Pragmatic optimism, crisis leadership, and contingency theory: A view from the C-suite

Abstract

In the last three decades, the theory of strategic conflict management has been developed so that it is a strong framework for considering the factors that influence an organization’s response to crises and identifying the importance for dynamic and flexible approaches to crisis decision-making and communication. While leadership is considered one of the critical internal contingency factors but individual characteristics of key decision-makers, like the CEO, are also one of the most understudied ones. At the same time, the concept of optimism has long been explored as a factor influencing performance and positive outcomes in many arenas, but with scant evidence in the application to senior-level leadership or crisis contexts. In fact, in the crisis literature where optimism and pessimism is addressed, it largely argues that crisis leaders should adopt a pessimistic mindset. For this study senior-leaders in multinational companies responsible for managing employees in an average of 70 countries each and with extensive crisis leadership experience reflect on their own experiences during crises. Findings indicate that optimism is a critical trait in successful crisis leadership connecting to positive outcomes for the teams and organizations. These data also provide critical insights that develop a stronger understanding of contingency planning in crisis management because we have identified a trait that amongst an elite group of managers with extensive crisis experience was consistently attributed to their own success as crisis leaders.