Resilience in crisis: a reflection of leadership

In London last year I stood in front of a group of senior leaders, (CEOs, CFOS, HRDs) talking about the march of I.40 – the second machine age and the enormity of the profound changes predicted through the implementation of artificial intelligence, augmented reality, automation and associated technologies. I explained the expected hollowing out of the workforce, global mass displacement of workers and the possible economic impacts on a global scale. 

We discussed the prevailing social shifts such as aging populations, change in the nature of work and how we come to fit work in to lives, diversity, widening disparities in privilege and new business models as complicating factors. In response to a question about how leaders in global economies would meet the challenges posed, I rather flippantly suggested that short of a catastrophic social and economic event of global proportions, I wasn’t sure how we could move in the short term to manage the fall out from such changes….. erm …. Sadly, we're now experiencing just such a catastrophic social event of global proportions.

“…chaos is found in greatest abundance wherever order is being sought. It always defeats order, because it is better organised.”

It was Sir Terry Pratchett who suggested “…chaos is found in greatest abundance wherever order is being sought. It always defeats order, because it is better organised.” (Interesting Times). For my money this is a perfect truism of our age. Chaos will roll on unabated because it has no predefined boundaries, no bureaucracy, no rules of engagement. Whereas our modern systems, organisational processes, governance structures and human behaviours follow a set of generally accepted ‘rules’ – formal or informal.  

In times of crisis all that is challenged.

This is the second installment of a series of posts highlighting the McKinsey 5Rs of the 'new business as usual'. Today, it's resilience.

Resilience as a reflection of leadership

Resilience. A buzz word of our time, simply suggests the capacity to recover quickly after setbacks or disturbance, be it as individuals or organisations. While the McKinsey piece looking to the 'next normal' indicates that the economic impact “could be the biggest in nearly a century” near-term responses of maintaining a viable business are of priority. When crisis responses may incur profound costs to people and communities, such as temporary lay-offs, redeployment or loss of employment for example, those making decisions must act with humility and human compassion.

"...the description of an effective leader is more likely to include words like compassionate, honest, inclusive and humble."

The coming of the ‘second machine age’also known as the ‘fourth industrial revolution’ has challenged traditional notions of leadership. Descriptors such as strong, decisive, unwavering and visible are giving way to other, perhaps more human characteristics. Lately, the description of an effective leader is more likely to include words like compassionate, honest, inclusive and humble. Where emotion was once managed out of the leadership narrative, being seen to be openly engaged with the ‘human-ness’ of employees, customers and other stakeholders, is now an indication of being in touch with a bigger picture and therefore better placed to make effective decisions.  Jacinda Ardern, Prime Minister of New Zealand, has been identified as one such leader for her authenticity, decisiveness and focus on unity in times of emergency.

It could be argued that the systems, bureaucracy and process on which business resilience rest can only operate effectively where there is some recognition and agreement on the ‘rules of engagement’. However, where commonality of understanding and surety of context is challenged or displaced, resilience relies on people and their capacity to shift, to bend and to make sense of a world upended. People will do this for leaders that they trust and who have the capacity to make hard decisions with empathy and care. 

"...businesses who have infused their past leadership behaviours with collaboration, fairness and integrity are more likely to see greater resilience."

Organisations who have cultivated cultures of trust and subscribe to a leadership paradigm that inspires shared values, positively challenges prevailing thought and promotes stewardship over personal gain are more likely to see their people rise to meet the demands made of them. It is likely that those businesses who have infused their past leadership behaviours with collaboration, fairness and integrity are more likely to see greater resilience of workforce, both during and after this crisis, than those that have not. 

Reslience, then is not so much a function of bureaucracy and process, but commitment, vision and innovation of people. To leverage this human capacity to deal effectively in a crisis leaders must first have laid the foundations for good sensemaking and trust.

The next installment will examine the second 'R' - Return.

The previous post on 'Resolve' can be viewed here

The original McKinsey article can be found here along with a range of other COVID-19 articles.

Contact me to gain access to the University of Nottingham seminar that examined all the five 'Rs'. [email protected]