Chapter 20
Priscilla Nelson and Ed Cohen
In This Chapter
- Explore 10 guidelines to help leaders guide people through turbulent times.
- Personal stories of two employees dealing with turbulent times.
Since we had joined Satyam Computer Services and moved to India in 2005, the company had experienced rapid growth, actually doubling in size by 2007 and on target to again double by 2010. At the end of 2008, Satyam was India’s fourth-largest information technology services firm, with 53,000 employees based in 60 countries around the world. But then, on January 7, 2009, we watched Satyam’s founder and chairman, Ramalinga Raju, disclose in a statement to the media that he had engaged in actions with respect to the firm’s finances that would cause its fall from grace. Those of us who were shareholders saw our investments disappear like a tsunami wave into a pool of financial destruction. And all of us watched in disbelief as the news began to emerge.
In his statement that day, when referring to the widening gap between the real and artificial numbers in the company books, Raju described his situation thus: “It was like riding a tiger, not knowing how to get off without being eaten.” In his resignation letter to the company’s board of directors, he stated: “I am now prepared to subject myself to the laws of land and face consequences thereof.”
Yet around the world, Satyam’s employees were not prepared to subject themselves to the consequences. Tainted, disgraced, beleaguered, scam hit, scandalized, fraudulent, and crisis ridden were just some of the adjectives now used to refer to the once-iconic brand of “India is IT.” The scale and impact of Satyam’s downfall were put in proper perspective by The Economist’s cover story, “India’s Enron,” and BusinessWeek’s cover feature on Raju, headlined “From Icon to I Con.”
We feared for our own livelihoods and for the impact the scandal would have on our families; see the sidebar for one employee’s experience. Few companies survive such an onslaught, so certainly there could be massive layoffs ahead. The leaders and the culture were not properly prepared for such a crisis. For the leaders of the company’s training facility, Satyam Learning World, obviously this presented a major challenge.
As an Indian-headquartered organization, Satyam was entrenched in a hierarchical, largely patriarchal culture. A servant-like attitude was the norm. Decisions were made by the most senior leaders or those with perceived authority due to longevity or seniority with the organization. But since 2005, a sea change had occurred, or so we thought, from this patriarchal structure to a consensus-oriented leadership culture. That is, until communication from Raju diminished in the months before his fateful confession. Employees were lost without direction, and only a few leaders had the courage to step forward. The entire situation was surreal. The media were everywhere. We had instantly gone from hero to zero. And so began the journey toward a new learning strategy for leaders, which included behaviors, competencies, and expectations to control the damage and rebuild as much as possible. We felt that leaders might go on autopilot when it came to managing, and that is exactly what they did. But as Satyam staff members in leadership roles concerned with learning and staff development, we specifically chose to focus on the people and relationship dimensions of the situation.
During turbulent times, leaders must rapidly and proactively convert emotions into actions. Everything speeds up—change, though always constant, is even more prevalent. Emotions, processes, demands, and measures increase as more is expected from everyone. Turbulent times are obviously stressful. Leaders must concurrently take care of themselves and everyone else. This takes time, patience, empathy, and a willingness to shift priorities and engage in constant communication—even what normally might be seen as overcommunication. Leaders should lead “out loud”—be transparent, maintain
A View from Ed
On January 7, 2009, I was on vacation in the states, enjoying a cool evening in Southern California. It was 11 p.m. I was with our cousins and some friends having drinks, dinner, and good laughs. I had decided to completely take the night off, which included not even answering my phone. This turned out to be poor timing. My friend Josh noticed that I had several missed calls—32, to be exact. The phone rang again, and this time I answered. It was my wife, Priscilla: “It’s all over the news. Ramalinga Raju has confessed to overstating the revenues of Satyam since 2001. We are watching it on the news right now. Everyone is in shock; no one knows what to do.” I could hear the concern in her voice: “The stock price is diving. Everyone is scared.”
I was shocked. I had no words. I needed a few moments to let the news sink in. How was this possible? There had not even been an inkling that this could possibly have happened, and to me, Ramalinga Raju was a leader of the highest integrity.
After completing my call with Priscilla, I checked my phone. There were 13 text messages, all from shocked employees of the company asking me what to do. I logged into email and found hundreds of messages from people who were panicking. I searched the Internet for information. There were already thousands of postings, even though the announcement had only come less than an hour before.
