A LEADER’S PLAYBOOK - Korn Ferry Focus - Korn Ferry Focus

Managing through crisis andpreparing for the post-outbreak eraA LEADER’S PLAYBOOKFOR A YEAR OF TWO HALVES

Although thetwo halves of2020 will lookvery different,it is impossibleto do well in anycycle withoutthinking aboutand planning forthe next one.2

A year of two halvesWithout question, 2020 will test not only the leadershipacumen of senior management, but also the ability oforganisations to operate in the face of extreme ambiguityStarting as a localised issue, the coronavirus(COVID-19) has now reached most nations,impacting organisations across the globe –with dire consequences.Already, thousands of people have died,hundreds of thousands have become ill andhealth services have been stressed way beyondtheir capacity. For most, the pandemic – andresponse to it – will be the most significant,and most concerning, event they haveexperienced. It has cost organisations billionsof dollars in lost revenue (potentially up to 1.1trillion by the end of 20201). It is clear it willresult in a significant drop in economic growtharound the world.At this stage of the COVID-19 outbreak,organisations need to deal with two equallyimportant factors – keeping employees andtheir families safe, and ensuring businesscontinuity as much as possible. Leaders arescrambling to secure supplies, keep fearfulemployees motivated to work, and planning forthe future while dealing with the here and now.In today’s turbulent world, some organisationshave become better at planning for andmitigating against risk in the face of a crisis.They have resiliencie built into their structure.But for many others, this could be a time ofconfusion, fear, and rash decision-making.Unfortunately, in our increasingly ambiguous,volatile and inter-connected world,unanticipated events like this are likely tohappen more frequently – and leaders willneed to be more agile, transparent, andforward thinking.These attributes will be key to navigating2020, which is likely to be a year of two halves.The first will be spent dealing with safety,containment, continuity, and contingencyplanning – a time for prudent, agile leadership.For those that can keep productivity high, andemployees engaged and motivated during thisfirst half, the next phase will be centred aroundtaking advantage of the pent-up demandin the global economy through incentives,recruitment, and innovation.But eventually, like other Black Swanevents, the virus will end. And when it does,organisations need to be ready.1Oxford Economics Latest Global Outlook - March/April 2020 oxfordeconomics.com/3

Although the two halves of 2020 will look very different,it is impossible to do well in any cycle without thinkingabout and planning for the next one.For organisations to respond now and plan forrecovery, they must learn to operate in a stateof constant disruption. In a time of unknowns,one thing is certain: what has worked in thepast is unlikely to keep working in the future.New habits are forming quickly – people areworking from home and consuming productsand entertainment in very different ways out ofnecessity.Building a culture that not only tolerates this shiftbut thrives in it will separate the winners fromthe losers.This may mean thinking differently aboutperformance and target setting, to keepteams motivated and ensure everyone workscollectively for a shared purpose – even whenworking remotely. It will certainly demand aproactive and empathetic communicationresponse from leaders, who will need toconsciously demonstrate the values andbehaviours they wish to encourage across theorganisation.Join Mike’s webinar on 2 April4But it should not necessarily mean puttingrecruitment and retention plans on hold. Inchallenging times, the quality of your talent canbe the ultimate advantage. Retaining your toppeople has never been more important, andfuture recruitment strategy will be done throughthe lens of recovering and resetting after thecrisis.Ultimately, leaders will need to adapt quicklyto changing circumstances – shifting from ameasured, inclusive approach today to settingthe pace in the second half and making up forlost time.In this playbook, Korn Ferry experts sharetheir insights on how to do just that, guidingyou through key considerations for talentmanagement and operational performancethrough both halves of the year.Michael Distefano,President, Korn Ferry Asia Pacificas he discusses the crisisresponse with the Korn FerryexpertsREGISTER HERE5

What’s insideLeadership:Now is the time for adaptive leadersCulture:Making the case for changeEngagement:From emergency response to greaterresiliencePerformance and rewards:Re-thinking plans through times ofcrisisRecruitment:Building resilience into your talentpipelineA blueprint for the unexpected5

