Bill George, the former CEO of Medtronic recently commented that; “Sometimes you have to go against the grain. You have to go against what prevailing wisdom is telling you.”
Let’s define the challenge.
Spheres of controllable influence are continually shifting. Leaders in the “New Normal” are pressed to “shape the battlefield,” make invest decisions and apply resources to a very uncertain future with only a limited vision of the future.
Yet, the “New Normal” prices risk and outcomes swiftly both up and down.
And, ironically, investors have little patience for a laggard or for surprises.
**Two insights**
* We asked CEOs from Fortune 500s, mid-caps and emerging growth companies, how far into the future could they see with any clarity? The majority answer was three to six months. Astounding!
And…
*In the first half of 2014, “activist shareholders” (i.e., not boys and girl scouts) launched 148 shareholder campaigns, an all-time high. And, that coupled with dealing effectively with the asymmetrical aspects of daily commerce, suggests increasing pressure on Boards and CEOs for tangible results.
So, given asymmetrical challenges and if “traditional” financial projection methodologies and competitive metrics aren’t reliable predictors in today’s shifting sands, how do successful leaders set a course to accrete value in the “New Normal?”
**Aligning with Uncertainty**
First, these leaders blend courage with high curiosity and intuition and don’t assume any conclusion fully resolves any issue. They recognize their own leadership vulnerabilities but have a propensity to act.
Smart CEOs realize that very few strategic and sticky moves are truly game changing. They enhance accumulated value by taking one step at a time. Few shoot for the stars.
We have observed that these CEOs listen carefully and seek out the nuances at the margins of those “gems” that are at the tip of the spear. They seek the wisdom and unvarnished perspective of their top team while eschewing cultural politics.
While seemingly confident but pensive, they express their concerns openly by asking basic thought-provoking questions, recognizing the insights gained, conclusions and outcomes are impacted more so today by events and shorter term time frames.
*What are our “true” enterprise opportunity and our economic/competitive vulnerabilities?
*Can we “resource” speed, execute, and measure appropriately?
*What are the tradeoffs?
* Are we adaptable enough to adjust, accelerate/invest, pivot or fall back as necessary?
Privately, many CEOs admit wrestling with the unknowns and the “what ifs.” When the chips are down, though, successful CEOs trust their instinct and judgment, adjusting as conditions demand.
THE BOTTOM LINE
The “New Normal” requires leadership clarity while “working” strategic and executional challenges with a boldness of thought and innovation. CEOs and senior leaders that possess the abilities to navigate these seemingly contradictory trends are rare and are highly prized.
In sum, without a perfect looking glass to the future, winning companies will be led by CEOs that are comfortable within our “brain driven” but uncertain economic time. They recognize that they are not all-knowing and that their success requires a talented multi-dimensional team with the courage to admit missteps and to pivot quickly. These leaders place high import on building a nimble but disciplined learning culture to gain advantage step by step, on the fly.
To attract exceptional leaders in the “New Normal,” we have counselled Boards to fully embrace a constructive and open relationship with their CEO. And, yes, these leaders are difficult to recruit and to “manage.”
The odds of improved market caps require such leadership.
Boards should accept nothing less.