Learning Consultancy Partnership
In This Issue
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CIPD Event
Leading in a downturn
Raising the Leadership Bar
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LCP Newsletter
Greetings!

 

Leading an organisation through an economic downturn is tough.  In the last two years much of the leadership research and thinking has focused on the skills and competencies leaders now need to help their companies survive and prosper in this harsh climate.

 
In this month's newsletter we will review some of the views of leading thinkers on leadership and uncertainty and consider what organisations can do to support their leadership teams.
 
CEOLeading in a downturn
 
Leadership in good times is hard enough but directing and supporting others through the uncertainty and ambiguity of this worldwide recession is even more demanding.
 
Many argue that to meet the challenge successfully, leaders need to develop a different set of skills and competencies from those needed during periods of sustained, economic growth.
 
For example, Mitchell and Wellins (Development Dimensions International) argue that during periods of growth leaders need to be bold risk takers and also be willing to experiment. Whereas in a downturn the focus needs to shift to operational control and the ability to balance conflicting demands.  
 
"Moreover, leaders who were successful at driving growth may be less effective deploying a different set of skills and personal attributes that are important in a crisis or downturn".
  
In many sectors the operational climate is now characterised by:
 
  • weak growth
  • budget cuts
  • greater and more aggressive competition
  • increased ambiguity
  • contracting markets
  • downsizing
  • slump in consumer spending
Leaders today are therefore facing dramatically different challenges than those of the previous decade; for many, the focus has changed from profitable growth to long-term survival.  The airline and car manufacturing industries being examples.
 
Linda Holbeche, Director of Research and Policy at the Chartered Institute of Personnel and Development (CIPD), believes that in times of change and uncertainty employees look for more direction and focus. She also argues that the management population is key for employee performance and retention so continued investment in their development is crucial.
 
"I suggest that maintaining and even growing the investment in developing leaders will produce significant payback and enable organisations to build differentiation and competitive advantage".
 
In a downturn companies need their leaders to be more effective than ever but often they are left unsupported and struggling with reduced budgets and fewer resources.
 
Uncertainty creates anxiety and stress and leaders also have to cope with emotional demands from their team members.
 
Some of the challenges leaders now face include:
  • Tighter operational controls including costs, accountability, tracking and measures
  • Rapidly changing conditions resulting in faster decision making, increased monitoring and greater flexibility
  • Preparing for the upturn by quickly identifying opportunities and promoting innovation
  • Remaining calm and focused in turbulent times
  • Building trust and hope through open and honest communication
  • Developing and retaining talent by empowering and engaging others

To find out more and read  Linda's paper on 'Developing leaders for uncertain times' click here 

 
high jumpRaising the leadership bar
 

Our first article explores some of the challenges leaders are facing and considers the idea that leaders, at all levels, may need to develop different skills and personal attributes to successfully manage the challenges ahead.

In their 'Global Leadership Forecast 2008/2009' Howard and Wellins (2008) found that 75% of executives identified improving leadership talent as a top business priority.
 
In our own surveys conducted in 2007 and 2009 leadership development was highly rated as one of the top three priorities for the coming year.
 
However, their study also found that confidence in leaders has declined steadily and only 41% of leaders were satisfied with the leadership development opportunities offered to them by their organisations.
 
Factors reported as most likely to cause leaders to fail were deficiencies in interpersonal and leadership skills rather than experience and role specific knowledge.
 
So what can organisations and human resources do to address the gaps?
 
Here are some of our ideas based on our own experience and the research we've reviewed.
 
Develop or review the critical leadership competencies for your organisation which are relevant to the skills, attributes and behaviours needed by your leadership team, both now and in the future.
 
Review your leadership development activities are they still hitting the mark?  Does your organisation need to change the methods used to make development activities more targeted to the current operating conditions?
 
Align leadership development to your strategic plan.  For example, do you need your leaders to focus on innovation and growth or operational control and process improvement?
 
Build a leadership pipeline and target your development at each stage of transition.  Identify high potentials early and accelerate their development.  Provide the right support at the right time during major transitions from one level of leadership to the next.
 
Raise leaders' self-awareness and help them to identify the traits and personal attributes that help or hinder their progress.  Help them to clearly understand how they need to operate differently to deal with the changing conditions.
 
Change the focus of leadership development from the generic to the specific by focusing on the areas that are absolutely critical for business success.  Address the top priorities and tackle real organisational issues, for example through the use of project teams or learning sets.
 
Continue to develop leaders' interpersonal skills and emotional intelligence.
 
Review measures of leadership success to ensure they are still relevant to operational performance and the strategic plan.
 
This difficult climate will not last forever and it is important to develop the appropriate leadership talent now so that when the upturn does come you are ahead of the pack.
 
Our consultants and coaches have a wealth of experience helping leaders at all stages of their careers and if you would like a no obligation meeting to discuss your requirements please contact us.  
 
Learning Consultancy Partnership provides bespoke coaching and development solutions to meet the specific needs across all levels of an organisation.
 
To find out more, please visit our website at http://www.lcp.org.uk.