"7 lessons to lead in the crisis" by Bill George

By: mrive on 15 November, 2009 2 comments

The global financial crisis was not caused by subprime mortgages, the credit default or economic policies. According to Bill George, Harvard professor, the root of the crisis was the lack of leadership.

The new laws, regulations and economic rescue plans do not heal the wounds created by these failures in leadership. The solution lies in new or renewed leadership with wisdom and skill to put organizations on the right course and bring the long-term success.

Bill George, is a professor of management practices in the "Harvard Business School. He was director general of "Medtronic" and serves on the boards of "ExxonMobil", "Goldman Sachs" and "Novartis". George is the author of "7 lessons to lead in crisis."

What we do

In this book the author draws from his own experience in the trenches and the experience of leaders who have overcome tough economic storms seven lessons for us.

Quite frankly and with a clear direction that shows what we must do to become strong leaders and survive any crisis.

This book is a concise handbook for applying the lessons of leadership in difficult times. I recommend it as essential reading for anyone survival in a leadership position.

Lesson # 1 "face reality and start with yourself."

The reality begins with the person in charge of the organization. Leaders need to look in the mirror and recognize their role in creating the problems they face. Then they should reach agreement with their teams about the causes and roots of the crisis. The widespread recognition of reality is the crucial step before the problems can be solved. Search for short-term solutions that address the symptoms of the crisis only ensures that the organization ends in the same situation.

Some team members sometimes do not want to know the critical situation they face. To understand the true reasons for the crisis everyone on the team must be willing to tell the whole truth.

THE CEO of JP Morgan Chase, Jamie Dimon, said at the World Economic Forum in Davos that "not enough to have a person of your computer tell you the truth. Everyone must be honest in sharing the whole truth, no matter how painful it is. "How can we solve problems if we do not know its existence?

Lesson # 2: "Take off your shoulders the world.

In a crisis, many leaders act as an Atlas, carrying the weight of the world on his shoulders. They are isolated and think they can solve the problem alone. In reality, leaders must take everyone's help to find solutions and implement them. This means that we must win the confidence of the people for help and ideas and get their commitment to implement the painful remedies.

Lesson # 3: "Deeper to find the root of problems.
No matter how bad this situation will get worse .... Faced with bad news, many leaders can not believe that things could get worse. Consequently, trying to convince the bearers of bad news that things are not so bad and that prompt action can make the problems disappear.

This means that leaders do not move to seek corrective action. As a result, end up taking a number of steps, none of which is powerful enough to correct the downward spiral. It is better for leaders to anticipate the worst and move forward. If restructure their operating costs for the worst, they can face change when I get the worst of the crisis and thus be ready to seize opportunities as they arise.

Bill George

Lesson # 4: "Preparing for the long term".

In good times leaders are more concerned about earnings per share and revenue growth, which by their balance sheets. In a crisis, cash is king. The key question is, Does your organization have enough cash to survive the most extreme circumstances?

We must create a good cash box when things are good so that when the storm to survive.

Lesson # 5: "Never miss a good crisis."

This advice comes from Benjamin Netanyahu, Prime Minister of Israel. When things are going well, people are resistant to major changes or trying to survive with minor adaptations. The crisis offers the leading platform for doing things that need to be done and gives a sense of urgency to accelerate the implementation of changes difficult.

Lesson # 6: "You are in the spotlight: North follows its own '

Before asking his team to sacrifice you are the first to do so. Leaders should begin by making the greatest sacrifices. The crisis is the real test of a leader. Everyone is watching. Will it stay true to your values? Will you give in to external pressures or face the crisis with courage? Will it be seduced by short-term benefits or make sacrifices in order to resolve the situation in the long term?

Lesson # 7: "Go on the offensive, focus on winning.

This may seem counterintuitive, but a crisis offers the best opportunity to change everything in their favor, with new products or services to gain market share. Many people view the crisis as a way to go until they can return to normal. However, "normal" never returns, because markets are irrevocably changed. Why not create the changes that move the market in their favor, rather than wait and react to changes taking place?

Conclusion of the author
"In a crisis we know who are the real leaders and if they have the means to stay the course of true north.