Turn geopolitical turmoil into transformational capacity

Boost capacity to perform in the short term

1. Structure and processes: prune for growth, rearrange for agility, invest in smart simplicity.

Organizations tend to layer complexity over time by adding new initiatives on top of each other. A crisis can present a chance to reduce this complexity and gather and refocus resources for future growth. After all, strategy is a choice about what to do and what not to do. The second half of that management maxim is easily forgotten, especially in times of crisis.

Pruning the structure of your organization for growth could mean shaving off hierarchical layers or removing leadership levels. To do this strategically, leaders might take inspiration from their peers in Scandinavian countries. In Sweden and Finland, organizations must present proposed changes to organizational structures to trade unions before any decisions are taken. This might feel time-consuming, but it will avoid hasty decisions and increase the likelihood that the new structure delivers the desired results.

Any pruning process must include abandoning unproductive processes and non-strategic initiatives and tasks. Merely redistributing existing workloads to the shoulders of fewer people will lead to burnout and a loss of productivity. Done well, however, this “systematic abandonment” will free resources to target growth.

Take the example of a global machine manufacturer: After the supply chain crunch caused by the pandemic, they embraced “smart simplicity.” Due to shortages in essential machine components, they rearranged the assembly lines modularly. These lines can be recalibrated within hours to produce different machines, enabling the company to respond to circumstances and keep output steady. Running agile production lines is not easy: routines and procedures need to switch swiftly and constantly, requiring well-trained personnel and sophisticated education programs. However, this investment in people pays off fast.

2. A high-performance culture: focus on people and relationships, not tasks.

A high-performance culture is often associated with high task output. It’s hardly a surprise, therefore, that leaders under stress might be tempted to prioritize task output in an effort to secure performance. However, relational, affective leadership skills that prioritize people and culture over tasks are more effective in a crisis and will yield higher performance.

Uncertainty and volatility trigger anxiety and stress. At first, personal connections and experiences within a team might override political or national divisions, but eventually, geopolitical tensions can exacerbate fault lines in organizations. Physical distance across an organization and remote working further erode the vital human connections that keep those fault lines in check.

To manage this risk, leaders should openly address the uncertainty in which the organization operates. Embed any “tough message” in a cushion of seven to 10 positive messages, such as sharing the first successes of new initiatives or good customer feedback. Linking the short-term response with the company’s long-term vision helps widen the aperture, lifting perspectives beyond today’s challenges. Embracing this visionary leadership style creates a positive, engaging work environment, even in difficult times.

A shared belief in psychological safety is crucial here as it enables colleagues to be constructively candid while addressing critical challenges, and it gives employees the space to express their anxieties and ideas. Such openness must be paired with accountability, however. As Amy Edmondson and Michaela Kerrissey point out in a recent Harvard Business Review article, psychological safety does not mean job security or that everyone gets what they want. Accountability for outcomes must be maintained in a high-performance culture.

More than ever, the alignment of top leadership teams is paramount. Heightened anxiety and negativity bias during crises can make even minor disagreements within a top team damaging. When transmitted down the hierarchy, this misalignment is amplified and can be perceived as significant discord. Nonetheless, it remains crucial for top teams to engage in productive conversations and “mine for conflict” to uncover underlying issues. Once discussions conclude, however, the team must align on what and how to communicate precisely and consistently.

3. The high-performing manager: leading and recharging self.

High-performing organizations require high-performing leaders. In a crisis, everyone has to be at their very best. Yet, the anxiety and negativity of uncertainty can rub off even on the sturdiest individuals.

John Davison, former CEO of Zuellig Pharma, said: “As CEO, I have to absorb the chaos and transmit clarity to my team.” This means an enormous conversion of negative into positive energy. Leaders always need to manage their energy, not their time. In a crisis, effective recharge mechanisms for mental and physical health become even more vital. Meditation has been proven to be an excellent method to tackle negativity, calm the mind, and bring back positive energy. Another helpful tool is the “office hours for thoughts” concept, a form of expressive writing that works like this:

• Reserve a time as an “office hour for thoughts” – a time to allow thoughts and feelings to “come in”.
• Write down these thoughts and feelings on paper. Writing it down will per se create distance, while expressing ourselves this way with language uses the cognitive capacity of our brains. Cognitively processed negative emotions become less threatening.
• When negative thoughts or feelings occur during working hours, tell them to “go away and come back” at the time you have reserved. This creates the perception that we are in control, something we often feel is missing in times of great uncertainty.
• Writing down your thoughts sometimes surfaces an interesting idea, but not very often, so you can safely destroy your notes. This process removes negativity and helps you get a good night’s rest.

Recharging your batteries could also mean something as simple as visiting a museum or having dinner with family and friends. Keeping negativity at bay might mean writing down three good things that happen each day. Whatever works for you, managing your energy and attitude is an important part of leading through uncertainty.