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ARTICLE BY CATHERINE SANDLER IN STRATEGIC
HR REVIEW
THE PSYCHOLOGICAL ROLE OF THE LEADER IN TURBULENT TIMES
Abstract
Purpose - This paper aims to deliver a psychological perspective on the theme
of leading in turbulent times.
Design/methodology/approach - Drawing on 20 years' experience of consulting,
coaching and teaching in the field of leadership development, the author outlines
the dynamics that businesses face during an economic crisis. Based on her extensive
observation of workplace behaviour, the author describes the psychological and emotional
role that leaders need to play if they are to optimize morale and productivity during
turbulent times. The author's ideas have been developed as a result of coaching
numerous leaders and top teams at board and director level in FTSE 100 and 250 companies
and top professional services firms, as well as SMEs and not-for-profit organisations.
Her private sector clients come from every area, including investment banking, oil
and gas, IT, property, retail, law, accountancy and venture capital. Many of these
organisations operate in highly competitive markets where managing uncertainty and
change is the norm. However, the economic downturn has presented additional challenges,
especially to those at the sharp end of the credit crunch and the collapse in consumer
confidence.
Findings - It is concluded that four leadership behaviours are critical in
times of crisis. Taken together, they enable leaders to support their workforce
effectively during turbulent times, so maximizing morale and performance. The paper
also highlights the role of HR and specific ways in which seasoned HR professionals
can help leaders manage their own emotions and demonstrate these four behaviours.
Originality/value - This article reflects the author's original, practice-based
observations about organisational dynamics and leadership behaviour during challenging
times.
Business leaders face huge challenges during economic recession. Qualities such
as courage, self-confidence and the ability to make tough commercial decisions under
pressure all come to the fore. Less widely appreciated and understood is the crucial
psychological and emotional role that leaders must play during periods of acute
uncertainty if they are to optimize the long-term performance of their business.
Leaders must understand the dynamics that lie "below the surface" of their organisations
and skilfully address the unspoken needs of their staff. This takes maturity and
skill but will maximize the chances of weathering the economic storm and emerging
strengthened when times improve. Those businesses that do not achieve this will
find their commercial problems compounded by destructive internal dynamics and underperformance.
While leaders may have had setbacks during their career, most will not have experienced
a global downturn. They face a steep learning curve if they are to succeed in the
new business environment. The support and guidance of HR professionals can be a
critical success factor.
What happens to organisations during turbulent times?
The suddenness and severity of the current economic downturn has inevitably generated
a shared sense of shock and foreboding. The media's relentless reporting of the
latest bad news fuels this mood. The loss of household names like Woolworths and
Wedgewood only adds to of a sense of insecurity and lack of confidence in the future.
In 2008, a leading psychologist linked the endless flow of economic bad news to
a widespread sense of helplessness, also blaming the recession for an increased
risk of injury and stroke (Devlin, 2008).
Within organisations, negative feelings are compounded as colleagues interact. Research
and experience demonstrate that feelings and states of mind are highly contagious.
Daniel Goleman, who developed the concept of emotional intelligence, recounts experiments
showing just how quickly a strongly-expressed emotional state is transferred from
one person to another (Goleman et al., 2001). In the workplace, all employees can
be influenced by a prevailing mood of anxiety, which gradually dominates the organisational
"system"[1]. Negative thoughts and feelings predominate while more positive views
become subtly excluded or difficult to express. This creates an intangible but powerful
emotional backdrop that can be termed "systemic anxiety"[2].
This negative dynamic is exacerbated by pressure on staff to work longer and harder.
Many organisations control costs by cutting resources and jobs but aim to maintain
output. Extra demands are placed on the remaining employees who generally feel unable
to refuse. Frequently they are also expected to demonstrate new levels of flexibility,
covering the work of former colleagues or adapting to new working methods. This
fuels longer working hours and associated problems.
During a recession, workers are also likely to undergo repeated experiences of loss.
