A BUSINESS PERSPECTIVE FOR 2012

Europe's dead, the world is going into a double dip recession, businesses are going into receivership, and banks aren't lending money; how come this nation's businesses function at all. If you believed all you read in the newspapers or hear on the radio or TV you would be feeling pretty depressed as you enter a brave new year. How would those negative feelings assist you in challenging business times, how would they boost your confidence, how would they inspire those you lead to greater feats and happiness?
The natural inclination to focus on the negative underpinned by a natural instinct designed to assist self preservation also comes with a severe negative influence that is extremely unhealthy as the world of capitalism mutates into something new and unknown. Positivity is the only way forward but positivity requires perspective,
Key attributes that are needed in organisations to allow businesses to survive and develop in this new economic climate are vision, flexibility, courage, determination, teamwork and a positive disposition. None of them are new, few of them are developed and sustained deliberately in times of plenty and yet they are the ones most needed when times become more difficult.  What is missing in the short term approach to business is perspective. Its missing when things are healthy as it is not required but the evidence of its absence is stark when things get tougher. Perspective is vital within business leadership. Perspective is a view or prospect; it is also a particular way of regarding something. However for me the best description in a business context is an understanding of the relative importance of things.
The most important consideration in today’s business perspective is that the world has changed and it will not return to the heady days of 2008 prior to the banking crisis. But disaster is not as imminent as the media would have us believe.  Business is changing form as pace, risk, economics and environment impact upon it. It is only those business that have true perspective and apply themselves in a positive way using vision, flexibility, courage, determination that will endure whilst those without perspective who hanker after days gone by will soon become a part of history as they are the ones that lack the necessary qualities.

LEADING IN 2012

The problem with the modern world is the speed of change. When one compares the speed an individual changes and the speed with which an environment can change and compare both with the speed of organisational change you can instantly identify the mismatch. So why is this obvious phenomenon such a challenge for the modern leader? Quite simply it’s because different issues and different problems require different characteristics and styles of leadership and leaders need to be more style savvy. The world now moves so fast with its new technologies that leaders who are autocrats struggle to keep up. Sometimes control needs to be exercised from on high sometimes influence comes from a lot further down the secret is exercising the right level of influence and control at the appropriate level at the appropriate time. Successful leadership is as much about the right environment as it is about the leader’s characteristics and a rapidly changing environment will challenge any leader however proficient.

Let’s just take three types of problem and assess the characteristics a leader may need to possess to be effective in delivering progress or a solution to each problem type. Keith Grint in Problems Problems Problems defines three categories of problem. The first is a Critical problem one that needs a solution now; they are problems that require a rapid solution to prevent further escalation. Here a leader needs to be both decisive and considerate in their actions; decisive to prevent the problem from running out of control instantly and yet considerate to all those involved with a view to a longer term solution. The London Riots are a fine example of a critical problem escalating. A wicked problem is more ambiguous in its boundaries or very complex where time may not be a consideration. Here a leader needs to understand and recognise the root causes of the issue and manage all those parties and agendas involved in the problem. Patience, intellect, emotional intelligence and understanding are key attributes required of a leader as they try to construct a collaborative solution. An example of a wicked problem is teenage pregnancy.  Now the third type of problem is the tame problem where the issue can be quickly and easily resolved although time may not be a consideration. In an efficient organisation these are dealt with relatively simply through process and operating procedures. They are the province of management and only become significant when they are raised at too high a level where they can quickly become disruptive. A leader needs courage and confidence to enable the organisation to deal with tame problems whilst maintaining them at the correct level. Courage to trust and teach followers, confidence to delegate and empower followers. Leaders need to establish organisations that understand of each member's responsibilities, allocated boundaries and expectations. They therefore instil an ethos of ownership and responsibility that ensures problems are resolved quickly and effectively.

Control is the conundrum that confuses many in leadership roles, who has it, when should it be relinquished or delegated and how is it perceived? A leader is generally in a pre-ordained position of control at the start of a critical problem but has to work hard to maintain that control to engineer and sustain the long term solution. With a wicked problem the work begins in earnest straight away as the potential leader wrestles with the problem in order to generate the required understanding and environment to enable them to become a permissive leader. The third tame problem requires an ethos and culture of understanding and empowerment to exist so that responsibility is easily shouldered at the appropriate level. This requires a hierarchy enabling the delegation of control and trust from the leader downwards to the appropriate level. This is where the true potential of servant leadership shines through as the leader becomes the enabler rather than the controller or owner of the issue or the enforcer of a solution.

