In his most recent book, Leadership in the Era of Economic Uncertainty, Ram Charan comes to the rescue by providing real-world examples of companies that were quick to make effective changes, despite a fuzzy economic outlook. Further, Charan uses these examples to drive home the point that today's business leaders face unprecedented challenges-a deep recession, dwindling cash and credit availability, uncertain sales forecasts, and worried employees. This is not a time to reflect, he argues. It is a time to act, decide, and energize your people with urgency. And while the senior living industry has not been as hard hit by the current economic environment as many other sectors, this book does speak to the providers. Its case study examples and cogent arguments make it worth the read.
New Challenges
Senior living executives are currently facing economic challenges that most haven't experienced in their professional lives. But with these challenges comes a reminder of why we're in the business of caring for seniors, and Charan's book gives its readers the opportunity to reflect on the big picture.
When the financial spreadsheets get overwhelming, we must return to our primary mission. In other words, why are we here? In the senior living industry, of course, we are here to care for people. We provide exceptional service and earn a return on investment-whether it be financial, material, physical, emotional, or spiritual. We must channel all of those returns and use that energy to fuel our resident-centered mission-whether or not the stock market has a good day.
Consumer Considerations
In challenging economic times, company executives must look beyond corporate budgets and consider the budgets of their consumers. In senior living, many residents are watching their personal investment and retirement funds shrink. These cases, Charan argues, call for clear and concise communication strategies- between staff members as well as with consumers.
These are the strategies company leaders should adopt:
• Act quickly and decisively to prepare for the worst possible scenario.
• Shift your focus from the income statement to the balance sheet; protect cash flow.
• Re-evaluate all projects in terms of their return on investment. How much cash do they consume? How much and how quickly can they bring in cash?
Charan also addresses people skills, and how important it is for company leaders to understand how uncertain times can affect morale and productivity. Charan says executives should be ready to be "hands on and head in" with employees-which leads to the author's overall outlook on leadership. As a leader, he argues, you must be energizing, authentic, courageous, and optimistic-even in uncertain times.
Trustworthy Leadership
If you are an effective leader, people will look to you for direction and trust that you have their best interests at heart. This, in turn, helps you bring additional change agents on board. Together, company leaders and other executives can communicate valuable messages, and Charan's case studies offer specifics that may be valuable to executives in senior living.
And while being a leader in uncertain times is a challenge, Charan argues that certain skills and qualities can help executives succeed in any economic environment. The key is always anticipating the next challenge and building the fortitude to face it. Leadership in the Era of Economic Uncertainty can help senior living executives develop and hone those skills so that when times get tough (or tougher), they'll be prepared to be strong leaders as well as inspiring thinkers and communicators.
Lisa_A._Fordyce
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