Individual Deliverable #2 - Crisis Leadership Report

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Individual Deliverable #2: Crisis Leadership Report 12/5/2023 xxx BMGT 365 7380 Organizational Leadership Dr. Irwin, Professor

To: Alexandra Marvel, President and CEO of Life Science Nutraceuticals, Inc. From: xxx Date: December 5, 2023 Subject: Crisis Leadership Report Introduction An unanticipated crisis can easily overwhelm contingency mitigation techniques and risk management programs, such as business continuity, disaster recovery, health and safety plans or emergency response. (Deloitte, 2023-a, para. 3). It is important for leaders to adapt strong moral and ethical behaviors to ensure LSN effectively overcomes the recent echinacea crisis. I. Identify and discuss the primary leadership style of Michael Brown in his handling of this crisis. During the echinacea crisis, Michael Brown displayed an autocratic leadership style. Autocratic leadership a leadership style that involves absolute control over a group and is characterized by an individual’s authoritarian control with little input from team members (Malos, n.d., “4. Situational Theories,” para. 1.). Brown displayed autocratic leadership through his sole decision to terminate Henrietta Higgins without consulting LSN executives. While this leadership style may prove beneficial in some situations, the echinacea crisis is one situation where it can be problematic. II. Discuss an alternative leadership style that could have been used by Michael Brown that could have been better suited than the one he used. During the echinacea crisis, Michael Brown could have acted using a democratic leadership style. Democratic leadership style has been described as the most effective leadership style in which allows members of the group to take a more participative role in the decision-making process, encouraging team members to share their ideas and opinions (Malos, n.d., “4. Situational Theories,” para. 5.). This type of leadership style would allow Brown to develop and utilize charismatic, servant, and authentic leadership skills. These contemporary approaches to leadership is believed to be related to employee attitudes and a healthy work environment (UMGC, n.d., para. 1). Through a democratic leadership approach, LSN leaders can communicate effectively and efficiently, contribute their thoughts, develop a plan, and vote on the best course of action. III. What leadership competencies did Michael Brown present in the recent echinacea crisis? As the VP of Headquarter Operations, Michael Brown must demonstrate a variety of leadership competencies. Upon learning of the illness of many customers, Brown immediately contacted the

legal department, effectively displaying his decision-making abilities. Additionally, Brown demonstrated his ability to manage politics and influence others (SHRM, 2008, “Essential Leadership Competencies,” fig. 1). However, during the echinacea crisis, Brown fell short in his ability to display some of the most critical of leadership competencies. IV. Identify the leadership competencies beneficial for a crisis-ready culture. The Vice President of Operations is required to report to the President and CEO of LSN; therefore, they must demonstrate professional confidence and effective communication skills. To effectively navigate through a crisis, a leader must possess leadership competencies such as accountability, adaptability, self-awareness, and the ability to exhibit leadership stature with effective communication skills. The best leaders take full responsibility for their team’s performance, whether the outcome is good or bad and make a point of serving as a role model (Indeed, 2023, “Top 10 Leadership Traits,” para. 1). Additionally, adapting a flexible approach to a crisis will allow LSN leaders to pivot as necessary. As adaptability is developed, a leader may also develop related leadership characteristics, such as resourcefulness and problem-solving abilities (Indeed, 2023, “Top 10 Leadership Traits,” para. 2). Effective communication is perhaps the most important leadership competency an individual can hone. The ability to use a variety of communication styles to generate effective two-way communication builds trust, prevents performance problems, and gives leaders the ability to articulate goals and objectives to pave the way for healthy working relationships (The Ken Blanchard Company, n.d., “Question 2: Communicating/listening,” p.3, para. 1). By possessing these leadership competencies, LSN executives will ensure its leaders are capable of leading in uncertain situations. V. Identify the role that EQ played in the Echinacea crisis. Emotional intelligence (EI or EQ for ‘emotional quotient”) is how we perceive, evaluate, express, and control emotions. The ability to express and control emotions to communicate with and relate to others effectively and constructively is just as important as a leader’s ability to understand, interpret, and respond to the emotions of others (Cherry, 2023, para. 1). The echinacea crisis revealed a severe lack of EQ. Not only did Michael Brown fail to evaluate and communicate with LSN executives prior to Henrietta Higgins termination, he demonstrated his inability to manage emotions in a difficult situation. Brown would have been able to demonstrate exceptional EQ skills if he were able to think before terminating Higgins as well as displayed a high level of self-awareness and empathy. VI. Identify the role of EQ for a crisis-ready culture. Often striking without warning, crises can emerge in many different forms, therefore it is vital that LSN has a formulated contingency emergency plan that includes one crucial factor: emotional intelligence (Goleman, 2023, para.1). Emotional intelligence in a crisis-ready culture can help manage conflicts, foster teamwork, and ensure business operations continue to run smoothly. The four domains of emotional intelligence include self-awareness, self-management, social awareness, and relationship management, each of which can help a leader face any crisis

