Strategic Leadership

for Leaders in an Uncertain World

People are noticing we were wrongly led – who and what now?

While various pundit produce a growing number of articles and papers on the causes of the world economic problems, one things is becoming very clear. We were led into the credit crunch and crisis of confidence.

I know this is a bold (!) statement. A very short explanation will suffice for now.

First, while we were led this leadership was not of the kind we currently recognise as such. The leadership was blind through sheer lack of the awareness among those at the top of various organisation. They simply failed to recognise that the multinational corporations they may be running or an ever increasing number of G-type groupings (G8, G20, EU etc) they belong to mean one thing – world is strongly interconnected! This matters far more than anyone has recognised so far. Some commentators are thus calling for systemic solutions or looking for systemic approaches. Surprisingly, these voices are still in great minority. They also seem to be coming from non-anglo-saxon world.

The failure to understand the need for a systemic perspective permeates the regulation as well. Basel I and Basel II are clear examples here from the banking sector.

The second characteristic of the crisis is easily explicable by Darwinian evolution. A growing chorus in the press, including the Financial Times, and in the UK Parliament is bringing up so far un-sayable fact that our corporate Boards are highly inbred and lack vigour, real talent and true diversity. In other words these large companies as they are now are a dying breed as much as dinosaurs were.

Add to this the third circumstance – that of the steadily declining education and bonus systems rewards for failure, and we have truly serious situation. Decisions are being made by people caught in the stampede of the press and TV stations hungry for instant action. Politicians make pronouncements about initiatives and policy changes that take far too long to start. When they are implemented, sheer complexity of the systems to be introduced (IT as well as human) overwhelms the capabilities of those charged to make it happen. Long standing dumbing down of education coupled with lack of transparency of the conditions for progress up the organisational ladders and supported by a totally warped reward system, make for a real witches brew!

However, the solutions proffered by our Governments do not appear to show that the politicians or their advisers have grasped these simple truths. They show little inclination to engage in serious thinking. All the summits in the world are no substitute for taking the strategic leadership stance to explore the situation for what it is – a mess of our own making that requires a different approach and totally different group of people to solve it! Same goes for HR Directors, for all their optimism and expanding role!

We are not talking about the whistleblowers. We are advocating leadership by Mavericks and Contrarians. It is clear that HR Departments and their function are very much behind the times. New skills and approaches that handle paradoxes, dilemmas and dynamic situations as well as people with capabilities to build relationships are needed and yet in very short supply! However, even under the conditions of threat, current powers that be along with those who put them there continue to follow the lemming route of more of the same just bigger.

This is neither desirable nor necessary. We need a new party and people with real courage. What next and how to go about it is the topic of a future post.

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February 19, 2009 - Posted by | diversity, Leadership, Strategy, Systems | , , , , , , , ,

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