COVID-19 crisis provides lessons for good decision-making for business leaders

Watching the response to the current coronavirus pandemic provides an opportunity for manufacturers and others to see what not to do during a crisis, writes Bill Frahm. Getty Images

We definitely live in unusual times but, as always, there are lessons around us. What I see happening offers us a vivid and useful lesson in information and decision management. This is a strictly objective review. Regardless of your political preferences, you should see what is happening and how a health crisis began to look more like a professional wrestling match than a professionally managed situation. During crises, mistakes are made. It’s easy to judge from afar. However, the greatest mistake we can make is not to learn from the mistakes of the past.

Some of these lessons translate well into your decision-making on the plant floor. With the onset of the industrial internet of things (IIot), it is critical that we all understand the risks and opportunities presented by the increased availability of information. Much as with social media, uninformed sharing can be a destructive force in your manufacturing and fabricating organization.

Seek Out the Truest Information

“Where there is shouting, there is no true knowledge.” That quote, attributed to Leonardo da Vinci, still rings true today.

One of the most destructive events during this crisis is the continuous onslaught of poorly informed, self-serving information. News entertainers and politicians shouting about a serious illness being a hoax, a conspiracy, or “just a cold” serve no purpose to prevent further increases in the infection and deaths. They only serve to distract you from the important task of protecting your families.

One of the most difficult tasks in a decision strategy is preventing and filtering out noise. In information, noise may be subtle or large variations resulting from signal errors, poorly calibrated equipment, input errors, or misinterpretation. Even when you receive indication of a critical error, you must immediately ask if the risk presented is valid. An uninformed response may unnecessarily disrupt operations. The wrong response because of incomplete or wrong information may make a situation worse. A leader must always question information before acting rashly.

Understand the Integrity of Your Information

Doctors are dealing with a virus with as-yet unknown behaviors. New symptoms are showing up in patients. There is still not enough information about how it spreads, nor indications of how the spread will slow down and eventually end. This leads to questions about how to treat patients, how to prevent the virus from spreading, and when we can return to our normal lives without creating a resurgence of the illness. These are the times when leaders must be honest. “We don’t know, we’re still learning” is an acceptable answer. Off-the-cuff, inconsistent answers only serve to confuse and create unnecessary fear and anxiety.

When you deal with operational information, two things are vitally important to good data design and decision-making:

1. Know the source of the data. This includes identifying the equipment and its location. Identify the monitor. Understand the variables being measured.
2. Know who is interpreting the data and the depth of their knowledge. I’ve written before about naive agents defining information without adequate understanding of the operation at hand. Bad data shouldn’t be permitted, but can be filtered. Bad interpretation can be catastrophic.

Don’t Rush Into a Decision

On Sept. 11, 2001, President George W. Bush was in a classroom listening to children read a story. His chief of staff, Andy Card, told him the second tower of the World Trade Center was hit and the U.S. was under attack. Pundits criticized President Bush for listening to the children finish their story before saying his goodbyes and leaving the classroom. He later explained in an interview with Oprah Winfrey that “during a crisis, a leader must project calm.”

Bush endured criticism, but I felt that it was unfair and unfounded. If you have ever been in difficult situation, you understand that taking a deep breath to allow for good decisions and firm, consistent action is necessary for success. When unexpected information presents itself, you must ask yourself several questions:

1. Is it a threat to the safety of employees and neighbors?
2. Is it an issue that threatens production continuity?
3. What is its criticality? (Do I need to address this immediately, today, or can it wait? How long can it wait?)
4. Are we trained for this? If so, who?
5. How do I best manage the weight of my responsibility?

Once you answer these questions, you must make informed decisions or get the advice of knowledgeable people. You set the tone.

Trust Your Experts

Probably the biggest failure in the early stages of the crisis was the inability to show trust and support for the experts and those dealing directly with the issue. Name-calling, misinformation requiring correction, and looming over professionals as they speak do not project strength. Instead, these actions are perceived as insecurity and a failure to understand the nature of leadership.

Nobody has all the answers in a complex and difficult crisis. Pretending to have everything “at hand” just makes you look fake and comical. Allow your experienced experts to take the lead. Allow them to manage their own domains. Only through faith and trust will you gain the respect needed to lead your people through change and emergency situations.

Moving Forward

Whether a manager or skilled professional, you probably already understand the weight of your decisions and actions. Your strategy to manage information and decisions can be your greatest asset as we move into a more information-intensive age. When called to action, craft a consistent, firm, and calm message based on the information available today. It will change as you learn more, but honesty and consistency will build your integrity and the faith of your managers and employees.