Crucible Moments in Leadership: Learning from Failure and Pressure

Leadership grows strongest under pressure. When leaders face crises, they encounter "crucible moments" - pivotal challenges that test their character and force self-reflection. These moments often lead to personal and professional growth, shaping resilient and effective leadership.

• What are crucible moments? Key turning points that challenge leaders’ values and priorities, such as Ray Viault’s career and personal setbacks or Steve Jobs’ dismissal from Apple.
• Why do they matter? They teach resilience, adaptability, and self-awareness, critical for navigating today’s complex challenges.
• Examples: Barclays during the 2008 financial crisis, the NHS in the COVID-19 pandemic, and Deliveroo’s pivot to grocery delivery during lockdowns.
• Key strategies for leaders:
  • Prioritise self-reflection and emotional intelligence.
  • Build resilience through mindfulness, structured routines, and support networks.
  • Foster open communication and psychological safety in teams.
  • Learn from mistakes by documenting, sharing, and acting on lessons.

Leadership under pressure is about turning setbacks into opportunities for growth. Use challenges to refine your approach, strengthen your team, and prepare for future crises.

The Power of Self-Reflection: Hard Lessons from Failure | Beyond the Crucible

UK Leaders Who Learned From Crisis

When faced with immense challenges, UK leaders have often risen to the occasion, using crises as opportunities to rethink and reshape their organisations.

Barclays' Recovery After 2008

Barclays offers a compelling example of leadership under pressure. During the 2008 financial crisis, the bank managed to sidestep government bailouts, a move that set it apart in the UK market.

By the time Antony Jenkins took over as CEO in 2012, the bank was grappling with the fallout from the Libor scandal. In 2013, Barclays faced a 32% drop in profits and had to raise £5.8 billion in capital. Jenkins responded by championing a shift towards ethics and transparency.

"Barclays is changing, we are committed to doing the right thing"

Despite these efforts, Sir Michael Rake, a director on the Barclays board, later reflected:

"Notwithstanding Antony's significant achievements, it became clear to all of us that a new set of skills were required for the period ahead"

This highlights how leadership needs can evolve as organisations move through different phases of recovery and growth.

NHS Leadership During COVID-19

The NHS faced one of its greatest challenges during the COVID-19 pandemic. By March 2021, the UK had recorded 125,801 deaths, and NHS leaders had to act decisively to support both patients and staff.

Key adjustments included:

A leader from the Hertfordshire and West Essex Integrated Care System reflected on the shift:

"COVID allowed us to recognise and be open to all the pressures that everyone is under a little bit more… There was an increased level of kindness and support for each other as individuals and for their roles in their individual organisations"

This period showed how empathy and collaboration could redefine leadership in healthcare.

Deliveroo's Business Model Shift

In the private sector, Deliveroo demonstrated how agility can drive survival and growth. When restaurants shut their doors during the pandemic, the company quickly pivoted to grocery delivery. By 2023, this adaptability helped Deliveroo reduce its losses by £262 million, bringing them down to £32 million.

CEO Will Shu highlighted the importance of staying nimble:

"Our focus on service and value for money continues to build consumer trust, which are fundamental to unlocking future growth in this industry"

Deliveroo's transformation included:

• Exiting underperforming markets, such as Germany in August 2019
• Expanding into non-food categories with "Deliveroo Shopping"
• Improving operational efficiency, which saw gross transaction value per order rise by 6% to £24.30

These examples underline a common thread: moments of crisis, when navigated with clarity and purpose, can spark lasting change.

Mental Tools for High-Pressure Leadership

Understanding how our minds react under pressure is essential for effective leadership. Studies reveal that stress can cloud judgement and stifle creativity, making it harder to make sound decisions or think innovatively. Recognising this is the first step to addressing stress's influence on leadership.

Stress Effects on Decision-Making

When faced with high-pressure situations, leaders often fall back on familiar choices rather than exploring new, creative solutions.

Stress affects leadership performance in several key areas:

Leading Through Openness

Transparency becomes a critical leadership skill during high-pressure moments. Open communication not only enhances team performance but also supports better crisis management. This is particularly relevant given that 43% of Millennials and 44% of Gen Z workers have left jobs due to burnout, highlighting the importance of fostering psychological safety.

