Transformational Leadership Through The Storm by Manoj Sharma
December 30, 2008
Transformational Leadership Through The Storm
The general consensus is in. The financial crisis, which has hogged the headlines globally in 2008, will continue to be a leading player in 2009. As hopes for a V shaped recovery disappear, realistically, we are resigned to, at best, experience no more than an abysmal 1% global growth for 2009.
To say this will put a strain on economic, social and political structures is to possibly make the understatement of the year.
While doom and gloom, might well dominate the news over the next 12 months, all is not lost. For as certain as we are, that we are heading towards the eye of the storm, there is just as much certainty that the next boom past 2010 will be greater than the last. And it is with that optimistic note that the transformational leadership the world is crying out for, will have to sing its song.
So what do you need to do as a transformational leader to assist your customers, organization, teams and stakeholders survive stormy waters and enjoy the vast blue ocean ahead?
1) Realize The Implications
The first thing to understand about this financial crisis is that no one is safe from it, as the banking sector, which connects all sectors, is at the heart of the crisis. The effects of the global credit vacuum and subsequent tsunami that crashed asset prices have yet to fully ripple through the real global economy. To curb the tide, Central Banks, the world over, are desperately attempting to make cheap credit available. However, it seems this credit is being used to shore up gaping holes in the financial system and is not yet fully serving its purpose of making credit readily available to catalyze economic growth.
2) Rationalize Your Course Of Action
A readjustment is in order. While the thought of this is certainly not pleasant, it is nevertheless a reality a transformational leader needs to face up to. The economic weather vane, is pointing in one direction and one direction alone – global slowdown. The headwinds are strong and a transformational leader knows when to wise up and avoid being wizened. Restructuring is not a sign of present weakness; it has to be recognized as a source of future strength. Naturally this has to be done with the greatest of prudence.
3) Renew Your Commitment
If you have to deleverage, do deleverage and make your cost structures sustainable as soon as possible. As you are on your path to do so, renew your commitment to find a better way to be of service to your customer to gain a greater share of wallet and market.
4) Relate To Your Customers
Get out there and engage your customers in a dialogue. Listen from the ground up to the challenges they are facing and the difficulties they have with their customers. Challenging times call for a transformational leader to not just solve their customers’ problems but preferably their customers’ customers’ problems too.
5) Reinvent Your Value Proposition
What was of value in an up time might well be extraneous in a down time. Find out what matters most to your customers and ensure you are best equipped to provide it. Reinvent your value propositions to match the market’s need. While doing so, endeavour to provide additional benefits that are not expected but greatly appreciated. Do this and soon enough you will gain a disproportionately high share of wallet and market too.
6) Revitalize Your Entire Organization
Seek out the best strategic keynotes, training and development initiatives. In a downturn to gain an unassailable competitive advantage, you as a transformational leader, need to ensure your human resources are transformed into human capital and that your human capital is a human investment that reaps abundant returns in the future. To follow this course of action you will need to take a top-down approach, investing first in your most valuable assets and only then your most transitory ones. This will revitalize your entire organization.
7) Reemerge As The Winners
The ultimate purpose of being a transformational leader in stormy times is to ensure your organization comes out of this patch of trouble in great shape to reap the rewards the future promises. The global economic game is a game of relativity; the lower the downside, the higher the upside is relative to the mean.
This economic downturn is knocking at the door of a benchmark interest rate of zero percent – a highly reactive measure. As a transformational leader you need to learn the lessons of this reactive action taking and not follow this trend. To play your role as a transformational leader you need to be as proactive as possible and preempt the changes ahead.
If you are proactive as a transformational leader, you and your organization will ride out this downturn and reemerge as winners, while numerous others will tragically lose.
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