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Kirsten Knowles Perdue

Company Identity Crisis – How to Manage Identity Crisis as a New Leader

Dictionary.com defines the term ‘identity crisis’ as a psychiatric term used to describe a period of uncertainty and confusion in a person’s life, which leads to insecurity in their identity. This insecurity can typically show up when there is a life changing event such as giving birth, a marriage, a divorce, a death, a layoff, and an accident to name a few.

The good thing about a person having an identity crisis is that there are resources available everywhere for us to take advantage of. Many companies have EAP (Employee Assistant Programs) or other resources that allow us to have an outlet to guide us through the ‘crisis’ that is going on in our lives – and for this, we will forever be grateful.

According to the 2016 SHRM Employee Benefits research report, 77 percent of surveyed employers offered an EAP

But have you heard of organizations having identity crisis? I know, I know, it seems a little aberrant. But let’s revisit the definition of ‘identity crisis’ and replace ‘person’ with the word ‘organization’: a [psychiatric] term used to describe a period of uncertainty and confusion in a[n] organization’s life which leads to insecurity in their identity. Hmmm….do you see where I am going with this?

Now let me start off my saying that I am not a clinician, and everything I discuss in this post is from my experience, and it is my opinion. I use the term identity crisis to describe organizations that have symptoms of a deeper issue. The purpose of this article is simply to put an identifiable name often used to diagnose people, in a familiar context as it relates to organizations.

Most organizations go through an identity crisis when there are major changes in the organization such as: new leadership, changes in the Board, rebranding, layoffs, restructuring or acquisitions. So let’s assume you are a new leader, how can you prepare for the inevitable identity crisis? Below are only three of many suggestions to get you started.

Set Clear Expectations

Every leader of an organization at the beginning of each corporate year (or calendar year) should revisit the mission and vision for the organization and develop a strategy to fulfill those objectives during the course of the year. The great news is that most leaders do! Every leader should also verbalize and demonstrate what carrying out the vision and mission of an organization looks like. Again, some leaders do this very well. The issue comes when leaders have the vision, but do not know how to carry out the vision on a day-to-day basis that they set for the organization.

Avoiding Identity Crisis:

  • Meet with senior management on a regular basis (I recommend weekly). This is the time to reiterate the vision, hear the concerns, challenges, review the plans and praise your team.
  • Take the time to meet with every member of your organization – from the VP to the janitor. Let them know that although you are their leader, you value their contributions.
  • Set monthly goals for your organization and meet monthly to go over those goals. Employees can be very fragile when going through an identity crisis. Give examples of how goals can be achieved and make yourself available for questions or concerns.
  • Be visible! I can’t reiterate this enough. As a leader, you are the face of the organization. Your demeanor and presence during your transition should be calming. Think of a new baby. He may just be meeting his mom for the first time, but he panics when he is not near his mother. Why? Because he knows that all of his needs are met through this woman he just met! When mom is around, the baby is calm, when mom is not in sight, the baby panics! Be present

Marketing is Key

If you are taking on a leadership role in an organization that has experienced a rocky past, do yourself a favor and hire the best marketing team your firm can afford. This is crucial if you are making significant changes such as an organization name or mission change.

Why is marketing key during an identity crisis? The last thing you want as a leader is for someone else to tell your dirty story for you. New leaders that are proactive in their marketing and messaging are constantly one step ahead of the game. They create and tell their story before employees and customers have the opportunity to do so.

Leaders that are reactive are always two steps behind in the game. Being reactive leads to employees and customers assuming and creating their own stories because there is missing information that should be communicated from the leader through proper marketing. Reactive leaders spend more time cleaning up messes that were created as a result of messaging not being clearly stated or not being communicated on time. Being a proactive leader and hiring a good marketer allows you to dictate your story outside of the organization. It minimizes the internal identity crisis and reduces the chances of it becoming an external identity crisis.

Surround Yourself with Appropriate Mentors and Advisors

Be careful, new leaders, who you are listening to! Surround yourself with people who can give you advice because they have walked in your shoes. Your mentors and advisors should offer solutions or make you see things from a different perspective to allow you to arrive at the right solution. Surround yourself with mentors and advisors that have proven themselves to be successful in transitioning companies through difficult identity crisis. If your advisors are only pointing out what you are doing wrong, and constantly criticizing you without providing solid solutions or guidance to help you develop and mature as a leader, you are not surrounding yourself with the right people.

Good Mentors and Advisors:

  • Motivate
  • Listen
  • Boost your confidence
  • Recommend ways of increasing required knowledge
  • Help to develop the leader in you
  • Are honest with you
  • Provide guidance for developing a plan and the strategy to effectively implement it
  • Help you to have a different perspective