Leaders can adopt several proven techniques to navigate stress effectively:

• Practice mindful awareness: Mindfulness exercises can help reduce anxiety and improve focus.
• Establish recovery routines: Incorporate structured breaks into daily schedules to recharge.
• Build support networks: Create a personal advisory group for guidance and perspective.

By embracing openness and these strategies, leaders can transform challenging situations into opportunities for growth.

Turning Setbacks into Progress

Research shows that leaders who recover well from setbacks often follow similar approaches.

The key lies in emotional intelligence. Effective leaders pause before reacting, evaluate what they can control, and focus on actionable steps to move forward. Techniques like daily journaling, seeking structured feedback, and crafting clear action plans can help. Physical wellbeing also plays a vital role in resilience, as Mark Zuckerberg emphasises:

"Staying in shape is very important. Doing anything well requires energy, and you just have a lot more energy when you're fit".

These mental strategies not only help leaders manage setbacks but also strengthen their ability to thrive under pressure, turning challenges into opportunities for personal and professional growth.

Tools for Managing Crisis Moments

When organisations adopt structured crisis management strategies, they tend to handle challenges with greater efficiency and confidence.

MOVE Method for Crisis Decisions

The MOVE framework offers a clear, step-by-step approach to making decisions during a crisis. It breaks down the process into four essential components:

A real-world example of this framework in action is the Civil Aviation Authority’s (CAA) response to the collapse of Monarch Airlines in October 2017. The CAA orchestrated a massive operation to repatriate 85,000 stranded passengers from over 40 airports. Their success stemmed from a well-prepared response plan and clear communication protocols.

After the immediate crisis, conducting a thorough review helps refine future strategies.

Learning Through Review

The GCS PRIMER framework - Plan, Rehearse, Implement, Maintain, Evaluate, Recover - offers a detailed structure for assessing crisis responses. It focuses on three key areas:

• Immediate Response Analysis: Document every decision made during the crisis, along with its reasoning and results. Create a timeline to map out events and responses.
• Team Performance Review: Evaluate how well departments worked together, noting any communication challenges or successes.
• Systems Assessment: Review which processes were effective and identify areas needing improvement, considering both technical and human factors.

"A crisis represents an unstable time when a decisive change may be impending and has the potential to seriously undermine the organisation's image, financial standing, and personnel." – Fink

Flexible Leadership Methods

Studies show that resilient leadership thrives on adaptability and a willingness to shift strategies as needed. Here’s how traditional approaches compare to more flexible methods:

As the Corporate Finance Institute puts it, "The idea of one heroic individual single-handedly generating results is outdated. Leadership is now considered a team sport".

Volkswagen’s handling of a 2024 recall involving 260,000 vehicles illustrates this adaptability. By promptly informing customers that fuel tank issues would be resolved free of charge, the company showcased both structure and flexibility in its crisis management.

These strategies not only guide organisations through challenges but also lay the groundwork for a culture that learns and grows from each crisis experience.

Making Learning Part of Company Culture

Incorporating learning into a company’s culture isn’t just a nice-to-have - it’s a strategic necessity. Drawing lessons from crisis management, organisations can create a culture that thrives on continuous learning. The benefits are clear: companies with strong learning cultures are 11% more profitable and 92% more likely to innovate.

Building a Learning-from-Failure Culture

At the heart of a learning culture is leadership that’s genuinely committed to growth. Teams that embrace accountability are 50% more likely to meet or exceed performance goals.

Unilever offers a standout example with its flexible working model. By allowing employees to take on short-term internal projects, they not only develop new skills but also contribute across departments.

Using Stories to Share Lessons

Beyond policies and frameworks, storytelling is a powerful way to embed lessons across teams. Research shows that stories are remembered up to 22 times more effectively than facts alone.

"Stories have the ability to align a team using a shared experience, which is why I like to start every meeting with one person telling a brief story. It's like a tuning fork. This 'shared consciousness' that's created through telling a powerful story helps a team create connection and empathy, which are incredibly valuable when doing complex teamwork." – Mark Cruth, Career Coach

Amazon Web Services (AWS) exemplifies this by weaving curiosity and learning into their Leadership Principles, making innovation a daily practice.

Crafting effective crisis learning stories involves three key steps:

• Setting the Scene: Clearly outline the context and stakes to help others grasp the pressures involved.
• Character Development: Highlight the decision-makers and their challenges to make the story relatable.
• Problem Resolution: Detail the actions taken and their outcomes, showcasing both successes and lessons learned.

