Leading During Troubled Times

In times of economic slowdown, leadership skills are more important than ever

Many companies have already been hurt by the global economic downturn. Markets are shifting priorities. Customers are postponing purchase decisions. Productivity has suffered, in part because many employees' focus and motivation have waned. Decision makers are harder to reach and not always in the best frame of mind. Leaders themselves, meanwhile, suffer the same emotions and anxieties that everyone else does.

A few core principles can help your company's leaders navigate these troubled times.

Stay focused

Helping individuals maintain focus is critical to any organisation's success. Employees need to be reminded of the organisation's shared vision, mission and values. By focusing on common beliefs and the future, leaders can engender a renewed sense of commitment to the customer and the organisation. Instead of looking at losses, employees can focus on the shared tasks at hand.

Communicate often

Employees must feel connected to their leaders. There should be frequent communication about what has and hasn't changed in the organisation. Providing employees with regular progress updates and celebrating even small victories will help keep everyone engaged.

In fact, try to "overcommunicate." Clear, consistent messages from the company's leaders eases employee and management tensions and uncertainties and makes for a renewed sense of belonging.

Motivate

Successful organisations expend a lot of energy attracting, developing and retaining talent. Keeping your employees motivated, energised and committed should be a continual goal. Managers and leaders should ensure that employees remember their contributions to the company's goals and their devotion to customer satisfaction.

Take the initiative

People become leaders when they have learned how to prepare to meet opportunities and threats. Have your employees take personal responsibility for helping the company succeed.

Lessons worth repeating

"Those who cannot remember the past are condemned to repeat it." So said philosopher George Santayana. The business lessons of the 1980s and '90s are well documented, if not still fresh in the memory. Maybe it's time to revisit them.

Prepare for the next wave of prosperity: When recession in the early 1990s forced organisations to re-examine themselves, many companies moved toward greater focus on the customer than on the product. The paradigm shift occurred throughout corporations, with a strong impact on sales, services and marketing. When prosperity returned, these companies were better positioned to meet customers' needs.

Leadership training creates a competitive advantage: From a training perspective, organisations learned important lessons from over-cutting budgets during previous recessions. Rather than slash costs across the board, leading companies chose to maintain (and in some cases increase) their commitment to training.

Learn from the best

A famous example is General Electric's change acceleration process (CAP) initiative. The new program concentrates on Jack Welch's time-honoured, value-based approach to leadership. The value-based-leadership concept holds that if certain values are shared, the bond between employees will be stronger and more effective than if employees simply follow commands. General Electric sees value-based leadership as the key link between strategy and operational effectiveness, the element that will bring inherent speed and consistency to strategy implementation. Welch considers leadership development his company's most important priority.

The future of leadership

Ronald Heifetz, director of the Leadership Education Project atHarvardUniversity's John F. Kennedy School of Government, says, "The rules of business are changing, which means that the job of the leaders is changing. What will it take to be a leader in the future? [It will take] the courage to face reality, the humility to admit that you don't have all the answers, and the commitment to make changes. The new role is to help people face reality and to mobilise them to make changes."

What do corporations value the most in their top leaders? In order of importance, they value communication skills, the ability to manage change, strategic vision, and the ability to develop others. The biggest issues that most organisations need to address: communication skills, employee development, and the managing of change.

Smart leaders don't take a wait and-see attitude. They pursue long-term prosperity and realise that although many factors are beyond their control, there are always areas of the company that can be improved.

What can you do now?

Hone all employees' leadership skills: When things go awry or a crisis unfolds, the natural tendency is to pass the buck and to trust the higher-ups in the company. Employees look to their leaders for direction, vision, stability and support. A determined leader keeps employees moving forward and believing in themselves.

Use teamwork to respond more quickly to customers' needs: Your company's structure has to be flexible to please customers. Everyone should in some way make a unique contribution as a leader. No matter the job, employees should be encouraged to look at the big picture and to adapt whenever necessary. Prosperity lies in taking initiative.

1) This article is a follow-up to the BPCC workshop What Does it Take to be a Leader? organised in association with AchieveGlobal Learning Systems on March 6. The next workshops in the Energising series include Stress Management and Coaching.

2) Bibliography Today's Corporate Executive Leadership Programs:
Building for the Future, Journal of Leadership Studies, June 22, 1999, pgs 5-6
Lessons for Leaders, Fast Company, June 1999, pgs 130-131
Leadership in the 21st Century, Training, September 2001