So now what? We were faced with a crisis, the magnitude far greater than anything I had ever experienced. And, I was 10,000 miles away from the center of the crisis, with little information. I phoned my assistant, Vijay Gupta. With his help, less than an hour after Raju’s confession, the 300-plus associates of Satyam Learning World were participating in a live web meeting and audio conference. I was still in shock and noticeably shaken by the news. What would we say to the team? Luckily for me, my cousin, Howard Richmond, wrote and flashed notes to guide me throughout the conversation. One such note truly had a profound impact on me and everyone else: “Don’t let the news of today undo the successes of yesterday or tomorrow.” Without realizing it, I had begun thinking that the past years spent in India working for Satyam were now wasted. Howard’s short message restored my sense of accomplishment. So, when we spoke to the Satyam Learning World associates, I shared Howard’s words of wisdom and encouragement with them.
We fielded questions and provided as much comfort and advice as we possibly could at that moment. During the next two weeks, we had multiple quick updates throughout the day and a daily call. Even when there wasn’t much to report, people still had questions. It was clear they were looking forward to having regular access to their leaders and to each other. They felt comfort in being with each other. Because the team was scattered around the world, we brought them together both physically and virtually. We kept them informed, and all our leaders opened their doors. They each proactively met individually with members of their teams. Each day the leaders came together and we discussed how everyone was doing and our next steps.
their integrity, and be approachable. These are the leaders with whom people want to work, in good times and bad. To successfully lead people through turbulent times, here are 10 daily guidelines for leaders:
- We will never get back to normal.
- Find ways to take care of each other.
- React . . . pause . . . respond.
- Even when you don’t believe there is much to say, there is much to say.
- Now is not the time for hide-and-seek.
- Maintain integrity and high moral values.
- Leaders are human, too.
- Spend time with children.
- Take care of your emotional, physical, and spiritual well-being.
- Assess and rebuild trust.
Let’s take a look at each.
We Will Never Get Back to Normal
We looked up the word “normal” in several dictionaries and found that it means conforming to the norm, to rules, to known standards. Normal? What’s normal? The organization we knew before these turbulent times is certainly not the normal to which we wanted to return. Why would anyone even want to return to that “normal”? In that “normal,” we were leading a rapidly growing business that was merely a facade to fuel the ambitions of the founder and chairman and a few of his key senior managers. “Normal” thus had two dimensions: (1) the appearance of great success; and (2) deception, with calculated movement to continuously hide the truth.
The word “normal” also means “average.” We don’t know too many people who want to be called average. The only constant about “normal” is that it is always changing. So, instead of hoping for and trying to get back to normal, move on, seek better ways to do things, and let them become the new normal.
Find Ways to Take Care of Each Other
During turbulent times, leaders need to demonstrate transparency, empathy, patience, and forgiveness. Look for ways to take care of each other. First and foremost, explore your feelings. Find someone with whom you can speak, who will have an objective view and provide you with the empathic listening you need for yourself. At work, don’t be afraid to express feelings. And allow others to express their feelings without judgment. Words like hurt, worried, cheated, shock, and disbelief, along with phrases like “How did this happen?” and “Am I going to lose my job?” will be spoken. Let them flow. There is no need to have an answer or even a reply. Now is the time to be a great listener and to demonstrate empathy. Use paraphrasing to let others know you have heard them. People need to verbalize thoughts and feelings to work through them. They want to be heard and need to feel listened to lower their anxiety.
Now is the time to come together in community. Bring everyone together; if an event caused the turbulence, have them talk about where they were when the news first came out. Provide regular updates on what’s happening across the organization. Hearing it first from you, as the leader, demonstrates transparency and caring for others. Go out to lunch with colleagues, take a walk together, gather in a conference room to share stories—togetherness is healing.
You can ask people to draw a picture depicting how they are feeling. For example, have everyone draw their river of emotions. Each person draws their own river showing the rough waters, twists, bends, high water, and low water, all depicting their own emotions. Then ask them to draw the river as they would like to see it in the future. Everyone can share their pictures with each other. Without words, all will see they are on similar journeys. When people know they are not alone, they immediately feel better.
React . . . Pause . . . Respond
When a crisis occurs, for safety and expediency, leaders are counted on to react. Adrenaline pushes energy to the parts of the body most required to handle the turbulence. Your mind might be more alert, thinking at a rapid speed, your eyes may dilate so you can see better, and your hearing may sharpen—and all this brings on the “normal” reaction: fight or flight. But if you react in that moment, a normal response, it may or may not be right. So pause. Then reflect, collect as much information as possible, and consider possible benefits and consequences before deciding on your next action.
