Leading
in Times of Chaos
By Dr. Karine Schomer, President, CMCT
Uncertain
markets, shaky business performance, layoffs, bankruptcies and pervasive
uneasiness are the new business realities - along with the disruptions
of the new globalization, growing economic disparities, the U.S. economic
downturn and the paradigm-jolting shock of September 11.
At
the same time, new realities are emerging from these circumstances.
Concepts such as remote services, information security, bio-informatics,
Web services, network storage, Web-based distance learning and the expansion
of wireless technology all pose the challenge of redirecting core competencies,
remaking organizations and redesigning work. This, too, creates uncertainty,
pressure and the need to lead and manage far-reaching change.
Most
companies today face four major overlapping challenges: (1) How to survive
the current slowdown while at the same time preparing for future recovery
and growth? (2) How to focus on the essential products, services and
markets that will take the company forward? (3) How to gain competitiveness
through even more operational efficiencies? (4) How to lead and inspire
employees who have good reason to be fearful about their job security?
In
times such as these, business survival and success requires leaders
who can see beyond the problems of today, articulate a credible vision
of the future, and act on strategic challenges.
It takes managers who can mobilize the energies and commitment of their
people to work effectively on changing priorities.
It
takes resilient employees who are able to remain positive, focused and
flexible in the face of uncertainty, who are trained for the new demands
they need to meet, and who are rewarded for taking initiative and risks
on behalf of the company's success.
It
takes organizational cultures that are nimble, change-oriented and optimistic.
Case
in point: the rapid transformation of Silicon Valley-based Novalux,
a semiconductor company that promised to revolutionize long-haul optical
networks for telecommunications. Heavily backed by venture capital and
invested in fabrication facilities, Novalux found its whole target market
drying up before production even began. Survival took a series of dramatic
and nimble moves which changed everything: the company's product (change
to lower-powered lasers for local networks), its business strategy (lower-cost
technology rather than power), its operations (accountability, discipline,
focus), its workforce size and work processes, its chief executive (change
to someone with telecommunications experience and contacts) and its
organizational culture (from a research organization into a commercial
enterprise).
Faced
with the need to initiate such changes or drive them through into an
organization, leaders and managers (at all levels) can follow certain
guiding principles that will help them succeed against the odds:
- Start
with the assumption that rapid change is a fact of business life,
and focus on how you can continuously direct your resources and energies
to meeting new adaptive challenges.
- Cultivate
your personal resilience. Use all the help you can get to make your
own leadership and management as effective and possible. Seek expert
advice. Cultivate confidants and allies.
- Even
in the thick of immediate pressures and crises, keep your focus on
the future and the larger purposes and values you are serving.
- Develop
an effective leadership team to work with you. Don't try to be the
solitary hero.
- Push
leadership and responsibility down into your organization. Give your
people the training they need and help them develop their own leadership
abilities.
- Tell
your people what is going on - the bad news as well as the good news.
Seek their input and recommendations on significant matters. Create
a motivating environment that invites them to share ownership of your
organization's challenges and goals.
- Be a
rigorous diagnostician of the issues, processes and cultural habits
of your organization that may bet in the way of your ability to change.
Press courageously for addressing these, even at the cost of internal
conflict.
- Use
strategies such as: an organizational change readiness assessment,
a change management team facilitated by outside assistance, leadership
coaching for your executive team, and a transparent two-way employee
communications program.
Leading
and managing in times of chaos is not for the faint-hearted leader,
the casual "Brand X" manager, or the dysfunctional executive
team. It requires a heightened ability to work with and through people
to achieve results.
© 2002 Karine Schomer. All Rights Reserved. Originally published in Siliconindia,
March 2002.
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Management Consulting & Training, LLC
229 Carmel Avenue . El Cerrito, CA
94530, USA . Tel: 510/525-9222
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