In times of crisis, one must manage the budget and control expenses. Yet, the damage in a crisis is not just to the balance sheet, but also to the well-being, confidence and soul of the firm.

Concentrating exclusively on the balance sheet means that one can lose track/touch with the formative intention and deep vision that actually drive and sustain a successful firm. Focusing only on function will ensure that you survive the crisis. Then what? Is it over yet? Despite all the headlines and government pronouncements about the “end of the recession,” many are not back to where they were with regard to personal income, confidence in their situation or certainty about their retirement. This may take longer than we thought. Perhaps the deeper crisis continues because there is such an obvious divide between the contrasting skills of Management and Leadership. (Perhaps this divide is less obvious than we thought…)

It’s one thing to cut the budget, reduce salaries, change the comp plan, put off acquiring the new servers and fix the roof – oh and forget the big vacation! It’s another thing entirely to communicate that all those actions were taken for good reason – because the economy is still in uproar and the systemic dishonesty and self dealing that gave rise to the problem (in spite of the dramatic rearrangement) haven’t been addressed. The eruption may be over, but we haven’t healed yet! The time for crisis management though, is coming to an end. Now is the time for visionary leaders to emerge, tend to the healing and reconstitute the founding vision.

Yo! You with the two hats! Put – down – the – balance – sheet. Put aside the Manager hat. Now it’s time for some major league Leadership. Your people need you…and they’re hard to catch. People connect with more media input than ever, and your connection to them is only one channel in their daily mix of web, TV, radio and the “Starbucks Melange.” So while you’ve been consumed with scanning the numbers and apportioning the loss to keep things stable, you may have forgotten that the most insidious problem of all is – doubt. People have begun to doubt that they’ll retire. They doubt the promises of far away famous politicians. They doubt their own ability to persevere. They doubt their managers, who don’t appear to know the whole truth. Management doesn’t handle or expunge doubt. But Leadership can do that – with a scoop of compassion.

The formula for multi-dimensional leadership:

• Survive! It’s a crisis! Handle the details, cut the budget and keep the game going. So much for the easy stuff.
• Heal! As you emerge from the fog, take time for the healing. This is anything but business as usual. There may be a few (hundred) conversations involved.
• Restore the vision! Reach for their hearts and minds. Help them regain their confidence and imagine a better future.
• Carve out some time for yourself. Leaders must heal too. Talking helps. Do you have a confidante?
• Now, ever so gently, go!

Maybe the real definition of “holistic leader” is one who manages the crisis while leading into the future.