Leadership in Times of Uncertainity
Leadership, even in the best of times, can distinguish how different countries, companies, institutions or even people build their destinies. In times of distress and uncertainty, leadership takes much more gigantic proportions and can be the single biggest determinant of whether and how we can weather the storm or capitulate under it. Uncertainty and distress can take many forms ranging from loss of public credibility (as it happened to the Australian cricket team post the sandpaper incidence in South Africa), financial challenges (as it happened to most economies and companies during the 2007/08 recession), independence struggles (like that of South Africa, India and many other nations), wars, competitive pressures on companies, or any other variants. The COVID 19 situation is unprecedented. If there was ever a time when we need strong and effective leadership, it is now. So what does effective leadership look like in these times of distress and uncertainty? I believe there are five key attributes that are a must have for leading effectively in turbulent and uncertain times. Understanding these may help us reflect on our leadership styles and tweak them, where required, to the demands of today’s uncertain environment.
1. Decisiveness for Bold Decisions
In times of uncertainty and distress, a lot of people, both in companies or countries, look for clarity of direction and knowing what they are expected to do. The look towards a guiding force to make sense of the vague patterns and guide them to security.
The leaders, even the greatest ones, do not have all the answers. They have, however, made an attempt to decipher (themselves and/ or through their network) the vague patters by connecting the dots. Further, and more importantly, they are decisive, basis thoroughly studying the limited information on offer, and are willing to take a stand. Decisiveness to take bold decisions is key as neither wars are won, nor companies resurrected, or for that matter health hazards contained, by sitting on the fence. It requires strong decisions backed by action.
There are numerous examples in human history that illustrate this. On the corporate side, there is Elon Musk, in the 21st century, who decisively believed in the future of electric cars, and was often ridiculed for doggedly putting a lot of his wealth at stake for it. Yet 15 years on, Tesla is ranked as the largest car manufacturer based on enterprise value. On the historical side as well there are countless examples of decisiveness from Mahatma Ghandi (who played a pivotal role in India’s independence through non-violence protests by channelizing people from the grass roots), to Martin Luther King Jr who championed the Civil Rights movement in the US.
2. Agility
Uncertainty demands that we stay agile, and be ready to pivot if the situation so demands. Agility should not be confused with being flippant where we keep changing tracks every so often. Equally, decisiveness should not be confused with stubbornness. Agility refers to continue monitoring the (uncertain) situation closely, and being open to changing plans, when required, to achieve the stated objectives. However, once we decide to change tracks, we go ahead full throttle and not with half-hearted efforts. Great leaders that embody this, have low or no egos, are vigilant and connected to how things are panning out on the ground, and therefore are willing and able to reassess the action plan.
China’s and South Korea’s handling of the COVID situation thus far, especially after the initial spread, has been a clear illustration of agility. The government took cognizance of their earlier stated action plan not working, and responded with agility to have a complete lockdown and large scale testing in several provinces. The result is that these two countries are now looking to (relatively) restart their economies as rest of the world is still embroiled in handling the COVID 19 spread. On the corporate side, the growth of a lot of modern day unicorns, such as Uber, has been in equal measure about meeting an unmet customer (experience) need as it has been about their agility in responding to the changing business environments across several countries. Uber within 9 years of its launch, has operations spanning 63 countries and 785 metropolitan areas with revenues of over $11.3 billion.
3. Communication (and Communication)
There are two key principles to effective leadership. First, communicate what you want to do, and two, communicate again what you want to do. Needless to say, that communication is key to effective leadership. In times of uncertainty, when there is ciaos all around, it is even more pivotal to ensure we focus on communicating effectively and often what we want as a desired action.
Any internet search on leadership or a book worth its salt on leadership highlights communication as one the essential tenets effective leadership. Great leaders leave nothing material to imagination and clearly articulate what they want people to do, why they want do it, how they want to do it. Another dimension of communication that is amplified in times of crisis is the timeliness of it. It is important to gauge when to communicate, how much to communicate and how often to communicate.
From Napoleon, who was famous for his ability to captivate audience, to Winston Churchill to Steve jobs great leaders have ensured they can mobilize people with their words. More than the grandeur, though it certainly helps, it is about being clear, authentic and repetitive messaging to drive home the desired action. In recent sport, Australian cricket offers another great example. The rise of Australian cricket back to glory, after the humiliation caused by the sandpapergate scandal in 2018, is built on the communication principles embedded by Justin Langer (their head coach). He worked with the team to define what they stand for, and reemphasizing every so often what was expected of them as a team from a behavioural standpoint.
As Lee Iacocca, the former Ford president, aptly said “You can have brilliant ideas, but if you can't get them across, your ideas won't get you anywhere.”
4. Realistically Optimistic
There is often a fine balance between being optimistic and realistic, especially in uncertain and turbulent times. However, it is necessary for a leader to be an optimist who looks at the glass half full rather than half empty. Equally, it is important for him/ her to stay realistic and acknowledge the situation on the ground in terms of risk and challenges that need to be factored in before decision making.
Stockdale paradox, made popular by author Jim Collins in his book Good to Great, explains this point eloquently. James Stockdale, a former US Vice Presidential candidate and one of the highest ranking Naval officials during the Vietnam war (who was captured and tortured for 7 years), explained this idea as the following: "You must never confuse faith that you will prevail in the end — which you can never afford to lose — with the discipline to confront the most brutal facts of your current reality, whatever they might be." It is about hoping for the best, but acknowledging and preparing for the worst.
Steve Jobs is probably one of the best examples of this in modern day corporate history. His career journey swayed from being ousted from Apple (a company he had co-founded) in 1985 to getting back as the CEO of Apple in 1997, post Apple’s acquisition of his firm NexT Inc. (that he had founded post ouster from Apple).
5. Lead from the Front to Bring People Together
What distinguishes great leaders from opinion leaders is action and being connected to the frontline. This is specifically important in uncertain times as people believe what they see and not just what they are told. Leading from the front builds credibility and trust much faster than anything else.
Great leaders need to be seen as leading from the front, whether it is for war planning or BCP, and not from the benches. Their action inspires others to get into motion much faster and stay committed to the plan. This concept is easy to misinterpret. Leading from the front does not necessarily mean getting involved in the minutest of the details (though sometimes it may be required), or doing everything yourself. However, it does mean staying connected to the action on the front end (through your troops), and building/ managing a process that enables you to balance knowing ‘enough detail’ with the time to look at the bigger picture. This is something that a lot of good managers often struggle with.
From Elon Musk to Steve Jobs to Mukesh Ambani, there are countless stories of how senior leaders of successful companies stay close to the frontlines, invest their energies in building the processes, and balance getting into the detail vs. looking at the big picture.