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with lower levels of stress, less emotional reactivity and fewer unintended consequences. (Goleman, 2023, para. 2). Additionally, EQ will ensure LSN leaders maintain a high awareness of personal strengths and limitations, a strong sense of curiosity, and feelings of empathy and sensitivity to the feelings of other people. The ability to express and control emotions is essential and those who understand and can demonstrate strong emotional intelligence are able to consider the perspectives, experiences, and emotions of other people and use this information to effectively handle any unexpected crisis (Cherry, 2023, “Impact of Emotional Intelligence,” para. 6). VII. Did either Michael Brown or Alexandria Marvel use Authentic Leadership in the Echinacea crisis? The central component of authentic leadership is genuineness; even though every authentic leader is different, there are several markers that these leaders tend to share ( Robinson & O’Dea, 2014, “The Key Behaviors of an Authentic Leader,” p. 2, para. 1). These markers include demonstrating behaviors that enable trust, taking ownership of mistake and/or sharing the responsibility of any mistakes, and showing courage. Neither, Michael Brown nor Alexandria Marvel demonstrated competencies of authentic leadership in the echinacea crisis. The best leaders take full responsibility for their team’s performance, whether the outcome is good or bad and make a point of serving as a role model (Indeed, 2023, “Top 10 Leadership Traits,” para. 1). In this crisis, Brown did not take any responsibility when a member of his team did not follow the proper channels and unilaterally made the decision to change suppliers. Alexandria Marvel failed to show empathy for Henrietta Higgins in her recent termination, as well as failed to communicate her dissatisfaction with LSN executives in a professional manner. VIII. What role should Authentic Leadership play in a crisis-ready culture? In a crisis-ready culture, authentic leadership plays a crucial part as it fosters an environment of adaptability, speed, transparency, and integrity. As complexity increases around technical, economic, financial, and social issues in the world and when ethical, moral, and consciousness testing dilemmas are added, it becomes more crucial to foster authentic leadership competencies ( Robinson & O’Dea, 2014, “Conclusion,”, para. 1). Through the strive and commitment to be authentic, LSN executives will ensure company stability with an array of perspectives, values, and principles to crisis situations. In the event of a crisis, a solid foundation based on authentic leadership will lessen the recovery time and allow the company to maintain competitive advantage. IX. Thinking about Michael Brown's actions in handling the crisis and Henrietta Higgins's actions leading to the crisis and the fact that Alexandria Marvel was excluded from the decision-making process about handling the crisis, what conclusions can you draw about LSN’s current culture played in the echinacea crisis? Life Science Nutraceuticals, Inc. fosters a culture of health and well-being with a focus on four core values: customer-centricity, innovation, knowledge, and sustainability. LSN

promotes collaboration and decision-making throughout the company, however, it is not fully evident as to the role the company’s culture played in the recent echinacea crisis. Neither, Michael Brown nor Henrietta Higgins sought the opinion and/or guidance from other team leaders or LSN executives prior to their decisions. Brown failed to communicate with Alexandra Marvel on his decision to terminate Higgins or his decision to halt all sales of echinacea for the foreseeable future. Higgins failed to uphold one of the core values of LSN, customer-centricity. By attempting to save the company over 20% on the wholesale price and unilaterally deciding to switch suppliers, Higgins put the health and safety of LSN’s customers at risk, demonstrating unethical behavior. Considering the actions of both Brown and Higgins, its is evident that LSN needs to reevaluate its protocol and procedures, requiring multiple executives’ involvement in the decision-making process to ensure moral and ethical behavior is consistently displayed. X. Describe the relationship of strategy, culture, and structure for a crisis-ready culture. In a crisis-ready culture, the company’s strategy, culture, and structure are important components. Leaders not only set the strategy, they also play an instrumental role in connecting with the hearts and minds of their workforces, reinforcing the values and habits through their own behavior and actions, and ultimately shaping their organization’s culture (Deloitte, 2023-a, “Leaders shape the culture,” para. 1). LSN’s four core values are valuable practices in ensuring a stable and crisis-ready culture. By enforcing the core values, LSN will distinguish themselves from industry competitors and ensuring each employee is aligned with these values, will safeguard the company from unethical behaviors and faulty decision-making practices. A leader that does not align with, act on or uphold the organization’s values can encounter tensions that impact the company’s ability to drive results (Deloitte, 2023-a, “The cost of poor leadership,” para. 1). Additionally, poor leadership and if the company’s strategy, culture, and structure do not properly align with a crisis-ready culture, LSN’s image and operations could be negatively impacted by allowing toxicity to penetrate its infrastructure. XI. Give three specific and actionable recommendations that could be implemented to develop a crisis-ready culture for LSN. (Each recommendation should be supported by course materials). Crises by their very nature draw the attention of everyone around it and a leader’s reaction to a crisis’s situation, speaks much about the organization’s values, norms and culture (Madu, n.d., “How leaders react to critical incidents and organizational crises,” p.5, para. 1). Three (3) actionable recommendation that could be implemented to develop a crisis-ready culture for LSN are: continuously frame the crisis, use your teammates, and drive toward actionable intelligence. The first recommendation to help develop a crisis-ready culture is to continuously frame the crisis. It is vital to maintain flexibility, analyze the crisis, and welcome new information as it presents itself. One of the most important things for any crisis leader is to identify what the crisis is and to look at that identification often to identify and changes in the events; what may have been considered unimportant yesterday, can become extremely important tomorrow (Deloitte,