This is an inevitable consequence of the cutbacks, project cancellations, job freezes,
redundancies and retrenchment businesses engage in to survive. In his book Managing
Transitions, Bridges emphasizes that change - even when desired - always involves
a loss (Bridges, 2003). This is more significant when change is unwelcome and imposed
from outside. Feelings of sadness, anger and guilt prevail.
Organisational consequences of the 'toxic cocktail'
Combined, the powerful dynamics described above form a "toxic cocktail" that threatens
morale and performance[3]. It generates damaging behavioural and attitudinal
changes within organisations. Among other things, this leads to more:
- short-term thinking;
- presenteeism;
- absenteeism through sickness, stress and depression;
- addictive behaviours;
- rumours;
- politics; and
- defection of valuable employees.
There is likely to be a decrease in the following:
- morale;
- motivation;
- clarity around task priorities;
- work-life balance;
- productivity;
- innovation and risk-taking; and
- long-term and reflective thinking.
The psychological role of leaders during turbulent times
This toxic cocktail means that in times of great uncertainty it is not enough for
leaders to address strategic and operational tasks. They must also address the emotional
needs of their workforce if they are to improve morale and productivity. There are
four key behaviours that leaders must master in order to provide the workforce with
the best possible sense of psychological "containment"[4]. This set of behaviours
takes considerable insight, resourcefulness and maturity on the leaders' part but
the stakes are high. If achieved, they will:
- reduce anxiety, fear and anger;
- build trust, loyalty and commitment; and
- generate resilience and optimism.
Behaviour 1. Prompt and considered action
When an organisation enters turbulent times, the first behaviour its leaders must
demonstrate is a prompt and energetic response to the difficulties facing it. The
workforce needs to know that its leaders recognize the seriousness of the situation
and are addressing it. However, the leaders' actions must not be the result of impulse
or panic. Leaders should immediately announce that they are making the problems
their absolute priority while explaining that they need time to finalize the best
course of action.
While a proactive response reassures the workforce, a lack of swift and visible
action from the top increases anxiety, anger and blame. Leaders who demonstrate
this first behaviour will understand this and have the courage and confidence to
take responsibility. Failure to act may reflect a paralyzing level of anxiety in
the leaders themselves. Equally, it may arise from a misguided belief that responding
with alacrity to a crisis will create more problems than refusing to engage. This
latter policy, often favoured by political leaders, is almost always disastrous.
Behaviour 2. Honest and consistent communication
Though reassured by seeing their leaders "in action," employees will inevitably
be preoccupied with what the downturn means for them. In the absence of reliable
information, rumours and speculation flourish. To reduce these and build trust,
leaders should provide honest and timely information (within appropriate constraints)
about the challenges facing their business and the measures that may need to be
taken as a result.
Being rigorously honest takes considerable maturity on the leader's part, particularly
if they are people-focused and find conflict difficult. Many choose to delay or
dilute bad news in order to "avoid worrying and demotivating" the workforce. This
view often reflects (and rationalizes) the leader's own discomfort, anxiety or guilt
at being the bearer of negative messages. However, employees read the economic signs
and will almost invariably expect some bad news. During a downturn, managers are
continually asked about possible redundancies even when there is no intention of
cutting jobs. People suffer most from uncertainty and would prefer to know the worst
than to imagine it.
Leaders of course cannot always be completely open, for example when information
is share-price sensitive. Often they will not know the answer to questions such
as "are these job cuts the last?" It is best to explain honestly what they do not
know or cannot share. This builds trust and reassures the workforce that they will
be told as soon as possible. An example of good practice is the CEO who provides
a regular weekly update to staff, even when the update consists of stating that
there is no new information this week. Simply receiving this message tells the workforce
that their leader understands their need for information and will provide it when
he or she can.
Methods of communication can range from one-to-one conversations, small team meetings,
"town-halls" and carefully planned roadshows for large groups of staff to intranets
and house magazines. There is considerable value in adopting multiple methods as
long as the message is consistent. Leaders frequently express surprise that the
same questions are asked repeatedly, even when answers have been provided. This
is because anxiety significantly reduces the capacity to listen and absorb information.
