Being No.1

There always comes a time in the lifespan of a business, no matter how big or successful, where it will be faced with some sort of crisis or emergency.

Just when you think that everything is going to plan, a situation or problem can come right out of nowhere, knocking you and the business completely off balance and off track.

It could be that one of your biggest customers has gone out of business or simply decided to take their trade elsewhere, a really important order might get cancelled at the last minute or your biggest competitor might suddenly decide to slash their prices.

One of the biggest dangers when it comes to running a company is complacency. In the world of business nothing is ever guaranteed and the space you operate in can change dramatically at any time. In other words, never take anything for granted.

It goes without saying that smaller businesses with lower cash reserves tend to be more susceptible to sudden and unexpected changes. But there are plenty of examples of all kinds of business that have failed because the owners and the managers were not smart enough to have proper contingency plans in place.

And I think that the true test of a leader and his or her skills is how they react to a crisis and deal with real emergencies when they come along. As a business leader, when you are facing a train crash coming towards you at 100 miles per hour, that is exactly the moment you need to be at your very best and your most effective.

You should always remember that if you are leading a company of 100 employees, then it is your job to keep an eye on what all of them are doing and how they are performing. But the flipside of that is the fact that there are 100 people out there who take their lead from you - you are the one who sets the tone for every second of their working day.

No matter how serious the problem is or how challenging the circumstances are, the key thing in a crisis is not to give the impression to your staff that you are panicking.

When things get really tough people look to their leaders for reassurance and stability. They want to think that the person in charge knows what they are doing and is a safe and reliable pair of hands.

Take advice, talk to people, and don’t let your pride and ego get in the way, but above all it is vital to act. In a crisis sitting there and failing to act is never going to be an option. A lack of action can easily be perceived as weakness and the key in all of this is creating the right impression with the workforce.

I have long believed that a sign that someone is strong as a leader is the ability to make a decision and act upon that decision under real pressure. When a crisis does come along, the most important thing to do is make a decision – even if it is the wrong one. At least you learn from your mistake and next time you would know what to do.

If you are leading a business that is in real trouble and you fail to show true leadership then a crisis can very quickly become a full blown disaster – both on a personal and business level.

As a leader if you appear to be weak and ineffectual then people are not going to put their faith and trust in you when it is most needed, and that is the key to great leadership.