Leadership During Turbulence

The economy is in peril. The fear is real. Uncertainty is everywhere. The bailout is stalled. Congress is gridlocked. Companies are ramping down. Orders are down. Sales are way down. Costs are rising. Firings and layoffs seem likely. Projects are being delayed or cancelled. Could things get any worse?

Now is the time to plan your rebound. This is no time to panic. There is no time to panic. I have some things for you to consider as you lead yourself and others through times that many anticipate are the worst since the Great Depression.

Here are some excerpts from an article that I wrote soon after the 9/11 tragedy that still apply.

Leadership During Turbulence


The business landscape is changing by the hour. Companies are no longer just working to achieve profitability, they are now struggling for survival. Most executives talk of being in crisis. Sales and revenue are predicted to plummeted as consumer spending is drastically curtailed. Business activity has already taken a severe hit. Capital investments and large-scale projects will be or have been postponed or canceled. Workers are being laid off. Despite our lack of confidence and trust, all eyes are focused on our leaders and their ability to guide us out of the chaos. Thus far, no one has seemed to step up effectively.


Leadership is About Character


Through me coaching with numerous leaders and executives, we have found that crisis or not, leadership is about character. Leadership must be displayed at all levels of any organization. Success is preceded as well as sustained by strong leadership character. We know that leadership character is based on a foundation of integrity and accountability. A successful leader must balance both sides of the scale.


The New Scorecard: Leadership’s Top Ten


1. Emotional Resilience


Both Franklin Roosevelt and Winston Churchill were able to hold the Allied forces together through World War II through their ability to persevere and withstand. Leaders, as well as the organization, must display this same type of emotional resilience. Immediate results or mixed reviews from internal or external critics can be difficult to swallow. A great leader must stand without wavering or communicating a lack of confidence. The great leader is able to ensure that the organization can bounce back from bad news. He or she must not only be a cheerleader but must also be willing to ensure that expectations are not too high or too low.


2. Mobilization of Talent


Once a crisis is upon a great leader, special attention must be paid to the mobilization of talent. Though one may have an executive team in place, it must be determined which key individuals and key roles will be necessary to get through the crisis. Two teams may need to be formed: one to focus on day-to-day operations critical to running the business, and one to focus on the crisis management issues that re-define or change the business. Moreover, a successful team fully understands and embraces the mission. Team members must be fully motivated to deal with change and be fully prepared to shift at a moment’s notice. Having the right people eliminates the need to motivate them and hold them accountable. They hold themselves accountable. Once the crisis teams are in place, the leaders must be willing to delegate and allow others to do work, perhaps including that which is not normally assigned to them.


3. Energizing Others


Obviously, the fundamental ongoing task in times of crisis is that of energizing others. Team building takes on a new meaning. A strong emphasis must be placed on working together, displaying teamwork, setting aside differences and petty conflicts and sacrificing individual goals for the good of the whole. People must think collectively and understand how their work impacts and interconnects with others. Crises involve taking people beyond what they think they are capable of attaining. During difficult times, energizing others can take on special significance. Crises can quickly deplete the organization of spirit and inspiration. Some people want to react quickly, while others take time to react. Leaders must provide people with inspiration as well as direction. Move too quickly and the target may be missed, move too slowly and momentum may be lost forever.


4. Anticipating More Change


Of course, the most important time to prepare for crises is during times of normalcy. The ability to anticipate change can make or break an organization. Fighting and mastering panic and paralysis can ensure that one business thrives while another struggles. Building a leadership team that can avert a crisis through preparation and prevention is a must. Leaders must be flexible, creative and capable of fostering creativity and innovation with an eye toward the future. "Business as usual" is not an option.


5. Communication


Successful leadership involves instilling confidence through communication in the organization. This involves a broad range of communication skills used in a continuous, consistent fashion. Slow memos requesting authorization and traditional chain of command processes will not work. Communication must be more direct, informal and impromptu. The organization needs people going straight to those who can fix problems or offer effective solutions. Whatever communication tools are used, people must believe that things will be controlled and that chaos will be quickly eliminated.


