Tuesday, December 27, 2011

One Dimensional Leadership

I have had the good fortune of working with some strong leaders, both in the corporate world and through my consulting practice. that I have found is that the best leaders have the ability to lead in a multi- dimensional fashion, maintaining a clear focus on their business objectives but adjusting to other changing aspects of the environment around them. When business conditions weaken their positive attitude, vision and risk taking abilities come to the forefront, creating confidence and vigor in those around them. Conversely, the one dimensional leader tends to focus primarily on expense reductions, the one aspect that creates the most fear and insecurity. The natural tendency for the one dimensional leader is to hunker down, under communicate, cut payroll and reduce expenses until business improves. This approach may enable the company to survive in the short term but typically fails to address the real problem issues that resulted in the business downturn. Unfortunately, managers and employees in organizations led by the one dimensional leader tend to harbor the feelings of insecurity caused by these events even if and when conditions improve.

I was recently involved in such a scenario where the erosion of business conditions prompted the one dimensional leader to abandon many of the organizational and strategic initiatives put in place over a 3-year period. These initiatives were designed to posture the Company for future growth and expansion as part of a long term plan. During that 3-year period the leader hired strong subject matter experts, promoted the values of the organization and conducted a personal campaign to inform and energize workers on the vision for the future. Employee engagement was high, creativity was encouraged and employee turnover was almost non-existent. Sadly, the insecurity caused by an erosion of business compelled the leader to revert to his one dimensional style and go into "survival mode." As a result, the entrepreneurial spirit has been severely dampened and, despite the leader's efforts to reassure employees that the actions were necessary, the company is already incurring a further business decline and loss of key talent. The actions were internally marketed as a "back to basics" approach which was perceived by the majority of the workforce as a regression to a time when confusion reigned and no strategic direction was evident. While the company is likely to recover to some degree the vision of growth that once existed creating collective excitement among its employees is all but gone.

There is no doubt that it's extremely difficult to lead in difficult times. Staying the course and believing in the strategy you have executed is a test of a leader's courage and self-confidence. Those qualities are contagious in the same way that insecurity and doubt can infect an otherwise healthy organization. No one will ever know if given another few months of dedication to the strategic initiatives tremendous improvement may have been gained, along with a soaring esprit de corps that would have allowed the company to thrive and reinvent itself for the future. The one dimensional leader would tell you no, but the multi-dimensional leader knows differently!

Here's wishing you a safe and healthy fall season.

Phil

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