Leaders must prepare themselves to remain calm, resist becoming irritated and patiently
repeat their message.
Behaviour 3. Emotional connection
A speedy response and honest communication are not enough to maximize "containment".
Leaders must also maintain an emotional connection with their workforce. They must:
- acknowledge the painful impact of bad news on their workforce and resist moving
on too quickly to something more positive out of discomfort, guilt or insensitivity;
- find an authentic way of disclosing some of their own sadness, concern or disappointment
so employees know they genuinely care; and
- let staff vent their feelings, listen and empathize - even though they cannot make
the bad news go away.
A recent example of excellent practice was the manager of a manufacturing company
tasked with telling his staff that popular and longstanding colleagues were being
made redundant. He announced this at an off-site meeting the following day, cancelling
the entire morning's agenda in order to allow staff to absorb this news, discuss
it in small groups, express their feelings and ask questions. He also shared his
own sadness that these redundancies were necessary (though without blaming head
office or disassociating himself from the decision). He offered particularly affected
individuals one-to-one meetings, listening to and acknowledging their feelings.
This leader's respect for his staff's need to process bad news, express their emotions
and feel heard was deeply appreciated. His actions generated great loyalty and people
were able to recover more quickly as a result.
The range of meetings and media mentioned above, through which leaders communicate
to their workforce, should also be made available for staff to express their thoughts
and feelings in response. This presents a major challenge to leaders who have to
show great restraint and self-management in order to listen to their employees'
expressions of distress and anger without becoming defensive, irritable, impatient
or overwhelmed. For many, this critical aspect of staying emotionally connected
with their people is also the most difficult as they must absorb a great deal of
negative emotion without necessarily being able to make things better. However,
it is also the most important as the "simple" process of listening and empathizing
is tremendously powerful and will in due course create real appreciation and loyalty.
Behaviour 4. Inspiration
The most impressive leaders go one step further. While remaining realistic about
tough conditions, they find a way to motivate and inspire their followers to perform.
To achieve this, they must draw on deep reservoirs of leadership energy, fuelled
by a powerful combination of self-confidence, personal humility, passion and belief
in the future.
This fourth behaviour must be founded upon the three previous leadership behaviours
action, honesty and empathy. It is only when a leader has demonstrated these that
their "call to arms" will be experienced as truly authentic and compelling.
A female CEO in the banking sector recently delivered just such a message to her
top 100 executives. It was honest and bracing in its acknowledgement of the tough
economic times to come and she made clear how much she was expecting from her top
team. She also shared, with real passion, her belief that the organisation she led
had the capability and will - through relentlessly focusing on the needs of its
customers - to weather this challenging period with results and reputation intact
and to emerge as "one of the winners". The palpable buzz and enthusiasm that infused
the room illuminated what can happen when a leader gets this fourth behaviour right.
The role of HR in turbulent times
Few leaders find that these four behaviours come naturally. For most, they must
be learned and practiced. This can be particularly challenging during tough times,
as leaders themselves are not immune to the toxic cocktail of negative organisational
dynamics and many feel anxious, burdened and exposed. HR partners who enjoy their
leaders' trust can playa central role here.
HR should remember that leaders risk reverting to earlier, less skilful versions
of themselves under pressure. The task-focused leader who has learnt the importance
of maintaining good relationships may revert to "tell" mode under pressure and become
impervious to the feelings of others. The people-focused leader who has learnt to
confront difficult interpersonal situations may revert to avoiding tough conversations.
Some may find their working hours spiralling out of control in the maelstrom of
task demands and be unable to switch off. This in turn erodes their capacity to
mobilize the emotional intelligence necessary to deliver the leadership that turbulent
times demand (Loehr and Schwarz, 2001).
