Page 175 - Accelerating out of the Great Recession

ACCELERATING OUT OF THE GREAT RECESSION

and thus slower growth for the company. They also need to con-
sider the possibility of considerable volatility and work with
scenarios that help them prepare for a sudden upswing or
another downturn. To be effective, though, they need to hold
out a picture of opportunity and express confidence in the abil-
ity of their company to succeed. Inwardly, they might experi-
ence tremendous uncertainty—but outwardly they will need to
convey strength. This is a difficult balancing act: be too opti-
mistic, and people will dismiss what you say; be too pessimistic,
and people will lose confidence.

■ LEADERSHIP DURING A CRISIS ■

The demands on leaders are at their highest when times are
toughest. So how do the best leaders cope? By studying past
recessions—as well as some individual corporate crises—we
have been able to distill a few lessons for today’s leaders:

1. Walk the floor—and be visible. Successful leaders during
the 1930s put significant emphasis on being visible to
people at all levels of their companies. Thomas Watson
of IBM not only engaged personally in many staff meet-
ings to get his message across, but he also made frequent
plant visits. The same holds true for Richard Deupree of
Procter & Gamble. He spent significant time ensuring
that employees understood the problems facing the com-
pany and the approaches that were being taken to solve
them. In tough times, employees are hungry for informa-
tion and leadership. In an information vacuum, they will
connect the dots in the worst ways imaginable. Leaders

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