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planning an important part of their crisis leadership plan. We will examine useful

tools of planning in leading solutions to crises in Chapter 10 of The Crisis Leadership
Playbook. 138

Lead, Follow, or Get out of the Way

Another possible key lesson is captured in the phrase: “Lead, follow, or get out of
the way.” This was essentially the implicit mantra at Chrysler under Iacocca. When

people resist a leader’s initiatives, they can imperil their success. This failure to “get
out of the way” really refers what is termed “resistance to change.”

Leaders like Iacocca, Golub, and Eisner somehow managed to get people to ‘buy
into” their visons. Ferris at UAL and Telling at Sears, failed to achieve this.

Be Willing to Cut Your Losses

Sometimes the way to resolve a crisis is to “take the hit” and “cut your losses by
“amputating” the reason for the crisis. This is way Frank Lowy did by divesting

Westfield of “Channel Ten” in Australia.

Solutions Require Transformation of Operations, Management and

Management Systems

Solutions to crises tend to require a transformation of operations, management and
management systems. This reengineering process might require several phases

over a number of years as at American Express.

Solutions to crises also tend to require changes in organizational structure.

Sometimes these structural changes this are required to eliminate fiefdoms or silos
which have developed over time. This was done by Iacocca at Chrysler and Goulb at
American Express.

Finally, solutions to crises tend to require changes in performance management and

incentive programs. Typically, changes in performance management require, in

138 See Eric Flamholtz and Yvonne Randle, with a Foreword by Scott Minerd, The Crisis Leadership
Playbook, Vandeplas Publishing LLC, Lake Mary FL. and the ISBN: 978-1-60042-513-4.

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