LEADERSHIP: IN DRASTIC ECONOMIC TIMES

Let's start with two fundamentals. First, what's the only thing a leader must have? Yes, followers! People willing and committed to do what's needed. Second, how are people feeling these days? Happy and assured? Not the ones I know. More like: frightened for their jobs; concerned about mortgages; worried for parents about to retire. So, how do you need to lead, if you want these people to follow?

In a report, I recently read this: "the last few months have shifted our focus to business topics like strategy/tactics, finance/cash flow, sales, marketing, innovation, etc. The demand for leadership development is not where it was last year."  In one sense, that's correct.  Survival comes first.  But, in another, I think it misses a fundamental aspect of what goes on in a crisis.

Is it just about "strategy/tactics, finance/cash flow, sales, marketing, etc"?  Probably not.  And, for two reasons.  First, this choice ignores what people need, as opposed to what the business needs.  Second, if they're distracted by personal concerns, they'll be less available for what you need them to do about the strategic, financial and other challenges.  Remember: more effective leadership impacts and improves EVERY business function.

In all parts of the cycle, leaders have to focus on both the "hard" issues of markets and technical matters but also the so-called "soft" ones of people and culture.  And, stopping leadership development (when leadership is most critically needed) is a serious risk.

So, why do people let leadership development slip?  The main reason I've observed, is they see leadership development too narrowly: first, as only about people and culture; and second, in relation to these priorities, mostly about recalibrating sensitivities.

In fact, leadership development (like product or sales development) is about working out everything that needs achieving and making a plan.  In this case, a Leadership Action Plan with specific commitments – the what, the who and the when.  Not a list of high-minded aspirations.  Sadly, most leadership tools only evaluate and don't plan.  And, they forget "hard" issues are also important.  A leader's competence in commercial, technical and operational matters is often central to his or her credibility with followers.

Things have changed recently but that goes for the whole of leadership – the "business" parts and the "human".  And, the most critical "development" is working out (in each area) what you, as the leader, are going to do.  And thereby align and energise your people to do the rest.  That way, fears notwithstanding, they'll be inspired to engage their skills and resources to deliver what's needed.  Not just to survive through the trough but get ahead – and also prosper into the upswing, when it comes.

Categories for this Potshot:

GFC Potshots

Did you enjoy this article?

Subscribe to RSS feed