And crucially, to inspire others to follow them in difficult and uncertain times.” ‘Shared perspective’Įlsewhere, observers believe companies place too much importance on chief executives alone. “Ultimately, it’s strong leadership skills that enable directors to solve problems, cope with crises and change.
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Putting the skills in place means much of the executive work of handling a crisis has to be done long before it hits.Ĭarum Singh Basra, corporate governance policy adviser at the Institute of Directors, says: “Improving the competence and professionalism of corporate leaders through director training and professional development helps to safeguard against preventable failures, particularly in a crisis. Most directors, the institute says, receive no formal training for their role, their responsibilities, or the skills they require. That places the focus on skills, a concern for the Institute of Directors as it observes the current crisis.
Carum Singh Basra, Institute of Directors “It’s strong leadership skills that enable directors to solve problems, cope with crises and change” Perhaps a particular problem, therefore, is leadership training and the preparation of executives to head a company facing challenging times. Lessons can therefore be learned-if they’re taught. Though there have been past outbreaks and epidemics in which businesses have had to cope. Of course, it’s hard to prepare for an event like a global pandemic. “Boards need to think ahead of their CEOs and think of what they need from a contact and information flow perspective.” Training and skills They may need different forums to keep in touch with priority projects. “Often they feel a lack of control, so may need more updating or reporting during this time. The “key”, according to Meager, is for board members to “look behind the behaviour” and think about its causes. The crisis is likely to cause everything from supply chain breakdowns to staff shortages income and working capital issues will come to the fore while unpredictable government action could end trading temporarily and represent an existential threat. “The natural inclination in a crisis may be to go into command-and-control. In a recent blog, Gary Burnison, chief executive of consulting firm Korn Ferry, wrote: “The natural inclination in a crisis may be to go into command-and-control. Under pressureĪccording to Karen Meager, co-founder of leadership training consultancy Monkey Puzzle, the strains on chief executives are real: “The less desirable aspects of their behaviour are likely to come to the forefront,” she says. Turbulence and disruption are one thing the enforced closure of businesses by government policy designed to halt a global pandemic are another challenge entirely-one that will certainly test the most competent of chief executives. A Harvard Business Review Study found 95% of executives believe it is “critical for companies to succeed in turbulent times”.
That pessimistic assessment is accompanied by an emphatic belief that handling “disruption” should be a core skill of executives in charge of companies. Research from Odgers Berndtson, an international head hunting firm, reveals only 15% of executives believe their leadership will succeed during disruption, including unexpected events like pandemics, tech advances, shifting demographics and climate change. While companies have worked on their processes to cope with implications of Covid-19, attention is some quarters has fixed on whether corporate leaders are fit to guide their companies through the crisis. The UK is now at the heart of the coronavirus storm and the economic and financial effects are becoming clear.