Abstract of The Making of a C.R.I.S.I.S. Leader (2025)

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Introduction

In recent years, the world has witnessed a plethora of fundamental crises and challenges, including, but not limited to, the COVID-19 pandemic, transformative megatrends including disruptive technological innovations such as gen AI, Russia’s war of aggression against Ukraine, which has undermined core principles of international law, and the genocidal campaign by Israel in Gaza; climate change impacts leading to extreme weather events, and a growing economic strain due to rising inflation and interest rates; all of which are contributing to significant humanitarian needs worldwide.

As the world becomes more complex and connected, the threat of a corporate crisis grows. There are instances everywhere: We have experienced firsthand how a pandemic when spread worldwide, caused massive global business disruption and a public health disaster; a corruption scandal causes a corporate leader to step down; the sudden death of a CEO without succession planning in place causes instability; a data breach shakes customer confidence; and quality issues trigger a widespread product recall. These are just a few examples among many of the recent corporate crises.

These crises and challenges can be characterized as both “permacrisis” (a prolonged state of crisis) and “policrisis” (a confluence of multiple interconnected crises) which are all taking place within the context of global instability, fragmentation, and polarisation, with war as a means of politics returning and ‘my country first’ becoming a strong political feature in many parts of the world, despite the need to tackle the common global challenges we face (Bawany 2025).

“Permacrisis” is a term that perfectly embodies the dizzying sense of lurching from one unprecedented event to another as we wonder bleakly what new horrors might be around the corner. When present and future risks interact with each other, the result is the formation of a “Polycrisis” which can be viewed as a cluster of related global risks with compounding effects such that the overall impact exceeds the sum of each part.

In the face of these unprecedented challenges, effective leadership plays a critical role in navigating complex and challenging environments as these situations demand a nuanced and adaptable approach to leadership that emphasizes resilience, strategic thinking, and collaborative problem-solving which forms part of the Paragon7 “cognitive readiness” suite of competencies.

A crisis can be defined as a time of intense difficulty, trouble, or danger. It can be caused by a range of factors, from natural disasters to financial downturns, and can impact individuals, organizations, and even entire countries. The COVID-19 pandemic is a prime example of a crisis that has affected the world on an unprecedented scale (Bawany 2025).

Today’s businesses face unprecedented challenges operating in a VUCAD (volatile, uncertain, complex, ambiguous, and disruptive) global environment that demands a more cohesive support structure for leaders who may be faced with crises of increasing magnitude and frequency and, in some instances, multiple crisis events simultaneously.

The right leadership is critical for organizations to successfully resolve insurmountable challenges in any crisis event. The book aims to help leaders at all levels to learn, unlearn and relearn effective crisis leadership.

Among the key ideas presented in the book include:

  1. Leadership lessons from past decades on how leaders respond successfully to crises.
  2. The future mega-disruptive forces will lead to crises that may potentially impact organizations’ supply chains and business sustainability plans.
  3. The best practice “C.R.I.S.I.S.” Leadership Model outlines the critical skills and competencies that leaders demonstrate effectively during times of crisis.
  4. Navigating successfully the challenges posed by crises by adopting best practice frameworks, tools, and models such as the 5-Step Crisis Management Planning & Strategy, Paragon7 Cognitive Readiness Suite of Competencies, The Results-Based Leadership (RBL) Framework and A.D.A.M.™ Coaching Methodology.
  5. The Board’s Role in Navigating through Organizational Crises.

Leadership Lessons From the Frontlines on Past Crises

The level of disruption that leaders are facing in recent years is unprecedented. The complexity and scale of the disruptive challenges they are navigating have left many leaders feeling overwhelmed. However, published research by the Disruptive Leadership Institute (DLI) involving 529 C-suite leaders (CEOs and direct reports to CEOs) has unveiled that not all leaders are struggling. Some do thrive in times of crisis and chaos in past events such as the September 11 attacks, the Asian Financial Crisis, the Dotcom Bubble, the Global Financial Crisis (GFC) and of course the COVID-19 Pandemic (See Figure 1).

These leaders who are thriving are not doing so by chance. They are proactively demonstrating specific leadership practices and skills resulting in success for their respective teams and organizations, which are discussed in the book.

Figure 1: Selected Past Crises with Significant Impact on Businesses

Mega Future Disruptive Events Leading to Potential Global Crises

Disruption has significantly impacted the way the world works, as many of us have experienced today and in recent years. Apart from businesses, government, and individuals are also responding to shifts that would have seemed unimaginable even a few years ago.

