I had the pleasure of giving a leadership presentation at the annual Master Executive Corporate Coach conference earlier this month in beautiful San Diego. I was also able to attend the conference and participate in some fascinating discussion on the topic of leadership with thought leaders from around the world.
Great leaders bring calm out of chaos and, in doing so, build enormous trust.
One theme emerged from these conversations – the need for leaders to maintain their composure. I always found this much easier to do on a Friday when morale was high as the weekend approached. It was much harder on a Monday when I was informed that our department budget was cut 20%. While it’s easy to be respectful and composed when all is going well, the test will come when adversity strikes.
As a leader, you’re guaranteed one thing: adversity will strike. Challenges, issues, and problems are coming your way. Getting bad news and facing adversity is a certainty—it’s not a matter of if, but when. These are crucible moments for a leader. However, while gut-wrenching, they are also moments of tremendous opportunity. Let me explain.
Recall that all interactions between the leader and employee drive team culture. The culture of all teams is on a very dynamic spectrum between trust and fear. The endless movement on this spectrum is driven by the hundreds of day-to-day, hour-to-hour, minute-to-minute, and second-to-second interactions the leader has with team members. The behaviors of the leader create the culture. The leader owns the culture.
Getting bad news – and more precisely how the leader reacts to the bad news – is an interaction that has a significant impact on team culture. While we cannot control the fact that we’re going to get bad news, we can certainly control our behavior when it comes. If you maintain your composure, you’ll increase trust. 
If you show anger or, worse yet, shoot the messenger, you’ll lose trust and move team culture toward one of fear. Cultures of fear diminish info sharing, insulate the leader from reality, and breed unwise decisions. Disaster awaits an ill-informed leader.
Great leaders know that times of tumult, uncertainty and confusion are tremendous opportunities for a leader to impact team culture. Through the tempest great leaders remain calm, collected and respectful. They bring calm out of chaos and, in doing so, build enormous trust.
Leadership lesson: Handling bad news.
When bad news comes, take a breath.
Don’t ‘shoot the messenger’.
Thank the messenger for the news. Further, ask them to thank whoever broke the news to them.
Remember: These are tremendous opportunities to create trust. Maintain your composure, you’ll create trust. React with anger, you’ll create fear. A culture of fear breeds unwise decisions.