How to LEAD in a Time of CRISIS

We are in uncharted waters and there is really no playbook for leaders and managers. We are all working through this, so when the Summer 2020 issue of the Harvard Business Review arrived yesterday with the cover story shown as this blog’s title, I eagerly went through it. It also got me thinking of the basics of what needs to be done…now. Here are some of my thoughts.

There are five areas where leadership is needed and my suggestions of what to do:

• Your people. Take care of your people. Make sure they understand that their first obligation is for them to be safe and comfortable. Then they will need to take care of the customers and to make sure every experience with your company is positive and value-filled. They also need to be reassured about their jobs and what the organization is doing to keep them on board.
• Your customers. Take care of your customers and provide the value they need to get from you. Whether you sell a product or provide a service, make every interaction positive and value-filled. Let the customers know you are there for them and that you want to become more collaborative with them so that, together, they can work through the current problems.
• Your system. Make sure you have the systems and infrastructure to support your people and customers. We are in a digital, robotic, artificial intelligence world and those that don’t keep up will fall behind. The pandemic, overnight, changed how we work and there is no going back. Forward means working through today and changing, adjusting, and adapting to the new normal so that you will be there tomorrow.
• Your business. I never heard so much talk about balance sheets from the media as I’ve heard since mid-March. “Balance sheets” is jargon for having adequate capital and access to what more might be needed. The old mantra that smart businesses use leverage (a metaphor for debt) has been thrown out. Leverage sucks up profits and cash flow and in times of trouble, cash becomes king. This has been strongly indicated by the events caused by the pandemic. Unfortunately, many smaller businesses lacking the capital or access to capital will not be reopening. Small businesses are really the backbone of the economy accounting for half of the job creation and now they will be accounting for much more than half of the job losses. We will need to strongly support the small businesses in our communities – where we live, where we work and those we do business with. Consumer spending has always accounted for 70 percent of the economy and with job losses, spending losses follow quickly behind.
• Yourself. You must keep yourself safe and healthy. The same for the charities, churches and social welfare organizations that make life more bearable for many that cannot care for themselves. These are part of the fabric of our lives and they need our continued support. You also need to build your wealth independent of your business. That means you need to fully fund your retirement plan and also establish an investment portfolio. Now might now be the best time to start this, but it should be placed toward the top of the list to do when things start to turnaround.

There are myriad topics, but I believe they can all be categorized into these five issues; and they can be made to work by leaders with the resolve, focus, determination and ability to succeed. It is a grave responsibility and the strong will emerge strong. Good luck!

I recommend the HBR Special Issue because, after all, ideas are our currency and that issue, as every HBR issue, is chock full of ideas.

If you have any business or financial issues you want to discuss please do not hesitate to contact me at [email protected] or fill out the form below.