What does the ‘New-Normal’ require from leaders across all spectrums?

By Kobus Grobler, OIM International, Managing Director

In the previous article, “Covid-19: It’s a People Thing. Talking Business Strategy for the ‘New-Normal”, Chris discussed the importance of tapping into the hearts & minds of the public & employees, to inform & execute the business strategy during the ‘New-Normal’. In the article, Chris also referred to the important role leaders should play during this process. Today, we’ll dive a little deeper into this.

Successfully navigating the circumstances & more specifically the magnitude of the challenges faced by both, business & the general public, are the true test for effective & successful leadership. This is not a new requirement for leadership. Centuries back we saw world wars, economic depressions, pandemics; every disaster had its unique challenges which political, business & social leaders had to overcome – some more successful than others & it’s within these previous challenges that we’re able to find learnings & ways to navigate them in 2020 & beyond.

The current Covid-19 pandemic comes with a host of health, business, economic & political challenges for not just South Africa, but for the entire world. It has already, & will continue to force leadership to rethink & reassess what is vital to effectively navigate our economy, companies & communities through this unchartered territory.

“We are not all in the same boat. We are all in the same storm. Some are on super-yachts. Some have just the one oar.” – Damian Barr

Covid-19 is causing great individual hardship & loss. Economies are being severely affected (some more than others) with a resulting recession & an ongoing decrease in demand. Companies have to rethink their strategies, budgets & operations which, as a result, lead to some companies needing to scale down or unfortunately close their doors, both resulting in job losses & an ever-increasing unemployment figure. Overall the prosperity gap is widening at an alarming rate, both locally & globally. This poses a huge political risk regarding stability as “a hungry man is an angry man”. Welcome to the ‘New-Normal’ for political & business leaders! The following diagram is an illustration of a profile of a political and business leader indicating the required mind-set change for successfully dealing with the ‘New-Normal’.

1. Depth & width of understanding

“The biggest problem of the world today is the fact that our knowledge outstrips our wisdom” – Bertrand Russell

Many of our self-made crisis is a function of the disastrous lack of in-depth understanding amongst some leaders & their followers, firstly some of the basic aspects of human nature and/or secondly of some of the basic economic, political or cultural realities of the world in which we live & work.

During this period of unchartered circumstances, this in-depth understanding is fundamental for success. Leaders cannot expect their followers to understand these complexities, if they themselves do not understand or do not make an exceptional effort to try & understand this world. Making the right, good & quality decisions, are largely a function of the depth & width of a leaders’ understanding of not just their own environment, but the environment of those they deal with on all levels.

2. Far-sightedness

The unfortunate reality of the Covid-19 pandemic is that it forced leaders into a mode of  ‘short-term thinking’. Circumstances are changing rapidly, & the environment becomes more & more unpredictable. In January 2020, could anyone have imagined where we would be right now?

The ‘New-Normal’ challenge to political leaders: To look beyond Municipal or Presidential elections & be concerned about the next generations.

The ‘New-Normal’ challenge to business leaders: To look beyond the next balance sheet, beyond their next dividend & share options but to rather consider the long-term consequences of their actions; or non-actions for all their stakeholders & the community as a whole.

3. Courage

Like parenthood, the popular parent is not always the best parent! Leaders are often confronted by decisions – the popular or the right decision. Taking the right, but sometimes an unpopular decision, is not easy but vital. This requires courage; the courage needed in times like this!

The willingness to execute unpopular decisions highlights the importance of understanding & insight amongst all members of the community or business. Political & business leaders must have the courage of their convictions,  must cultivate the ability to explain & the ability to inspire. More & more followers of politicians & stakeholders of business leaders will then be prepared to follow them on the enlightened paths leading to broadly-based prosperity.

4. Ability to explain

The ultimate test of understanding lies in explanation. Therefore, a leader’s ability to explain complex problems & issues, in simple ways, is very important. The magnitude of our political, economic & business challenges, & its implications needs to be properly understood by all those involved, to mobilize the required goodwill & motivation to successfully overcome these challenges.

5. Ability to inspire

The ability to inspire speaks for itself. During desperate economic times this is crucial. Every person strives for a better life for himself & his family; regardless of race or nationality. This is one of the most important common denominators for mankind on the planet. When your better life comes under threat, it is then that people start to lose hope & become desperate. The ability to stay motivated & inspired is very difficult & a crucial challenge to political, business & community leaders. This calls for exceptional inspirational (not irrational & emotional) leadership.

6. From short-term self-interest to enlightened socially-responsible self-interest, helping others in the process

The devastating effect of the pandemic on economies & business has resulted in a spike in unemployment & the dangerous widening of the prosperity gap requires new thinking from government, the private sector & the public sector. The concept of Prosperity Partnerships® on all levels will be crucial & a mind-set change about social responsibility will be imperative for leaders in all sectors.

Over the years, OIM International has developed a concept we refer to as, Understanding-based Leadership®. This is more than a mere method or a technique, it is a philosophy for life. A proven wisdom states: “Give me the courage to change the things that can be changed, the serenity not to try to change the things that cannot be changed, but most of all the wisdom to distinguish the one from the other”.

This is great wisdom, however courage alone, is not enough. One should also increase one’s capacity to change things, so that tomorrow one can change some of those things that yesterday required serenity to be accepted. 

Unfortunately, there’s no quick fix that will instantly correct the loss of income, jobs or the struggles that came with these difficult times. However, if leaders continue to have honest conversations with their employees & communities, while increasing their own understanding on an ongoing basis, there is no crisis that we cannot overcome, successfully.