These narratives not only strengthen internal learning but also align with external governance standards.

Meeting UK Governance Requirements

The UK Corporate Governance Code 2024 places a strong emphasis on balancing risk management with innovation. Organisations can integrate learning into governance by focusing on the following areas:

"The single biggest driver of business impact is the strength of an organisation's learning culture." – Josh Bersin

Conclusion: From Pressure to Progress

Leadership often flourishes under the weight of intense pressure and challenging circumstances. Research highlights that leaders who successfully navigate these defining moments tend to emerge with heightened resilience and a sharper ability to adapt to future challenges.

Tips for Leaders at All Levels

While the pressures faced by leaders vary depending on their level, certain strategies remain universal:

These approaches form a solid foundation for turning setbacks into opportunities for growth and preparing for future challenges.

"Leaders and people that are high-achieving are always going to experience failure because it's the only way we grow. It's the only way to push yourself forward and challenge the status quo." - Corinne Hancock, crisis coach and keynote speaker

Making the Most of Mistakes

Mistakes, when approached thoughtfully, can be powerful learning tools. Successful leaders often follow three key steps to turn setbacks into progress:

• Immediate Analysis: Take time to document lessons right after the setback happens.
• Team Integration: Share these insights with colleagues and across teams to ensure collective learning.
• Action Planning: Develop clear, actionable steps to address gaps and prevent similar issues in the future.

By embedding these steps into their routines, leaders can transform challenges into stepping stones for personal and organisational growth.

Steps for Future Development

"As leaders, we need to see failure for the good it can provide us, and then we've got to shift our mindset. A mindset that we have to have as leaders is that we're not a team until we fail well together." - Robert "Cujo" Teschner, founder & CEO of VMax Group

To build on lessons learned and continue growing, leaders can focus on targeted development in key areas:

FAQs

How can leaders recognise and grow from critical moments of failure or adversity?

Leaders often find their greatest growth comes from navigating challenging experiences. By treating these moments as opportunities to learn, you can uncover insights that shape your leadership style. Start by taking time to reflect - what happened, why did it happen, and how did it make you feel? This honest evaluation can help pinpoint root causes and reveal lessons that enhance your decision-making and resilience.

Opening up about these experiences with your team can also create a culture where learning from setbacks is valued. When others see you treating challenges as stepping stones rather than roadblocks, it encourages them to do the same. To get the most out of these moments, ask for feedback, dig into what went wrong, and set clear, actionable steps to improve. Approaching difficulties with curiosity and determination allows leaders to turn adversity into a solid foundation for growth and more genuine leadership.

How can organisations create a culture that embraces learning from failure and builds resilience during challenging times?

To nurture an environment that embraces learning from setbacks and strengthens resilience, organisations can adopt a few focused strategies.

Start by normalising failure. Create a workplace where mistakes are viewed as stepping stones for growth rather than triggers for blame. Leaders play a crucial role here - when they openly share their own challenges and the lessons they’ve taken from them, it fosters a culture of trust and openness.

Another essential approach is to establish structured reflection practices. This might involve regular project debriefs or post-crisis reviews to pinpoint what didn’t go as planned, what succeeded, and how future efforts can be refined. By weaving these reflective habits into the organisation’s daily rhythm, teams become more adaptable and better prepared to handle challenges.

Resilience, at its core, grows from a commitment to ongoing learning and improvement. This mindset enables organisations to stay flexible and forward-looking, even when faced with significant pressures.

How does emotional intelligence help leaders turn setbacks into opportunities for growth?

Emotional intelligence (EI) plays a crucial role in enabling leaders to turn challenges into chances for growth. By cultivating self-awareness, self-regulation, and empathy, leaders can better navigate setbacks. Those with strong EI are able to identify and manage their emotional reactions to failure, maintaining composure even in high-pressure situations. This clarity helps them reflect on what went wrong, adjust their approach, and build resilience over time.

Moreover, leaders who demonstrate emotional intelligence foster workplaces where open communication and teamwork can flourish. By embracing vulnerability and showing genuine empathy, they inspire their teams to view failures as opportunities to learn and improve. This approach not only enhances their own leadership abilities but also nurtures a culture of creativity and adaptability within their organisations.

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