LEADERSHIP UNDER PRESSURE
HOW PERSONAL BIASES IMPACT PERFORMANCE
WHEN THE STAKES ARE HIGHEST
Many years of experience working with organisations managing major incidents and crises has taught us that incisive, clear-headed leadership when pressure is at its greatest determines the effectiveness of the response.
Responding to a major threat is the ultimate test for senior leadership. A crisis brings irregular, uncertain, often contrary information and a seemingly infinite thirst for comment. The consequences of every decision could affect thousands of colleagues and customers. Do you go on the front foot with what you believe at that moment or wait? Do you try to take personal control or does that make you hostage to events outside your control?
Perhaps unsurprisingly, intense pressure all too often surfaces deep-seated personal biases that can cloud the judgement of the most experienced senior leaders when need greatest clarity of thought; biases which generate behaviours that upend finely tuned crisis plans and allow gut feeling to drive decision-making just when clear thinking matters most.
Getting under the surface of risk
Taking input from 74 senior leaders of major corporations, we set out to answer some fundamental questions: Can we predict which biases a leader will bring to a crisis? What determines the effectiveness of their decision-making? What role does corporate culture in shaping crisis bias?
Before showing participants a crisis scenario, we asked them to choose which sentiment best characterised their likely crisis response.
Many leaders began by gravitating towards statements that projected competence and confidence in their own ability to resolve any challenge, but all then demonstrated one of the 11 core biases that our research* identified.
the Biases
The largest group (21%) of leaders demonstrated ‘Hero’ bias, placing themselves central to resolving the issue, supported by view that a leader should be dynamic, strong at problem-solving and has dealt with similar situations in the past.
Participants then divided into five similarly sized biases:
Just a handful of senior leaders exhibited the remaining biases, which arguably demonstrate the most extreme forms of denial response. However, there were interesting differences even in these smaller groups, underpinned by the cultural perceptions of participants.
LEADERSHIP CULTURE: ME AND THEM
Insight into corporate culture is essential to understanding the context in which senior leaders approach, process and deal with crises.
Our research also revealed substantial gaps between the leaders’ self-perception and organisational culture. From the cohort, 25% described their organisation’s leadership culture as ‘dysfunctional,’ with just 21% believing it to be ‘collaborative.’ This raises questions about which version of the truth is on display in hostile media interviews – a leader’s own view or the company’s agreed position?
In an economic environment that requires innovation and ambition, few senior leaders associated their corporate culture with these descriptors. Only 3% agreed their culture was innovative, rising to 17% for ambitious. Confidence and optimism were in short supply, 21% and 19% respectively described their operating environment in these terms. And, despite underlying perceptions of working in a principled leadership team, only 25% described their workplace culture as authentic.
BIAS DIFFERENCES: THE ROLE OF CORPORATE CULTURE IS CLEAR
While sizing the biases demonstrated by senior leaders is useful, understanding differences in who exhibits which and the role of corporate culture drives real insight.
Correlation analysis showed that those who identify as ‘The Hero’ more likely come from cultures that may allow these kinds of leaders to operate with a greater degree of confidence and optimism about organisational capability to resolve crises i.e. those not described as ‘dysfunctional’ or ‘untrustworthy.’
Similarly, those who demonstrate ‘We’ve Got This’ this are significantly more likely to view their leadership culture as transparent versus those who demonstrate other biases. This positive perception may give them self-belief that a crisis is manageable.
Exploring what drives the more negative biases is equally insightful. Leaders exhibiting
‘Disaster’ bias are significantly more likely to be under 50 and from corporate cultures pre-disposed to being hesitant, unambitious and cautious.
The small number who were more dismissive of the impact of a crisis (‘Storm in a Teacup’ or ‘Lawful’) over-index on ‘confident’, ‘resilient’ and ‘collaborative’ cultural environments. This context may allow them to have greater self-belief in their ability to robustly defend their organisations from the potential impacts of a crisis.
CONCLUSION
The research highlights that, while organisations may prepare and test detailed plans to handle major incidents, the subconscious biases of leaders under pressure will determine how they play out in practice.
The behaviours that personal biases generate in a crisis, influenced and often exaggerated by corporate culture, have the potential to derail the most thorough and rehearsed plans and expose organisations to significant risk.
Leaders undoubtedly need resolve and courage to navigate through a crisis. They are also human, with personal responses to pressure shaped by life experience. Only through building self-awareness and helping them to recognise and manage their own instinctive pressure reactions is crisis preparedness truly set up for success.
This work led to the conception and development of our Elite Performance Programme which builds a highly personal pressure profile for each delegate as well as strategies to help leaders perform at their best in the toughest environments and scenarios.
*Research methodology
Research carried out with Repute Associates. Seventy-four senior leaders of major UK-based organisations completed a survey that deliberately required a significant time commitment. Following profiling and self-assessment questions, each viewed the same detailed crisis scenario focussed on a data breach of highly personal information, including that of high-profile people.
They were then asked to choose between opposing statements, ‘trading off’ groups, each time identifying which best described their attitude to the scenario, and which was least relevant. This iterative process identified which of the 11 bias typologies each participant exhibited most strongly, without revealing the nature of the bias or its definition. Using statistical techniques, such as MaxDiff and correlation analysis, we defined the size of each bias typology and what made the people in each different.