Leadership in Turbulent times

Dynamic environment

Faces of global economies have changed ever since 2008 when the “sub-prime crisis” unfolded. The impact of the financial crisis has been far-reaching and has shaken the foundation of many businesses. People are feeling exposed, vulnerable and directionless due to the stresses of loss of opportunities, employment, housing and financial worth.

This global economic meltdown has required many companies to redraw their plans for the future in terms of merger or acquisition plans, strategy changes, cost cuts, leadership development etc. CEOs across industries and geographies view maximizing the productivity of their current leaders and developing the next generation of leaders as mission critical. A 2008 Consulting survey found that 56% of employers in the US are experiencing a leadership shortage that is impeding organization performance.

Companies realize that the present environment requires a unique leadership approach that is sharper and more focused. Today’s business environment compels organizations and individuals to be even more proactive and alert about organizational dilemmas such as cultural change, transitional challenges, resource rationalization, strategic growth or expenditure reallocation.

Importance of leadership

This is not the first time that the world has been gripped with a crisis. However, the question that arises is: How do you survive or come through such crisis? Undisputedly, such times reveal the desperate need for ‘leadership’.

In turbulent times, companies reconcile their need to develop leaders while still managing costs and ensuring a return on investment through Coaching. Many of the world’s most admired corporations from GE to Goldman Sachs invest in coaching with annual spend going up to US$1billion. Recent study of Executive Coaching in a Fortune 500 firm by Metrix Global reported 529% return on investment and according to a global leadership development survey, 86 % of companies said they used coaching to sharpen skills of managers who were identified as future leaders (Harvard Business Review). The Hay Group study of Fortune 500 companies found that 25-40% of corporations use Executive Coaching.

Effectiveness of coaching

One-on-one executive coaching provides:
• Focused approach to harnessing the true potential of the executive;
• Achievement of clearly defined measurable objectives that are collectively agreed between the organization, the leader being coached, and the coach;
• Observable behavioral change and business impact within a defined time frame.
Let’s take a look at how coaching can benefit your next generation of leaders; leaders you are bringing into your organization from the outside; and current leaders who need to up their game to meet new strategic and global challenges.

Engaging with a coach triggers a paradigm shift in perspectives and perceived ‘barriers’ are identified. With a clear purpose, coaching is most effective for executives who are willing to invest in their growth and review their behavior for the long term success of the organization.

Coaching is developmental not corrective

The successful executives too can be coached. A professional who looks into your practice and skills from the outside can often guide you to higher levels. It is lonely at the top. Leadership position by its very nature often isolates the entrepreneur or CEO and he often finds himself unable to brainstorm his business strategy with colleagues. Certain business decisions may appear “high risk” at that moment in time. It also requires tremendous courage and clarity of thought to actually implement the “non-popular” decisions. A sense of denial may creep in, in the face of adversity. A coach is able to support the top management to keep their eye on the vision and chart out a new course of action.

In situations of high pressure where there is sudden loss of clarity of thought, a coach may be able to reconnect the individual with the reality. Alternatively, a coach could work with affected people to recreate their life by looking for innovative opportunities. Also, in difficult times, de-motivated leaders are unable to motivate their team to perform effectively and creatively. Executive coaching provides support to the leaders in these stressful times to create motivated and inspired teams for the future.