Daily Archive

As the financial markets collapsed, TD Ameritrade’s Chris Armstrong spoke to Robert Voth about How to lead during a meltdown. Here is what he had to say:

It was a tumultuous week for the financial markets ; the impact of the mortgage meltdown snowballed; giant names folded or were merged away; money market funds “broke the buck”; regulators changed the rules overnight; and markets reacted violently-up and down. The “independent spirits” – clients that own TD AMERITRADE’s (TD AMERITRADE, Inc. is a member of FINRA and SIPC) seven million accounts – wanted information and the ability to trade on that information, either to protect their portfolios or to take advantage of opportunities to make money.  Calls to our client contact people and the transactions we processed were at near record levels.  Our people and our systems were stretched beyond anything we had seen.  In any financial services business model the most important element is our clients’ trust.  So, how do you lead in a crisis like this to protect that trust?

It is important to point out that real leadership doesn’t start at the time of crisis.  Real leaders spend lots of time and energy making sure that folks from top to bottom and side to side know the values and principles by which the organization is run.  And leaders make sure everyone knows how “playing their position” is vital to the mission and the accomplishment of our objectives. 

All of that said, there are three things that I believe are essential in time of crisis:

1. Maintain constant flow of information and context. 
People want all of the information they can get at times like these.  Clients want it and the folks that serve them want it.  But information without context is meaningless.  Be careful that everything you communicate comes with the “why”.  Is it important for clients?  Is it important for the mission?  If you don’t add context to the information flow your folks will try to create their own and that can lead to chaos.

2. Be empathetic but stay on mission.
Your people will be tired. Your clients will be frightened and angry.  Emotions will run high and tempers will fray.  Leaders learn how to recognize it and honor it but not let it detract from the mission.  And staying on mission means reviewing each option to “do something”. There is always a rush to “do something…anything”.  Most times, that’s a mistake.  If you cannot tie it back to your fundamental mission—don’t do it.

3. Be constantly present and visible to drive the troops.
This is the time that your presence is most needed.  Staying locked away in the war room or in negotiations doesn’t help your folks nearly as much as your active involvement in the crush of activity.  Conference calls; video conferences; blast emails and voice mails; do whatever it takes toshow the troops that you are there and part of the “action”. This presence and these opportunities to keep the organization “on mission” will help get you through to the other side.