“Managing Business Crises in Times of War: Insights from Ukraine”
How do leaders respond to and manage unpredictable circumstances and events? What is the role of leadership and the importance of internal communications in times of war?
Answers to these questions can be found in a study conducted by international experts Vinnie Johansen and Adam Gordon in collaboration with Sofia Opatska, Founding Dean of the UCU Business School. Representatives from 20 Ukrainian companies also participated in the survey, representing various sectors of the economy (IT, manufacturing, investments, HORECA, agriculture, logistics), as well as different regions of Ukraine. What all respondents had in common was that they were all working under conditions of high ambiguity and uncertainty during wartime.
In short, almost every respondent said it is impossible to mentally prepare for war. One manager added: “Some companies made every possible preparation, but, of course, it was still a bit of a shock. No matter how certain you are that it might happen, it’s hard to believe when it actually does.”
Here are the key insights from the survey results:
- Risk planning and business continuity measures were in place at only half of the companies, typically those that adhere to international standards (primarily IT companies). Many respondents who participated in the survey noted that the war could be viewed as an existential crisis for which it was difficult to prepare in advance.
- The top priorities for businesses during martial law were: employee safety, evacuation, and psychological and material support.
- The speed of decision-making became crucial for company leaders and their teams as circumstances constantly changed.
- Communication: Emotional support within teams, as well as honesty and transparency in providing information—both externally and internally—were important.
- Building positive leadership: empathy and trust, which helped employees persevere and continue working despite the ever-changing challenges of the war.
- Developing volunteerism within the business, supporting the military, and actively engaging with the public sector.
- The chronic nature of the crisis: the absence of a clear endpoint, which creates prolonged stress and the need to “live in a crisis” for the long term—a strategy for survival and maintaining normal operations.
- Business scaling: focus on international markets, exports, partnership development, and expansion abroad.
Rapid modernization, value-added production, and sustainable business.
You can read the full version of the study, “Business Crisis Management in Wartime: Insights from Ukraine,” by clicking the link.
