Posts

On February 16, 2021, Logos Advisor Katie Garcia was quoted in a Carol Roth’s Business Unplugged on how small businesses can stay positive during moments of uncertainty. 2020 was a year of crisis, and as COVID-19 continues to bring uncertainty to businesses across the country, it can be challenging to stay in a positive mindset. In this article, 264 business leaders across industries shared their tips for how to stay positive in this uncertain time.

Garcia’s advice: Remember that uncertainty offers opportunity.

“Every business has struggled over the past year due to Covid-19. The ‘new normal’ post-pandemic is still out of sight for most of us. To stay positive amidst these ever-changing circumstances, remember that there is opportunity in moments of uncertainty,” she explained. “There is an opportunity to reimagine what is possible, for your business and your industry. There is an opportunity to innovate, to explore new ways to grow and to serve those who matter most to your business and industry.”

Read the full article here.

On February 9, 2021, Logos president Helio Fred Garcia was interviewed by MarketScale about the decision for Boeing’s 737 MAX to return to service for commercial flights. Garcia was interviewed alongside Ludovic Chung-Sao, Founder of ZenSoundproof and former certification engineer for 737 Max engines, about the various aspects of the aircraft’s return to the sky years after the two tragic plane crashed that sent Boeing into a multiple-year long crisis.

During the interview, Garcia described how Boeing ended up in a crisis over the 737 MAX. “The foundational principle of maintaining trust in a crisis is to show you care quickly, and Boeing was singularly unable to show that it cared,” he explained. But he also noted another way in which Boeing fumbled in their crisis response was in the company’s insistence that the planes were safe, followed by ‘But don’t worry, we have a software fix coming.’ This mixed message was confusing, and led people to not trust Boeing’s reassurances. Part of Boeing’s challenges, as Garcia explained, was that Boeing was that the company didn’t appreciate the user experience of the pilots of the plan. The lesson: “In a crisis, you must not think like an engineer, but think like the user of your product or technology.”

Click here to watch the full interview.

On February 8, 2021, Helio Fred Garcia spoke with Bill Sherman on his podcast, Leveraging Thought Leadership. During their conversation, Garcia described some of the drivers for trust in the crisis, how he fell into thought leadership, how translates complex ideas for a common understanding, the influence of philosophy on his life and career, and his advice on how people can become thought leaders.

Listen to the full exchange below:

On January 27, 2021, Logos president Helio Fred Garcia was quoted in a CNN Business article on the ice-cream company Ben & Jerry’s campaign to end qualified immunity for police officers. Ben & Jerry’s has long supported progressive political causes, which Garcia points out makes their decision to take such a direct stance on this issue unsurprising.

“Conglomerates typically try to stay off the radar screen on divisive social issues,” Garcia explained. “There’s no surprise that the Ben & Jerry’s brand is involved. What is intriguing is that their parent Unilever seems to be perfectly comfortable with that.”

Read the full article here.

The Feeling

For most of us, the days start the same way. You turn over, turn off your alarm, and then check your phone or email notifications.

Most of the time, the notifications you find are the typical daily intrusions or distractions.

But imagine this. One day you read the email, urgent text chain, social media feed, or news story and you discover that your organization has found itself in a crisis that has the potential to jeopardize the future of the organization. A future you and your colleagues have worked so hard to create.

Maybe it is a crisis you had foreseen.

Maybe it takes you completely by surprise.

But in that first moment, you feel the walls coming down around you. For many, a heavy feeling hits them in the gut and weight compresses their chest. A question inevitably sets in:

What are we going to do?

The feelings of fear and desperation are real. In that initial moment, panic quickly sets in and it may feel like the end of the world.

That feeling is okay. In fact, it is natural. In another blog, I will explain the neuroscience behind what’s happening to your brain and your body, and why you feel what you feel during a crisis, including the immediate inability to make rational decisions. (Check back on our site for the release of this blog.)

