Wednesday, July 1, 2009

Leadership in tough times - should it be different?

There are a number of articles recently that expound the theory that the current global meltdown requires new leadership at company level. What does this imply, that the current leadership was inadequate? Then who is to blame? Is this a valid argument?

I do believe that different management styles are required dependent on the maturity of the organisation, but this does not mean that the same management mentality must be pervasive throughout the organisation. You need to have a situation where a portion of the executive team tends toward a level 6 management style with an even balance through the rest.

Some need to innovate, some need to strategise, some need to be conservative, some need to be pragmatic and so forth. Irrespective of the economy, the organisation needs to remain sustainable and deliver to shareholder expectations. A good leader recognises this and guides and balances this team dynamic.

Why the sudden focus on cost optimisation, working capital and cashflow management, the mad scramble for customer retention in the form of innovation and close relationship management etc etc . This is company management 101, and should always be applied and the benefits maximised. If this was not done automatically, then you have the wrong management.

When the markets tough, the above just becomes tougher, not something we suddenly wake up to do to "save" the company..

So, should leadership change? I think not. Just lead in the right direction. There is no such thing as a leader for War and a leader for Peace. Leadership transcends management style. Leaders show the way in tough times, and give the the glory to others when the going gets good. Its what we do.