Brian Bacon, CEO of Oxford Leadership Academy, and long-time friend and ally of the ALIA Institute, offers this perspective on the global economic crisis.

What a Wonderful Crisis!

Although the future may seem to be painted in varying shades of grey, some leaders are seizing the opportunity that always accompanies a crisis. They are focusing their people with positive energy and fierce determination on the few things that can make the biggest difference.

As Matthew Key, Chairman and CEO of O2 Europe told me, “Let’s not let this crisis go to waste”. Key is directing the companies under his leadership to increase their focus on innovation, to enter new markets, to eliminate waste, to develop new technology services and generally to strengthen their relationships with employees, customers, the community and other stakeholders. He says, “Although no one would have asked for it, I believe that the global economic meltdown can be a good opportunity for us. It is a forced opportunity to positively drive changes for the customer that might have otherwise taken years. We’re making the most of it.”

Many are now realizing that this crisis is not all about loss. Although many who have been personally affected may resist the idea, it can also positively alter the trajectory of their businesses and personal lives, communities and our environment. The global economic meltdown is forcing us to reevaluate our priorities and intentions and finally enter into conversations that we have been avoiding for years.

Focus & Execution
Success lies in the leader’s ability to focus clearly and act decisively. Both rely on the quality of relationship between the leader and those who must execute the strategy. However brilliant this strategy, if it is based on false or ill-informed assumptions about the situation, it will probably fail. You will only know what’s really going on when you are in conversation with and listening to colleagues and those in the field. This requires humility and acceptance of the fact that you don’t have all the answers. Above all it requires that you demonstrate awareness of how best to get your teams behind you – you need to align your people with your strategy.

General H. Norman Schwarzkopf defines leadership as “a potent combination of strategy and character, but if you have to be without one, be without the strategy”. Character is the critical link between strategy and execution. The character of the leader is what engenders belief, not clever ideas and fancy rhetoric. The character of the brand is what engenders customer loyalty, not clever advertising. People aren’t stupid. They quickly discern what is authentic from what appears to be empty propaganda. People (customers, voters, employees, shareholders) discern character by sensing ‘intention’.

Character = Intention x Attention x Consistency
Be clear on your intentions. Your character is illuminated by the coherence that exists between what you say and what you do … consistently, day in day out.

Ask yourself: what is my purpose in this situation? What is my real intention? Is it to give, or to take? Is what I am about to do driven by what’s in the best interests of all, or will it serve only in my own interests? Does it align with my sense of decency and integrity? What values are driving this decision?

If people sense that your intention is right, they will be with you – even forgiving stupid mistakes and clumsiness. If they doubt your intention, no matter how polished the spin, they will switch off and trust will be gone. The conversation will be over and so ends the relationship – if it even began. This applies as much to brands as it does to people.

The leader who marries intention and attention and who resists being blown off course is well-placed to obtain the support of his or her teams. This kind of leader demonstrates a high level of self-knowledge and doesn’t shy away from taking the time for reflection. You’ve got to be clear on what your own values and purpose are if they are going to be clear to others around you.

This is leadership from the inside out, as described by Akzo Nobel Managing Director, Tex Gunning, in his message to his top management team in February this year:

“We all intuitively know what “great” looks and feels like. We instinctively know what makes a great family; we know how great organizations should look and feel; and we know how great leaders should act. However, in many cases we’re not able to live up to the ideal picture and we face a gap between the current reality and the ideal situation we call “great”.

To understand what’s preventing us from being great leaders, we need to understand what causes those gaps. What are the barriers, what are the patterns, what are the underlying causes that prevent us and our business from being great? We must become conscious about what has shaped us, what blocks us and what our underlying motivation and attitudes are that we bring to our leadership. This crisis will force us into a conversation with our self. Building a meaningful relationship with our self will support us to define ourselves from the inside out, instead of the outside in. The quality of the relationship that we build up with our self equals the quality of the relationship that we build up with those that we lead. If we are able to lead ourselves in this authentic way, we will truly be able to mobilize those we lead, unlock the potential of the organization and turn it into growth for our business. Together we will build a community which can be characterized as cohesive, inclusive, respectful, trustworthy and inspired.”

Of course it’s not all about what’s going on inside. Balance is needed. We also need to be conscious of how others see us, and be responsive to the external environment. We need to be open for feedback and not lost in our own internal world. That would be the other extreme. According to George Herbert Mead, “Identity is the conversation between what others say of us and what we know ourselves to be.”

Leaders need to be clear on the vision and values that drive them in both their professional and their personal lives. If your attitude is wanting, chances are that you’re in trouble; if you’re in trouble, chances are that the organization you lead is in trouble too.

It’s all about relationships
To make the most of this crisis, think about the relationships that are most important in your life. For each relationship, think about the conversations you most need to have. Develop a plan to begin the conversations that you have been avoiding… those which if you could have them, would have the biggest and most significant impact. The conversation is the relationship. If the conversation stops, so does the relationship. Before you begin any conversation with another person, deal first with the most important of all: the relationship you have with yourself.

Your self-image
The relationship you have with yourself is tied to your self-image and sense of security. For most people, their self-image and sense of security is largely formed outside-in. In other words, the information they have on themselves isn’t balanced and anchored by an internal conviction of truth or a deeply held belief. Self-image is most often linked to what is going on in the world outside….most often a person’s job, ‘what they do’, their material possessions and how they think they are seen by others.

People with an outside-in obsession also have their sense of security linked to situations outside of themselves; hence they often look and feel out of control. This is disastrous for a leader. During times of crisis, the external environment is chaotic and uncontrollable… a person may lose his job, or feel unable to do a good job, or be thrust into a position beyond his ability to succeed. He may feel inadequate to the task. So, if one’s self-image and sense of security is linked to the external environment he will be in turmoil internally to an even greater extent. Why? Because fear is an illuminator and exaggerator of truth.

Intense fear of failure is an inevitable condition of those whose self-image is based on this outside-in illusion. How will I look? What will people think? Can I make it work? Are the conditions right for me to succeed? What if I fail? What is plan B? These are not the right questions for a leader.

The leader who outperforms during times of crisis is the one whose strength and conviction is generated from the inside-out, not the outside-in. The one who will not be swayed by flattery, fear or force, that’s the fellow we will follow, in spite of his flaws.

A few good questions to help define your purpose and what generates meaning: What story do I presently tell myself and others about who I am? What drives me? What motivates me to keep going? What is my passion? What are my most valuable assets? What is most valuable to me in life? What can I rely on, even if everything else is taken away? How can I change my story to be more aligned with what I know is true?

The economic crisis is here. You don’t have a choice in it happening or not, but you can choose the attitude you adopt towards it. This year will inevitably mark the beginning of a new chapter. There are outside factors, of course, but whether it will be the best chapter ever, or perhaps the worst, will, to a great extent, depend upon the attitude you choose.

Choose to do the “right thing” and one day you will look back and say “What a wonderful crisis that was.”

* * *

Brian Bacon’s colleague, Lasse Wrennmark, will offer Leading through Turbulent Times – the Art of Effective Execution at ALIA Europe, 10-16 January, 2010. This module will help participants find their own answers to the questions raised in this article as they develop action plans around work, family, and personal development.