Managing difficult times is a difficult task, but at this stage, one can see how a simple manager differs from a leader. This article will tell you what it takes to lead and manage effectively in challenging times.
Board of directors: how to prepare for new challenges and risks
Every business faces a crisis at some point or another. Depending on how you respond, you will experience a dramatic increase in your reputation or significant damage to your brand, which can lead to alienation from customers and business partners. Especially in this day and age where news goes viral almost instantly, organizations must be ready to respond to any crisis quickly and effectively using all available tools.
To collect data on the facts and activities carried out by the deformed system, the functionality of the activity is disrupted, and a break, collapse, or crisis occurs. Ensuring the long-term prosperity of enterprises requires a comprehensive approach to risk management, which includes purposeful activities with the support and coordination of the board and top management in the enterprise. Any risk can be a potential source of the crisis. The risks posed by these crises may recur cyclically or randomly with some probability, but their growth and origin are unexpected and unforeseen.
Strategic management, which is essential for top management, is more related to change management, the principal turnover of the company, dynamic development, and crisis management. For this reason, it is necessary to talk about making high-quality strategic decisions, especially since present and future economic development depends on the use of radical interventions in the activities of the enterprise to ensure its further development and the development of society.
Steps to manage a team during a board crisis
When companies go through hard times, their leaders often say, “We’re in a highly competitive market” or “We’re overpriced.” All this is true, but these are just symptoms. The main reason is often internal. If you are in a difficult position, you must look inside the organization to identify the real problems. Smart people call the root cause of hard times drivers of change. There are four drivers: people, process, rewards, and structure.
Before looking at each driver, remember that you want to focus on fixing the system to create an environment where people will, more often than not, do the right thing with as little control as possible, regardless of external threats.
- People. Be clear about expected behavior and ensure all employees are aware of the consequences. People who do their job right should be rewarded with positive, timely, and specific feedback. Conversely, with team members who do not want to play by the rules, an unpleasant conversation should be held, which should be timely and focused. For people to feel like they are being treated fairly and are positive to constructive feedback ratio should be three to one.
- Process. It makes work more productive and efficient. It can also be used to manage behavior, especially when task coordination is critical and work is repetitive. Conversely, consider where the process can be eliminated to provide autonomy and flexibility when meeting customer needs.
- Awards. Make sure there are real actions to thank employees for their commitment to the process and exceeding overall expectations. It should not be the usual monthly bonuses and bonuses, and it’s more about praise and recognition.
- Structure. Your organizational structure should support the strategy, not the other way around. Strategy always precedes structure. Do not try to reorganize until you have considered how all the control levers will be interdependent.