Leadership in times of crises

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

Two retired businessmen were sitting on a beach.

Mike: Nice to meet you. I’m a retired businessman. When my store burned down, rather than rebuild it, I took the insurance money and retired here.

John: You know, I’m a retired businessman, too. When a flood washed away my store, I took the insurance money and retired here, too.

Mike is silent for a while, then he asks John, “How do you start a flood?”

There was a time when we could crack jokes about crises and disruptions, but now those jokes don’t elicit much fun or humor. Crises are now happening all over the place.

One businessman on the verge of giving up hope says, “Due to the current energy crisis. The light at the end of the tunnel has been turned off.”

The headlines these days read like a suspense novel nobody asked to subscribe to. Crises after crises grab the headlines. Conflict in the Middle East. Market volatility. Supply chain interruptions. Costs are going up like they’re on a fitness program. For many business owners, especially those running MSMEs, the question quietly (or loudly) creeps in: “What does this mean for my business?” It’s a fair question. But the better one is this: “How should I respond?” Because while we cannot control global events, we always have a say in how we respond to them.

History shows that businesses rarely fail solely due to difficult circumstances. More often, they struggle because their responses are harder to manage than the challenges themselves. Panic can make costly decisions seem urgent, while fear can escalate minor issues into significant mistakes. Confusion often leads to poor strategies. This highlights an important but often overlooked truth:

A crisis is a truth-teller. It reveals the discipline that has been quietly built over time.

It also exposes weaknesses that were hidden during more prosperous times. In strong economies, even average systems can persist, but in tough periods, only strong ones endure. As one business owner noted, “When the tide goes out, you don’t just see who’s swimming naked — you also see who forgot how to swim.” While not comforting, this is accurate. So, what does a wise response look like?

First, protect your cash flow. In good times, profit gets the applause. In difficult times, cash flow pays the bills. You can be “profitable” and still go out of business. That’s not a contradiction — that’s reality. So tighten where you need to tighten. Review expenses like a detective reviewing a case. Accelerate collections. Negotiate terms. Every peso moving in and out of your business now holds more significance than before. Cash is not just king. In times like these, cash is oxygen.

Second, build flexibility into your operations. Worldwide disruptions can quickly impact established relationships and timelines. If your business relies on one single source, route or assumption, it is vulnerable. Now is the time to establish backup suppliers, examine alternative channels and diversify where possible. While this may increase costs, stability often requires investment — and instability can be far more expensive.

Third, stay close to your customers. Uncertainty changes customer behavior, making purchases more deliberate and altering priorities. If you continue with the same sales approach and assumptions, your message may not resonate. Engage with customers. Ask questions, listen and adjust accordingly. When customers are cautious, clear communication creates trust, which becomes especially valuable in difficult times.

Fourth, focus on your core strengths. Tough times do not favor scattered efforts; they reward clarity and focus. Identify what you do best and what your customers value most, then focus on those areas. Let go of activities that are no longer effective. As one leader said, “In good times, we ask, ‘What else can we do?’ In tough times, we ask, ‘What must we stop doing?’” This question can be critical for business survival.

Finally, lead with composure. Your team observes not only your strategy but also your demeanor. If you remain steady, they will draw confidence from your example.

Leadership is most visible during difficult times. You do not need to have all the answers, but you must demonstrate clarity, honesty and calm. In uncertainty, people seek steady leadership rather than perfection.

Disruption is a constant, though it takes different forms over time. Based on years of experience witnessing various crises, I have seen that strong businesses are not built on perfect conditions, but on resilient thinking, disciplined execution and leaders who choose clarity over chaos. When external conditions become turbulent, focus on creating stability within your business. Sometimes, quiet stability becomes your greatest competitive advantage.

Catch Kongversations with Francis on YouTube and all major podcast platforms: Spotify, Apple Podcasts, Google Podcasts and more. Plus, listen to Inspiring Excellence wherever you stream.