Leadership in turbulent times

Anthony Holmes

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

Often, the swifter they rise, the harder they fall. Enron’s Ken Lay was fêted as a leader until it was discovered that his apparent success was a financial illusion. In the UK, Adam Applegarth of Northern Rock was regarded as a leader while he delivered exceptional growth and performance from a novel business model. In July 2007, he said: ‘The medium-term outlook of the company is very positive.’ Six weeks later, the Bank of England had to inject emergency funds.

Managers cannot become leaders on demand. When an organisation encounters a crisis, its managers may adopt the demeanour of iconic leaders, be it Churchill, Napoleon or even Josiah Bartlet, The West Wing’s fictional US President; but onlookers are usually unconvinced.

Managerial politicians often change the tone of their rhetoric in response to a crisis. Prime Minister Gordon Brown is a good example of a well-regarded manager struggling to transform himself into a leader. He was regarded as a technically proficient Chancellor who believed the skills that made him successful equipped him to become Prime Minister. In more stable times he might have succeeded, but in the midst of an economic crisis, the public looks for an individual who has the charisma to reassure them that their worst fears can be overcome. Brown can only attempt to imitate the way he perceives that true leaders behave, but the artificiality of his personality is unconvincing; he has the worst rating for public confidence since Neville Chamberlain in 1940.

Nor should the successful leader be awarded the crown in perpetuity, although many would like it that way. Carlos Ghosn has been unable to sustain Nissan’s performance or achieve Nissan’s success for Renault; by 2007, his star was tarnished by falling earnings. There has been the recent dispute at Marks & Spencer about Sir Stuart Rose’s elevation to executive chairman, and in the political arena, the attempt in 1990 by Margaret Thatcher to remain in office when her support had evaporated.

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Dr Charles Nigel Digges

June 10th, 2008 5:02pm Report this comment

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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