So, here we are in the midst of sorting through the challenges of the Three C’s…Credit, Commodities and Confidence.
All three seem to beyond the direct control of corporate leaders and their boards. Almost daily, we are asked, “How does one lead without guideposts toward the future?”
No doubt these are tough times that many corporate leaders have never experienced. For most CEOs, leadership “magic” that worked as recently as a year ago is failing to yield the “comfort” of economic results. In fact, many leaders find themselves presiding over poor economic scenarios. The “magic” feels long gone.
We can’t predict the future but we do know this: the companies that perform the basics of blocking and tackling better than their competitors succeed and strengthen during troubled times. These long term success stories, and there are many, take a balanced view of their true core competencies, innovation and of the gyration of fickle markets. These companies know themselves extremely well and remain focused on their serving their customers better even in today’s difficult times. Their leaders don’t look for easy answers nor are they bitten by a temptress of today’s hot gimmicks. Most importantly, it is our observation that the most successful boards see leadership as an “enterprise opportunity” in times like these and encourage their managements to invest in those who drive performance. Boards also see tough times as a chance to selectively strengthen their team.
It comes down to this:
Boards and leadership succeed because they have trust…trust in themselves, their strategies and judgments. They know that there are no perfect solutions; but in being transparent about the challenges,they have confidence that they will deal most effectively with turns in the road and by doing so, outperform their competitors and become even more relevant to their markets. Therein lays the key to sustainable value.