Moving beyond that, we each face our own turmoil. We each decide how to respond, taking into consideration all factors at that time including our career desires, personal needs, and family situation. No matter how one responds, it will be right for you, as long as it comes from information gathering, integrity, an open heart, and seeking to understand.
Even When You Don’t Believe There Is Much to Say, There Is Much to Say
“I don’t know what to say.” “Everyone is getting information daily from the company.” “They can see it on the news.” These are some excuses heard from leaders when asked why they are not communicating with their teams. But during turbulent times, there is no such thing as overcommunicating. There is no valid excuse for not communicating. Give regular updates as often as necessary. When the crisis at Satyam began, updates were given every hour. Then we shifted to updates every few hours, and then daily, and then weekly. Never cancel an update. This scares people. Even when there isn’t much to report, people appreciate being told what is known again and again. They also appreciate the opportunity to ask questions. They feel connected with regular access to their most senior leaders.
Overcommunication is good communication during turbulent times. You will know that you are communicating enough when people repeat your words to each other and to you. Consistent and continuous messaging prevents the rumor mill from grinding and demonstrates the leader’s approachability, transparency, and caring. See the sidebar for how this applied to Satyam’s experience.
Now Is Not the Time for Hide-and-Seek
“I have my own stress to deal with.” “I have incredibly tight deadlines.” “I have no time to hang out and talk to people.” These are just a few of the excuses we heard from leaders during Satyam’s turbulent time. And though it’s true that leaders in such times are tremendously busy working to stabilize their company, that they have many additional requirements, and that they are themselves scared, the need of the hour is the team. When a leader goes into hiding, the people who work for him or her become scared. They question what is happening, and without the leader’s presence, they might even make up a story about what is going on. This is how dangerous rumors and urban legends are born.
So be visible. Now is not the time to hide away at home or in your office. Open the door, get up from your desk, walk around, and talk with people—let them know you care. During the crisis at Satyam, a colleague sent this quotation (we tried to find out who wrote it but couldn’t): “They don’t care how much you know until they know how much you care.” Listen, empathize, share advice, and provide words of comfort—just be there. You may be injured; we all are. You may have a lot of work to get done; we all do. But as a leader, you must be present to inform, comfort, and provide strength for others.
Maintain Integrity and High Moral Values
During turbulent times, leaders are asked to take steps that they might not feel good about. There may be a pending layoff, a potential sale of the company, or quite possibly something even worse set to happen. But don’t let current circumstances influence, broaden, or distort your definition of integrity and other core values. In researching my book Leadership Without Borders (Cohen 2007), I conducted a global survey of 250 senior executives who had
A View from Priscilla
The television screen displayed a photo of Ramalinga Raju, Satyam’s founder and chairman, on the right and a graph depicting the falling stock price on the left. The value of Satyam’s stock plummeted in less than five seconds, drained like an hourglass with the grains of sands pushing to the bottom. I immediately dialed Ed’s number. At the time, he was still in California. There was no answer, so I continued trying to call, over and over.
Following the broadcast, two Satyam vice presidents and I called a meeting of those who were in the firm’s School of Leadership building. We organized additional meetings in other locations where our learning teams were located. I recall thinking that I didn’t know any more than anyone else. I did know that it was important for us to be together as we tried to absorb the shock. But just as a community bands together after a storm or other disasters, we had to count on the human spirit to care for each other. We were all frightened. There was so much we still did not know. How would this affect our jobs? How would our families handle the news? What was to become of Satyam?
I thought back to when my father was in the hospital dying of cancer and I was 3,000 miles away. I wanted constant information, even if there was nothing to report. I wanted to feel connected, and I knew this is what we needed now.
