Leadership Strategies for Dealing with the Global financial Crisis


1.Leadership Flexibility

The crisis puts true leaders to the test. This is when you know where they are and who are the good ones, and when they demonstrate their bravery, intelligence and capacity to bring together on a single team those people who are going to support their leadership. I believe that the keys to being a real leader in times of uncertainty are to be genuine, authentic and capable of confronting real situations and adapting to them. Leaders should face problems and recognize that they are in a crisis and change direction in order to adapt to conditions. If they do not act that way, they will certainly fail.



How can a manager take advantage of the opportunities that the current global crisis presents? I believe that we now recognize that focusing on the short term is a mistake, and that these are the times to choose intelligent leaders who can guide us when conditions are difficult. I believe that companies with this class of manager will have the opportunity to overcome the crisis, and will wind up being the winners. Too many people believe that markets will return to what they were once the recession ends.



It is critical to develop executives who are flexible during periods of downturn and able to bring people together around a common goal. Too frequently, manager’s focus on what worked in the past, and they do not succeed in adapting their strategy to the new reality. Companies are dynamic by nature. Nowadays, for example, we are witnessing a process of creative destruction while in other times; we’ve seen the ability of big and small companies to reinvent themselves. Leaders can learn from their mistakes in this crisis a leader must be capable of tolerating mistakes, both his own and those made by others. He must learn from them and overcome them. When all is said and done, what cannot kill you makes you stronger. Some are excessively confident. Others ignore relevant facts, and some feel insecure and uncomfortable in a situation rife with confusion.



The role of the leader becomes more relevant in times of crisis. The qualities that make a true leader include, having curiosity; skill at anticipating events and changes; the ability to face the unknown; and personal charisma when managing other people and gaining their trust. Managers must develop a capacity to move toward those changes that will occur in the future, and introduce an element of flexibility in their strategies. This is the only way to move forward in times of uncertainty.



It is also necessary to have organizational skill and to control external changes in real time; uncertainty is an opportunity for those who are prepared. Managers tend to be protective about what they have, and they hope that over time, uncertainty will end and things will work out. A better strategy is to take advantage of uncertainty. The best opportunities arrive in times of crisis, not in times of stability. What is the key to making the most of those opportunities? Except in the case of historic fluctuations, managers must resort to their imaginations, paying attention to indicators of weakness, and making comparisons with peers and other sectors, while listening to outside experts and those within their own company.



We must have leaders who know who they are, who have a high level of knowledge of themselves, and are faithful to their beliefs. This means an authentic person who knows how to delegate to others so that they, too, can evolve and wind up being leaders. These are the qualities that I believe we need in the leaders of the twenty-first century. They must know how to work with their partners toward a common mission, and must establish corporate values. They should also recognize that their task consists in serving their customers and employees to create a spirit of collaboration within their organizations. I believe that if leaders are autocratic and dictatorial or if they show themselves to be too worried about their own status, then they cannot do a good job of leading.

This is the time to learn, to develop one’s talent for finding innovative and creative ways to do things. Leaders should focus on positive factors and on opportunities that exist in any time of crisis, because this is when employees can become more resistant and more determined to find ways to make progress.



Needs for developing leadership capability will be identified by Future Africa during a Leadership Assessment phase, the focus quickly shifts to identifying alternative corrective actions, determining the best course of action, and then appointing a qualified leader to guide the implementation and execution of the necessary change.



Further information contact us through our Web site; www.futureafrica.eu or send us an email at lars.stork@futureafrica.eu.



Lars Stork