The current wave of disruption, including the recent coronavirus (COVID-19) pandemic, the known forces of Industry 4.0 (such as artificial intelligence (AI) and robotics), globalization, geopolitical tensions, and demographic change, are reinventing the workforce.

Internet technologies have enabled drones and driverless cars, which are transforming supply chains, logistics, health care, and even defense and security, such as the war against terrorism. Organizations face challenges that present varying levels of severity. But handled poorly, even a seemingly minor shock has the potential to escalate into a crisis that threatens the viability of a business. A crisis and disruptive events can disrupt operations, damage reputations, destroy shareholder value, and trigger other threats.

Geopolitical tensions, supply chain bottlenecks, technological innovations, climate change, future pandemics such as the Avian or Bird Flu and economic headwinds such as soaring inflation, rising interest rates, decelerating economic growth, and currency fluctuations have created a complex, once-in-a-generation, competitive environment with significant variations across geographic areas and sectors (See Figure 2).

Figure 2: Potential Mega Disruptive Events Leading to Global Crises

With the current superpowers increasingly overstretched and distracted, a situation may arise where the nature of power is distributed within geopolitical swing states – to fill the leadership gap by forging new alliances. In particular, actors from the Global South (including Africa, Asia, Latin America and Oceania) and members of the Non-Aligned Movement of a group of 120 countries, may take on a bigger role. A new global power will probably emerge that has the legitimacy to dictate how events unfold. Given the ongoing climate crisis, this new power could be a country or economic bloc that prioritizes climate action, or that has the best economic resources and tools to tackle climate change. Equally, it could be a state that takes the lead on climate mitigation (See Figure 3).

Figure 3: Crises Resulting from Mega Forces Disrupting Global Supply Chain

A rival currency could emerge to challenge the dominance of the US dollar in international trade. For decades, the U.S. dollar has been the international reserve currency. With many countries now seeking an alternative, and BRICS adding new members, the dollar’s heydays could be numbered. However, in the near term, the dollar still dominates global trade. It is on one side of almost 90% of global forex transactions, according to Bank of International Settlements Data.

De-dollarizing would need countless exporters and importers, as well as borrowers, lenders and currency traders across the world, to independently decide to use other currencies. The BRICS nations plan to create a common currency for trade and investment between each other, while countries like China, India, and the United Arab Emirates have started doing transactions in their respective currencies. There is also renewed focus on the potential of Central Bank Digital Currencies to reduce the vulnerability to dollar trade fluctuations. A Central Bank Digital Currency (CBDC) is a digital version of a country’s fiat currency that’s issued by the central bank. CBDCs are a means of payment, unit of account, and store of value, just like paper banknotes. The central bank fixes the value of a CBDC, which is equivalent to the country’s fiat currency.

The Best Practice “C.R.I.S.I.S.” Leadership Model

There is likely no situation where leadership is more important than during a time of crisis. Crises put incredible strains on organizations and call for quick and decisive action. Perhaps because crises are typically conceived as sudden and unexpected events, and because many crises are quickly resolved, leadership research has paid relatively little attention to crisis leadership. For the most part, crises have been viewed from a management perspective, which advocates anticipating and preparing for different crisis scenarios, and the creation of response teams that will be activated in the event of a certain crisis. But it is impossible to anticipate and prepare for all crises. Like any organizational error, crises can be neither predicted with absolute accuracy nor eradicated. Unforeseen, unknowable, and truly novel crises require a distinctive leadership response that often includes being flexible and adaptable, making good decisions quickly, and mustering resources on short notice.

Effective crisis leadership is crucial for the survival of organizations during times of crisis. Clear communication, decisiveness, empathy, adaptability, team-building, maintaining a long-term perspective, accountability, resilience, learning from mistakes, and inspiring hope are all essential qualities of successful crisis managers. Leaders like Jacinda Ardern, Arne Sorensen, Jeff Bezos, Angela Merkel, and Rudolph (Rudy) Giuliani have exemplified these qualities in their respective fields. By studying and applying these principles, current and future leaders can confidently navigate crises and lead their organizations toward brighter days.

When a crisis disrupts the usual order of things, leaders can’t settle for just dealing with what’s in front of them today. They need to immediately begin looking ahead and planning to make sure they’re prepared for what comes next—even if they have no idea what shape it will take.

The “C.R.I.S.I.S.” Leadership Model (see Figure 4) offers a summary of the contemporary research-based leadership practices that are linked with successful crisis response. Each skill, trait, and perspective is a useful tool for leading during a crisis. But they are even more effective when integrated into a single crisis leadership strategy. Further details on the “C.R.I.S.I.S.” Leadership Model can be found at https://www.disruptiveleadership.institute/crisis_model/.

