leadership in times of crises
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Leadership inTimes ofCRISES!
Ankit Sanghi 44Rohan Sharma 46
Swapnil Madali 22
Vinit Ambat - 2
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CRISIS!!
In the wake of the July 16, 2005 floodsin Mumbai, the administrativemachinery completely broke down.People had only each other for help.
On Sep 11, 2001, Morgan Stanleysoffices at the WTC in New Yorksuffered an almost direct hit when theplanes crashed into them.
1962, the world came frighteninglyclose to nuclear warfare, when the USfound nuclear ballistic missiles being
developed by the Soviet Union, justan hour awa from the cost of Florida.
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Leadership under test
A crisis puts the leadership qualitiesof a leader under test andmagnifies both the light and
shadows of a person as a leader. Leadership in a crisis involves
rising above the pressure to
secure our own short termsurvival/gain and to serve thelong term mission driven needsof others.
True leaders in a crisis situation use
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Crisis???
Modern crisis are no longer confinedto the site of origin due toglobalization.
Crisis are extended periods of highthreats, high uncertainty and highpolitics that disrupt a wide range of
social, political and organizationalprocesses.
Ultimately, a leader is not
recognized by how well he or
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Failed expectations
The six public expectations thatleaders in crisis often fail to meetare:- 1-leaders should put public safety
first.
2-leaders should prepare for worstcase scenarios.
3-leaders should heed warnings aboutfuture crisis.
4-during a crisis, a leader should takecharge and provide clear directionto crisis management operations.
5-leaders should be compassionate
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T h e G ro w th C risisa n d H o w to
E scap e it
,A fte r La y o ffs W h a tN ext?
H o w R e silie n ce W orks
C u ttin g C o stsW ith o u t D ra w in g
B lo o d
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How Resilience Works
More than education, more thanexperience, more than training, a
persons level of resilience will
determine who succeeds and whofails.
Resilient people have very sober anddown-to-earth views of those parts of
reality that matter for survival.
The 2nd building block of resilience isthe propensity to make meaning of
terrible times. Resilient people devise
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Values also contribute a great deal toresilience.
Values, positive or negative areactually more important fororganisational resilience thanhaving resilient people on the
payroll. Resilience is neither ethically good nor
bad. It is merely the skill and thecapacity to be robust under conditions
of enormous stress and change.
The third building block of resilience isthe ability to make do with whatever
is at hand.
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Cutting costs without drawingblood
When looking for ways to cut costs,companies usually reach for thehead count hatchet and the
markets roar with approval. But a company can always create
more value by seriouslyevaluating the small ticket
capital item that get rubberstamped.
Because cutting the capital budgetincreases cash flow, the author
argues that
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Step-by-Step Guide Requesting the right information
Is this your investment to make?
Does it really have to be new?
How are our competitors meetingcompliance needs?
Reviewing the budget proposal
Is the left hand proposal duplicatinginvestments already made by the right? Are the trade offs between profits and
capital well understood? Are there any signs of budget massage?
Revisit Business Processes Are we using shared assets fully?
How fine grained are our capacitymeasures?
Conducting a post-mortem Be inclusive
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The growth crisis and how toescape it
Even through the 90s when the US economyboomed, few companies enjoyedconsistent double digit revenue growth,and those that did, achieved it short term
measures such as mergers and inflatedprice increases.
The sheer number of products hasexploded, which has already diced alreadysaturated markets into ever smaller
segments. E.g. in the United States, thenumber of food product SKUs grewfivefold, to nearly 11000 from 1980 to1998 according to the Federal ReserveBank of Texas.
Companies should really try focusing on
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Company 1995-2000Overallcompoundannualrevenuegrowth (%)
International
growth1 (%)Acquisitions2
(%)
Price
increases3
(%)
Estimatedcore growth(%)
J.P. MorganChase
31.3 9.4 12.3 4.5 5.1
Boeing 21.1 4.8 6.7 1.7 7.9
Disney15.9 1.3 6.3 1.6 6.7
ExxonMobil 13.4 6.9 3.0 10.5 -7.0
.1 This column measures the growth from base international
, .revenues in 1995 along with any international acquisitions.2 This column measures the net change in revenue caused by.domestic acquisitions and divestitures
.3 This column measures the change in price of the underlying(commodity or industry segment as measures by the consumer price
.)index or the product price index
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Analysis of
Questionnaire
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B e in g th e le a dco m m u n ica to r is
p ro b a b ly o n e o f the mostimportant things aleader can do in a ---crisis Judy Hoffman
Pl i i l l f 1 5
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raits ean Rating( Point)caleCommunicator .4 6Adaptable .4 6Attitude
.4 5
Relation Building .4 1/Disciplined Committe
d.4 1
Vision .4 0/Structured Organised .4 0
Passion .4 0
Please assign a numerical value of 1-5for the following Crisis leadership traits
Pl i i l l f 1 5
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T ra its e a nR a tin g( Point)ca leIn n o va tiv e .3 8In te g rity .3 7A n a ly tica l .3 7
/C o u ra g e B ra ve ry .3 6C h a rism a .3 6C o m p a ssio n a te .3 5
In te llig e n ce .3 4In flu e n ce .3 2
Please assign a numerical value of 1-5for the following Crisis leadership traits
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situation with an uncertain outcome, do youimagine, anticipate, and prepare for at leastthree possible outcomes so that you are not
surprised by what actually happens.
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When faced with complex and seemingly
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When faced with complex and seeminglyoverwhelming problems, you are personally able toquickly and smoothly get things under control by
focussing on key areas of importance and following
a disciplined plan of action
with employees so the appropriate
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with employees so the appropriatemessages are received as they wereintended and not distorted by gossip,
communication break-downs or messagefade out.
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- ,you personally perform a careful
examination to ensure that costs you cut donot undermine the value that is delivered to
your customers (whether internal orexternal)
Your organisation effectively manages its
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Your organisation effectively manages itsknowledge assets and ensures that people in
the organization have the appropriate
information they need to excel at their jobs.
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Thank
You!