Specific ways in which HR professionals can help include:
- presenting leaders with an analysis of the psychological, emotional and behavioural
impact of the downturn on their organisation;
- emphasizing the leaders' role in helping staff feel contained in the midst of the
toxic cocktail of negative dynamics;
- identifying, coaching and supporting those leaders best able to demonstrate the
four key behaviours;
- identifying those who are struggling and, where possible, coaching them to gain
insight and behave more effectively; and
- providing an emotional outlet for leaders to offload their own negative emotions,
whether distress, anxiety, anger or guilt.
One organisation has addressed these needs by having a dedicated, senior HR professional
supporting and coaching the board around these issues. This was achieved through
other, less strategically-critical HR projects being put on hold. Another executive
team has asked a trusted coach for specific, focused consultancy in this area. Both
approaches appear to be paying dividends in terms of leadership performance and
the morale and productivity of the workforce.
Looking after the needs of HR
HR professionals usually have to juggle powerful competing demands on their time
and attention and this is even truer in turbulent times. As well as supporting leadership
behaviour, they have a central role in planning and implementing cutbacks, redundancies
or closures with all the emotional strain and sheer hard work this involves. If
the organisation cracks down on poor performance, HR is expected to help with the
difficult conversations as well as dealing with the human aftermath. The HR team
members are expected to be emotional "sponges" on the one hand and policy and procedure
experts on the other, providing everything from a shoulder to cry on to legal advice.
If HR professionals are to remain effective in the face of these demands, they must
attend to their own needs. While colleagues use them to unload concerns and frustrations,
the impact on HR partners themselves can easily go unnoticed. However seasoned and
competent, they too are subject to the toxic cocktail. They must find ways to resource
themselves and each other so that they can recover quickly from the negative experiences
that tough times inevitably bring. This will enable them to model the balanced,
insightful and containing leadership in their own sphere that the leaders of their
business need to demonstrate in theirs.
Looking to the future
Together, the leadership behaviours described will provide a sense of psychological
safety and emotional containment in organisations undergoing great uncertainty,
instability and often painful change. Leaders cannot avoid or prevent painful events
affecting their people. However, with the support of HR, they can take charge of
threatening situations with alacrity and resolve. They can deal honestly with their
people, convey genuine empathy and create a powerful sense of hope in the future.
Leaders who achieve this will help staff deal more effectively with difficult experiences
and inspire tremendous loyalty and trust. They will also succeed in focusing the
energy of the workforce on the job in hand, helping their organisations to emerge
successfully from recession when the conditions for economic growth return.
Notes
1. Systems thinking sees organisations as consisting of
different parts that relate to and interact with each other and the external environment.
See extensive literature on systems theory.
2. "Systemic anxiety" is an original term coined by the author.
3. "Toxic cocktail" is an original term coined by the author.
4. In identifying this combination of behaviours, the author has drawn on the ideas
of eminent psychologists Winnicott and Bowlby whose work includes the concept of
"emotional containment". This relates to the experience that a mother needs to provide
for a baby in order to allow it to grow up with a sufficient sense of safety and
confidence. See D.W. Winnicott, The Child, the Family, and the Outside World(1964)
and J. Bowlby, Attachment and Loss (1969).
References
Bridges, W. (2003), Managing Transitions: Making the
Most of Change, 2nd ed., Basic Books, New York, NY.
Devlin, K. (2008), "Economic climate can increase the risk of a stroke", quoting
views of Dr A. Sigman, associate fellow of the British Psychological Society, Daily
Telegraph, 26 November.
Goleman, D., Boyatzis, R. and McKee, A. (2001), "Primal leadership: the hidden driver
of great performance", Harvard Business Review. December.
Loehr, J. and Schwarz, T. (2001), "The making of a corporate athlete", Harvard Business
Review. January.
About the author
Catherine Sandler has over 20 years' experience of consulting to organisations and
individuals as an expert in the human dimension of workplace life. Since 1997 she
has specialized in coaching business leaders and top teams. She has worked and taught
extensively in the field of leadership development, including at London Business
School and INSEAD. She is also a trained and experienced psychological counsellor
and has a doctorate from Oxford University. She founded Sandler Consulting in 1997
and in 2007 formed Sandler Lanz with her colleague Kate Lanz.
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