Figure 4: The “C.R.I.S.I.S.” Leadership Model

Leveraging on Paragon7 Cognitive Readiness Suite of Competencies During Crises

The highly effective leaders demonstrate superior disruptive mental agility during times of crisis. They are excellent critical thinkers who are comfortable with complexity, scrutinize problems, and make new connections. The development of disruptive mental agility will include the suite of cognitive readiness and critical thinking skills. These crucial leadership skills will develop, enhance, or sustain a leader’s ability to navigate successfully in this new normal of the VUCAD (volatile, uncertain, complex, ambiguous, and disruptive) business environment and workplace.

The suite of Paragon7 Cognitive Readiness Competencies and Skills (See Figure 5) can be viewed as part of the advanced thinking skills that make leaders ready to confront whatever new and complex problems they might face. Cognitive readiness is the mental preparation that leaders develop so that they, and their teams, are prepared to face the ongoing dynamic, ill-defined, and unpredictable challenges in the VUCAD-driven business environment.

Figure 5: Paragon7 Cognitive Readiness Competencies Framework

The Results-Based Leadership (RBL) Framework

There is currently extensive published research on the direct link between leadership effectiveness and sustained organizational performance. Hence, the development of the crisis leader’s capability should be of primary concern for all organizations operating in a VUCAD-driven environment, since the contribution and motivation of the employees are key to achieving the organizational goals and objectives during times of crises.

Effective leaders must focus on effectively engaging all stakeholders, particularly the employees, in delivering sustainable results for their organization. In the era of the crisis-laden and disruptive-driven workplace and at a time of continued significant transition and challenge, leaders at all levels will have a responsibility to ensure that the organization’s mission and purpose are at the heart of what they do.

The concept of “engagement” can be defined in many ways. Essentially, engagement is a measure of how an organization values its employees and how employees value their organization and recognize that every individual is at liberty to decide whether to do the minimum required of them or to do more. Engagement can also be taken to represent the degree of empowerment to which staff are involved in decision-making and/or the openness and perceived effectiveness of communication. Hence, leaders at all levels have a key role in cultivating a strong culture of engagement. This, in essence, is the foundation of the “Results-Based Leadership” (RBL) Framework (see Figure 6) which has been effectively applied to organizations facing crises.

Figure 6: The “Results-Based Leadership” (RBL) Framework Adapted for Crisis Situations

Developing “C.R.I.S.I.S.” Leaders with “A.D.A.M.™” Coaching Methodology

Effective coaching is a major key to improving business performance. Executive coaching focuses on the qualities of effective leadership and improved business results. It is comprised of a series of structured, one-on-one interactions between a coach and an executive, aimed at enhancing the executive’s performance in two areas: individual personal performance and individual organizational performance.

Executive coaching offers a beacon of clarity and direction amidst the chaos, equipping leaders with the tools they need to navigate through crises. It can also help leaders develop crisis leadership skills by providing a fresh perspective, emotional support, and strategic guidance. Professional trained and certified executive coaches can help leaders consider alternative approaches to problem-solving and provide a non-judgmental space for leaders to process their thoughts and emotions. The coaches can help leaders develop clear, actionable strategies for navigating a crisis by helping leaders understand how their interactions and behaviors shape their status as leaders. Coaches can also help identify problems and provide guidance on how to move forward.

The AD.A.M.™ coaching methodology (see Figure 7) developed by the Centre for Executive Education (CEE) is a structured approach to executive coaching. This consists of a four-step process that is firmly grounded in leadership development best practices. Further details can be found at https://www.disruptiveleadership.institute/adam_model/.

Figure 7: The “The ADAM Coaching Model Adapted for Crisis Situations

The 5-Step Crisis Management Planning & Strategy

Organizations face challenges that present varying levels of severity. But handled poorly, even a seemingly minor shock has the potential to escalate into a crisis that threatens the viability of a business. A crisis can disrupt operations, damage reputations, destroy shareholder value, and trigger other threats.

The following five steps (See Figure 8), when taken with care and commitment from the board of directors on down, can help ensure the enterprise is well prepared to protect itself when a crisis occurs.

Step 1: Establish a Crisis Management Committee to Evaluate Corporate Governance, Risk Management, and Internal Controls

The Crisis Management Committee will need to have clear ‘Terms of Reference’ which include its goal, the authority of the committee, objectives & outcome measures, in/out of scope, whom to involve, role/responsibilities, frequency of meetings and ways of working, etc.

