Leading through the Crunch

18th October 2008

5 leadership principles to see you through the economic crisis

We live in testing times. Over the last 3 months we have gone from a seemingly benign credit squeeze to a full blown global crunch which has undermined confidence in the markets and cued a global recession. 3 months ago the effects of the squeeze was hitting some important financial institutions hard but there was seemingly little effect on the wider global economy. Oil was at record high prices, inflation was still rising and pundits were talking about a slow down rather than a recession. Following the demise of Lehman a few weeks ago there has been a domino collapse in confidence, government intervention to prop up the banking sector, dramatic losses on the stock market and talk of a long and deep global recession. News of job cuts and evidence of slowing demand are coming thick and fast. So finally we may all feel the impact of this crisis. The question of course is what will be the impact and how can we best navigate our way through? Here are 5 leadership principles which might just help...

1.Keep your head
The poem 'if' by Rudyard Kipling is a favourite of mine because it captures so much of what it takes to be a leader. One message from the poem is not to be seduced by what is going on around you. Have faith and trust your own judgement. Nothing is as good or bad as it at first seems... So don't let the news reports influence you too much. The experts change their minds on a daily basis.

2.Think ahead and take action
Think through what the credit crunch and tightening economic conditions could mean for your organisation and put in place a sensible strategy and action plan to respond.
'Wait and see' probably isn't good enough - but only you can tell.Use this as an opportunity to do things that will help you when the good times return. Maintain brand values at all costs - be more cost effective but do not dilute quality. Maintain and improve customer service - service excellence can make the difference when it comes to customer 'buy' decisions and feeds through directly to the bottom line.

3.Live by your values - even more
Don't change your code of business principles when things get tough. The values you 'action' delineate the person you are. Stay true to the person you want to be. Never be afraid to do the 'right thing' ... when one door closes another will open if you consistently follow your values.

4.Keep focused and moving forwards
Don't get distracted or discouraged. Draw on your determination to keep moving towards your goals. Maintain your belief - the world is an abundant place, there is enough for everyone. Try to let go of any sense of personal responsibility - you have an important part to play - but it is a 'part'.

5.Communicate with the people around you and draw on their resourcefulness
The people around you can be an amazing resource to draw on but you have to take them into your confidence. Be clear about the challenges and uncertainties. Be demanding - you can't get through on your own - everyone must step up to the plate. Keep communicating the vision and your conviction that there is a way forward.

All good wishes for the road ahead ...