In the meantime, I’d like to talk through some things you can focus on right now, so you know how to move past that initial flash of panic and gain ability to make decisions. The goal is that in that moment of crisis you are able to move forward and respond to what is happening calmly, clearly, and effectively.

The key to doing so is readiness.

Readiness

Readiness determines how an organization responds to a crisis. The common misconception is that the severity of the inciting incident determines the response. However, when properly prepared and applying the right mindset, your level of readiness will be the deciding factor of whether or not the organization will get through a crisis unscathed and stronger than before.

Most organizations have some structures of operational readiness to respond to a crisis. But the truth is that well-built structures alone are not enough in moments of crisis. That is why so many companies that have well-built structures of operational readiness still fail to respond to a crisis effectively and suffer meaningful harm as a result.

The key is combining operational readiness with mental readiness.

Mental Readiness

Effective crisis response is a combination of both operational readiness and mental readiness. This combination equates to the ability to make smart choices quickly and execute them well in a crisis. Mental readiness helps people faced with crises respond calmly, think clearly, and make smart choices when it matters most.

Mental readiness consists of three parts:

Emotional Discipline. The ability to regulate your emotions to execute decisions well in moments of crisis. In a crisis, making smart choices in timely ways is not always easy. Sometimes there is no good choice, free of pain or discomfort. Sometimes there is only the least bad choice, which may involve discomfort to you but will ultimately serve your stakeholders (those who matter to your organization) the most. Discipline and practice is required to remain calm and make the difficult, but necessary choices.

Deep Knowledge. The understanding of the patterns that drive effective and ineffective crisis response, including why some actions always work while some other actions never work. By studying as many different crises as possible, you are able to learn from others’ mistakes without having to live those mistakes yourself.

Intellectual Rigor. The ability to think clearly and ask the right questions in the right order in order to identify the problem accurately and understand the best course of action forward. The ability to remain focused and ask the right questions, rather than letting distraction take hold, enables you to make smart choices quickly.

By building your mental readiness for moments of crisis, you will be able to foresee crises that are foreseeable. You will be able to assess unforeseen crises and respond effectively as they arise. And you will be able to move past that initial moment of panic when the crisis breaks to lead your team through what needs to happen next.

This is part of a series of blogs on crisis response principles. Stay tuned for Part 2 of this series.

-30-


Did you find this article helpful? Sign up for one of our Logos Learning Center webinars, where you can learn more about how you can reach your leadership potential. Learn more at www.logos-consutling.biz.

Reach out today for personalized coaching by visiting www.logosconsulting.net or email the author directly at mzheng@logosconsulting.net.


About Maida Kalić Zheng

Maida is an Advisor at Logos Consulting Group and a Senior Fellow at the Logos Institute for Crisis Management and Executive Leadership, where she helps corporate leaders maximize presence and enhance communication skills to become more effective in managing both their reputations and relationships. She also serves as the Chief of Client Services.

 

 

About Logos Consulting Group

Leaders change the world. But they don’t do it alone. They ignite others toward a common cause. At Logos Consulting Group, we believe in this world and we see this world in the work that we do. Our mission is to build a better world by equipping people to become leaders who ignite change in the world for the good. We do this by helping our clients inspire those who matter to them to make a difference in their own industries and communities, and the world at large. We advise and coach our clients in three key areas: crisis managementcrisis communication; and executive coaching.

On January 15, 2021, Logos president Helio Fred Garcia was quoted in an article in Luxury Daily on the crisis the Trump Organization now faces given the criticism and controversy around the president, particularly after the storming of the U.S. Capitol. The article describes how the Trump Organization’s brands have suffered as a result of the president’s political profile, with partners increasingly moving away from the brand and long-standing contracts being terminated.

“Successful recovery from a crisis depends on how quickly and effectively the expectations of the people who
matter to the organization are met,” said Garcia. “Because all of President Trump’s businesses, including his luxury business, include his name, it is difficult for business partners, customers and other audiences to distinguish the brand from the man. All of Trump’s eponymous businesses are synonymous with Trump the person. It’s virtually impossible at
this point to separate the two, which was by Trump’s design.”