The skill sets and attributes required of the various leaders for each of the problems are different. This is why a leader needs the right circumstances and environment to become a lauded leader. A great leader's skill sets and personal attributes have to match the moment. The old English proverb still rings true "opportunity makes the man"

The modern world where life is fast, communication is fast and technological advantage short lived, amplifies the requirement for flexibility and creates the need for an extended range of attributes from a leader. This can be achieved either by a group of leaders or a chameleon like flexible leader who has the innate qualities to lead and influence for an extended period of time. The current business environment is not the time for autocracy, and it is not the time for ponderous committees- the modern leader must be equipped with a toolbox of varied attributes that are suited to different environs and situations, but like anything in life it is the ability to recognise and understand the issue and produce the right tool to influence and lead at the right time that will make a leader stand out. Leaders need to comprehend the challenge that the modern pace of life imposes on their own leadership longevity and hence their utility as leaders. Leaders need to comprehend every situation in terms of scale and risk and they need to constantly be aware of both in order to apply the right style or model to the situation. Historically continuity and stability has helped leaders to prosper and yet modern life is about change. The one continuum in modern life is change itself - it is just quicker than it has ever been!

 A leader enables followers to follow and but followers make leaders. Both Churchill and Hitler were adored by their followers and loathed by each other's followers. There is no single set of attributes which make one individual a greater leader than another, just great leadership opportunities to match a leader's characteristics to a particular situation or environment. Both Hitler and Churchill served a tough apprenticeship of failure until the right opportunities arose. Both were extremely successful for just a relatively short period of time. How many leaders are truly successful for an extended period of time? What apprenticeship did they serve and how did they lead? Questions that are worthy of pondering as the answers are key to the argument that leaders in today's world need to be far more flexible and adaptable than their predecessors. They cannot just be selected they have to be developed so that they have the full range of qualities and attributes to meet their particular environment. Leadership is as much about learning as it is about knowing and a leader has to be flexible to provide the appropriate response. 

A NEW FORM OF LEADERSHIP

We have entered the age of empowered individuals. Leaders use potent new technologies and harness social media to organize themselves and focus interest on their agendas and activities. Most are ordinary people with access to new information tools that can virally create large global audiences for their messages.
The more traditional hierarchical institutions of modern developed societies, whether they are governments or companies, are not prepared or ready for this new social power or leadership as the riots in London and the recent occupy campaigns in cities around the World exemplify.
This power has resulted in the emergence of a new dynamic form of leadership and new styles of leader - they are individuals who do not hold formal positions of authority, they operate and influence at every level within society virtually - top, middle and bottom. They are interested in political, social and organisational change. They challenge the status quo of the traditional institutions and the established concepts and practices of leadership. The speed of action of such groups implies revolution although given the pace of modern life it may just reflect more rapid evolution.
The world is changing and potential leaders now have phenomenal access through modern technology to potential followers; but are we really seeing the emergence of a new 'grassroots leadership style' or just a virtual reaction to current geo-political and economic issues and imbalances on global organisational and social stages?
This new technological advantage neuters traditional power and law enforcement and quickly turns virtual agendas into reality and action on an unprecedented scale. What we are seeing is the emergence of a new type of social leadership, irrespective of position or power or authority - relational rather than hierarchical. The concept of a fluid collective responsibility with time relevant 'liquid leadership'  that builds, fades and morphs - where leadership comes to the fore at the top, centre, or edges of an organisation be it virtual or real. Leadership based more upon time relevant expertise, knowledge, and relational connection. It is a transient relationship where power is virtual and yet influence is real - a matter of permissive leadership with influence presiding over old fashioned traditional enforced authority, control and autocracy. Speed is of the essence and speed creates a phenomenal advantage for these new free running leaders. Accordingly, social power or the 'power with' rather than 'power over' provides the collaborative advantage even on the global stage. Witness the Arab Spring. This new leadership can be momentary and omnipotent, as powerful and transient as it is weak and ineffective. Predictable-maybe sometimes, yet surprise brings potency and it's this new leadership's unpredictability in terms of uptake or influence that can make it difficult to control.  A popular cause and the means of unfettered communication are at the heart of this new leadership. Alliances fostered in an information age where national agendas are undone by social perceptions.
This  new leadership has a precedent; it is  similar in shape to the old terrorism of Al Qaida and Osama bin Laden. Where a religious and social agenda created a fanaticism that spawned martyrs by the thousand. Where social agendas pampered to by a sensationalist press created a myth of omnipotence. Perhaps the new anti-establishmentarianism will be seen as  the new terrorism when viewed from an old fashioned state government perspective
This new leadership comes and goes dependent upon the social situation and leaders come and go dependent upon the relevance of their expertise and the access they have to social media and the scale of their audience. This new form is so dynamic it resembles a 'liquid leadership' of a group coalesced by only a  social strategy or  popular agenda.
These new groups herded together by social conscience or injustice often present a preferred response  to those transgressors they oppose. Their preference is for action, to engage, not ignore; work with each other, not against to resolve issues  by whatever means whether the establishment likes it or not.
Business needs to understand this new dimension of leadership, if it does not it will miss out on an opportunity. It needs to harness the social and economic power this new form of leadership affords  For to understand and develop a new business leadership culture based upon influence and empowerment will bring with it a quantum change to the  long established way leadership is currently practised using some of the somewhat antiquated autocratic leadership theory.