We design, deliver, and evaluate numerous crisis simulation exercises for executive teams each year, rigorously testing leadership strategies under high-pressure scenarios.
Drawing from insights gained across this year’s exercises, including 12 executive-level sessions, we’ve uncovered invaluable lessons on how top leaders navigate uncertainty, make critical decisions, and guide their organizations through crises.
1. Top Leaders Plan and Act Like Generals
The CEOs we observed consistently demonstrated calmness, focus, decisiveness, and articulate communication under pressure. For example, during one exercise, the CEO of a publicly traded company received a briefing from their executive team and responded with military-style precision. They outlined a clear strategic response, emphasized daily progress reviews, and presented a comprehensive plan. This level of vision and clarity is a critical skill, though not all leaders naturally possess it. Interestingly, we identified a gap in some teams—namely, the absence of a formal executive crisis coordinator. Addressing this need would greatly enhance team effectiveness.
2. Emotional Intelligence: The Leadership Listening Edge
As business journalist, author and consultant Peter Nulty once said, “Of all the skills of leadership, listening is the most valuable—and one of the least understood.” The ability to listen, synthesize complex information, and make decisive calls is a hallmark of successful leaders. While most CEOs we worked with displayed this skill, many had limited practice applying it in crisis scenarios. Nevertheless, after hearing input from their executive teams, these leaders asked the right questions, recommended actionable steps, and articulated effective strategic responses.
3. Trust, But Verify
In one scenario, a CEO chose to simulate being unavailable, leaving their team to handle a simulated crisis independently. Despite being less experienced, the team navigated the situation effectively. Upon returning, the CEO shared insights from their experience managing a major cyber crisis. He demonstrated the importance of leaders trusting their teams while ensuring that decision-making processes are supported by layered resilience and expertise.
Related: Do You Have These Three Crisis Leadership Traits?
4. Critical Thinking: The Power of Thinking Beyond the Strategy
Most crisis leadership teams are capable of following a predefined crisis management strategy. However, authentic leadership emerges when leaders are required to adapt and think beyond the plan. In these instances, the CEO—and often their second-in-command, such as the COO or CFO—stepped up to make a significant difference. Their ability to draw on past experiences and apply out-of-the-box thinking often determined whether the response was mediocre or genuinely advantageous.
5. Transparent Communication Inside the Four Walls
Many organizations struggle in the early hours of a crisis to effectively communicate with key stakeholder groups. Striking the balance between delivering timely, accurate information and avoiding premature or incorrect messaging is critical. Often overlooked during a crisis, employees are a company’s most vital stakeholder group. In several exercises, we observed CEOs emphasizing the importance of equipping employees with accurate information. One CEO pointed out that the workforce often serves as the front line in communicating with customers, vendors, and other stakeholders during a crisis. Tailoring these internal messages to specific employee groups, depending on the crisis, is essential for effective communication.
6. Accountability from the Top
During one exercise, a CEO demonstrated a refreshing level of accountability, stating unequivocally that if a particular event occurred—in this case, a product recall—they would own the situation and maintain transparency from the outset. Businesses often delay this proactive approach, taking days or even weeks to embrace transparency as the best path forward. The CEO’s stance reinforced the importance of leadership accountability during a crisis.
7. Problem Solvers and Strategic Thinkers
CEOs rely on influential leaders within their executive teams to cut through the noise and fog that accompany crises. The team is responsible for presenting the CEO with a clear, concise briefing, focusing only on critical strategic issues requiring input or decisions. In one exercise, a CEO purposely arrived an hour into the simulation and was given an overview of the situation, along with key facts. They responded with three simple yet impactful questions:
– What are our top three priorities, and are we aligned?
– What’s our communications strategy, and are we addressing all critical stakeholders?
– How might this situation escalate, and what are we not seeing?
This clarity and focus were instrumental in guiding the response.
8. “Never Let a Good Crisis Go to Waste” – Sir Winston Churchill
Many CEOs we worked with were eager to learn how other businesses in their industries responded to crises. This approach highlights the value of benchmarking and peer learning, even during challenging times. However, not all CEOs are comfortable sharing their own crisis experiences in forums or peer groups, often due to fears of reputational damage—for example, admitting a cyberattack occurred under their watch. Encouraging a culture of shared lessons can help organizations collectively strengthen their resilience.
9. A Depth of Empathy Beyond the Norm
Two CEOs stood out in their ability to deeply empathize with their employees. Having started their careers in junior roles within their organizations, their firsthand experience with various roles gave them a unique perspective, enabling them to connect with employees on a personal level. This was particularly evident during physically traumatic simulated scenarios, where their understanding and empathy helped guide the team through challenging moments.
10. Getting Back to Basics
In one exercise, a CEO recounted a cyber crisis they had experienced at a previous organization, where the loss of all systems—including communication tools—crippled the response. They posed a critical question to their current team: “How would we communicate if this happened to us?” While the initial answers included texting or calling, the CEO emphasized that this approach lacked strategy and effectiveness. They shared an example from their prior company, which relied on a Quick Reference Guide (QRF) in paper form, stored in multiple locations and carried by key personnel. This guide provided clear direction for the initial hours of a crisis, ensuring coordination even when technology was unavailable.
11. Gratitude Beyond Thanksgiving
Over the past 19 years of conducting crisis exercises, we’ve observed that most CEOs genuinely appreciate their teams’ efforts in preparing for “bad days.” Many express gratitude for the opportunity to safeguard lives and protect organizational assets through these simulations. Gratitude, demonstrated consistently by leaders, sets an example for others to follow. It’s a reminder that being thankful isn’t just for special occasions—it’s a leadership trait that inspires and motivates teams.
12. What’s Your Number 12?
Now it’s your turn! Share your own experiences with your current or past CEOs. What leadership lessons or strategies have stood out to you in times of crisis? Leave your insights in the comments.
Summary
This blog highlights 12 key lessons in crisis leadership drawn from PreparedEx’s executive-level crisis simulation exercises. From strategic vision and emotional intelligence to transparent communication and accountability, it explores how CEOs guide their organizations through challenging scenarios. Empathy, adaptability, and preparedness are emphasized as essential traits, alongside the importance of learning from others and showing gratitude. Ultimately, these insights showcase CEOs’ pivotal role in fostering resilience during crises.