OWP liVe REPORT

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Lessons to be learned from top teams’ reactions to the COVID-19 crisis

L E A D E R S H I P

Participants aligned with research by IMD’s Professor of Global Leadership

traditional considerations, such as operations or budgeting, remain

The need to communicate clearly and honestly – including recognition of ignorance in the face of an unpredictable virus – has become all the more important as many countries have faced a second wave of the pandemic in recent months, Anand observed. Defining crises as having three phases – emergency, regression and recovery – he noted the current regression phase had been unexpectedly prolonged, putting further pressure on corporate leaders to empathise. Such observations were closely echoed by the day-to-day experiences of participants. Two instant polls of viewers mirrored closely IMD’s own research on the pandemic and its impact. In a first survey about how distant participants thought the recovery phase was, nearly 80 per cent estimated it would be at least six to nine months (six months What people really think

crucial, understanding and dealing with employees’ fears and uncertainties – alongside health and safety – has rocketed up the agenda. “The emotional and psychological task of containment has become a top priority,” he said. A psychological term used to encompass a range of concepts involving motivation and morale during periods of acute uncertainty, containment includes the need to reassure employees and provide guidance. That is often accompanied by expressions of humility and empathy, as managers try to show a shared understanding of the difficulties facing many staff and admit that they do not have all the answers. “Leaders have been trying to connect with the suffering of their people,” he said. Communication is key

C OVID-19 has forced top managers to become much more visible and show far greater empathy and humility as big companies struggle to tackle a still largely undefined new foe. Recent breakthroughs in vaccines suggest the crisis may be approaching an end. But the prevailing mood among top management and staff remains one of anxiety, based on extensive research conducted by IMD’s Anand Narasimhan, Shell Professor of Global Leadership and Dean of Faculty and Research. Anand’s findings were underlined by participants from around the world at an interactive session of OWP liVe. Viewers confirmed the shift in top level priorities and gave telling examples of COVID- induced changes at their own companies. The biggest adjustment has the been the rise of what Anand described as “containment” for executives. While

ANAND NARASIMHAN IMD Professor of Global Leadership and Dean of Faculty and Research