“Those who still support Donald Trump would likely still support the brand should another family member step in,”
Garcia noted. “However, for people who do not support Donald Trump, they are almost certain to avoid any business with the Trump name or that is run by a family member, since the associations are so close.”

This crisis is particularly acute given the criticism of the president following the storming of the US Capitol and his second impeachment in his one-term in office. “Criminal charges brought against a business or its leader almost always present the potential for things to get worse, especially if the charges are of the magnitude and quantity that are likely to be brought against Trump,” Garcia noted. “However, criminal charges are not an immediate death sentence for a business.”

Garcia advice for those in relationship with the struggling brand: “For businesses and leaders that do not support Trump but are still in business with him, time is of the essence to dissolve that relationship. Businesses that are slow to cut ties may suffer backlash as the lack of urgency to sever the relationship could be perceived among those who matter as too little, too late.”

Read the full article here.

On January 13, 2021, Logos President Helio Fred Garcia was quoted in an article in CEO Blog Nation about key takeaways from 2020. In the article, 20 entrepreneurs and business owners from across industries shared the tough lessons they learned during 2020. For Garcia, his 2020 takeaway was to take risks seriously.

“2020 has been a year of crisis – both because of the pandemic and the crises that have stemmed out of our response to the pandemic,” Garcia explained. “We have seen that governments, industries, and businesses that took the risks of the pandemic seriously were able to adapt quickly to mitigate those risks; those who didn’t take the risks seriously often failed to respond to the crisis in a timely and effective ways with harmful results. As we go into 2021, we need to take risks seriously and do all that we can to mitigate those risks quickly.”

Read the full article here.

On December 7, 2020, Logos Associate Holy Helstrom was quoted in a Legal Zoom article by Stephanie Kurose about the start-up boom emerging in the midst of the COVID-19 pandemic. In the article, Helstrom explained how a moment of global crisis has become an opportunity for start-ups to emerge and thrive.

“There is the old saying, ‘necessity is the mother of invention’ and never was it more true than in our coronavirus times,” she noted. “COVID-19’s sudden and dramatic arrival made it very apparent very quickly what people and organizations need to do to succeed and stay healthy in the new world we are living in”

Helstrom continued: “New circumstances create new needs. Startups are responding quickly to this call to fill in the gaps in our economy.”

Read the full article here.

The except is from an op-ed by Helio Fred Garcia published on December 2, 2020 in Modern Restaurant Magazine.

The COVID-19 pandemic, a crisis has radically reshaped the dining experience and caused a devasting impact on a once booming industry. A September survey by the National Restaurant Association found that 43 percent of full-service operators and 33 percent of limited service operations do not expect to still be in business in six months of things continue as they are. And restaurants are anticipating a total loss of $240 billion this year as a result of the pandemic.

In many ways, the ingenuity of owners and managers has enabled many restaurants to survive this prolonged crisis. As restaurants have introduced innovative solutions to continue serving their customers, such as curb-side pick-up, delivery and drive thru options, or expanded their business to grocery services, the industry has seen marginal gains since the spring. But it has not been enough.

The unfortunate reality is that it is unlikely the industry will be able to bounce back in the coming months. And the restaurant experience when we finally emerge from this pandemic will likely look much different than it did before.

So, what can restaurants at this point in this crisis?

Take Risks Seriously

The US response to COVID-19 pandemic is, in my opinion, the single worst handled crisis in our nation’s history. At the time of writing this, more than 10 million Americans have contracted COVID-19, and nearly a quarter million people have died. And this could have been avoided.

A study published in October by Columbia University’s National Center for Disaster Preparedness found that between 130,000 to 210,000 American fatalities would have been avoided if the nation had consistently applied policies equivalent to what other developed democracies had done.

A foundational principle of crisis response is to understand the scope and specifically the risks that a crisis represents, and then to do all that is necessary to mitigate those risks. The longer it takes to do that, the worse the crisis will get.

