In my next series of articles, I would like to address issues which have been posed to me by small business owners. In my experience as a small business owner and as a college dean, I have found that leadership strategies must be specifically tailored to the economic environment.
We are currently living through the worst recession since the Great Depression of 1929. Many firms are struggling to survive, and the economic outlook is bleak through at least the end of 2011. Organizations must develop leadership strategies to effectively navigate through these tough economic times.
In this bleak environment, it is critical that firms maximize employee productivity. With increasing national and international competition, firms need to cultivate executives who can effectively lead their organizations. Companies must offer a working environment which will attract and retain management talent. Successful companies will provide employees with the experiences, learning and coaching needed to have a successful and fulfilling career.
Employee productivity and satisfaction will be maximized when they work with mentors and are immersed in programs and workshops to strengthen skills in project leadership, business communication, networking, and strategic leadership skills.
To be successful in this highly competitive economy, companies will need to develop and implement leadership strategies that will allow them to thrive in the current economic environment. Contrary to popular belief, many businesses thrive in bad economic times. Firms need to provide their managers with the leadership tools and skills necessary to effectively manage their organizations and to foster their career development.
Employees need an understanding of the principles and skills necessary to effectively lead their organizations. These skills can be clustered into the following categories:
1. Project leadership
2. Business communication (external and internal)
3. Networking (face-to face vs. cyberspace)
4. Relationship management
5. Generational collaboration
6. Motivational theories
7. Leadership principles
8. Stress reduction
9. Ethics
10. Culture sensitivity
11. Succession planning
In this week's column, I will address the first five principles and skills. My next column will address the remaining principles and skills.
1. Project leadership
To develop a competitive edge, firms must master the supply chain management process. A key element of the supply chain is customer service. Many firms are so concerned with producing and marketing their product or service that they neglect customer service. More than ever, it is necessary to exceed customer expectations. A critical area in which firms often fail is to admit quickly to mistakes and take immediate remedial action. A good example is Toyota's reluctance to readily admit that many of its vehicles launched into sudden acceleration, putting the driver at risk. This raised serious questions about the company's credibility. Contrast this with how Johnson & Johnson handled the Tylenol scare in 1982. In that case, when it was brought to Johnson & Johnson's attention that some Tylenol capsules were tainted with poison in Chicago, the company recalled not only bottles on store shelves in Chicago, but throughout the country. The result was that Johnson & Johnson's credibility was increased substantially. The moral of the story is that it is how a firm reacts to a crisis that matters. Quite often, a firm's reputation is enhanced after it reacts swiftly and decisively to a crisis.
2. Business communication
During tough economic times, firms must be particularly sensitive to the needs of their customers and employees. What are the critical needs of customers in today's marketplace? Firms must reach out to customers by visiting customers to assess their needs. Quite often, firms attempt to sell customers "off-the-shelf" goods and services. In my consulting career, I have found that this a serious mistake firms often make. More than ever, firms must listen carefully to their customers and provide the appropriate goods and services.
Communication with employees is also important in the current economy. Employees need to be constantly informed about company and industry conditions and how they can contribute to the firm's profitability. Nothing is worse than a communication vacuum. Invariably, a communication vacuum is filled with false rumors, which substantially reduce productivity. Employees must be made fully aware of the firm's condition so they can fully participate in its improvement.
3. Networking
Over my career, it has become increasingly clear to me that success in life is all about relationships and networking. One of my constant goals is to meet five new people each week. I pursue this goal very aggressively, and often meet my target. In tough economic times, firms and their employees must reach out to their existing customers and harvest new customers. There are consumer needs in every economic climate. For example, since the recent recession began in the fall of 2008, enrollments in community college and MBA programs have increased, and many unemployed workers have sought the services of career coaches and mentors to help them get their careers back on track. Developing and maintaining an extensive network will provide firms with access to a diverse customer base which will serve it well in all economic times.
Although I am a fervent apostle of social networking, I fear that it is often relied upon as an alternative to face-to-face communication. Over the years, I have found there is no substitute for face-to-face communication. In face-to-face communication, I can see your face, read your eyes, and detect the tone of your voice. There is less chance for miscommunication. How many times have you misinterpreted an e-mail? I have often observed students text messaging those sitting five feet from them. Social networking is certainly a valuable communication tool, however, it is my view that it should be a supplement and not a substitute for face-to-face communication.
4. Relationship management
In today's high tension business world, civility has been lost, and rudeness and expedience have become commonplace. The recent case of Stephen Slater at Jet Blue is a case in point. Study after study has shown that customers treated with courtesy are more favorably disposed to a company's products and services. I am always very impressed with a customer service representative who listens carefully to my problem and then meticulously follows up until my problem is solved. In my career at Boston Edison, we instituted a "Once and Done" program which assigned a specific customer problem to one person. That person was the contact point with the customer and was ultimately responsible for a successful resolution to the customer's problem.
Workplace behavior also plays a very important role in employer-employee relations. How employers treat their employees and how employees treat each other has a substantial impact on company productivity and profitability. We all know the impact of a hostile work environment. It stifles creativity and innovation and ultimately leads to employees leaving for greener pastures when the economy improves.
5. Generational collaboration
In my most recent years of experience as a college dean, it has become very clear to me that the guiding principles driving the Baby Boomers are far different than those driving Generation Y or the Millennials. The Baby Boomers were born between 1946 and 1964, while the Millennials are the offspring of the Baby Boomers and make up most of the current college student bodies. Baby Boomers are characterized by a strong desire for career advancement, a strong work ethic, a willingness to wait for workplace privileges, and a strong commitment to community service. While the Millennials are also interested in career advancement and community service, they firmly believe in work-life balance, desire constant recognition of their contributions, bestowal of privileges not based upon seniority, and a fast track path to the top. Obviously, these cultures need to be reconciled if firms are to be managed effectively. Firms that aggressively address this issue will have a distinct competitive edge going forward.
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Robert. J. Cuomo, Ph.D., is the president of Decision Support Associates, a North Andover consulting firm. He is the former dean of the Girard School of Business and International Commerce at Merrimack College. He can be reached by e-mail at bcuomo@comcast.net.
