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As seen in Inc.
Learn to handle business turbulence like a top CEO with the A-C-E method.
Recently, I was on an airplane when it started to dive. As I was contemplating my imminent demise, the pilot came on and said, “Don’t panic. We’re experiencing some major turbulence.” As I gripped my armrests, I thought a little warning would have been nice.
On the return flight home, my plane hit turbulence again, but this time the experience was much different. Before we even felt the first bump, the pilot came on and said, “We’re going to be flying through a rough patch here. Buckle up and the turbulence will be over before you know it.”
I immediately relaxed. After the flight, I told the pilot how impressed I was with how he handled the situation. He explained that several tours of duty had taught him to calmly prepare for anything–a lesson we could all use.
While turbulence is a word mainly associated with air travel, businesses experience turbulence all the time. In times of crisis and volatility, experienced CEOs should employ the A-C-E method: Anticipate, Communicate, and Execute.
Anticipate
Turbulence is inevitable. Therefore, you should anticipate turbulence on a regular basis. Lack of anticipation was one of the things that made the financial crisis of 2009 so disastrous. Think of how you would have fared if you had an investment plan ready for a market fallout.
Always anticipate disaster. Buildings have evacuation plans, governments have leadership succession charts, and frugal earners have backup savings, so your business should have a plan for turbulence in your industry.
Communicate
When crisis strikes, clear and calm communication from leadership is essential. Whether you’re the pilot of a plane or the CEO of a Fortune 500 company, you must communicate quickly. Think of Starbucks Chief Executive Howard Schultz who emailed 190,000 employees after the Asian markets fell in 2015, wiping out a trillion dollars in value, to assure them Starbucks would be fine.
Good leaders offer encouragement and assurance when there’s a crisis. They explain a plan of action is in place. This is exactly what Schultz did, as well as what many other companies do when there’s a crisis, whether it’s a drop in the market, a product recall, or a natural disaster.
Execute
Execute your prepared plan quickly. Talk all you want, but unless you make tangible moves to handle a turbulent situation, your anticipation and communication will count for nothing. Even with ample warning, U.S. federal authorities failed to act quickly in response to Hurricane Katrina. Their failure to do so resulted in the tragedy we saw unfold on TV.
Finding ways to implement these three steps does not require any drastic preparatory measures. Equipping someone with the skills to Anticipate, Communicate, and Execute can be as simple as holding a fire drill. But those small efforts can prove essential when a fire comes–or a business crisis.
About the Author Ken Sterling