As we have seen, the federal government, in particular the current occupant of the White House, failed to take the risks of the pandemic seriously. And President Trump continues to diminish or ignore the risks of COVD-19, even as infection rates spike and more members of his administration test positive for the virus.

The changing of administrations may turn the tide of the country’s response, but we have quite some time before President-Elect Biden can enact meaningful change. In the meantime, the continued lack of a coherent federal response before the inauguration will likely to cause even more harm.

As cases surge across the country, restaurants need to take the risks of COVID-19 seriously. And that means recognizing that half measures won’t work in the long run.

While it may be tempting to continue indoor dining as we head into winter, the growing infection rate, as well as sporadic mask-wearing and social distancing policies across the country, will likely make indoor dining less safe, putting both customers and employees at risk. Restaurants need to recognize and take these risks seriously, and to be prepared to take decisive action early to protect their customers and their employees.

Foresee the Foreseeable

Many crises are not foreseeable. But months into this crisis, there are some thing we can foresee.

We are now in the third wave of the pandemic. In early November, we saw back-to-back record highs for daily cases. The likelihood, if things remain unchanged, is that we will reach a quarter million deaths by Thanksgiving.

President-Elect Joe Biden has signaled that he will take a far more aggressive approach to COVID, and has begun revealing a national strategy. In his acceptance speech, Biden declared, “We cannot repair the economy, restore our vitality, or relish life’s most precious moments… until we get this virus under control.” He continued, “I will spare no effort — or commitment — to turn this pandemic around.”

Restaurants need to be prepared for Biden to enact some form of restrictions for as long as necessary to control the virus.  That means restaurants have time to prepare what will foreseeably be one of Biden’s first acts as president.

Take the Pain

No one wants the country to shut down. There is a real and lived cost for all of us in this moment of collective crisis, one that will be felt for years to come. But one of the principles of crisis management is that sometimes we need to take the pain in the short-term in order to thrive in the long-term. This is one of those times.

Restaurants have already taken the brunt of the pain during this pandemic. And previous governmental relief for the restaurant industry has fallen short.

However, restaurants will need to be prepared to take the pain of drastically reducing their operations again, of furloughing their employees, or of shutting down for some period of time. This is a difficult decision for any business make. But it is the only way that we as a nation will make it through this crisis, and ultimately the only way the restaurant industry will be able to truly thrive again.

As restaurants will need to make difficult, but necessary, decisions to protect their customers and staff, the restaurant industry can also be proactive in fighting for relief. Since June, the National Restaurant Association, the Independent Restaurant Association, and other have been actively lobbying for expanded relief for the industry. And as the government transitions in January, the industry may find new allies to aid this cause and ensure the long-term viability of the restaurant industry going forward.

Plan for the Future

While it will likely be necessary to take the pain in the short-term, restaurants can also plan for the long-term.

In crisis management, we know that in every crisis there is opportunity. COVID-19 has changed nearly every part of our society and daily lives. As we come out of this crisis, the restaurant industry, like many others, will not look the same as it did before the pandemic. But that does not mean it cannot as good as it was before. Or that it can be even better.

The industry has already demonstrated its resiliency in the creative ways that restaurants have adapted their business models to survive during the pandemic. Should a national shut down happen, restaurants can use that time to be proactive and plan how they will rebuild after the pandemic has ended.

What will the restaurant and dining experience be after COVID-19? Restaurants can take this time to re-imagine what this experience can be like in a post-COVID-19 world, and then organize their resources to re-invent and re-invigorate both their companies and the industry as a whole.

The restaurant industry has a long road ahead to get through this crisis. But by making smart decisions in a timely way, restaurants can get through this crisis – and help us all do the same.

On November 9, 2020, Helio Fred Garcia spoke with Will Bachman on his podcast Unleashed about how leaders and organizations can understand prepare for, and respond effectively to a crisis. Unleashed explores how to thrive as an independent professional.

During their conversation, Garcia discussed the meaning of the word crisis, several key principles of effective crisis response, and ways that Logos Consulting Group works with clients to prepare for and respond to crises.

Listen to the full interview here: