The current economic crisis is not just another rough spell. Today's mix of urgency, high stakes, and uncertainty will continue even after the recession ends. The immediate crisis - which we will get through with policy makers' expert technical adjustments - sets the stage for a sustained, or even permanent, crisis, a relentless series of challenges no one has encountered before. Instead of hunkering down and relying on their familiar expertise to deal with the sustained crisis, people in positions of authority - whether they are CEO s or managers heading up a company initiative - must practice what the authors call adaptive leadership. They must, of course, tackle the underlying causes of the crisis, but they must also simultaneously make the changes that will allow their organizations to thrive in turbulent environments. Adaptive leadership is an improvisational and experimental art, requiring some new practices. Like Julie Gilbert, who overcame internal resistance to reorient Best Buy toward female purchasers, adaptive leaders get things done to meet today's challenges and then modify those things to thrive in tomorrow's world. They also embrace disequilibrium, using turbulence as an opportunity to build crucial new capacities, as Paul Levy did to rescue Beth Israel Deaconess Medical Center from a profound financial crisis. Finally, adaptive leaders, such as Egon Zehnder, the founder of an executive search firm, draw out the leadership skills that reside deep in the organization, recognizing the interdependence of all employees and mobilizing everyone to generate solutions.

In the four years since Rob Miranda became CEO of Growing Places, a provider of on-site child care for companies in the Midwestern United States, he has been a font of ideas. For instance, he set up rooms where moms can breastfeed their babies during breaks in the workday and put Webcams in classrooms so that parents can "visit" their children from their desks. As a result of Rob's entrepreneurial vision and operational savvy, the company has achieved profitable growth. The problem is that Rob tends to stick his foot in his mouth. Evan Breyer, the company's founder and chairman, hopes that Rob will learn to avoid making verbal gaffes; he even gets Rob to see a coach. But while Evan is wrapping up a facility tour for a potential corporate sponsor of a scholarship program, Rob makes an insensitive remark about breastfeeding in front of the visitors--among them, a reporter. Not surprisingly, the local paper runs a scathing editorial the next day. Several days later, during a conference presentation on preschool curricula, he does it again with a comment implying that teachers are lazy and unprepared. The result is more bad press and a meaningful dip in stock price. It's beginning to look as though Rob is not going to change, and many board members are talking ouster. Should Evan try to persuade the board to hang on to Rob? Commenting on this fictional case study in R0612A and R0612Z are Ronald A. Heifetz, a professor at Harvard's Kennedy School of Government; John H. Biggs, the former CEO of TIAA-CREF; Torie Clarke, a CNN analyst; and Roger Brown, a cofounder of Bright Horizons.

In the four years since Rob Miranda became CEO of Growing Places, a provider of on-site child care for companies in the Midwestern United States, he has been a font of ideas. For instance, he set up rooms where moms can breastfeed their babies during breaks in the workday and put Webcams in classrooms so that parents can "visit" their children from their desks. As a result of Rob's entrepreneurial vision and operational savvy, the company has achieved profitable growth. The problem is that Rob tends to stick his foot in his mouth. Evan Breyer, the company's founder and chairman, hopes that Rob will learn to avoid making verbal gaffes; he even gets Rob to see a coach. But while Evan is wrapping up a facility tour for a potential corporate sponsor of a scholarship program, Rob makes an insensitive remark about breastfeeding in front of the visitors--among them, a reporter. Not surprisingly, the local paper runs a scathing editorial the next day. Several days later, during a conference presentation on preschool curricula, he does it again with a comment implying that teachers are lazy and unprepared. The result is more bad press and a meaningful dip in stock price. It's beginning to look as though Rob is not going to change, and many board members are talking ouster. Should Evan try to persuade the board to hang on to Rob? Commenting on this fictional case study in R0612A and R0612Z are Ronald A. Heifetz, a professor at Harvard's Kennedy School of Government; John H. Biggs, the former CEO of TIAA-CREF; Torie Clarke, a CNN analyst; and Roger Brown, a cofounder of Bright Horizons.