Chapter 1Leadership: now is thetime for adaptive leadersIn times of crisis, people depend on leaders to provideclarity and hope. Fear can be contagious, breedingirrational behaviour and anxiety – and in business,this can lead to lower productivity and employeeengagement.While no one can be certain how the impactof this virus will continue to unfold globally,one thing is known: we will experience anotherbusiness crisis again in the future. Leaders whocan use this disruptive period as a time for selfreflection and an opportunity to re-frame theirmindset are likely to be better prepared whenthe next crisis comes along.“This may be an opportunity to test whatKorn Ferry has identified as a new model ofleadership, the capacity to ADAPT,” suggestsCharles Shao, a Korn Ferry Senior Client Partnerlocated in Beijing. (More on the ADAPT modelat: www.kornferry.com/self-disrupt)This is the time for agile leaders who cananticipate change – such as the necessity ofworking remotely – and turn it into a positivenew way of working. They can also drive asense of collective purpose and optimism,accelerate innovation and test new ideas,partner with others, and build trust.6So how can you keep responding to suchvolatile market demands, find new ways tocreate and act on opportunities, and keep yourteams aligned to a common purpose?Tim Wiseman, an Associate Client Partnerbased in Hong Kong, says now is the timefor an ‘expansion mentality’. “Don’t retract.Many healthy organisations are taking thistime to set themselves up for a big move.”He gives the example of a hotel that is takingthe opportunity to carry out a remodel it wasplanning for next year while some floors areunoccupied.In another example, a global consumer productbrand has ramped up its digital outreach whilefoot traffic to physical stores remains low. Bydoubling their digital efforts, they are taking thisopportunity to get closer to the customer andbuild a strong sense of community around theirproduct, which in turn anticipates a significantshift in the way their products will go to marketin the future.

Adaptive leaders can anticipate opportunitieslike this, while also using strong communicationto build trust and engagement within theirteams. This will set their organisations up tothrive through recovery.As an investor, Warren Buffet is known touse down cycles as opportunities to grow.Leaders can use the same mindset within theirorganisations with the following five principlesin mind.Over-communicate to overcome uncertaintyPeople need reassurance that there is a planand a path forward, so now is the time forwhat Tim Wiseman describes as ‘exhaustiveevangelising’.If town halls and coffee chats are impossiblewhile teams work remotely, buildcommunication channels via WeChat andWhatsApp groups or run video seminars.CEOs can share daily 90-second videoupdates to keep everyone aligned and builda sense of community around new tacticsand plans. This gives everyone a commonlanguage to take to clients and partners.It’s even more important to stay connectedwith your team at this time, and createroutine ways for people to work together sothey feel like they’re fully supported as partof a team.7

Leadership in times of high uncertaintyBECalmControl your emotions. Stress and negativity can be contagious, andcan shut down your neocortex – and with it, your ability to reasonand problem-solve.Confident & positiveYou are highly skilled; no one understands your business and contextbetter. Your instincts are often the best judgement.CourageousBe willing to launch without guarantee of success. Endure – as aleader you have to hold steady, persevere, and persist.EmpatheticShow people you care and understand their situation. Know whereyour people are in the grief curve.ResilientBe an energy bringer. Practice ‘Creative Abandonment’, ignore whatdrains your time and resources and concentrate on the must wins.8

Be authentic and humbleLeaders are now living with uncertaintyand ambiguity, and it’s acceptable to sayyou don’t know all the answers. Listen toemployee concerns, and acknowledge there aresometimes no easy solutions.If you don’t have the answer, bring yourteam together to discuss and experimentwith solutions – focus on testing new thingsquickly. Being transparent and open in thisway may feel uncomfortable, but it can go along way to building credibility and trust – withstaff, customers, shareholders, and the widercommunity.Make hard decisions onceSome leaders will need to make difficultdecisions in the interest of long-term businesscontinuity – such as reducing labour coststhrough staff lay-offs or forced leave. TimWiseman recommends being really clear andupfront about your plan, or it could be toxic tomorale.Look after your ecosystemLeaders may need to prioritise where theirenergy goes – and your best talent and clientsshould top the list. For example, when Chinesefirm provided face masks, which were alreadyscarce, to clients very early in the outbreak,it sent a strong signal that it wanted to keepthem safe.Similarly, it’s a common mistake to neglectdevelopment of high performers duringeconomic tension – especially when you arerelying on them more than ever. When themarket recovers, they are likely to jump to newopportunities first. Give them the recognitionthey need to feel valued right now, in additionto opportunities for personal and professionaldevelopment. This is one of the highest driversof employee engagement.“If you know there will be headcount reduction,or you need to close down a loss-making projector pull back from a market, be compassionateand clear – don’t mislead or give mixedmessages,” he says. “And if you have to do this,do it once and then move forward.”9

Leadership in times of high uncertaintyDOExpress a visionIt is everyone’s ‘north star’. It guides and motivates and you cannot’over do’ it.Communicate a lot, authenticallyThe only thing faster than the speed of light are rumors. Tell the realand informed story of what’s happening.Act!In difficulty always default to a bias to action: Decide - Accept Feedback - Self correct.Seek clarityFace the world as it is and not how you wish it to be, even onunpopular topics and thorny issues.Keep it simple and purposefulRemind people what’s really important - common goals, clearlyunderstood. Practice ruthless prioritisation on your main goal.10