We spoke candidly about our fears and pledged to share information on Satyam’s situation as soon as it became available. We also agreed to give regular updates, even if there was nothing to share. We realized how important it was to reach beyond our group, to engage other leaders who would need support to speak with their teams. We went live with these same candid conversations the next day over our company-wide web television station. Every Satyam employee around the world would hear our fears and our stories about how we had communicated with our friends and families (especially those of us with children). This program was made available to all 53,000 employees. We built more programs, reaching out in as many different formats. Whereas, before, a crisis may have caused managers to close their doors, we now recognized the need to use our learning methods, both formal and informal, to include anyone with access to a computer. We became the Satyam Emergency Broadcast Network. We were applauded for our honesty and courage. It was a great and fulfilling experience to be able to mobilize the talents and capabilities of a group of incredibly dedicated professionals to leverage learning and development during this turbulent time.
lived and worked in more than 60 different countries. The results identified 14 core values that are critical for all leaders:
- Conviction: Conveys sincerity and confidence in beliefs and decisions, and a willingness to make and stand by difficult decisions.
- Diversity: Values different perspectives, builds multifaceted diverse teams, seeks to understand what drives and motivates individuals.
- Entrepreneurship: Recognizes opportunities and organizes resources to maximize them.
- Excellence: Strives for excellence, which is not the same as perfection; recognizes that “excellence” may vary from country to country, depending upon the local context.
- Fairness: Makes decisions that are fair, consistent, and equitable.
- Humility: Acts in the knowledge that he or she is not better or more important than others.
- Integrity: Demonstrates honesty and makes ethical decisions.
- Passion: Leads by example and demonstrates a high level of energy and enthusiasm.
- Perseverance: Shows resolve in moving toward the path ahead, with a strong will and the drive to accomplish goals.
- Positive attitude: Maintains a positive attitude and represents decisions and policies in a positive manner.
- Respect: Demonstrates a high regard for others, regardless of their station in life; treats everyone with dignity.
- Service oriented: Provides extraordinary, “extra mile” assistance to everyone, whether internal to the organization or a customer.
- Teamwork: Easily adapts to being a team player and encourages teamwork across the organization.
- Work/life balance: Balances time spent at work with other dimensions of one’s family, community, and social life.
Core values represent who you are. Standing by core values in difficult times is the best way to demonstrate the true character of the organization. This means being willing to have difficult conversations and make difficult decisions, and not tolerating a lack of integrity. Let go of people who make such compromises.
Leaders Are Human, Too
During turbulent times, we all go through a lot. We may feel hurt, damaged, and worried— and that’s just the tip of the emotional iceberg. Sometimes you will not be at your best, although it is important for you, as the leader, to hold it together as much as possible. Even so, you may still have some bad moments.
The experience of a leader we observed is illustrative. He came to work, carrying his own fears, angry that his company had allowed itself to fall into a severe crisis and not sure how his family would make it through if he lost his job. With all this on his mind, things that would normally not bother him caused an exaggerated reaction. After being confronted late in the day by his assistant, he went home and reflected. Realizing that this behavior was totally out of character, he knew he needed to do something. The next morning, he sent this note to everyone:
Dear Team,
These are very stressful times we are going through. Yesterday was a particularly bad day for me. I allowed my own fears to interfere with my work and, as many of you know, I lacked patience and displayed a frustrated tone, even shouting at a few people. All of you know this is not my normal behavior. I sincerely apologize to anyone I was harsh with and want everyone to know I am working very hard to be the leader you need me to be.
The response was incredible. The team members, relieved to know that their leader was also going through much of the same pain as they were, not only appreciated the message but also felt closer to their leader for having shown his frailty. At that moment, trust and confidence increased, and what had begun as a very negative experience that could have damaged the leader’s standing with his team was transformed into an opportunity to reflect and solidify.
Leaders are human, too. They experience the full range of emotions, just like everyone else. However, many leaders do not feel they should express these emotions openly. We believe the best leaders are willing to express their feelings. So if you experience anger and act out as a result of your turmoil, as soon as you realize it, apologize and move on. Do not beat yourself up. Leaders are human, too.
Spend Time with Children
To some, the idea of spending time with children may seem out of place here. Spend time with children during turbulent times? Wouldn’t this be totally inappropriate? Not really, when you think about it. Children do not carry the same burdens as adults; they live in the moment and, especially younger children, are constantly playing. They may sense your sadness or turmoil. They may even ask you about it. But soon they will be running around again, playing their games. Join them, the time will pass, and you will have had a much-needed break. Try it. Take a little time to live “in the moment,” as children tend to do—surrender to your playful inner child for an hour or so. This will remind you of the significance of taking time to tune out and not allow business to consume every moment. Work/life balance can still exist, even in turbulent times.
