Observation
“Time changes everything except something within us
which is always surprised by change.”
Thomas Hardy
A plummeting pound, collapsing markets, three prime ministers, the Red Roses still undefeated, my grandson starting to walk and my mother-in-law, sadly, moving into a dementia care home. It has been an eventful three months.
We have had to cancel holidays, build relationships with a whole new range of care home and medical professionals, engage with Financial Services companies on behalf of my in-laws, (care homes are not cheap!) and change our strategy on a property sale.
Similarly, my clients have had a sudden injection of adrenaline; readjusting future expectations, reducing their cost base, trying to sensibly plan for 2023, reassuring colleagues while also calling out the seriousness of the situation and at the same time still working out what a post pandemic world means.
Here are some of my observations:
Progress is not linear. Yesterday I bumped into a long-standing CEO acquaintance. She runs a large technology and services business focused on the public sector. During the first two years of Covid, growth was exponential driven by the need to work from home. She admitted that she had been lulled into a false sense of security believing that her clients had finally understood the strategic importance of technology. Now her clients are concerned about; tight budgets, job security including their own and do not have the in-house capability to shape a technology driven strategy. Not surprisingly the revenue of the technology and services business is plummeting. The CEO acknowledged that with hindsight she should have seen it coming but was busy coping with both the challenges of Covid and making the most of the sudden growth.
Financial Services customer service is truly horrible. This is based on my recent experience with half a dozen mass affluent providers – surely it should not take four physical visits to one high street institution to get a few thousand pounds transferred into another account of the same name and address? We are still waiting for the digital option! It also strikes me that when somebody does get it right, these companies risk annihilation.
Psychological Safety matters. It has evolved from a buzz word to fast becoming a major concern for any meaningful employer. The cost-of-living crisis, the challenges of working from home, the shortage of skilled labour, the breakdown of cultural norms and understanding of how ‘the organisation works’, the constant litany of ‘bad news’ and the uncertainty about future job security, have all added to the pressure. One definition of psychological safety is colleagues believing they will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes, and that they feel safe to take interpersonal risks. That sounds very relevant and current to me.
Boards are a pain. Over the past twenty years it has been rare for me to have a CEO coaching conversation without the Chair or board coming up as an issue. Sadly, my most common experience is that, at best, the board is seen as benign and at worst, toxic. Yet this is the very time when a supportive and informed board could be leaning into the existential questions many organisations face, providing air cover for a beleaguered CEO and Exec Team and using their wisdom to know when to stick or twist on key decisions like cost base, location, and strategy.
Listening is good but does not always generate a great answer. A client recently held an in person all hands meeting which was carefully planned, signposted early, communicated well and organised logistically so everybody could get to one of the key meetings. Despite all this, twenty percent of the eligible staff (they weren’t sick, on holiday or at key business meetings) just did not turn up. For another client, who employ thousands, over 40% of their colleagues have joined since the beginning of the pandemic. On the same day that I came across these statistics, a client was relating the tale of going into the swish new Goldman Sachs offices just off Fleet Street. He was blown away, not just by the amazing building but the buzz and the energy levels that were everywhere. As you probably know, Goldman’s have been heavily criticised for mandating everybody works in the office five days a week. I am not a big fan of the Goldman culture, but I can’t help thinking that with so much change going on, it is the leader’s responsibility to shape the working ecosystem, yes by listening to colleagues but by also doing the joined-up thinking and taking responsibility for the whole.
Challenge
“It’s work Jim, but not as we know it!”
Apparently, the quote this is based upon is from Star Trekkin by The Firm and was never actually uttered by Spock to Kirk. No matter, for me it perfectly sums up the challenge leaders are facing. Things have changed and leaders are having to struggle more than ever with:
Making sense of the context – it has never been more confusing.
Redefining purpose – as a minimum the organisation purpose needs reenergising for all the new people who have joined. I also suspect that for some organisations, the core need that they address will no longer be relevant and their purpose, therefore, has become out of date and needs a fundamental review.
Shaping the strategy – the opportunities and challenges faced are almost certainly rapidly changing. Technology will mean that many of the potential solutions will be radically different.
Having a robust business model and operation – which needs to cope with increasingly regular shocks.
Having a relevant way of working – which attracts and retains talent while at the same time delivering the level of performance required.
Reinforcing the culture – in a world where people are less able to learn from role models and expectations between generations are different.
Surviving the current pressures – whether they are cash flow, profit warnings, shortage of staff, political instability, supply chain issues, currency fluctuations etc, etc.
Building great leadership and management teams – who can lean into and deliver the above.
In 40 years of working life, I have never experienced such significant change. I believe it demands that leaders stand up and be counted by doing what they are fundamentally there to do ie:
“The role of the leader is to live the purpose, shape the vision and deliver the performance.”
Alistair Turner
So You Think You Are A Great Leader?
2004
Practical Action
Each client of mine is unique and there is no single cookie cutter leadership model which applies.
Nor is everything gloom and doom, I am convinced that every major change creates some sort of opportunity.
Having said this. I suspect that to survive and hopefully thrive, most leadership teams would currently benefit from doing the following:
Having a fundamental review of purpose & strategy – this may be a quick and dirty confirmation of your direction or a multiyear reflection on the meaning of life but in my view any leader who is not thinking about this is being shockingly complacent.
Creating a robust 2023 plan – which gives clarity and confidence based on priorities grounded in reality.
Reinventing the colleague proposition – everything from recruitment, reward and development to ‘the way we work’. The culture is changing, if you don’t shape it, something else will.
Focusing obsessively on delivery – but this can only be achieved through your leadership and management teams who will need educating, engaging, cajoling, directing, and supporting.
Shaping and constantly delivering a compelling narrative – which helps people make sense of their environment, gives them reasons to believe, directs their actions and clearly sets out expectations, rewards and consequences.
The leader needs to be all over this. They may delegate parts to a programme office or CFO or CPO but, certainly in my view, they need to be the one joining the dots, making the noise, hustling for delivery and role modelling the behaviours.
What a job!
What an opportunity!
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