2023-b, “Continuously frame the crisis,” para. 1). In today’s digital world and age of social media, continually monitoring the crisis and having the process in place, is vital in effective crisis management. The second recommendation, use your teammates, requires each LSN employee to seek the opinion and/or guidance of LSN executives to ensure compliance with the company’s core values and maintain ethical behaviors. Through communication and one’s ability to rely upon the wisdom of senior executives, LSN will send the message of the importance of collaboration, trust, and strategic leadership. When a crisis erupts, the actions and attitudes of a company’s executives in the first 24 to 48 hours sets the tone for the organization’s response, including but not limited to clear communication and collaboration ( George, 2018, The greatest test of leadership,” para. 1). Frequent communication reduces fear and uncertainty. The third and final recommendation to help develop a crisis-ready culture is to drive toward actionable intelligence. Amid a crisis, it is important to cast a wide net, as leadership must often navigate a wide range of sources, confusing data, and intelligence (Deloitte, 2023-b, “Drive toward actionable intelligence,” para. 1). One of the most important steps in a crisis-ready culture is the ability to move quickly and accurately through each step of the process – from preparation to response to recovery (Deloitte, 2023-b, “Drive toward actionable intelligence,” para. 3). During a crisis, it is vital to ensure the point and purpose of internal and external information is actionable. Actionable intelligence can lead to better decision-making and allows LSN executives to make timely decisions that can improve its performance and outcome during the crisis.

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XII. Reference Page Deloitte. (2023-a). Crisis Leadership: Five Principles for Managing the Unexpected. The Wall Street Journal. https://deloitte.wsj.com/riskandcompliance/crisis-leadership-five- principles-for-managing-the-unexpected-1436155352 Deloitte. (2023-b). The Culture or the Leader: An organizational view of the chicken or the egg question. https://www2.deloitte.com/us/en/pages/human-capital/articles/the-culture-or- the-leader.html Cherry, K. (2023, May 2). Emotional Intelligence: How We Perceive, Evaluate, Express, and Control Emotions. Very Well Mind. https://www.verywellmind.com/what-is-emotional- intelligence-2795423 George, B. (2018, April 24). Op-Ed: What Mark Zuckerberg Can Learn About Crisis Leadership From Starbucks. Harvard Business School – Working Knowledge. https://hbswk.hbs.edu/item/op-ed-what-mark-zuckerberg-can-learn-about-crisis- leadership-from-starbucks Goleman, D. (2023). 4 Leadership Skills for Crisis Management. Korn Ferry. https://www.kornferry.com/insights/this-week-in-leadership/leadership-skills-for-crisis- management Indeed (2023, June 30). Leadership traits: 10 top qualities of effective leaders. https://www.indeed.com/career-advice/career-development/top-leadership-traits Madu, B. (n.d.). Organization culture as driver of competitive advantage. Journal of Academic and Business Ethics. http://www.aabri.com/manuscripts/11791.pdf

Malos, R. (n.d.). The Most Important Leadership Theories . Document posted in UMGC BMGT 365 7380 online classroom, archived at https://learn.umgc.edu/content/enforced/347722- 001034-01-2192-OL1-6381/The%20Most%20Important%20Leadership%20Theories.pdf Robinson, S. & O’Dea, V. (2014). Authentic Leadership – To thine own self be true . The Insights Group, Ltd. https://www.insights.com/media/1107/authentic-leadership.pdf SHRM (2008, March 1). Leadership competencies . https://www.shrm.org/ResourcesAndTools/hr-topics/behavioral-competencies/leadership- and-navigation/Pages/leadershipcompetencies.aspx The Ken Blanchard Companies (n.d.). Critical Leadership Skills Key Traits That Can Make or Break Today’s Leaders. Document posted in UMGC BMGT 365 7380 online classroom, archived at https://leocontent.umgc.edu/content/scor/uncurated/tlp/2211-tlp610/learning- resourcelist/what-s-new-contemporaryapproachestoleadershipstyle.html UMGC (n.d.). Week 6: Developing Your Leadership Skills . Document posted in UMGC BMGT 365 7380 online classroom, archived at https://leocontent.umgc.edu/content/scor/uncurated/2211-tlp610/learning-resourcelist/ developing-your-leadershipskills.html

Individual Deliverable #2 - Crisis Leadership Report

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