What Small Business Owners Need to Know About Managing vs. Leading During a Crisis

To Be a Manager or a Leader? About 40% of small businesses fail to reopen after a crisis due to poor crisis management or leadership strategy. Leadership shapes a business and provides the agenda going forward. However, if the agenda is more directed at managing the situation, it can misdirect employees and confuse people as to what is happening.

Businesses need to have strong leaders who can guide employees during a crisis and unite the company as a whole. So, how does a business differentiate its strategy from managing vs. leading?

Don’t worry; this guide dives deep on the dos and don’ts of managing and leading. From communicating to being available, being a leader can be challenging. But with these tips, leaders can be better equipped to handle a disaster.

Now, read on about how to lead during a crisis:

Managing vs. Leading in a Crisis

Managing a crisis is different from leading one. Let’s take a look at two ways managing can be damaging to a company:

Taking a Limited View

In times of crisis, a manager will likely have such a limited perspective that he or she cannot see the big picture. In that case, he or she will likely react instead of considering how their actions will influence the future performance of the organization.

A leader, however, will step back and look at all the obstacles around to see how each action will affect each entity. By having a broad perspective it will help advance the companies objectives. After all, a leader has to consider how each decision will affect the next and have a plan in place for that situation.

Thus, a leader doesn’t just react; instead, he or she takes action by having a broad perspective.