Organization Leadership
In Tough Economic Times
By K. Waine-Golston: Corporate Trainer
During a recent wine tasting party and political debate session at my home I asserted that a “command and control” management style doesn't work when organizations are facing the challenge of change as a result of economic hardship. A style of management that encourages managers to energize staff is far more likely to deliver results and improved performance and loyalty I responded passionately by giving my following perspective.
When times are getting tougher and the business is under pressure from shrinking margins, it's often tempting to revert to a command and control style of management. Or to appoint an individual who uses an authoritarian style and is 'good with numbers'. But successful companies demand leaders with vision. And this means managers who are passionately committed to achieving goals through others -- or they fail to gain the commitment from those around them. Playing the short-term numbers game is not a sustainable strategy.
An example of a 'command and control' style of management that has had a detrimental impact on employee behavior is the Sempra’s decision to impose unrealistic performance targets on their call center staff. This has led to critics both internal and external claiming that the policy has resulted in a decline in quality customer service.
A far more effective style of management gives employees a sense of business priorities and the support they need to deliver results. This is illustrated by another local organization the University of Phoenix. In 2001 I worked with the management team to instigate a change program, Fit for the Future, which enabled employees to take responsibility for achieving organizational goals, and enabled them to meet the challenges of the business. This has resulted in increased productivity, improved customer service and, for the first time, a positive Economic Value Added (EVA), which is one of UOP’s key performance measures.
One does not have to be a boss to be a leader. Leaders provide direction, and a roadmap for change. They plan for the future and bring others with them. Real leaders are not afraid to step away from command and control towards empowerment, especially in tough times.
When an organization is under-performing, the knee-jerk response is often to go into a highly authoritarian style of management. CEOs, finance directors, senior executives, line managers and team leaders must avoid boss-like behavior and utilize leadership skills. What is really needed at this time is high quality leadership.
Managers must lead by example. For many this could mean changing old habits and the way they deal and communicate with others. If this seems like a tall order, they should consider personal development through coaching. In particular, coaching can help newly promoted managers to explore how best to go about their new role, including the kinds of behaviors required, and how and what to prioritize.