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Leadership in turbulent times

Monday, 5th May 2008

Carlos Ghosn, Mitt Romney, Stuart Rose: In troubled times, we need inspired leaders more than ever, suggests corporate turnaround specialist Anthony Holmes

Detailed planning, simple and measurable objectives, speedy execution, laser-like focus on the problems that need to be fixed in phase one to facilitate phase two and good internal communication, are the underlying principles of successful change. Taking the hard decisions early, implementing them rapidly, changing the mindset of employees and eliminating unnecessary complexity were the hallmarks of Nissan’s recovery.

There are other examples; Mitt Romney’s rescue of the 2002 Salt Lake City Winter Olympics, Sir Stuart Rose’s turnaround of Marks & Spencer, and Michael Grade’s work-in-progress at ITV. With the right leadership, you do not need to resort to bankruptcy law to rescue a troubled business in turbulent times.

Leadership is not simply a superior form of management; it is a different skill, as Abrahim Zaleznik argued in his classic 1977 article in Harvard Business Review. Managers address problems by selecting actions from an established catalogue of processes, he said, whereas leaders are successful because they tend to formulate original solutions to problems mere managers find intractable.

As a practitioner in the field, I think Zaleznik is right. I would add that we seek leadership most when conditions become turbulent and threatening, because when an economic storm is imminent, the manager’s methodical framework, using conventional techniques, becomes unreliable.

Too few directors and shareholders appreciate the distinction between leadership and management and fewer still understand when a manager should be replaced by a leader.

What is a leader? We agree they are charismatic, probably eccentric, good communicators, who, in less challenging times, have a history of being disruptive. There may even be a clinical explanation: it’s often said that leaders suffer from narcissistic personality disorder, which is characterised by self-obsession and lack of empathy. However, their virtues are imagination, preparedness to consider the unconventional path and an ability to navigate it with an enthusiasm and confidence that inspires others to follow them.

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Dr Charles Nigel Digges

June 10th, 2008 5:02pm

I subscribed to 'the Business' for tthree yas before it stopped therefore I now should receive the Spectator busisnee ,I have received the first addition but do not seem to have acces to the online version ypu sent .Is there a metod of signeing on?

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