by Max Caldwell, Towers Perrin
I had a fascinating lunch last week with the EVP/HR at a major financial services firm – one that (like most others in the industry) has experienced a wrenching year. He described how the organization has navigated its way through a number of enormous challenges that affected every one of its business segments.
One thing he said that struck me was how much the past year has been a proving ground for incumbent senior leaders as well as emerging leaders. For example, some high-potentials that he expected to thrive amidst the crisis “wilted”, in his words; others whom he had not predicted would survive in one piece have surprised him and done a terrific job.
I was intrigued by this notion of the recession as a crucible for future leaders, and asked what distinguished the successful leaders from those who did not make the cut. His response was telling and I’ve added several attributes I’ve observed in other organizations and leaders as well:
- Managing complexity — Rapidly absorbing, interpreting and synthesizing multiple points of ever-changing data. This is partly a product of pure analytical horsepower and partly the ability to see patterns and trends where others don’t, and therefore identify what’s really important to act upon.
- Adapting quickly to changing circumstances – keeping a close ear to the marketplace, constantly soliciting and listening to the views of others and being willing to turn on a dime and change the playbook to anticipate and respond to changing customer needs, competitor behavior and financial constraints. (This is what Donald Sull from the London Business School, borrowing from Muhammad Ali, refers to as the “float like a butterfly, sting like a bee” model of organizational agility.)
- Demonstrating energy and resilience — having the sheer energy and stamina to be “on” 24/7, and demonstrating the emotional toughness to persevere and inspire others despite crushing setbacks.
- Holding onto core values when the chips are down — having the integrity and internal compass to do the right thing in the right way, without compromising the organization’s core beliefs, even if it means trading off some degree of short-term gain.
- Being highly visible and communicating frequently and candidly – using roadshows, teleconferences, webcasts, informal meetings, emails and blogs to enlighten, encourage and engage people at the very time they may be confused, discouraged and at risk of losing focus.
What are the implications for developing your talent?
- Assess the performance track record and potential of your emerging leaders against the above criteria and consider: How do people stack up?
- Test emerging leaders in a variety of contexts and business situations. Rotate an up-and-coming leader in one of your mature segments through a more dynamic segment or a turnaround unit; use business simulations to assess and develop key talent under extreme circumstances not likely to surface every day.
- Ensure that your most successful executives are actively mentoring the next generation. Nothing beats giving a new leader the opportunity to shine under adverse conditions — except doing so with strong coaching and mentorship from seasoned executives who have been there before.
You could argue that these attributes and actions are always important, and you would be right. Yet, in a time of crisis, these areas of focus become far more important and tend to separate great leaders from good leaders — and great talent management programs from the merely good.
-Max
