As published in the Winnipeg Sun. While company leaders are fully aware that insufficient leadership talent was predicted to impact on their corporate performance, many feel they are not very good at dealing with the issue. There are just so many complexities in the business world today that companies are struggling to juggle their time and energies. And now with the downturn in the economy, many leaders are facing survival issues rather than market growth issues. Many are being forced to drastically cut costs and downsize their head count. Still others are forced to entertain a potential merger or an outright sale. Some are simply adapting a “steady-as-you-go” mentality.

To say the least, our leaders are facing a much more demanding world with a much wider range of challenges. So, in times of volatility and crisis, organizational leaders will be tested time and time again. There will be many leaders who’ll feel caught up by the daily crises involving extraordinary hurdles that may cause scrambling knee-jerk responses. And to make matters worse, the business cycle as we know it has disappeared, the economy is venturing into uncharted territories and advisors themselves don’t know what to do. The issue then leads to two key questions; what type of skill is required by our leaders as we move between the old and new worlds of finance and how can these be developed?

Effective problem solving and decision making  – leaders cannot panic under duress but rather they need to be good problem solvers who can recognize problems without being intimidated. Then they need to analyze the problems from all possible angles and examine a variety of solutions. Once a solution is determined, they need to make tough decisions quickly and ensure that a backup plan is in place.

Strategic leadership and risk management – leaders must know their industry sector well so that they can quickly identify the risks and opportunities their company is facing. This requires effective strategic planning skills. They also need to protect their organizations from any unforeseen risk including market risk, credit, operational and business volume risk.

Effective management of change – effective leaders know how to present a sense of urgency for change and they know how to create a vision for change and motivate others to accept the change. They are skilled at keeping the momentum and institutionalizing the change.

Model performance – it is difficult to keep people motivated during volatile times. Effective leaders need to act as a role model and apply a dynamic approach that involves employees in process improvement and innovation. Everyone needs to be focused on improving corporate performance.

Soft skills will make all the difference – according to research compiled by the Centre for Creative Leadership, more organizations are facing extremely stressful times and more of the “soft” leadership skills are needed to create success. This includes proactive, open communication, good listening and teamwork.

What are the steps an organization can take to develop these leadership skills? The following elements can be your guide.

* View training as an investment – typically during volatile times, the training budget is the first to be cut. This is a mistake. Look at training as an investment and not an expense.
* Develop a leadership profile – brainstorm and determine the nature of the leadership skills required for success. Develop a profile and then utilize leadership and communication style assessment tools to understand the skills you currently have in your organization.
* Design a focused in-house leadership program – that is in tune with your strategic goals. Ensure the program focuses on the SMART goal approach, leadership accountability, employee motivation, communication and teamwork.
* Apply measured application - ensure your training program employs a measured delivery over a period of time such as six months. This aides participants to begin applying their learning back to the workplace as soon as they can. It also enables leaders to set goals that are appropriate for the workplace and helps them change their behaviour slowly over a period of time.
* Assign a mentor – participants learn best from experience. Assign a mentor where possible so that people have access to institutional knowledge and advice. Bring participants and mentors together for informal sharing sessions, let them learn from each other.
* Create learning assignments – coursework is not the only way to learn. In fact, practical “school of hard knocks” accompanied by academics can be a powerful combination. Look around your organization and find developmental or stretch assignments for your developing leaders.

We live in a volatile and change-oriented business environment. Companies who successfully weather these turbulent times require leaders who are role models and can apply a disciplined approach to effective problem solving and decision making. These skills are not innate but must be taught and honed to perfection through intensive leadership training programs.

Source: Strategy for Volative Times, McKinsey Quarterly, October, 2004; Soft Skills Make all the Difference, Dr. John Fleenor, Centre for Creative Leadership, April 2003.