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- Dr. Ram Charan Column: Real Leader Identity In Difficult Times
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Dr. Ram Charan is a world renowned author and advisor to many top companies.
The world is currently going through a geopolitical crisis the likes of which most leaders have never seen in their entire careers. Trade war. The supply chain is experiencing shocks. Tariffs that go into effect overnight. Markets that go into turmoil over a single headline. Companies that were thriving just six months ago, but which are now struggling to find new suppliers, new markets and new ground.
The most important thing a leader can do in this environment is not strategic, but human. Your people are watching you. Every day. They’re reading your face at the morning meeting. They are listening to what you say and what you don’t say. They are deciding based on your behavior whether to remain in this job or quietly start looking for work elsewhere. In times of uncertainty, talents leave jobs not because of the market but because of the leader.
I’ve seen this pattern repeat itself over the past six decades, working with companies in every industry and every sector. Leaders who keep teams engaged even in times of chaos are not the ones with the best strategies. They are the ones who speak the truth, make their presence felt consistently, and make their people feel like they are with them through this.
In practice this is implemented as follows: The first thing is transparency. Not that well-groomed transparency, which on the surface shows that everything is fine while the reality is the opposite. Real transparency. When there is uncertainty, accept it. When you don’t have an answer, say so. Your employees already know that circumstances are difficult. What they need from you is the honesty to accept it and the consistency to move forward despite it. A leader who communicates openly builds trust. He who hides difficulties breaks trust.
The second thing is focus. In difficult times there is a temptation to react to everything. Avoid this. Give your team clear, achievable goals that are within their control. The geopolitical situation is not under their control. What they make, how they serve their customers, how they work together – it’s all under their control. Focus their energy there. Momentum creates confidence and confidence boosts morale.
The third thing is investment in people. This is the time when companies cut back on training and development budgets. This is a bad decision. When you invest in your people, even through difficult times, it signals that we have confidence in your future. This is more valuable than any retention bonus. People stay where they feel they are moving forward.
The fourth thing is culture. A positive work culture is not just the luxury of good times. It is the basic structure that keeps the organization together during difficult times. Leaders who create an environment of genuine respect, recognition and care for their people find they have the most loyal, productive and resilient workforces. Culture is not created in easy moments.
The fifth thing is recognition. Don’t wait for the annual review to tell someone they’re doing a great job. Do it now. A person who feels valued does not think of exiting. He looks for ways to contribute more.
None of this is complicated. But all this requires discipline. The geopolitical crisis is not going to end soon. The leaders who emerge from this with stronger teams, cultures and businesses will be the ones who treated this time not just as a crisis to be endured, but as an opportunity to show what leadership really means. Your people will remember how you treated them during difficult times. Make sure they remember it well.
The geopolitical crisis is not going to end soon. The leaders who emerge from it with stronger teams, cultures and businesses will be the ones who took this period as an opportunity to show what leadership means.
(These are the author’s own views)
