How To Manage When Crisis Hits: 15 Practical Steps For Businesses

Forbes

01-07-2025

When a crisis hits a business, there's no time for guesswork. The way leaders respond in those first hours and days sets the tone for their team, stakeholders and the future of the business. This is when leadership is tested and defined.
Here, 15 members of Forbes Coaches Council offer some practical and impactful steps leaders can take to guide their teams through uncertain times and lead effectively under pressure. Follow their advice below to prepare to lead through any challenging situation.
1. Encourage A Sense Of Community
The most vital step a leader can take during a crisis is to create a sense of community within their teams. Bringing people together, making them feel psychologically safe and clearly laying out the roadmap ahead will ensure that team members continue to build trust in their leadership even during a crisis. It can also be a wonderful technique to get them involved in navigating the crisis and enabling solutions. - Kari Parker, Connections Focused Consulting
2. Be Honest About Difficult Emotions
In the midst of a crisis, the most practical—and human—step a leader can take is to pause and get honest. That means naming the fear, the confusion and even the shame that might arise. Only then can they speak truthfully to their teams. People don't need perfection—they need presence. They need to know their leader is still there, grounded, listening and willing to face hard truths. - Jerry Colonna, Reboot
3. Pause
Before reacting, leaders should create space to reflect, regulate and reconnect with their values and people. Pausing allows for clarity, reduces reactivity and grounds decision-making in purpose, not panic—so the next step is thoughtful, not just fast. - Erika Heilman, Engage in Change
4. Create A Response And SOPs In Advance
Leaders should prepare a crisis plan before a crisis occurs that answers the following: What standard operating procedures guide our response? How will we set expectations for communication? Who's involved, and what's the chain of command? How will we handle conflict and support the team? Anticipate obstacles and plan proactive steps to address 'what if' scenarios. Having a clear plan in advance enables a swift, coordinated response. - Kathleen Shanley, Statice
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5. Have An Action Plan For The First 24 Hours
As part of a risk mitigation strategy, leaders should have a clear plan for their actions within the first 24 hours. For example, create a plan for a financial crisis, a natural disaster or a key leader's moral failure. Just plan the first two to three steps—who to call and who makes decisions—then let the leaders manage what is in front of them thereafter. - Bill English, OnPath Coaching
6. Provide Predictable Signals Of Stability
As Martin Seligman mentioned in his positive psychology research, the London air-raid sirens during WWII were so reliable as a signal that people were willing to go out and carry on even though bombs landed unpredictably. Hence, by giving employees predictable warnings and preparation for worst-case scenarios, leaders can help their teams better manage anxiety and get back to the tasks at hand. - Kelly Huang, Coach Kelly Huang
7. Talk To Your Team Early And Often
Call your team together and talk. Don't go silent and try to fix it alone. People need clarity more than certainty. Honest conversation brings calm, invites solutions and reminds your team they're not in this alone; and you lead by being present, not perfect. - Lisa Marie Platske, Upside Thinking, LLC
8. Acknowledge Unknowns
When a crisis hits, leaders must share what's happening and what's being done and acknowledge what remains unknown. This builds trust, prevents harmful speculation, maintains team cohesion and demonstrates accountability. People can handle difficult news better than uncertainty and silence. - Jonathan H. Westover, Ph.D., Human Capital Innovations
9. Don't Panic
It's easy to get tunnel vision and become reactive in a crisis. When leaders can pause and reconnect to the company's bigger picture, goals and purpose, they can provide more creative solutions. It's also important for leaders to reflect on all previous crises that they, the company and their staff have overcome—this immediately restores a sense of faith in perseverance. - Hanneke Antonelli, Hanneke Antonelli Coaching, Inc.
10. Shrink The Planning Timeline
Stop planning for next quarter and focus on the next 72 hours. Immediate clarity reduces panic and gives people something concrete to execute. Crises don't reward perfection; they reward momentum. The faster you set a short-term anchor, the faster your team regains its footing—and sees that progress is still possible, even in chaos. - Alla Adam, Adam Impact Institute
11. Make Decisive, Value-Aligned Choices
The root of the word 'crisis' in Latin means 'to decide.' When leaders are faced with a crisis, they are being asked to make the next right decision. This is achieved through a high degree of discernment, decisiveness and judgment. - Brittney Van Matre, Rewild Work Strategies
12. Name The Reality Clearly And Calmly
People can handle bad news, but not confusion. When leaders speak the truth early, they reduce fear, build trust and create the clarity teams need to focus. In crisis, silence or vagueness breeds anxiety. Crystal-clear communication becomes a stabilizing force that helps teams move forward purposefully. - Alex Draper, DX Learning Solutions
13. Get Clear On Cash Flow
First, cut the noise. Second, get brutally clear on cash. In a crisis, leaders often scramble to fix perception or protect reputation. What is needed is survival. Immediately map cash flow for the next 90 days. Get to the crux of who is impacted. Know what you must fund, what you can pause and what's bleeding you dry. Clarity beats panic. Without financial oxygen, little else matters. - Arthi Rabikrisson, Prerna Advisory
14. Centralize And Align All Communication
One practical step leaders should take in a crisis is to immediately centralize communication—one voice, one message and one truth across all channels. This aligns teams, reassures stakeholders and prevents misinformation from spiraling out of control. In a crisis, clarity and consistency aren't optional—they're your first line of defense against chaos and reputational damage. - Stephan Lendi, Newbury Media & Communications GmbH
15. Promptly Commit To Resolving The Issue
A crisis brings a lot of anxiety, so it is important that leaders communicate promptly. Here's what leaders can share: what they know about the crisis, what they do not yet know and their commitment to resolving the issue. Clear, timely communication builds trust, calms uncertainty and reinforces leadership credibility—even in the midst of chaos. - Sandra Balogun, The CPA Leader