How can startup leaders strategically disclose vulnerabilities during periods of crisis?
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Lim-denisely-msms-sloan-2021-thesis.pdf
Description
Thesis PDF
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443.64 KB
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ff937010529ac647dc2183910a112ea8
Author(s)
Lim, Denise
Advisor(s)
Juanjuan, Zhang
Date Issued
June 2021
Publisher
Massachusetts Institute of Technology
Abstract
The contours of a crisis can vary based on the situation. Still, regardless of the nature or magnitude of a crisis, these trigger uncertainties and ambiguities in team dynamics that can inhibit functional effectiveness and threaten emotional wellbeing. In a startup environment, leaders are especially exposed to the risks of failure and are themselves not immune from personal and professional vulnerability owing to the fallout of a crisis.
The idea of marketing oneself as a strong and invulnerable leader who acts with complete certitude is one that has credence. However, this has over time, been disproven by both research and popular sentiment as the appropriate and most effective choice in all circumstances. Rather, considerations of authenticity are now popular, with leaders’ self-disclosure of business and personal vulnerability during these bleak moments being vaunted in popular discourse. Still, doing so recklessly is not only oversentimental, but can be un-strategic in attaining functional outcomes for both team performance and team cohesion purposes. Leaders need to maintain interpersonal credibility and technical credibility when communicating vulnerabilities to their team. This is especially considering the unique context of startups, which are characterized by flat hierarchies, frothy circumstances, and developing governance and oversight. This paper looks to provide some recommendations based on interviews, public practitioner sharing, and academic research on how startup leaders can best strike the balance between communicating vulnerabilities while retaining professional effectiveness.
MIT Department
Sloan School of Management
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