Leadership in a challenging economic climate

DAV's latest Enigma Roundtable, led by managing director Charlie Mayes and chairman Andy Roberts, featured representatives from Noggin, Henley Business School, Cranfield School of Management, Adept4, Digital Surface Research, Monarch Aircraft Engineering, Myriad Group, bmi, Morse, TUI Travel, Eden Industries and Steve Mitchell, Principal Consultant, DAV Management.

The evening discussions were opened up by Professor Christopher Bones who delivered a sombre precis of the tumultuous events that have occurred over the last 12 months that have led to the worldwide recession. In essence, Professor Bones concluded that confidence, trust and integrity are at an all time low and that as a result of the financial crisis all senior business leaders are viewed with a level of mistrust and scepticism. The challenge therefore in today's tough climate for leaders in business is to rebuild reputation and to gain belief from employees. Bones added that developing leadership and management capability is a key driver in the creation of wealth but going forward we must somehow readdress the balance and not be viewed simply as 'fat cats' who are only interested in self gain.

Professor Bones went on to add that leadership is a contact sport: if you're not out there, you're not doing it. But effective leadership is not a given. In the eyes of your employees you can be in a senior management position, but still not be a leader. Often that may be because staff haven't been given the respect they deserve, and reciprocate that lack of respect.

The group also discussed the people aspect and how this has perhaps become the forgotten piece in the recession. Most agreed that they've been so busy focusing on 'getting through it' that they may not have realised that 'their people', arguably one of the most important company assets, may just up sticks and leave once they see an improved business outlook is being sustained - unless they are motivated and enthused to stay.

Participants around the table agreed that wherever possible there was a need to match individual goals and aspirations with organisational goals. Companies depend on motivated individuals but most agreed that it is challenging in today's current climate to inspire employees to go the extra mile when pay increases, bonuses and even training might not be on the table.

Ben Houghton, managing director from personal development consultancy Noggin commented that it is critical for leaders to communicate in the right way and really understand their people. He then went on to remark: 'And yet on most balance sheets, we treat a photocopier as an asset but view an employee as a cost. Is this the right approach?'

The consensus reached at the end of the evening was that organisations and business leaders must rebuild trust and reputation. Organisations need to demonstrate to employees that they are in 'safe hands' while business leaders must have a desire for integrity, honesty, accountability and transparency as well as a desire to run successful companies.

To read the complete 'Leadership in a Challenging Economic Climate' Roundtable report, please click on the adjacent link.