Likewise, the membership of the organization must also believe in the leadership team and their ability to manage the crisis at hand. The leader must maximize credibility, believability and integrity. What is communicated to the organization must address key constituencies about status, on-going progress, and plans for the future. There must be a willingness to hold regular briefings and updates to ensure that the workforce understands what is going on, can ask questions, can clarify issues and, ultimately, can support what is being done.


6. Front Line Presence


This is no time to hide. To support their communication, leaders must maintain a "front line presence" and responsiveness to underscore their control, command and commitment to seeing the crisis through. We are not talking about proverbial "face time". We are talking about real visibility and real work. The leadership team as well as the workforce must be able to see, smell, hear, feel and taste leadership.


7. Clear Purpose and Mission


It must be plain to the organization that there is a clear purpose and mission. The mission must be meaningful. The good leader must carefully construct goals to ensure understanding of the results to be obtained. Nothing is gained, however, by taking a "ready, fire, aim" approach. Responding too quickly with an ineffective action plan can soon destroy the confidence and support needed for the long haul. The plan must be specific, concrete, realistic, measurable and attainable. The mission must have an objective around which people can rally and a destination.


8. Decisiveness


Crisis leadership requires decisiveness. Many leaders have failed at this crucial juncture. Critical decisions must be made that could bring risk to the organization. These risks must be weighed accurately. The risks themselves must not paralyze the leader or the organization. Crises often increase the level of risk and create more unknowns as was the case in the Cuban Missile Crisis. President John Kennedy is considered to have prevented a major military conflict with Russia through his decisive handing of the situation.


A leader can not ignore his team. A leader must have the right people, as well as be able to quickly decipher information to determine the right course of action. With the input and advice of his team, leaders must choose options as presented, often based on incomplete or unavailable information. Frequently, crises have no real precedent. Leaders must be able to take risks and make decisions without the luxury of having seen the given scenario before.


9. Taking the Long View


Decisions must be made with the proper perspective. All great leaders are defined by history. Greatness is measured over time. Decisions must be made by taking the long view. Leaders must keep an eye on the overall mission of the organization and what is best for the long-term sustainability of the enterprise. Speed, creativity and innovation must be balanced with an understanding of the future possibilities and implication of any action or set of actions. Leaders must be willing to ensure that their perspective maintains a broad, strategic view. Emotions that can energize or mobilize in the early stages of a crisis must not drive decisions during later stages.


Long-term strategy can be difficult to support. Not only does a leader in crisis need to help the workforce with getting beyond the initial shock of the crisis, a leader must also be able to keep resolve high over time. Early failures and setbacks can erode confidence in the mission. A leaders’ role must include helping the organization down the long road ahead.


10. Execution and Delivery


Finally, crises require execution and delivery. Crises are often defined by the initial stages involving survival and immediate danger. Once the clear and present danger is over, individuals and organizations may breathe more easily. Often, the crisis is not really over. Leaders must understand that the mission that was so clear at the beginning of the crisis can be blurred. Leaders must do all that they can to ensure that the sense of urgency is not lost and that the eye on the initial goals and objectives is maintained. The goals must be restated again and again.

Conclusion: Taking Business Off Hold


As a nation, we may never be the same again. The landscape has changed dramatically. There is no road map. We have not been here before. Leaders must be realistic with themselves as well as others about what it takes to be successful. Crises require an acknowledgment that things will change and then change again. Organizations that survive and then thrive understand that panic, paralysis, and complacency can be deadly. The real leadership challenge is to ensure that organizations can deal with change after the fact, but can also predict, anticipate and prepare for change. Leadership requires more skill than ever before. There is no time to lose. Businesses will stand or fall on the ability of their leadership to meet the challenge.


Best wishes.