The military commander and the executive
Every severe crisis affecting our societies today seems to deserve a war-time vocabulary: economic war, war on organised crime, war on international terrorism, war on poverty, war on the COVID 19 pandemic. While the shock word seems valid in the face of these major dangers, the objectives assigned, the energies mobilised and the resources deployed are not always in proportion to ensure the desired favourable outcome. From the experience of crisis management professionals, such as the military commanders, we can draw lessons although not making a complete analogy between the management of an armed conflict and the (post-Covid) economic crisis.
The economic and financial earthcake caused by the pandemic complicates an already tense global crisis situation: the likely aftershocks will only worsen the picture and make it more difficult to control the destiny of our business. What appropriations of the logic and practices of our commanders will be the most relevant and effective for our business leaders ? A few examples:
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Update ultimate objectives and define clear mandate.. It is essential that shareholders re-evaluate risks and opportunities in order to (re)set their long-term/ultimate objectives and also empower their managers with extensive delegation. As the predictability of markets fades, the defined strategy must give rise to successive adjustments. Binding decisions reconciling the imperative of urgency and medium-term targets are taken with a greater margin of uncertainty and therefore of error. Out of his comfort zones, the leader must accept to lose (one battle, but promptly implement countermeasures), control his stress and keep calm, develop a « sense of danger » and a real empathy around him.
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Focus the whole organization on results. The key indicators of the expected performance are shared with all the internal actors, in order to obtain a mobilization from the rank and file up to the chiefs. The information and orders are understandable by all and a fluid communication allows quick feedback from the field (the observers).
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Increase responsibiities with clearly defined boundaries at all levels. It is always easier to review systems than to perfect execution but the devil is in the detail :so the new ability of non-decision makers to intervene thanks to an increased level of confidence is a risk that needs to be addressed. An opportunity for group dynamics (shock troops) vs elite control.
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Introduce flexibility and push innovation to guarantee agility of movement in unexpected configurations. Synchronization of the entire value chain and the use of all skills available are required especially in vertical organizations that are generally less reactive. Those are essential assets when it comes to moving to Plan B in full action (commando style is the top of it).
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Search for allies (potentially all external partners) to increase the secure perimeter of the battlefield more than ever.
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Get familiar with a changing time scale. Faster decision taking and more patience are required – wait for the right time to move.
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Control complexity, make innovation an efficiency lever, drive organizational changes diligently … the multiple skills required for crisis management are not available in all toolboxes and may be lacking in the manager : the use of external advice and expertise will reinforce the resilience and penetration power of the company .
Military command and the conduct of a private organization regardless of its size are not interchangeable functions; however some typical reflexes and practices developed in contexts of extreme peril, with no net to catch up with, can undoubtedly better ensure « enlightened » leadership by the business leader.
July 2020 - Share article
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