Organizations must commit to a regular evaluation of their corporate governance, risk management practices and internal controls. When addressed together, these three components provide the pillars for a strong CM program. Through a regular review of these pillars of effective governance, corporations can identify new and emerging risks, assess existing risks, and make the policy and process changes needed to address the behaviors that could lead to significant damage to the enterprise—before they evolve into a crisis.

Step 2: Identify the Most Probable Crises and Assess Their Potential Impact

Several kinds of crises are possible in every organization, including natural disasters, unexpected injury or death of employee or customer, harassment or discrimination, workplace violence, employee malfeasance, cybercrime, white-collar crime, litigation or class action, fraud, mismanagement, and product defects/recalls. Other categories may be unique to the business. An enterprise-wide vulnerability assessment using clearly defined risk indicators will help to uncover the kinds of crises for which the organization needs to plan and prepare. Extra attention should be given to those crises that are deemed either highly likely to occur or to have the highest potential impact on the organization.

Step 3: Create and Train a Crisis Management Team

Arguably the most important step in an effective ERM and crisis response program is having the crisis team in place. Internal and external experts should be identified, and roles and responsibilities delineated. Regular training and crisis exercises are vital to assuring that the team is prepared to execute important response strategies and tasks. Internal expertise should include senior executive management, operations leaders from key areas, and leaders of compliance, internal audit, corporate communications/PR, human resources, legal, sales and marketing, among others.

External expertise may be needed to supplement the internal team and should include established relationships with outside providers of PR and communications, and legal and forensic counsel, among others. By having these key vendors in place well in advance, they can get to know the company and its leaders, facilitating better, faster responses when a crisis is declared.

Step 4: Develop and Implement a Crisis Communication Plan

Effective communication response to a crisis has never been more important than in this highly charged age of instant communication. Organizations no longer have the luxury of waiting days to respond when an issue arises. Crisis communication plans act as blueprints for the company in times of crisis so that they can respond immediately and it is also an important component of a business preparedness program. A business must be able to respond promptly, accurately, and confidently during an emergency in the hours and days that follow.

Effective crisis communication plans include details on not only what to do but how to do it. Policies and processes, chains of command, roles, and responsibilities for communication should be detailed. Best-practice plans contain quick response guides for the most probable crises identified in the vulnerability assessment, including initial strategy and messaging that has been vetted and preapproved by management and legal. It is an emergency plan that includes the following steps of communication and future prevention to help prepare and navigate through unexpected crises.

Step 5: Develop a Crisis Response Plan

The Crisis Management (CM) team needs a written plan to effectively manage the crisis. The plan should address levels of crisis with thresholds for activating the team and implementing the plan. It should identify who will lead the response for each type of crisis. Procedures to assess, investigate, and mitigate the crisis are vital. Operational roles and responsibilities should be detailed, and external support services identified and engaged. As the business community has learned through the COVID-19 pandemic, it’s more important than ever for leaders to anticipate and plan for the possibility of an unplanned event. The more prepared you are to manage shocks, the less likely you’ll fall victim to the serious harm a crisis has the potential to inflict.

The CM plan is often embedded into the Business Continuity (BC) plan or vice versa. This is not a problem unless the execution and responsibilities are delineated in both plans. During a crisis, your organization is expected to execute the CM plan, and during a disaster, the BC plan. The decision-making process for the handling of the crisis or disaster is shouldered by the senior management team. The execution of the necessary crisis response and should there be a denial of access to the “people, process, and technology infrastructure,” the recovery activities under recovery strategies and BC plans will be executed.

Figure 8: The 5-Step Crisis Management Planning & Strategy

The Board’s Role in Navigating through Organizational Crises

A corporate crisis can impact organizational culture, business operations, and reputation, all of which can have significant financial, legal, and regulatory ramifications. Therefore, a CM program should bring together a variety of stakeholders who can understand the potential implications and help plan for and recover from a crisis. The program should be managed by someone with in-depth legal and compliance experience who can manage day-to-day operational and tactical responses. It should also closely align the internal and external communications leaders to make sure the decisions and messaging are clearly and directly articulated to the key audiences.

Boards play a key role in every aspect of crisis management and should be asking the right questions (See Figure 9). A director’s role is to ensure management makes the right decisions to support the long-term success and viability of an organization. Earlier identification of potential crisis events and better crisis response can have real benefits to the organization’s brand and reputation, which in turn can translate to long-term shareholder value. Boards will want to ensure that management is ready to handle a crisis—before, during, and after it occurs—whatever the crisis event might be. They can use their diverse perspectives and experiences to provide guidance and counsel to management when dealing with a crisis.

