While keeping their sights on the road ahead, CXOs must address existing barriers and push for growth even in times of turbulence. They also must find a balance between being decisive, compassionate, courageous, and forward-thinking. No matter how complex and devastating a crisis is, it can also be an opportunity for executive leadership to carry the business to a new level of post-crisis performance and therefore, greater success.

It’s Not a Question of if but When.

Crises are inevitable. They may not always be as widespread and pronounced as the COVID-19. A crisis can be born out of anywhere and impact a business at any time. Take the funding crisis faced by many Indian and global startups this year. Indian startups secured $3.8 billion in funding in the first half of 2023, down 36% from a year earlier, according to a PWC report. This year also saw more than a thousand tech companies, including global giants like Amazon and Google, announce mass layoffs. The point I would like to highlight here is that good crisis management begins long before the crisis arises. And, having the right CXOs onboard your ship as it enters stormy seas is one way to prepare for it. The right leadership invests in future-proofing businesses. The right leadership regularly assesses business performance, risks, and stakeholder relationships. The right leadership makes a big difference during uncertain times.

Another related aspect of preparing for crises is succession planning. Many businesses are resistant to a change in leadership in the midst of rising ambiguity. When the business climate seems unpredictable, boards often shy away from bringing onboard new CEOs or CXOs. Familiarity is often unintentionally preferred and proven crisis performance is often overlooked. In difficult times, gaps in the leadership are far more apparent. It is a wake-up call for leading CEOs and boards to put succession plans on the agenda in the middle of a crisis. Attention must be paid to developing executive talent while looking at both internal and external talent pools to identify individuals with the necessary skills and capabilities to fill the existing gaps.

The Right CXO for the Job

While a company’s C-suite is actively addressing near-term challenges faced by their organization, they are also engaged in growth planning. This for me is the significant difference in having the right fit heading a company. Let me elaborate. CEOs and other top leaders don’t wait for a problem to arise before coming up with a solution. They have transparent discussions about potential challenges, assessing possibilities, and attentively planning viable responses. They do this to strengthen their company’s foundations, taking ownership of the entire process and reducing the risk of knee-jerk reactions to challenging times. In the middle of a crisis, conventional business wisdom suggests cost-cutting, keeping one’s head down, focusing on the core business, and simply ‘waiting it out’. However, successful leaders turn adversity into opportunity. They study the changing environment, adapt, and innovate accordingly to meet the evolving needs of the market.

The switch to digital during the pandemic is a great example of this. Many brands across the world altered their product offering to unlock new avenues of success. Businesses with limited local reach expanded their customer base with nationwide home deliveries. Healthcare brands brought accessible teleconsultations, once a rare concept, to the mainstream. It won’t be wrong to say that these businesses had strong, visionary leaders guiding them forward. These are leaders who were able to prioritize, enable bold decision-making, and ensure both a focus on employees and stakeholders.

Not all CXOs are created the same. Of course, the way they react during difficult times can vary significantly. The right CXO excels in building and maintaining trust within and outside the organization. They are equipped with exceptional communication skills and understand the power of clear, honest, and compassionate messaging. They understand that nobody has all the answers and therefore, they don’t monopolize innovation. Instead, they focus on creating an environment that leads to more autonomy, independent decision-making at an individual level, and idea-sharing among the employees.

Final thoughts

As we continue to navigate this era marked by uncertainty, the value of having the right leader on the frontlines becomes clearer. Moments of crisis are a true test of leadership. It is important that businesses and even leaders, look inward and reflect on the CXO's performance during a crisis. Examining what worked and what didn’t can help businesses prioritize the skills they need in their future CXO and shape their executive talent pipeline.