EFFECTIVE LEADERSHIP IN A CRISIS

How leadership and trust can lead to success in hard times

We have been speaking to business leaders in BITA to see how they have been handling the crisis, what they have learned, and how they are emerging successfully.

The last few months have been challenging for businesses, and staff have been struggling with drastic changes to their lives. Home-schooling, being stuck at home for days, uncomfortable working conditions and mental health issues have all had an unknown impact.

In times of crisis, people look to their leaders to be a fixed point that will help them get through the worst. Politicians, community representatives and employers are relied upon to provide leadership and inspiration to those that depend on them.

Although they will be struggling with the same problems, a good leader knows that no matter the crisis, we all have control over how we act in response.

Uncertainty has been one of the defining features of 2020 so far, but uncertainly doesn’t mean that it’s impossible to prepare. The business leaders we’ve spoken to have all said how important is it to be prepared for the unexpected, and equally important, to be heavily involved in strategy and decision making. As Stephen R. Covey once said; “no involvement, no commitment”. Jacqueline O’Donovan, of O’Donovan Waste Disposal agrees; ‘We’ve been keeping in regular contact with the staff through WhatsApp groups, which is very important.

‘We’ve been present, passing on health and safety guidance and reassuring staff that we’ll be back to normal ASAP. I think we have been bought closer as we’ve had to work together and had more interaction than usual.’

In times of crisis it can be easy to start making short-cuts, but this may lead to disaster in the long run. In response to COVID, Lyndsey Gallagher of Gallagher Group set up a task force to help anticipate the worst-case scenarios, but right from the outset she was clear that the business must stick to its organisational values. “Before the furlough we were sending people home with pay, as their health was more important to us,” says Lyndsey; “and they were saying ‘we want to stay; we want to work’ so we were ending up kicking people out the door!” Continuing to embody your values in the face of a crisis, be it with customers, suppliers, or staff, shows the true colours of your business. Many businesses that have acted, in the eyes of the public, as disreputable, may find their previously good reputations difficult to un-tarnish in the coming months.

When the prospect of a lockdown started to seem increasingly likely in February and March, one of the most urgent things that businesses had to do was re-examine their mission, be very clear about what needed to change and fix issues straight away. As Paul Whitnell said; “Examine, question, and discover the new us”.

When businesses make this questioning behaviour an intrinsic part of their environment and values, it means that they don’t get stuck doing ‘business as usual’ when it no longer works. When a business promotes an environment of questioning, it also enables staff to offer ideas and solutions to problems that board members may not have seen.

Laing O’Rourke offers one of the highest profile examples of this culture of involvement, questioning and adaptability. The day after lockdown it was decided to prepare for a full year on lockdown, and staff wages were all cut by 20%. Today they are back at full wages, but the quick-thinking, adaptability and leadership shown will have made a lasting impression and placed them well for the year ahead.

Frequency of meetings have also been crucial for our business leaders to not only retain control and involvement, but to be seen to do so by staff and others in the industry. Many say that they have increased consultations with staff as well as strategy meetings. Justin McInerney from Smartzone increased his board and non-executive meetings dramatically to make sure that all business needs are anticipated and the correct systems in place, but also to make sure that they are taking full advantage of opportunities.

Many leaders have taken free time to reconsider their options and consider new activities and revenue streams, nothing drives innovation like an inhospitable environment. “Considering Zoom and other green ways to do business now, I think that the green economy will come at us like a steam train” says Justin who is now viewing their business strategy through a greener lens.

The qualities of adaptability, questioning and involvement, all combine to make an excellent leader, but the most effective employer fosters these qualities in their employees. This needs to be modelled in a top down approach that has been intrinsically linked with the company ethos.

Staff empowerment will lead to better decision making and critical thinking skills. As Eddie McGillycuddy of Glencar says; ‘Trust and empowerment of employees starts right at the beginning of the interview process, and means delegating tasks to the right people, trusting them to do it right and helping them if they get it wrong.’ Having a culture that has staff empowerment as its core will lead to engaged staff and is an effective way of folding in empathy to your business.

As Jacqueline says; ‘When you invest in staff, they’ll invest in you and your business – you can see the change in how they act. You can see in their body language that they walk taller, are more confident, feel more productive; they’ll go the extra mile for you.’ This more engaged workforce will be able to function efficiently and continue to innovate even in the face of a crisis.

There seems to be a consensus developing in business, and echoed by our leaders, that with increased green technology, less time traveling, and more flexible home working on the horizon, we could all end up happier and with more balance with our work and home lives. “Although the mental health toll is yet to be determined,” says BITA Executive Director Diane Birch; “I think that after an event like this where no-one was spared anxiety and stress, we will all hopefully be more generous with our compassion and understanding as employers moving forward.” Many of the world’s most recognisable brands, including Barclays, Facebook and Twitter have implemented new working policies allowing extended working from home and flexibility in returning to work. Many smaller businesses are following suit.

How we treat people now will serve us for the future, and those that treat us badly will find we won’t want to work with them. This is where we can lay the foundations of loyalty.