The world turned into crisis mode when the World Health Organisation (WHO) declared COVID-19 a pandemic on March 11, 2020. With very little public information and an uncertain forecast, the business and political leaders had a massive task leading the masses through the pandemic. Decisions in this uncertain situation are considered non-programmed decisions where the situation is not clearly defined and complex. Therefore, leadership and communication have become more crucial than ever.
Let us analyze the ethical decision to lay off 1900 Airbnb employees worldwide by its co-founder and CEO, Brian Chesky. The pandemic struck the business hard, which depends on people’s intention to travel and explore places, putting the CEO in an ethical dilemma of saving the business versus saving the workforce. In his message to the employees, he clearly stated the circumstances that led the Airbnb leadership team to decide on the layoffs. In ethical decision-making, he has followed the ‘practical ethics’ approach. The practical ethics approach considers the greatest good for the greatest number, not overstepping the fundamental rights of the stakeholders and the standards of social justice in the profession. There are three ethical theories, namely, utilitarianism, moral rights, and justice, from which the ‘practical ethics’ concept has developed. With many service sectors like airlines, hotels, and logistics laying off their employees, Airbnb followed suit on prevailing standards in the industry. Airbnb’s stakeholders include guests, hosts, communities, shareholders, and employees. Considering the prevailing uncertainty and the business, Mr Chesky has taken the tough but necessary ethical decision of laying off 25% of the workforce. Furthermore, he offered his laid-off employees severance pay, healthcare support for one year, and job search assistance, which was very important for affected stakeholders.
Now, let us analyse the landmark decision of the government to start online learning for school and college students in India because of the pandemic. India’s education infrastructure was unprepared for the sudden shift from classroom to online learning. The stakeholders in this decision include students, teachers, parents, and society as a whole. The planning and execution of this decision were limited by the telecommunication and software infrastructure that the system possessed at the time, and the uncertain outcome of the quality of the education. The government’s decision to start online classes drew much criticism as the public was unprepared for it. However, the implementation was successful as students took advantage of their studies in an unstable environment.
We shall look at the previous New Zealand Prime Minister, Ms Jacinda Ardern’s leadership during the crisis. She has faced two significant crises during her tenure to date, namely, the Christchurch terrorist shooting and COVID-19. Both events were utterly unexpected without any warning. Let us see how Jacinda reacted to the first event of the terrorist shooting. Ms Ardern made some quick decisions on emotional aspects to curb such future incidents. She was at the shooting site immediately and showed public empathy by mourning with the victims’ relatives. She supported and participated in their grief, and the pictures of the same were published throughout the world. She offered complete financial and other support for funeral arrangements. She was decisive in amending the gun laws within a month of the shooting, showing her resolve to deal with the situation. She cleverly avoided mentioning the terrorist’s name and made the world aware of it. These actions and decisions showed humility, empathy, and decisive actions as a leader, which is a level 5 leadership. Level 5 leaders are characterized by a complete lack of ego (humility) coupled with fierce resolve to do what is best for people or the company. These are the leadership traits she showed during the crisis.
The second crisis came in March 2020, as COVID-19, for which no medical treatment or vaccination was available. Her actions demonstrate the five components of authentic leadership. First, Ms Ardern pursued purpose with passion in the way she showed intent in controlling the spread by locking down borders, which inspired commitment from the citizens. She was solid under external pressure when critiqued by numerous experts on intense lockdowns, which inspired trust. Ms Ardern led with the heart as well as the head when she took a bold decision to close the borders with immediate effect, even to overseas citizens of New Zealand. Her connections were the key to completing things smoothly. She showcased self-discipline, which prevented New Zealand from opening up its borders before the pandemic subsided. She has been visible to people across the country every day through press conferences, and she has communicated with the people. She made bold decisions to financially support the smallest of businesses and each eligible working individual. New Zealand was under lockdown for the longest period compared to the rest of the world. The decision was bold and challenging. Authentic leaders inspire trust and commitment because they respect multiple viewpoints, use collaboration, and help to develop leaders.
One more world leader who faced such an unprecedented crisis was Mr George W Bush, the then-President of the USA, when America faced multiple terrorist attacks. President Bush visited every attack site and communicated with the victims’ families and rescue workers. He was articulate in communicating with people since an atmosphere of fear had gripped the country. He led the country from the front. His actions were again a classic example of an authentic leadership style.
Crisis communication continually defines and brings out the best or worst in the leadership. A crisis in the business world could be due to external factors like recession, technological advancement, natural calamity or war; in contrast, internal factors include sudden strikes, fire in the plant, and many more. Media richness theory clearly articulates that face-to-face communication is the best medium in crises. This channel is the most effective when people exhibit solid emotions of fear, insecurity, anxiety, etc., and creates a feeling of trust. An interesting article published by McKinsey & Company on effective communication during a crisis brings out five elements of crisis communication. The five elements are as follows: give people what they need and when they need it, communicate simply, clearly, and frequently, choose candour over charisma, revitalize resilience and distil meaning from chaos. There is a pictorial presentation of the crisis communication life cycle called resolve, resilience, and reforms. In the resolve stage, stakeholders are confused and anxious; they need facts, not speculations. They need clear instructions on how to protect their safety. In the resilience stage, people are uneasy and worn down and need clarity on long-term plans, positive stories, and chances to reconnect. In the reform or return stage, people are ready to change. People need a new vision for the future and a chance to grieve. In Jacinda Ardern’s communication throughout the COVID-19 crisis, we see almost all the above elements. Being the Prime Minister, she appeared in press conferences daily with the Director General for Health, showing visibility. She did not become overwhelmed given the uncertain situation, which is one of the traits in crisis communication. Some highlights of her communication were clear articulation in sharing the facts and numbers, and this created a trust factor in people’s minds and got the truth out, which could have led to misunderstandings and rumours. She also admitted various uncertainties in tackling the virus and the medical treatments available for the same. She used social media to stay in touch with people, which resonated with an ordinary citizen locked down in a house. Jacinda also shared a detailed plan for lockdown, managed isolation, and various dos and don’ts. All these communication methods hint at media richness theory and crisis communication.
Another example of crisis communication is that of British Prime Minister Winston Churchill. Mr Churchill was elected as the British prime minister during World War II when Britain was in virtual collapse from Germany’s attacks. Churchill realized that he needed the support of the entire nation, including opposition party leaders and ordinary citizens. Churchill used direct methods of communication by travelling by bus and train, and he visited underground shelter bunkers. He was unequivocal in communication and did not give false hopes. But he instilled in people the motivation, determination, and pride to fight. His remarkable style of formal and informal communication, and oratory inside the parliament, turned the tables. These actions again exemplify the media richness theory of crisis communication.
A crisis is a make-or-break situation wherein an entity’s decision-making, leadership, and communication skills will be tested. A few handled the pandemic very effectively, as discussed above. Nevertheless, the lessons learned from the pandemic will lead us to a bright and prosperous future.
