As the global COVID-19 pandemic unfolds, corporate leaders and organisations are trying to adapt and innovate as much as possible. What leaders and organisations do now, and how they respond to the impact of COVID-19 are vital to their continued existence.
It is important to keep business organisations stable and leaders need to focus on what is critical for success in fulfilling their roles at this harrowing time. The “five-way directional model” provides a perspective for leaders to focus their attention on what matters the most in the moment of a crisis. I first introduced this model at a workshop organised by the European Institute for Advanced Studies in Management (EIASM) in Brussels, Belgium, in 2017. It has taken various forms over the years and used in different contexts and is a useful model to apply to our present situation.
I recommend that corporate leaders look forward strategically, look backward retrospectively, look inward introspectively, look outward engagingly, and look upward soberly and hopefully. COVID-19 is a test of leadership and our lifestyles at multiple levels – global, national, institutional, and even individual.
Typically, boards define a company’s strategic goals and ensure that its human and financial resources are effectively deployed towards attaining those goals. Unfortunately, strategy is extremely hard to effect in a disruptive landscape. In the present COVID-19 predicament when business is unusual, the knee jerk reaction might be to throw out the strategy. However, the corporate strategy should remain a navigational tool for the business, with appropriate revision.
The board needs to look ahead, taking into cognisance existing resources and determine how the company can take advantage of the business terrain as it navigates “the new normal.” According to corporate governance principles, poor strategic decisions and direction can destroy businesses. Therefore, while the board continues to contend with urgent and emergent issues, a forward look makes it more feasible to answer the question “What kind of business do you want to have when you come out on the other side of COVID-19”? The answer to this question will guide what the business should focus on today.
Leaders must also pay close attention to the emergent strategy. Developing this strategy cannot be done in isolation, a true leader must find ways to unleash the creativity, and problem-solving ability of the organisation, through collaboration. An organisation expects the leader to find the light and shine the light, enabling others.
“Never waste a crisis. It can be turned to joyful transformation” (Rahm Emanuel). A period of crisis offers great learning opportunities. Drawing and reflecting on lessons in real time and responding to them during the crisis are important parts of the learning process.
While the COVID-19 pandemic is unprecedented, some companies are faring better than others, some businesses are more resilient than others, some can stay afloat longer than others. Perhaps, some businesses have better IT infrastructure to cope with working virtually, better business continuity plans to respond to extreme situations, better staff communication frameworks, etc. The point is that it is important to look backwards to establish the root cause of the struggle and learn from what was not done – or not done properly – before the crisis.
A wise scholar once said, “Learn from the past, or you could forget the reason you are in the current state”. When this happens, the events of the past are likely to recur. Similarly, a quote credited to George Santayana says that “those who do not learn from history are doomed to repeat it.” Strength cannot be built during a battle; the roof cannot be fixed during the storm. Therefore, if you were not as prepared as you should have been or as your peers are, then acknowledge this and learn from the crisis.
An inward look is an alternative expression to “self-assessment” or “self-reflection”. There is a need for leaders to establish a process for regular internal assessment which should show areas that the business needs to consider and improve. This lock-down is not a shut-down of corporate activities, although it slows them down, and sometimes things go wrong. So, the ability to look inward and ask the tough questions is a key means by which leaders can identify and correct problems. COVID-19 may even reveal certain strengths and weaknesses within leadership or the broader business. What strengths or weaknesses are being unearthed at this time? Did you/your business act quickly enough? Have you reacted rationally to the ongoing pandemic? Are you living up to your responsibility as a leader? Look inward. Leaders do not have the luxury of evading fundamental business responsibilities, throw their hands in the air and blame COVID-19. One of the businesses’ responsibilities is the competence and capacity to management risks.
Organisations evolve, while the external environment changes very quickly, it is therefore imperative to ensure that the business is sufficiently agile to adapt to changes, without losing traction. A thought expressed by Sir Bryan Nicholson, former Chairman of the Financial Reporting Council, is that “evaluation is essential to improving performance – you cannot begin to address your weaknesses unless you know what they are”. Recognising and dealing with weaknesses, help strengthen leaders and their organisations. This is therefore a great period to review and build competencies and capacity for the aftermath of COVID-19.
Looking outward means looking beyond oneself or the organisation and being cognisant of a broad range of stakeholders. At all times, especially in a time of crisis, we need people and people need us. How are we reaching out to those around us in a meaningful way: in a way that recognises their needs, not just ours? We are in this together and must take a systemic view of our collective destinies. According to Martin Luther King Jr, “all men are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly.”
Employees are caught up in the same storm as the organisation. How do you treat your employees? Several options have been bandied around, such as half pay, leave without pay, redundancy, lay-offs, etc. While we consider the plight of the business, one must also consider the plight of the employees. The adage that says “do not cut your nose to spite your face” may be relevant to the case of businesses. In other words, do not let the treatment of your employees during this crisis erode your future productive capacity.
Stakeholders represent a growing diversity of audiences, with different information needs, which makes for more challenging communications. And incidentally, the COVID-19 crisis is an excellent opportunity to prioritise and deepen your company’s current relationships with its stakeholders. Have you reached out to your customers? How are your suppliers coping? It is important to think about how you treat your stakeholders (employees, customers, suppliers, etc.) during this crisis as that may determine how they will treat you and your business after the crisis.
Looking outward gives the leader an ecosystem advantage. They can leverage partners and stakeholders in this disruptive season. While social distancing and self-isolation have become the norm, there is no reason why businesses should isolate themselves from their stakeholders. Good corporate governance is essential to create trust and engagement between companies and their stakeholders, thereby contributing to the long-term success of the business. Whatever you do in the short term, do it in a way that builds capabilities and creates opportunities for the long term.
The COVID-19 crisis provides mankind with the opportunity to look at the whole subject of mortality and survival with rapt attention. I listened to a podcast recently and it was mentioned that those who have faith can cope better in a crisis. A realisation that there is a superior and sovereign Being – God, and a greater purpose does give hope. Interestingly, most people at this point have come to the realisation of how dependent we are on God, how little we can control, how helpless we are, how insignificant we are relative to the entire universe. This begs the question, “How hopeful are you as a leader?” Hope makes for a positive mindset and perspective. This is a time to be intentional about your beliefs as they guide your actions. A mind that is unsettled and clouded with fear and anxiety cannot lead others or be creative. This is an apt time to be an inspiring leader, but you cannot be inspiring if you are uninspired. As a leader, you cannot afford to be frazzled, because people are looking up to you. You must have Someone to look up to.
Dr. Almona heads International Finance Corporation’s Africa Corporate Governance (Advisory) Programme, and provides a variety of corporate governance interventions across sub-Saharan Africa
END
Be the first to comment