After a crisis, directors will want to ensure that the organization continues to use lessons learned to improve its crisis planning. A nudge by the board to reflect on recent events and look at the effectiveness of its enterprise risk management program, crisis preparedness plan, and crisis response, will benefit the entire organization. This will help the organization be better prepared when the next crisis occurs. Organizations may be thinking that they have been through a pandemic or another crisis, so they know how to deal with one. However, performing a post-crisis review and focusing on continuous improvement will position the organization to come out ahead in the next crisis.

Figure 9: The Board’s Role in Navigating through Crises

Leadership Lessons from the “CrowdStrike Global Crisis”

On July 19, 2024, a security update issued by a US cybersecurity firm CrowdStrike caused an IT outage, disrupting global business operations and upending air travel, banking transactions, and hospital care. The outage was caused by a bug in CrowdStrike’s quality-control system. The incident brought down an estimated 8.5 million Windows devices around the globe, paralyzing operations at hospitals, airlines, 911 call centers, and more. Insurers estimate the outage cost companies more than $1 billion in revenue, with Fortune 500 companies potentially losing more than $5.4 billion (See Figure 10).

There are several lessons that could be learned from the CrowdStrike crisis. It is essential to emphasize the failures and the beneficial acts during any significant crisis. Even though their worldwide IT outage was a big obstacle, CrowdStrike demonstrated several admirable qualities in its response to the said crisis.

George Kurtz, the CEO of CrowdStrike, publicly acknowledged the problem right away and by utilizing effectively the social media and additional communication routes, he was able to ensure that all relevant parties were kept up to date. Kurtz managed the story and avoided disinformation with his straightforward and understandable communication. Press releases and social media were only two of the many channels that demonstrated CrowdStrike’s dedication to keeping the clients apprised of its efforts in finding a quick solution.

The senior leadership team’s openness and transparency in acknowledging mistakes and taking decisive action to rectify them demonstrate a commitment to ethical leadership and corporate responsibility. They disclosed that the problem was a technical glitch rather than a security compromise that was essential to keeping their clients’ faith.

The crisis management team with rapid response in communicating effectively and clearly with all stakeholders involved. Their effective and prompt action including transparent communications has contributed to the removal of much of the potential uncertainty and distrust among clients and investors. Leadership must ensure transparent and timely communication, both internally and externally. CrowdStrike kept lines of contact open and active with its clients throughout the crisis. Their consistent provision of updates and assistance reassured clients and upheld their trust.

They also lead with empathetic listening by adopting the “People First Over Process and Technology” (“PPT”) mantra. Taking responsibility for failures helps maintain morale and confidence among team members, customers, and partners.

The system administrators were authorized to deploy interim “quick fix” solutions to the crisis while working on resolving the more intricate challenges on hand. While executing the crisis management plan, they were prepared at the same time for unexpected events.

Figure 10: Leadership Lessons from the “CrowdStrike Global Crisis”

Conclusion

We live in a constant era of disruption in which powerful global forces (mega disruptive trends) are changing how we live and work. The new world order is leading to growing challenges to globalization, geopolitical tensions, the rapid spread of new disruptive innovation, shifts in demographic forces, and the challenge of reaching net-zero greenhouse gas emission. These trends offer considerable new opportunities to companies, sectors, countries, and individuals that embrace them successfully. They are bringing forth dynamic and innovative new players on the world stage and could give a much-needed boost to productivity and prosperity in many countries.

Organizations and businesses will have to adopt a proactive stance in tackling the impending crisis challenges that result from these future mega-disruptive forces Rather than wait for governments to fix these issues, leaders at all levels of the organization need to adopt disruptive mental agility and demonstrate individual and organizational resilience to reshape the outcomes of the future. They need to envision a purpose-driven future to reinvent their organization to remain relevant. It is undeniable that the world is being increasingly shaped by climate change, wars, the new world order, and new disruptive innovative technologies.

Organizations face significant challenges during a crisis that can threaten their existence. In these moments, leaders need to be able to make tough decisions quickly and decisively, while also inspiring and motivating their teams. Effective leaders can see the bigger picture, anticipate challenges, and make the necessary adjustments to steer their organizations through the storm.

Note: The book “The Making of a C.R.I.S.I.S. Leader” (2025) will be available in January 2025. To pre-order a copy of the book, please visit here.