In times of crisis, leaders are under enormous pressure. On one hand, quick decisions, clear orientation, and stability are needed. On the other hand, it is precisely this leadership style that threatens to damage the corporate culture – with long-term consequences. Personal responsibility dwindles, communication decreases, and frustration increases. This creates a dynamic that puts the corporate culture under pressure. So how leaders avoid a cultural crisis?
What is a corporate crisis anyway?
The term “crisis” is often used in an inflationary way. However, it is important to understand what we are actually talking about. The Gabler Business Dictionary defines a corporate crisis as “unplanned and unwanted, temporary processes that are capable of substantially jeopardizing the continued existence of the company or even making it impossible”.
Financial crisis: e.g. liquidity shortages or high levels of debt
Market crisis: new competitors, technological upheavals, or declining demand
Strategic crisis: when there is a lack of innovation or the business model has become outdated
Reputational crisis: due to scandals, misconduct, or negative public perception
Technology crisis: outdated systems, technological dependencies
The dangerous vortex: How leadership in a crisis often unintentionally destroys culture
The vicious spiral in 9 steps
- Crisis hits organization (e.g. market change, cost explosion)
- Uncertainty spreads
- Managers take over more control – top-down
- Teams adapt, withdraw, innovation decreases
- Less personal responsibility leads to even more control
- Communication becomes sparser, dissatisfaction grows
- Misunderstandings lead to frustration, escalation increases
- Mood drops – resistance replaces agility
- The crisis intensifies – the dynamic starts all over again from step 3
The pattern is well known, but many organizations still fall into it. And it is often recognized too late that it is not the crisis itself that is the biggest problem – but how it is dealt with.
What does an organization really need in a crisis?
The central question is: How does an organization remain capable of acting in a crisis – without losing its culture and creativity? The answer is not in more control, but in better cooperation.
- Courage to make unpopular but right decisions
- Creativity to find new solutions
- Solution orientation so as not to get stuck in problem thinking
- Commitment that goes beyond mere “work according to regulations”
- Corporate co-responsibility, i.e. the willingness to share responsibility
Facilitative leadership: providing orientation without paternalism
What does facilitative leadership mean?
Facilitative leadership means that you don’t provide all the answers – but ask the right questions, offer structures, and guide your team through decision-making and solution processes. You are not the “decider”, but a “designer of the framework”in which your team can make good decisions together. This can be a huge advantage, especially in complex or dynamic situations.
The central elements of facilitative leadership
- Process focus instead of content focus: You don’t have to know everything – but you should keep an eye on the process.
- Ability to design processes: clear procedure, structured meetings, transparency.
- Role awareness: What is your responsibility – and what is not?
- Understanding of dynamics: Who reacts to pressure and how? What happens in groups under stress?
- Moderation techniques: Visualization, active listening, activating groups
- Storyline and transparency: communicate what you are doing – and why. Including “behind the scenes”.
- Resource orientation: focus on what works – instead of only on what is missing
- Psychological safety: create spaces in which questions, criticism, and mistakes are allowed.
