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Erika H. James is the dean of the Wharton School of the University of Pennsylvania and the former John H. Harland Dean at Emory University’s Goizueta Business School.
The COVID-19 pandemic, though unforeseen by many, had long been anticipated by experts who warned of an inevitable global health crisis. Despite these cautions, humanity’s tendency to prioritize immediate concerns over distant risks left us largely unprepared, resulting in devastating economic and social consequences. Cognitive biases, such as probability neglect and the anchoring effect, further hindered proactive action. However, examples of decisive leadership, like Adam Silver’s swift suspension of the NBA season, demonstrate how informed and courageous decisions can mitigate damage and create opportunities amidst uncertainty. Effective crisis management unfolds in five stages: detecting early warning signals, preparing and preventing escalation, containing damage, rebuilding stronger, and learning from the experience. Each phase requires specific skills, from fostering trust and agility to embracing creativity and resilience. By mastering these stages and reflecting on lessons learned, leaders can transform crises into opportunities for growth and innovation. The following chapter delves into the nine essential skills that empower leaders to navigate these stages with confidence and foresight.
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