April/May 2009 Newsletter

Leading the way in troubled times

With unemployment tipped to soar as the recession takes hold, steering a company through tough times is the number one challenge confronting business leaders today. Delivering on business goals, managing costs, maintaining staff morale and keeping top talent will test leaders to their limits and require some hard decision-making in order to steer the ship through rough seas.

In an interview with Karen Cariss, leadership expert and CEO of PageUp People, we asked for her thoughts on the challenges leaders face in the wake of the global financial crisis, and ways they can 'step up to the plate' in tough market conditions.

Firstly, how is the global financial crisis impacting business?

The key theme coming through is caution, mostly in the form of deferred commitments to both spending and hiring. Many companies have put a freeze on external recruitment until they come to grips with the real implications of the downturn on their businesses. CEOs are adopting a wait and see approach, and taking time to consider their position going forward. Right now may not be the time for aggressive growth, so we see a lot of risk aversion in the market.

The flow-on effect is that businesses are re-focusing their priorities and re-forecasting their financials based on the current scenario. The spin-off from this is a big focus and pressure on HR to look at resourcing across the board - from management down. Companies are taking a hard look at themselves in terms of what they're doing right, what they're doing wrong and how to be on the front foot in this new market.

What are the key challenges for leaders in 2009?

The first - and biggest - risk leaders must contend with is delivering on their business goals. The current crisis is forcing companies to take a short term focus, but it is imperative they retain a balance between managing operational responsibilities and more strategic imperatives. Effectively they want to move forward but not in a way that puts the business at risk.

Another major challenge is retaining key talent. All of a sudden we're finding that everyone wants to talk about succession management. The current crisis has really given this impetus. HR managers are being asked, "How do we accelerate leaders throughout our organisation? What are the promotion paths? How do we identify critical talent and flight risk?" There's a real trend away from a replacement mentality to promoting and maximising talent from within. Organisations are realising there is a rich vein of internal talent they should be tapping into - rather than losing it.

Usually the first casualty in a recession is headcount.

What steps should leaders take to navigate their organisation through difficult times?

The global political response to the financial crisis provides an interesting study in the characteristics of strong leadership. It's a microcosm of what's happening in the corporate world. The world's political leaders are showing calm in the face of chaos, but also being firm and decisive. They are listening but are prepared to act and make some hard decisions.

Many leaders are returning to a workplace with a heightened level of anxiety and fear. Staff are worried about losing their jobs, failing to meet targets, or being distracted by rumours and innuendo. In a nervous climate leaders should:

1. Be calm and considered. Staff want stability and leaders who are decisive and in control.
2. Show sincerity and honesty. It is best to be honest about what lies ahead. In anxious times, peoples' antenna become much more sensitive and alert to the difference between truth and fabrication.
3. Elevate the level and frequency of communication. Leaders can't communicate enough in an environment like this. In times of anxiety, people are hungry for knowledge. Even if it is not good news, psychologically staff can deal with it better if they understand the position the business is in, and can adapt their mindset.
4. Communicate the basics often. Where's the business at? Where are we going? Why are we taking this approach? How are we going to get there? With so much complexity going on around them, staff want clarity and simplicity.
5. Retain a strategic lens on the current environment. Leaders mustn't lose sight of the big picture. The current scenario might have changed, but the business goals haven't. They should remind themselves it's not just about today or next week, but next year and beyond.
6. Be true to the values of the organisation. In tough times company values really get tested. Having a strong set of values for staff to lock onto through difficult periods is precisely why they're created.
7. Help the organisation stay focused. Leaders need to have a line of sight of where the business is heading for staff to focus on. They need to be specific about the role everyone has to play, and what the business requires of them right now.

Is there any upside for leaders in a tough operating environment?

A challenging market can help build an agile and resilient business. It's that old adage, what doesn't break you makes you stronger. Companies can emerge from a crisis in better shape than before. It can also have a morale-boosting 'weathering the storm together' effect, not to mention greater confidence and faith in seeing strong leadership on show.

Conversely, when organisations are really being tested, competitive weaknesses can come to the fore - which leaders can capitalise on to gain a competitive edge. In some instances, poorly managed businesses can be weeded out altogether, therefore reducing the competition.

The current downturn also provides opportunities for cashed up businesses to look at acquisitions. Valuations are priced back at more sensible levels, giving companies growth opportunities through acquisition.

Talent Campus

PageUp People's Talent Campus is a challenging and innovative development program designed to prepare leaders to excel.

Providing confronting experiences that reflect future business issues facing your organisation and industry, Talent Campus incorporates adult-learning principles in a realist action learning context. To discuss how Talent Campus may help your leaders prepare for the future, please contact a member of the PageUp People team.

Your chance to win a Visa Voucher

PageUp People is researching current best practice regarding the use of 360 Review or Multirater feedback and we would welcome your input. The survey takes less than 5 minutes to complete. As a contributor to the survey, you will be in the running to win a $250 Visa voucher. All participants will also receive a complimentary analysis of the results.

Please go to the PageUp People website, click on the 'Research' link then go to the Resource Centre and follow the link to the survey.

PageUp People News

93.22% Customer Satisfaction

PageUp People released the outcome of an independent customer satisfaction survey recently. The survey, completed by Australian Achiever Awards, found PageUp People to have a customer satisfaction level of 93.22%, the highest rating recorded for the company.

Karen Cariss, PageUp People CEO, is extremely pleased with the result and believes it is testament to the hard work and dedication of the team. "Regardless of our client's location, Australia, Asia, Europe, South America or North America, the dedicated PageUp People Client Portfolio Management teams are working tremendously hard to support clients' talent management needs."

New Deals signed

Indicating word of mouth is strong in the industry, PageUp People has signed significant deals this financial year, including; The Federal Group, Visy Industries, QR, South East Water, Ansaldo STS and Spotless Services Australia.

Social Network Updates

The PageUp People social network for talent management professionals continues to flourish, with close to 300 members. Recent updates include:

• Debate and discussion on how Twitter can be used within talent management strategies
• PageUp People's Twitter Survival Guide is now available for download
• New podcast available on the results of a recent Succession Management survey
• New PageUp People Whitepaper, Business Success Through Performance Development, is now available for download, free of charge

To join our social network please visit: http://www.pageuppeople.ning.com

PageUp People Podcast Series

Stay tuned for the upcoming edition, The Future of Talent Management, an interview with Kevin Wheeler.

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