Five Questions To Ask Before Assuming Leadership Of An Organization In Crisis

If you're lucky, you arrive in a new leadership role because your successor was wildly successful and decided to retire or move on to another great opportunity. In such cases, your immediate charge is usually straightforward: build upon the organization’s strengths while engaging others in clarifying strategic priorities for the future. But what happens when the circumstances are not so rosy and, instead, you have been hired to clean up a mess?

Whether you take the lead due to recent scandals, destructive prior leadership or operational and financial predicaments, when you step into a new leadership role, the spotlight will be on you and your decision-making. In this article, we'll explore five key questions to ask before you agree to lead an organization currently in crisis.

Why is the organization floundering?

Organizations fail for many reasons. From changing market conditions to leaders who are not skilled at large-scale transformation, organizations can and do falter. Due diligence in the early stage of considering a “clean-up” leadership position is essential to assess the realities with which you will be faced. If the problems are deeply embedded in the organization’s history, and it is abundantly clear that the current board, executive team or rank-and-file employees are resistant to change, then it might be worth reconsidering the offer. After all, not every leadership offer is an “opportunity,” even if it does represent a significant step up for you personally.

How long has the organization been in decline?

In today’s economic and business environment, change and uncertainty should be expected. Still, too much change can signal system problems. Should your initial discovery of an organization reveal that there has been a recent revolving door of senior leaders, a history of organizational rigidity or a culture where past best practices tend to be revered over retooling for the future, proceed with caution.

It isn’t usual for individuals with an appetite for leadership to assume that despite previous leaders’ efforts, they can turn around any sinking ship. Depending on how long an organization has been in decline, you may or may not want to take on the challenge at hand.

How strong is the workplace culture (e.g., is it a low-trust environment)?

It can be challenging to assess an organization's culture as an outsider, but it is essential if you're about to take on a complex leadership role. During the interview process, have frank conversations with diverse stakeholders representing an array of business units and job functions. Be certain to ask about their personal perspectives on organizational culture. Pose questions about the strategic issues they've faced and the approaches they’ve adopted to address them in the past.

When engaging in interviews with potential team members, also steer the conversation to ask about the toughest challenges they have faced and how they maneuvered through them. Pay attention to what they are revealing about the organization’s values, structures, interdepartmental collaborations, financial resources and deeply held beliefs about authority, status and the chain of command.

Finally, use your keen observational skills to pick up on interpersonal dynamics. If you sense fear, unusual caution or reticence to share data in these conversations, you’re likely dealing with a low-trust organizational culture and one where transparency isn’t currently valued by senior leadership. While trust and transparency can be rebuilt, know that it will likely be your first challenge if and when you decide to take on the job.

Are there resources and buy-in to drive change?

Sometimes, change requires an up-front investment. Does the organization have the resources needed to invest in new products, services, programs or talent? If resources are scarce, find out how they are making decisions about resource allocation and the role you’ll ultimately play in making such decisions. Finally, find out how key stakeholder groups have been engaged in resource management in the past. What stakeholder groups are consulted, who is routinely left out—and at what cost?

Am I prepared to fail?

If you assume leadership of an organization or unit that is struggling, success or failure might await you. It is essential to honestly assess your readiness to walk into a situation that is risky and could lead to a short tenure. If the prospect of failure is frightening and you are not prepared for uncertainty, you might want to walk away and look for a better fit. Should your risk-prone personality crave such an opportunity and the potential it presents to have an impact, then build a small community of trusted mentors, friends and even a coach to support you through the journey.

Leading an organization out of crisis can be an incredibly satisfying and career-changing move. The first step is to understand the challenges and risks of taking on such a role.