If the economy is not going back to what it was...

why are you still running your business the same way it was back then?

In a recent networking event, I asked the assembled businesses if they thought the economy would revert back to the way it was 2 years ago. No-one raised their hand. I then asked how many have changed their business model to account for that new reality, only 4 or 5 out of 30 raised their hand. Leadership is about managing change and there is no more significant change requiring authentic leadership in recent history as now. Yet we see many businesses large and small not coping well with the necessary changes needed to keep their businesses viable. Some of the larger companies are getting government attention to exercise the level of leadership they need to recover from this recession. However, a vast majority of the companies will need to leverage their ability to change on their own and reach into the leadership tool kit for some never before used tools.

Understanding how to manage change involves first recognizing that a change is needed. Recognizing the skills and knowledge that brought your business to this point may not, will not guarantee your success going forward. More importantly, has your attitude changed with the new reality? What are you customers asking for now? What are your suppliers telling you now? What are your own sales and operations people saying about their ability to succeed now? What is your Vision? Under normal circumstances, a Vision is what would help direct the organization during times of change. As these are not normal times, having an organizational Vision is even more critical to the success of the business. Every business needs a sense of direction and I would go so far as to suggest the reason many small and mid-sized businesses are stalled is the absence of a clear Vision.

It is not enough to just have a Vision. It must be communicated openly and frequently to the rest of the organization as well as to suppliers and customers. Leadership during change requires a communication strategy second to none to ensure all organizations contributing to your business success are on the same page. However, this requires the business leader to be transparent and authentic. Transparency requires the leader to be frank and honest about what is going on in the business and effectively communicate where the business is going. Authenticity means being a leader whom those associated with the business can trust. The leader during times of change and challenge must be credible and the rules of what a credible leader is in this economy are uncompromising. You cannot be credible through taking a pill or getting a shot. You cannot gain it by submitting to a surgical procedure. It comes from your attitude and your heart. Your credibility comes from your ability to execute the actions necessary to lead without looking in the rear view mirror!

In my experience, there are two types of leaders during times of challenge and change. The first are those who stall and wait for change to happen. The others are those who drive forward continuously with a purpose to achieve their Vision. The first types are victims and act accordingly. The second types are true leaders and are rewarded accordingly.

Lead Well

Rick Lochner