Bruce A. Pasternack and James O’Toole [Archive.org URL]

When the yellow light is flashing, leaders tell us they face the widest range of strategic alternatives and have the most true decision-making power. (It may appear that leaders have more options when the light is green, but try making that argument to anyone who has attempted to make a fundamental change when the going is good.) And, although followers are more open to change when their backs are against the wall, leaders typically have few viable alternatives open to them during a crisis. In short, when the yellow light is flashing, leaders have as blank a strategic slate as they ever face, and the scope of their decision-making authority is as broad as it ever is. Times of uncertainty may be a harder test for a leader, but they are also a tremendous opportunity for those who make the right choices.

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