Build with Leila Hormozi: Episode 297 - How I Lead My Team Through Crisis Without Breaking

In Episode 297 of "Build with Leila Hormozi," titled "How I Lead My Team Through Crisis Without Breaking," host Leila Hormozi delves deep into her personal experiences navigating business crises, particularly focusing on her leadership strategies during the tumultuous period of the COVID-19 pandemic. This comprehensive episode offers invaluable insights for entrepreneurs and leaders on maintaining stability and guiding teams through uncertain times.

1. Introduction to Crisis Leadership

Leila opens the episode by addressing the inevitability of crises in business and life. She emphasizes that the true measure of a leader isn't the ability to avoid crises but how one manages and overcomes them.

“What separates a great leader from an okay leader is not their ability to avoid crisis. It's how you handle it.”
[02:30]

2. Personal Experiences with Crises

Leila shares her extensive experience with various crises, highlighting the profound impact of the COVID-19 pandemic on her businesses. At the age of 28, she was managing three distinct companies: Gym Launch, Prestige Labs, and a software company named Allen. Just as these businesses were thriving independently, COVID-19 struck, threatening their stability.

“I felt on top of the world… and then boom, crisis occurs.”
[05:45]

She recounts her initial panic, fearing the shutdown of all her customers' operations and the subsequent fallout on her businesses. This period was the most stressful of her career, forcing her to lead a 120-person team under unprecedented pressure.

3. Transitioning from Peacetime to Wartime Leadership

A pivotal section of the episode focuses on the necessary mindset shift from peacetime to wartime leadership during crises.

Peacetime vs. Wartime Leadership

• Peacetime Leadership: Focuses on building, optimizing, and creating long-term growth opportunities.

• Wartime Leadership: Centers on survival and stabilization, requiring swift and decisive actions.

“Wartime is not about being harsh and cold. It's about being laser-focused, action-oriented, and decisive.”
[18:20]

4. Key Principles for Managing a Crisis

Leila outlines four essential principles that guided her through the COVID-19 crisis:

a. Speed Over Perfection

In times of crisis, swift decision-making takes precedence over flawless execution. Leaders must act quickly, even with incomplete information, to keep the business afloat.

“I'm going to prioritize going fast over perfect.”
[12:10]

She shares her personal challenge of moving away from her usual thorough decision-making process to a more expedited approach, ensuring timely actions to navigate the crisis.

b. Prioritize Ruthlessly

Leila highlights the importance of cutting non-essential activities to focus solely on what is crucial for survival.

“No holidays, no anniversaries, no birthdays. I am the Grinch this year.”
[15:50]

By eliminating distractions, her team could concentrate resources on maintaining the core operations essential for crisis management.

c. Being Incredibly Decisive

Confidence in decision-making, even amidst uncertainty, is critical. Indecision can lead to chaos and inaction.

“Indecision is worse than the wrong decision because it creates chaos, it creates inaction.”
[20:35]

Leila emphasizes the necessity of projecting confidence to anchor and stabilize the team, despite her own internal fears and uncertainties.

5. Mapping Out Best, Base, and Worst-Case Scenarios

To combat uncertainty and fear, Leila advocates for a structured planning approach:

1. Worst-Case Scenario: Identify and document the most dire outcomes to confront fears head-on.

2. Base-Case Scenario: Outline the most likely outcomes to provide a realistic roadmap.

3. Best-Case Scenario: Envision the most optimistic yet achievable outcomes to maintain hope and motivation.

“When you have all three mapped out, you can start working on a plan for each one.”
[25:10]

This strategic planning provided Leila with clarity and control, allowing her to transition seamlessly into action mode without being paralyzed by emotions.

6. Focusing on Action to Avoid Anxiety Loops

Leila discusses the psychological traps leaders can fall into during crises, such as overanalyzing and self-doubt. To counteract this, she recommends:

• Breaking Problems into Small Steps: Focus on actionable tasks to maintain momentum.

• Daily Action Question: “What is one thing I could do right now to move us forward?”

“Stay out of your head, get into your hands, start doing shit.”
[29:45]

By prioritizing action, leaders can build progress and foster a sense of achievement, which is crucial for both personal resilience and team morale.

7. Effective Communication with the Team

One of the cornerstone strategies Leila emphasizes is robust communication:

a. Overcommunicate

During a crisis, increasing the frequency of updates helps eliminate uncertainty and builds trust.

“My rule for crisis communication is, whatever you're doing, double it.”
[34:15]

For instance, Leila ramped up her team meetings from once a week to three times a week during COVID-19 to ensure continuous transparency.

b. Don't Overpromise

Honesty is paramount. Leaders should avoid making false assurances to maintain credibility.

“Do not over promise. Do not say, 'Hey, nothing bad's gonna happen.'”
[36:50]

By being truthful about uncertainties, leaders can preserve trust and avoid the pitfalls of unmet expectations.

c. Two-Way Communication

Encouraging team members to voice their concerns and ideas can uncover valuable insights and foster a collaborative environment.

“Sometimes the solution to your problem might actually come from someone on your team.”
[38:30]

Leila underscores the importance of creating spaces for open dialogue, which can lead to innovative solutions during challenging times.

8. Viewing Crises as Opportunities for Growth

Leila concludes by reframing crises as catalysts for personal and organizational development. She shares that navigating COVID-19 equipped her with essential leadership skills, such as instilling confidence, creating security, and adopting a wartime leadership mindset.

“Every crisis is an opportunity to get better.”
[42:00]

She encourages leaders to apply the principles discussed not only during existential threats but also when facing smaller, yet significant, organizational challenges.

9. Conclusion and Call to Action

Leila wraps up the episode by urging listeners to internalize the four key principles of crisis management:

1. Speed Over Perfection
2. Prioritize Ruthlessly
3. Be Incredibly Decisive
4. Effective Communication

She encourages sharing these strategies with teams and other leaders to foster a resilient and empowered organizational culture.

“If you're facing a crisis, go ahead, pass this onto your team. Let them know, give them the tools that they need to be empowered during crisis.”
[45:20]

Leila closes with a motivational note, reinforcing the idea that effective crisis management not only preserves the business but also strengthens leadership capabilities for future challenges.

Key Takeaways

• Adapt Leadership Style: Transition from peacetime to wartime leadership to address immediate threats effectively.

• Prioritize Fast Action: Make swift decisions without waiting for complete information to navigate crises.

• Communicate Transparently: Maintain open and frequent communication to build trust and reduce uncertainty.

• Plan Strategically: Outline best, base, and worst-case scenarios to stay grounded and prepared.

• Focus on Action: Prevent anxiety loops by breaking down problems and maintaining momentum through continuous action.

• Embrace Growth Opportunities: Use crises as opportunities to develop and refine leadership skills.

Leila Hormozi’s insights in this episode provide a robust framework for leaders to manage crises with confidence, ensuring both business continuity and team stability.