanded ed. Boston: Harvard Business Review Press, 2020. View Details

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All organizations practice some form of risk management to identify and assess routine risks in their operations, supply chains, strategy, and external environment. These risk management policies, however, fail in the presence of novelty. Novel risks arise from unforeseen events, from complex combinations of apparently routine events, and from apparently familiar events occurring at unprecedented scale and speed. Mobilizing routine risk management to novel events will be ineffective, and, more seriously, delude management into thinking that risks have been mitigated when they may already have escalated to serious consequences. Based on best practices from the private and public sector, the paper describes structures and processes to identify and respond to novel risks. A critical incident management team makes assessments and develops options in the event’s uncertain and volatile environment. The team’s decision-making process has to be rapid, improvisational, iterative, and humble since not every action taken will work as intended.

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Leading in Crises: Observations on the Political and Decision-Making Dimensions of Response

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