Management v. Leadership
(in a crisis)
Well, we admit it. We’re Americans. And that old picture of Washington Crossing the Delaware has a warm place in our heart. Also it points out the dual nature of being the Boss. You have to Manage the crossing. But once you’re across and out of the boat, you have to Lead to the ultimate victory.
“Management works in the system; Leadership works on the system.”
— Stephen R. Covey
American Author (1932 — 2012)
The Seven Habits of Highly Effective People
Despite the vast differences between leading and managing, especially during difficult times, business people have to wear both hats – we can’t afford two slots on the org chart! This requires a holistic leader.
In times of crisis, one must manage the budget and control expenses. Yet, the damage in a crisis is not just to the balance sheet, but also to the well-being, confidence and soul of the firm.
Concentrating exclusively on the balance sheet means that one can lose track/touch with the formative intention and deep vision that actually drive and sustain a successful firm. Focusing only on function will ensure that you survive the crisis. Is it over yet? Then what?
The headlines and government pronouncements about Covid-19 are endless. People are confronting a disruption to their daily lives and routines, wondering where they will be regarding their personal finances, their job situation, the ability to retire, their sanity, and the list goes on. This may take longer than we thought.
Perhaps the deeper crisis continues because there is such an obvious divide between the contrasting skills of Management and Leadership. It’s one thing to cut the budget, reduce salaries, change the comp plan, put off acquiring the new servers and fix the roof, lay people off – oh, and forget the big vacation! It’s another thing entirely to communicate that all those actions were taken for good reason – the world is fighting an epidemic of great proportion; the world economy is in uproar and the systemic confusion and misinformation haven’t really been addressed. The eruption is still ongoing. We can’t begin to heal yet! The time for crisis management though, will at some point come to an end. That will be the time for visionary leaders to emerge, tend to the healing and reconstitute the founding vision.
Yo! You with the two hats! Put – down – the – balance – sheet. Put aside the Manager hat. Now it’s time for some Major League Leadership. Your people need you…and they’re hard to catch. People consume more media than ever, and your connection to them is only one channel in their daily mix of web, TV, radio, Zoom, and WebEx.
So while you’ve been consumed with scanning the numbers and apportioning the loss to keep things stable, you may have forgotten that the most insidious problem of all is – doubt. People have begun to doubt that they’ll retire. They doubt the promises of their government. They doubt their own ability to persevere. They doubt their managers, who don’t appear to know the whole truth. Management doesn’t handle or expunge doubt. But Leadership can do that – with a healthy scoop of compassion.
The formula for multidimensional leadership
1. Survive! It’s a crisis! Handle the details, cut the budget, keep people safe and healthy and keep the game going. So much for the easy stuff.
2. Heal! As you emerge from the fog, take time for the healing. This is anything but business as usual. There may be a few (hundred) conversations involved.
3. Restore the vision! Reach for their hearts and minds. Help them regain their confidence and imagine a better future.
4. Carve out some time for yourself. Leaders must heal too. Talking helps. Do you have a confidante?
5. Now, ever so gently, go for it!
Maybe the real definition of “Holistic Leader” is one who both manages the crisis while leading into the future.
Applications
1. Individually
Has this financial, national, world or life crisis forced you to retrench? Hold back on some big plans or lofty goals. Was that yesterday, last week or five years ago? Sometimes we get stuck in a bunker mentality and we forget to change our tactics and strategy when the immediate crisis passes. When it does — Look around! Maybe it’s time to take off the armor and get going!
2. At Home
When a tough market, a job change or an illness forces you to watch the finances, it’s perfectly reasonable to move carefully, or even hunker down and try to avoid being seen. Then the crisis passes, things settle down some — and OH! Wait, we’re STILL hiding out in the bunker! Time to switch from Managing to Leading.
3. At Work
Nothing focuses (or debilitates) people as much as the upheavals that happen when there’s a big financial meltdown or re-structuring. We obsess about our work at the best of times — but in the worst of times, we can get nearly psychotic. You can help shift people out of Bunker Thinking and remind them to turn the lights back on when the crisis begins to recede and the market comes around.
A crisis will naturally narrow your focus and force you and your people to think about short term survival. But don’t get stuck! When things change and the crisis has passed, make sure you and yours are ready and waiting to catch the next wave and take the decade by storm.
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