There is nothing like tumultuous times to see how Leaders respond, and there has been nothing exactly like this situation before. I am sure there will be lots of advice floating around: articles and ‘expertise’ on what to do, from investors, thought-leaders and multiple-time CEOs. But it’s worth remembering that this is a unique situation for them as well, so maybe it isn’t a time to learn from the past. Should we really be taking old, fear-based advice like ‘Cut Now, Cut Fast, Cut Deep’? (which I have already read in a few articles.) I guess it depends if the business was already struggling or badly run – though perhaps, instead, it’s the right moment for a different type of leadership to take centre-stage.
What we really need at times like this is a Conscious Leader – someone with great emotional intelligence, who is able to stay resilient and is ready to learn, who is open to ideas, decisive and can adapt fast to change according to what is needed. They will need to be clear on expectations, and then trust that their teams will get on with it, and they will need to listen hard to the rumblings of motivation and commitment. Leaders will also need to be present in a way that they have never had to be before: most leaders are reporting that, rather than getting quieter, the work is more intense and the hours longer. Day after day, they get face-to-face online with a higher cadence, before, during and after “work” hours; day after day, they focus on supporting their employees, keeping cash flow, managing customer relationships, and dealing with emergencies – all while trying to come to terms with the dramatic change in circumstances, the need to keep their loved ones safe, and wondering, like the rest of us, what the future will bring.
Of course, leaders are as diverse as their businesses are, so there are no right answers. However, there are some things that all leaders can do to be more “conscious” and to ensure that they will come out of this having done the best they can for the people they lead, and also for themselves by maximising personal growth and learning. In order to do that, they need to make decisions in the current context, one that is unique and painful in lots of ways, but which will form the foundation for their business, their leadership style, and their reputation in the longer term.
I have the pleasure of working with a wide variety of leaders and am witnessing everyday examples of the journeys they are taking:
One leader is extremely values-driven and wanted to help with the current problem, encouraging his teams to focus on purpose-driven work. He contacted the World Health Organisation and engaged his development organisation in the hackathons that are solving real problems e.g. How do we share knowledge about where equipment is being held and that can be moved? How do we make better queue systems at pharmacies and supermarkets? Other companies are working with the US government and the NHS offering the same incredible intelligence from within their teams.
Another leader is head of claims’ response at an insurance company. With current travel restrictions, the team has never been busier and she has been posting a fun, daily video singing karaoke whilst handwashing and doing shout-outs to her team to make them laugh and feel appreciated -while they deal with an overwhelming demand from all of us lot! This might feel lighthearted as she is also involved in the serious business challenges of all organisations right now – but she is inspiring her team whilst creating a positive impact and a broader brand for herself and her business.
The decisions that are going to have to be made around costs for many businesses are being considered and explored too. One leader talked me through his steps which includes full transparency to his organisation globally rather than decisions behind locked doors. His 7-step plan is below. This is the sign of a leader who is looking at the long game and getting clear on options rather than knee-jerk reacting.
Phases of cost saving
- Company Discretionary Spend
- Freelancers reduce (as they are tied to clients)
- Government funding loans and government schemes such as Furlough (protected time off)
- Existing Investor Support
- Voluntary temporary Salary cuts for VP and above
- Voluntary time off/reduced hours
- Redundancies
Sadly, another EMEA leader was directed by his CEO, with 4 days’ notice, to cut 20% of his workforce with immediate effect. It was obviously devastating for his people and for him, especially as he spent the last year on a fast and aggressive hiring curve to support predicted business growth. He demonstrated his true self, deciding to lead every conversation, showing those people the empathy and respect they deserved, and being humbled by many of the brave responses; these are the tough days of leadership but they give the most powerful learnings.
The business world drives our economy and those who lead are a precious and powerful resource. They are also in captivity, with their own families and lives to worry about, and with all those they feel responsible for. Leaders in all sectors are having to think differently, think about their future business model, and about how to utilise today’s competencies or people differently. This is a time to learn new habits and new ways of being as leaders in the 21st century. That the world will be changed by Covid19 is a fact, and the lessons we can take forwards are a choice which will define the leaders we are now and the leaders we become.
Nikki Watkins
“Leadership is an Opportunity. Leadership is a Commitment. It is a sacrifice. It is a sacred trust between you and these people. It is your pledge to help them become the people they are capable of being.”
CEO, Vancouver BI Company
This article was first published on Nikki’s LinkedIn page on April 2nd 2020.
