Ability to act in times of crisis: Why the leadership mindset makes the difference

Cost and competitive pressure, restructuring, uncertainty: In many industries, leadership has become a constant state of pressure. But the ability to act in times of crisis does not come from methods, but from attitude. Harald Smolak, Head of People Management at Atreus, analyzes why ownership, decision-making power and realistic optimism determine the success of the transformation – and how HR, as the architect of a new leadership culture, leads organizations out of shock.

In times of massive upheaval, the importance of good leadership increases exponentially. Many industries are under enormous pressure – such as the chemical industry, which is in its worst crisis in three decades. High energy and personnel costs, stricter regulations and falling demand are putting a strain on many companies, especially medium-sized companies. The Association of the Chemical Industry predicts a decline in sales of 2.5 percent for 2026. This makes restructuring inevitable.

Medium-sized companies in particular, whose business model is primarily geared towards European markets, rarely have the financial flexibility to expand into growth regions such as China. This makes it all the more important to retain the existing skilled workers – and to support them through uncertainty through professional leadership.

For managers, this means providing clear guidance, maintaining motivation and making quick decisions in the face of uncertainty. For HR, this in turn means providing the structures, skills and routines that enable precisely this leadership performance. Because in crises, employees need more than operational instructions – they need confidence, transparency and guidance in order to believe in the success of the company.

1. Provide orientation: direction, framework and rituals

As uncertainty grows, the mental stress increases. Employees therefore need clear statements from management, not reassurances or speculation. You must understand:

• Where is the company?
• What are the short-term priorities?
• What steps are next?

Even if the future cannot be precisely predicted, the leadership team needs a comprehensible approach: a clear plan for the coming months that is communicated, checked and continually readjusted.

This also includes addressing necessary restructuring measures openly and realistically. Transformation only creates positive energy when managers themselves lead with conviction – and consistently maintain this energy.

Rituals create reliability

Monthly updates on progress made, decisions made or measures deliberately stopped make change visible. Decisions must be explainable – especially when they hurt.

HR should accompany these processes by regularly reviewing how the workforce responds to leadership, priorities and communication. Pulse checks, focus groups or mood barometers provide important early indicators.

But orientation doesn’t just mean strategy. It also includes:

• suitable structures,
• digital tools and AI support,
• Innovations that strengthen competitiveness
• and a clear picture of the necessary key competencies.

Transformation only succeeds if employees continue to perceive the organization as a safe professional home. This requires a community spirit that is actively promoted by company management.

2. Acknowledge reality: acceptance instead of toxic positivity

Sentences like “It’ll be okay” sound good – but they don’t help. On the contrary: compulsive confidence undermines the credibility of leadership. Employees sense when something is wrong.

Effective leadership therefore begins with honest acceptance of the situation, no matter how difficult it may be. Only when risks are clearly identified can they be managed together.

Transparency is not a sign of weakness, but rather a prerequisite for real trust.

Bayer under CEO Bill Anderson provides a good example:

The company has carried out a comprehensive reduction in hierarchy levels, regionalized decision-making authority and significantly simplified processes. This creates speed – but at the same time requires a profound cultural transformation. Responsibility can no longer be delegated upwards. Mistakes must not be covered up, but must become a learning opportunity.

For many managers, this means a fundamental change in their understanding of leadership, which has been shaped for decades. HR plays a central role here: in building competence, in cultural change and in establishing a real learning and decision-making culture.

3. The necessary mindset: The inner attitude as a success factor for every transformation

Structures, processes and decisions are essential – but transformation only succeeds if the inner attitude of the managers is right. In times of crisis, mindset becomes the central lever that determines effectiveness or ineffectiveness. Three dimensions are particularly critical to success:

3.1 Ownership instead of waiting

Managers must actively accept responsibility – not just formally, but internally. In many organizations there is still an “upward delegation reflex”. But transformation requires the opposite:

• proactive action instead of passivity,
• Deciding despite uncertainty instead of avoiding decisions,
• Design instead of managing.

Ownership also means not allowing decisions to “leak away” anonymously in the organization, but rather representing them visibly and consistently monitoring their implementation.

3.2 Courage to be imperfect

Crises require speed. Perfectionism – often deeply rooted in culture – then becomes a brake. An effective transformation mindset accepts that:

• not all information is available,
• mistakes will happen,
• Adjustments are normal and desired.

The courage to use even incomplete data as a basis for decision-making is often what frees companies from paralyzing analysis rigidity.

3.3 Learning orientation as a basic attitude

Crises are learning phases in fast motion. Managers therefore need an attitude that is not focused on justification, but rather on further development. Learning orientation is reflected in:

• Openness to feedback (even unpleasant ones),
• continually questioning your own routines,
• the willingness to visibly change behavior.

This is precisely where the difference between “manager” and “leader” becomes visible: managers manage existing processes – leaders reflect, learn and actively adapt them.

Empathy and pragmatism in balance

Employees need closeness, understanding and security. At the same time, they expect orientation, clarity and decisions. A modern leadership mindset therefore creates a balance between:

• empathetic listening and
• decisive action.

This combination strengthens the emotional connection to the company and increases the willingness to remain efficient and loyal even in uncertain phases.

3.4 Future optimism with realism

People follow leaders who have a vision – but only if it appears credible. The right mindset avoids both whitewashing and alarmism. It conveys:

• the reality of the current situation,
• clarity about necessary measures and
• the confidence that the organization can emerge from the crisis stronger.

This form of “realistic optimism” has a profoundly stabilizing effect.

Embedded in HR: Mindset development is not a product of chance

An attitude does not change through appeals, but through targeted, organizationally supported development. HR must therefore create spaces in which managers:

• reflect,
• experiment safely,
• Discuss errors
• and can develop their behavior systematically.

Workshops, learning trips, shadowing, coaching, peer groups and short learning impulses on decision-making logic, feedback culture or self-leadership make mindset development tangible.

In the end, a transformed mindset is the multiplier that makes all structural and strategic measures effective.

Ability to act in times of crisis – conclusion:

Leadership in crises is not a heroic act – but is based on clarity, energy, decision-making ability and the right mindset

Effective leadership in transformation and crises does not mean heroically doing everything yourself. It’s about orchestrating clarity, energy and decision-making ability – based on a realistic initial situation. This requires the necessary mindset.

Structures, processes and tools are important – but only an inner attitude characterized by ownership, courage, learning orientation and realistic optimism makes leadership truly effective in uncertain times.

Transformation begins with honest acceptance of reality, without sugarcoating or toxic positivity. Only those who clearly state the initial situation create the basis for credible orientation, reliable decisions and constructive cooperation. Building on this, we need managers who take responsibility, do not shy away from making decisions and at the same time remain empathetic.

HR has a key strategic role to play in this phase: as a co-architect of an organization that actively shapes changes instead of chasing them. Through modern governance, consistent skills development, data-based leadership tools and spaces for mindset development, HR creates the conditions under which managers remain productive under uncertainty.

When clarity, consistency and the right attitude work together, the community spirit is created that not only carries companies through crises, but also leads them into the next phase of growth, strengthened and focused.

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