Panel: Bjørn Johansson & Andrew Hill
Participants from Headspring: Gustaf Nordbäck & Michael Skapinker
1) Major changes regarding management succession, given the Corona virus threat?
Great companies are not seeing as many major changes but troubled companies are (as before!). And, some industries are particularly hard hit (such as the tourism and hospitality sectors). Further, some family firms may have less access to capital markets. These types of firms may see changes labeled as:
Replacements, given higher turnover now.
More focus on the CEO’s inspirational abilities.
And there may be more succession, due to death (the CEO might have been contaminated!)
2) Might it be relatively easier for the CEO to implement major changes, say, in the firm’s strategy or structure, now given the Corona virus situation?
Yes, opportunities to drive change may be larger now. The CEO must of course demonstrate his/her decision-making power. He/she is perhaps now relatively more relaxed and can take a longer-term perspective. There will be less traveling, and fewer long meetings now. And the CEO might more readily admit what he/she does not know. All of this provides a better basis for undertaking fundamental changes.
Above all, the urgency of the present situation (Corona virus threat) might make it clearer that changes are needed.
3) What might be particularly key characteristics for a new CEO now?
He/she must as fully as possible understand how to operate in the digital world, i.e. managing at a distance and through the screen, and doing this at all levels, inside and outside the organization (employees, board members, investors, clients). This is over-riding.
Also, important is to switch from the covid lockdown mode of more isolation and home office work, to a more now activated hybrid work situation (with some companies combining home and office work, or slowing moving back into in-office flow). Many CEOs had time to reflect during lockdown, having taken a step back and gotten a longer perspective. Now it is time to jump back in again with this new angle or broader view.
Further, he/she must be able to:
Come up with a crisis plan (speed is key here!)
Understand key ramifications from other threats such as trade wars, technological shifts etc.
Build trust in the workforce (can we trust the CEO?)
The CEO must be cognizant regarding stress in the workforce, show empathy, be concerned with mental health.
There may be an analogy regarding wartime and peacetime leadership (reference Ben Horowitz’s Peacetime vs. Wartime CEO). The realities of the Corona crisis call for peacetime leadership.
Work differently with the team, i.e. take advantage of the efficiency working digitally has given us, make direct requests to the team.
Adopt more of a coaching style of management.
4) What are the particularly important characteristics regarding the CEO’s way of leading from the top now during the Corona virus threat context?
What is key now is to manage effectively and efficiently from a distance (say, from home), i.e. “through the screen”! One example might be shorter, more focused meetings.
The CEO may perhaps now more easily directly reach down in the organization, to get particular “answers”! He/she may perhaps not truly need an excessively large top management team! Middle management may become relatively more directly involved. The CEO’s role as a coach for middle management is now also key.
This “remote” way of working may entail less micromanagement – focus on the truly key issues instead. And, risk management remains important. Honesty and transparency are paramount!
To handle diversity remains critical (internal/external; young/old; nationalities; gender; …). To cope with this reality remains central – there is still a political reality.
It is of course tough to bring a leadership team together, given this “remote” reality. Only truly good CEOs might now be able to bring the team together via video. And it is also increasingly important to be able to find new talent, build talent, assure succession, onboard succession, etc. when much work is done on-screen.
5) Are we ever going to get back to “the good old days” as we had it before the Corona virus threat crisis?
Many factors are probably likely to revert to the “pre-corona” reality. But there are perhaps some evolving issues that may be taking on different values:
Private equity shall be even more central!
To stay private may be even more critical!
To accelerate digitalization shall be key!
To instill trust will continue to be critically important, both within and outside the organization
To pick leaders who can effectively handle the above shall be key, as it always has been. Also, choosing the geographically strategic locations or seats of management will be critical. Even though technology facilitates remote work, the crisis may have a strong impact on the locations of organizations and their work forces.
6) The new culture
How can you establish a corporate culture when you are not able to physically “see your people in their eyes”? To recognize that there is stress in the organization (say, fear of being laid off), and to show empathy seems particularly important. And, to handle the diversity challenge, as can be be seen in the current situation in the US.
7) Key “style” characteristics, for today’s CEO
Focus on his/her team
Listen
Provide support
Be comfortable with taking a step back
Create a sense of belonging
Keep a focus on costs and cash
Foster collaboration as a vehicle for partnerships and growth
8) Key increasingly important strategic parameters
One environment; climate
Transform the firm more towards service economy reality
Digital skills shall be even more critical
9) Top-down versus bottom-up leadership style?
As noted, relatively little top-down/”me, me, me”/wartime focus. A bottom-up style/“we” seems key to successfully cope in the era of Corona virus threat! Quick decisions must, of course, still be made.
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