Sarah Deaves is experienced at dealing with critical situations – as an accomplished financial services chief executive she has often been parachuted into turnaround and recovery situations. Sarah left RBS in June 2012 after restructuring the Private Banking & Advice businesses of RBS & NatWest. She was the first female Chief Executive of Coutts Bank, the UK's leading private bank and Managing Director of loan, mortgage and savings companies Lombard Direct and Direct Line Financial Services. Here she explains how to deal with critical situations.
WHAT IS THE MOST IMPORTANT SKILL IN HANDLING A CRITICAL SITUATION?
Keeping calm, stepping back and taking time to think. Communicate as honestly as possible even when unsure of the situation, or people may assume the worst. Understanding root causes of a crisis makes you better equipped to handle it. In unforeseen critical situations be clear about the process you will follow, choreograph confrontations beforehand and use sounding boards to understand different angles.
WHAT CRITICAL SITUATIONS HAVE YOU FACED IN THE PAST?
There are three categories: situations you can plan for (such as presentations) which different techniques can be used to overcome; situations where you must be responsive (for instance, where someone has accused you); and the unforeseen crisis, with many elements and a constantly changing picture.
WHAT DID YOU LEARN OVERALL?
I learnt to think first about whether to be proactive or reactive. How much can you anticipate, how can you regain control, purpose, momentum and structure? How do you get the facts and what context are you speaking in? Anticipate questions, but be clear on the actual questions, rather than what you think your audience is seeking. Watch and listen so that you can respond effectively. Vague answers are counter-productive. Create clear and rapid lines of communication, and feed back reliably and frequently. During very uncertain times, gather the team regularly to exchange information, and be very visible in the business, giving people clear messages and a way to communicate. If you are accused, don't get too emotional. Step away and calm down. Consider why the accusers are acting that way. What are the facts, what is their agenda, is there a political element, and are they being pressured by someone else?
WHAT DID YOU LEARN ABOUT YOURSELF?
I had more capacity to cope than I thought. Being in a crisis can be energising – though scary – and it is important to recognise and celebrate success, taking energy and optimism from small wins.
IN YOUR OPINION, WHEN YOU OR YOUR TEAM HAVE HAD A NEGATIVE OUTCOME FROM A CRITICAL SITUATION, WHAT MADE IT SO?
Letting emotion rule. You get frustrated at things, look superficially, and tackle symptoms rather than causes. That, and not listening well.
CAN YOU SHARE AN EXAMPLE OF A CRITICAL SITUATION THAT HAD AN UNFORESEEN, POSITIVE OUTCOME?
During a re-organisation we worried that one of two jobs on offer was less challenging and attractive than the other and spent much time explaining the role to ensure the right applicants. In the event, that role was vastly oversubscribed as it attracted many more candidates than we anticipated.