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Jim Donald, one of the country’s leading experts on the Retail Sector, and a leader who has successfully led various world renowned retail companies has this to say about navigating through this tough economy:
The easy answer would be to go to There’s No Elevator To The Top and read pages 185-190..this is a perfect time for “my seven steps”…
However, in the same vein, I will summarize what the 7 steps can do.
We are in a very traumatic and turbulent time right now…much like a company is in when a new Chief Executive Officer is put in charge. So, why not take a page from the handbook of a new CEO who is taking over a company that is obviously in trouble. Let me explain.
Every CEO, on his/her first day, has a 100 day plan. This was done (at least in my case) to achieve the following objectives:
• To see as much of your company as you can
• Create a sense of urgency around the current set of opportunities or in this case the environment, and
• Be as visible to as many people as you can, communicating to all you can, the state of the company, your objectives, etc…
Never, in my history of retailing, have I seen the need to “act like you are brand new”. You have to dust off your 100 day plan, and communicate on a daily basis about what it is going to take to get through these tough times. After you complete your 100 day plan, you might have to do it again.
You can also read my speeches on these relevant topics at Leading Authorities. Two specific speeches, I believe are relevant to this economy
- Sailing Into The Wind and
- Leading from the Front Line
Michael Izza, the CEO of The Chartered Institute of Accountants in England and Wales (ICAEW), spoke with Martin Noakes on leadership in the context of the credit crunch who asked him the following questions:
Michael, the ICAEW’s mantra is “inspiring confidence in business” so I know you will have some interesting views on the subject.
Will the CEO’s job change after the dust has settled?
Michael: The first thing to say is that the crisis is not fixed just because Governments around the world have stepped in. When the dust does settle the long-term impact of the current economic situation will be wide reaching and long lasting.
In particular I think CEOs across the financial services sector will need to rethink their attitude towards risk as something that needs to be gripped strategically rather than just managed as part of the governance process. A major concern for me is that the bail out, necessary though is has been, sends a message to the market that certain Institutions are just too big and interdependent to be allowed to fail. What CEO under these conditions would not take a risk knowing that the tax payer will ultimately bail them out?
Ethics
I think we are going to see a tectonic shift in the way an organization is viewed by its stakeholders. Trust has been damaged and the popular media are baying for blood. The CEO of tomorrow will need to infuse a culture of absolute probity and deep rooted accountability. In my mind a stronger link will need to be fostered between executive remuneration and long-term shareholder return. New metrics such as ‘externalities’ will also become standard (e.g. the effect on the environment, CSR and extended stakeholder confidence – do my customers and suppliers really want to keep doing business with me?)
Confidence
It sounds obvious but when I talk to Government ministers, policy makers as well as wider market participants there are real concerns about leadership and the ability of the CEO to communicate and inspire. For sure, there is going to be a regulatory response to the crisis but building trust, especially across international boarders is going to be just as important as working within new governance frameworks. Leadership will be tested in the current climate in far more exacting ways than when the market is booming – this period will show us just who the great leaders really are (and they probably won’t be the obvious ones).
Fundamentals
Leadership is also about not being swayed in choppier waters. Let’s not forget the things that were important just a few days and weeks ago. Global warming, clean tech, as well as how best to remain competitive and be true to our vision and corporate goals. These issues are still as important and need our constant attention as part of the long term ‘survive and prosper’ strategy. This is certainly a defining moment however and some of the fundamental principles of running big business may be challenged. Take the system of ‘fair value’ for a business or an asset for example. Could this be replaced with a ‘management judgment’ philosophy? Perhaps so, provided that there is confidence in the personal ethics and integrity of the CEO – we should not forget the lessons of Enron
Good leaders will always be available to industry and commerce – its just that the game is changing!
As we continue to speak to executives from all industries about how one should lead during these troubled times, Cory Eaves shared his views with Marc Gasperino. Here’s what he had to say:
As Chief Technology Officer, what impact does this have on Misys? How should we respond in the short-term and long term? My view is that Misys needs to:
1. Focus on customers. In these times of crisis, it’s easy to get caught up in the internal challenges of meeting budgets, reorganizing teams, and analyzing markets. It is exactly the wrong place to focus. Instead, focus on helping customers respond to their quickly changing priorities. As our customers merge, acquire, or restructure, they need our systems, our expertise, and our world-wide network of partners even more. They need us to be responsive, flexible, and understanding. It may be hard to think beyond the crisis at hand today, but when things stabilize again, customers will remember the companies that helped them through it.
2. Reprioritize. As markets change quickly, we need to reprioritize and implement quickly. We have set up focused, short-term teams to look at our product roadmaps over the six to twelve months to bring forward the specific features and projects our customers need. For example, providing improved risk analysis and management products have suddenly become much more important than some of the architectural changes we were developing. Being agile and bringing these specific products to market will have a real impact helping our customers through this difficult time.
3. Think long-term. While it may sound a bit at odds with my prior point, I think it is also important to not lose sight of the long term. Even as we reprioritize, and possibly delay some long-term investments we are making in our products, we should not forget that this will eventually pass. When it does, the global trends driving technology, such as open source, software as a service, and service-oriented architectures, will still be the same macro trends driving innovation in the software industry. Customers will expect progress on all these fronts, so investment in these areas is still important, even through these difficult times.
These are uncertain times in the both the healthcare and financial markets we serve. I believe these ideas will help us grow our business, stay close to customers, and retain our key employees as we weather the storm.
