9/11 forever changed our world.
As America marks the 20th anniversary, we can take away a positive affirmation from that day of infamy: Our demonstration of resilience, heroism and humanity in the face of unspeakable tragedy. We have a remarkable ability to bounce back.
The aftermath of that tragic event also offers valuable lessons in leadership. In reviewing our archives related to coverage a decade ago, I found fascinating stories of undaunted executives and entrepreneurs from Wall Street to Main Street–those affected directly and indirectly–who kept their enterprises humming not only to meet payroll but to provide assistance, service and comfort to victims, employees and community members.
The following examples give us clues on how to lead in times of crisis as well as tenets that reinforce how we should operate on a daily basis.
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Embrace your responsibility as a leader. Considered the paragon of corporate leadership, Kenneth I. Chenault dealt with 9/11 just months after becoming chairman and CEO of American Express. He had to find a home for more than 5,000 displaced employees when corporate headquarters, adjacent to the World Trade Center area, was damaged and forced to shut down for nearly a year. To make matters more tragic: 11 employees had lost their lives. In addition to the human toll, Amex’s major lines of business, such as charge cards and travel services, took a battering in a devastated post-9/11 economy.
Maintaining that a leader’s reputation is made in times of crisis, Chenault told BE at the time: “Our objective is to improve our ability to manage through volatile times and to adapt to a wide variety of business conditions.”
During this period, he set clear goals that included keeping the company liquid and profitable while making investments for market share growth. It required tough decisions like headcount reduction. In other cases, he encouraged his troops to develop innovative products and find new channels to reach consumers.
Applying his integrity-driven leadership approach, he brought focus to anxious people. Fully engaged in fostering assurance and diminishing fear, he held televised town-hall meetings, hosted local sessions and visited sites around the globe.
Among business icons tapped by then-President Bush to help rehabilitate Ground Zero, Chenault concentrated on meeting responsibilities to all stakeholders: employees, customers, vendors, shareholders and his institution. This m.o. would serve him well during the financial meltdown of 2008.
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In times of crisis, move quickly or lose your business. J. Donald Rice, CEO of Rice Financial Products Co. (No. 4 in tax-exempt securities with $568 million in lead issues on the 2011 BE INVESTMENT BANKS list) was at home when he discovered his offices in the north tower had been decimated on that fateful day. In fact, he took great pride that his investment bank had been one of the few African American firms to occupy space there. Rice said at the time: “I feel like they came in and blew up my second home. ”
After making calls to confirm his staff’s safety, Rice sprung into action. He transformed his home into the company’s base of operation and scoured the city for computers so they could trade securities and structure deals. Within four business days, the firm moved into new quarters in downtown New York. To further inspire confidence, Rice took the first available flight to Los Angeles just five days after the attack and met face-to-face with clients.
BE asked him why he felt compelled to move so quickly after the life-altering event. He said that his competitors, without sentimentality or delay, tried to steal business from his firm.
So remember: Vultures will begin circling and picking bones–even if you’re not a corpse.
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Do well by doing good. Weeks after 9/11, another BE 100s Wall Street titan Bernard Beal, CEO of M.R. Beal & Co. (No. 5 in taxable securities with $1.57 billion in lead issues and No. 3 in tax-exempt securities with $2.2 billion in lead issues on the BE INVESTMENT BANKS list) admitted that when he and his staff were forced to leave their offices near the World Trade Center the firm “lost hundreds of thousands of dollars because of the attack.” He’s always believed the best way to tackle a crisis is through communications, informing his team and clients and then charging full steam ahead with his agenda. So not one to let terrorists torpedo his company, Beal wore protective gear and went back to his Wall Street digs to work the phones and close deals.
Beal, however, found another way to become involved in 9/11 relief efforts and advance its reputation. On September 12, the firm helped one of its clients, Numotech Inc.
, a Northridge, California medical device company, get supplies to burn victims at New York area hospitals by working with then-Sen. Hillary Rodham Clinton‘s office. Due to the success of Numotech’s new, inventive wound-care product in aiding patients, the federal government awarded the company a contract to sell the device to its agencies and, in turn, Beal was able to generate investor interest in a private placement offering.9/11 proved that the only event that can be anticipated in business and life is the unexpected. That’s why leaders must have core principles to move their organizations forward whether it’s Chenault’s ethical approach to responsibility, Rice’s urgent response to promote solidity or Beal’s constant communication to identify and pursue opportunity. It all starts with making connections with people, understanding their anxieties and issues.
In his many interviews on leadership, Chenault’s best definition comes from, of all places, the 19th Century French Emperor Napoleon Bonaparte: “Define reality, give hope.â€
Although two centuries old, it’s the right course for leaders dealing with the uncertainties of our post-9/11 world.