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Leading through a crisis: advice for Barack Obama and all managers 05/10/2009

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Managing the workforce

No matter how smart, experienced, powerful, or popular, no single world leader – or even group of world leaders – is going to pull us successfully through the growing global crisis. Much of the work ahead – most of the heavy lifting – will fall squarely on the shoulders of managers and executives who must daily make seeming mundane but often crucial decisions that will impact the future of not only their companies, but also the hundreds of thousands of employees they lead.

Leading through a crisis: advice for Barack Obama and all managers

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Weathering these turbulent waters
You need to take action
1. They create clarity in the face of chaos
2. They are the voice of ‘realistic optimism’
3. They are proactive, not reactive
4. They are receptive to new approaches and ideas
5. They turn from isolation to collaboration
6. They have a unique sense of their role
7. They never abdicate responsibility
Rising to the occasion

Weathering these turbulent waters

One might think, given all the media attention, that Barack Obama is the last great hope to save the world from its current economic ills. One might also think that next US President doesn’t have a clue how to go about it: Every time you open a newspaper or turn on the television, someone is offering yet another piece of sage advice on what he should do, so how can business leaders on the front lines on the battle regain economic stability, leaders most of whom have never faced a crisis of this magnitude, and effectively help their organisations weather these turbulent waters?

By taking exactly the same approach that presidents and prime ministers – most of whom also have never faced a crisis of this magnitude – must take.

You need to take action

Based on more than 50 years of researching and working with outstanding leaders, we have found that during times of crisis and change, the most effective, be they heads of state, corporations, departments, or work groups, take a number of actions that set them apart from their less successful peers. Here follows seven.

1. They create clarity in the face of chaos

No matter how great the uncertainty, effective leaders create and communicate a clear vision that will carry their nations or organisations through the bad times. They create a narrative – a story – that will engage and energise those they are leading.

These narratives are far more than broad visions and platitudes. While not in “the weeds,” they provide the level of detail and focus that people can understand, support, and follow. Obama’s ability to generate such a compelling vision was an important factor in his election, especially after eight years of a story line that was at its best disjointed and muddled.

2. They are the voice of ‘realistic optimism’

The Bush Administration’s story line, especially after 9-11, also was primarily one of divisiveness and fear. Such an extreme slant may be necessary, one could argue, when survival is at stake, and the barbarians are banging away at the gates. But over time, this Chicken Little perspective tends to paralyse and anaesthetise instead of energise.

The most effective leaders during crises – Winston Churchill comes to mind, offer both realism and optimism. They don’t shy away from the truth, but neither do they motivate with fear and threats.

3. They are proactive, not reactive

Time, of course, will provide the proof, but right now, as the new President assembles his administration, there is a sense of quiet, determined purpose and direction that has created an atmosphere of calm and hope in a problematic landscape that’s changing daily.

As most of us know from the much smaller crises we’ve managed through, it’s hard to stay proactive and forward-focused, when everyone around you, including your bosses and shareholders, are clamoring for immediate Results. But such an approach is critical if you are to not just survive, but sustain performance so that once the storm has passed, you’re in position to grow again.

4. They are receptive to new approaches and ideas

The best leaders during times of conflict, be they presidents or front-line supervisors, are resolute but not rigid. The current US President has struggled not so much because he sees himself as the decider, but because of his dearth of intellectual curiosity through we can develop good decisions. Effective leaders never lose their lust for knowledge.

They continually learn – and grow – as they lead: they are curious, seek out new ideas and information, and act on that newly acquired knowledge. They also are empathetic, listening objectively to other voices and perspectives. We are not suggesting impulsiveness such as John McCain frequently exhibited during his campaign, but inquisitiveness balanced with a healthy dose of scepticism and reason.

5. They turn from isolation to collaboration

When frightened or threatened, it’s only natural to want to dig in, hunker down, and defend one’s turf. But good leaders resist that temptation, and reach out – across the Aisle or the organisation – for support and help.

They engage teams of bright, capable individuals to help them lead. Abraham Lincoln brought the United States through a civil war with a cabinet of rivals that at best was cranky and contentious. His role, which he performed flawlessly, was to channel and focus those diverse ideas and energies.

Obama appears to be following a similar approach. Even in the infancy of his administration, when the taste of victory is still clearly on his lips, he has carefully avoided any hint of self-aggrandizing, chest-thumping “victory dances” and instead wisely chosen a path of unity and collaboration. His adamant support of Joe Lieberman, despite cries of many supporters to disown his fellow-Democrat-turned-“Independent” was just such a move.

6. They have a unique sense of their role

To succeed during a crisis, leaders must often change their approaches – sometimes quite radically. The best, be they world leaders or entry-level supervisors, quickly grasp the changing nature of their role, and adapt their approach as necessary to more effectively build strong relationships and engage and motivate those they lead. Rather than staying the course, clinging to old habits in which they find comfort and security, they develop a new persona fitting the role in which they suddenly find themselves.

Such a metamorphism is now being played out on a world stage as Barack Obama transforms himself from Barack the candidate, a role in which he’s proved highly successful, to Barack the President of the United States. But such a change is no less challenging or critical for managers and executives if they are to effectively lead their organisations through the current hard times.

7. They never abdicate responsibility

As trite as it may sound, good leaders never turn tail and run. Nor do they resort to the finger-pointing and blame-games that have become popular of late in halls of governments and in the boardrooms of organisations around the world. Ultimately, they own the vision, they bring it to life and advance it in their own, unique voice, and in the end they take responsibility for its success or failure.

Rising to the occasion

Today, the hopes of a nation are riding on the success of its new leader. How effective he is in realising those hopes will be left for history to determine. In the meantime, as the media continues to follow his every move, and as the pundits continue to provide advice, those of us in seemingly more mundane and lesser leadership roles must turn to the business at hand: bringing our own organisations safely through these troubled times.

Although there may be no spotlights or microphone or teams of expert advisors, we too must rise to the occasion. After all, the hopes of our shareholders, customers and employees are riding on our success.