Take Care of Your Emotional, Physical, and Spiritual Well-Being
Your health—including your emotional, physical, and spiritual well-being—is important all the time; it is critical during turbulent times. Don’t put any aspect of it on hold. You will feel like ignoring your needs; don’t. Calm your mind at night. Get a good night’s sleep. If you need to talk with someone, seek out a counselor, a coach, or your best friend. Start or continue an exercise routine. Be more mindful of your diet. And look for the comfort that comes from following your own spiritual path. This is not an easy task for most leaders, who become so consumed in the crisis that they sacrifice everything else.
Assess and Rebuild Trust
Damage control and rebuilding a seriously injured organization require difficult decisions—decisions not everyone will understand. For this reason, leaders must continuously assess and rebuild trust. Can trust be rebuilt? We think the answer is: It depends. People trust the trusted.
There is a saying in Hindi, Satyameva Jayate, which means “truth alone triumphs.” Be transparent; speak the truth all the time, and trust is renewed each and every day. If you have built a trusting relationship with people before the turbulent times hit, then they will want to give you the benefit of the doubt. Leaders should follow the first nine guidelines presented earlier in this chapter, and also do these things:
- Acknowledge individual and team contributions.
- Sustain and continue to build strong relationships.
- Conduct meetings that skip hierarchical levels to enhance approachability.
- Emphasize collaborative decision making.
- Choose not to collude in the blame game.
- End rumors before they start.
- Help those who become displaced find new positions.
- Learn to detect and “call out” deception. In Survival of the Savvy: High-Integrity Political Tactics for Career and Company Success, Marty Seldman and Rick Brandon (2004) provide excellent information on how to detect deception.
The organization can assist leaders so that trust is maintained throughout turbulent times by choosing to quickly
- Sanitize or eliminate the leaders who caused the turbulence (if intentional) or have seriously broken the trust.
- Reinforce or launch core values.
- Hold everyone accountable for “cleaning up the mess” and moving forward.
- Close the communication gaps that have caused breakdowns in trust.
- Provide safe ways for people to express themselves.
- Overcommunicate.
- Conduct regular trust indexing (a one-minute survey asking employees the trust level of their leader, the leader’s leader, and the organization’s leaders).
- Reward honesty even when it results in negative business outcomes.
- Explain the need for difficult decisions.
- Close out quickly and painlessly those who must be exited (most of the time, a layoff is imminent).
Summary
Encouraging an organization’s leaders to follow the 10 guidelines outlined in this chapter, provide consistent communication, and learn to support are the main contributions of its learning strategy during turbulent times. There will be plenty of time later to start again with sales training and business leadership, areas that contribute to the organization’s growth.
During turbulent times, leaders must rapidly and proactively convert emotions into actions. Because turbulent times are so stressful, leaders must concurrently take care of themselves and everyone else. This takes time, patience, empathy, and a willingness to shift priorities and engage in constant communication—even what otherwise might seem overcommunication. To successfully lead people through turbulent times, we believe leaders should practice these 10 guidelines each and every day.
To creatively face and move past turbulent times, it is crucial for leaders to develop and communicate a solid plan for the future. They must communicate this plan in simple, straightforward words to all stakeholders. People will feel more confident knowing that there is a plan. And as they pursue this challenging work, leaders should continuously remind themselves and their teams of this simple yet profound message, shared by Howard Richmond (www.howardrichmondmd.com): “Don’t let the news of today undo the successes of yesterday or tomorrow.”
References
Cohen, Ed. 2007. Leadership Without Borders: Successful Strategies from World-Class Leaders. Singapore: John Wiley & Sons.
Seldman, Marty, and Rick Brandon. 2004. Survival of the Savvy: High-Integrity Political Tactics for Career and Company Success. New York: Free Press.
About the Authors
Priscilla Nelson is CEO of Nelson Cohen Global Consulting, providing strategic consulting in learning, organization development, and executive coaching for the C-Suite. Her experience in human resources, diversity, organization development, and executive coaching spans three decades. In her global work, she has consulted with such notable organizations as Satyam, Emergent Biosolutions, Glaxo SmithKline, Pfizer Pharmaceuticals, IBM, Guilford Pharmaceuticals, AT&T, Rollins College, Titan Corporation, and the U.S. government. She is an inspiring speaker who has led sessions and given keynotes across the United States, Asia, and Europe. While living in India, she was recognized by India Women in Leadership with the 2008 Women’s Choice Award for outstanding leadership, and she received the 2007 IT People Award for global diversity.
Ed Cohen is executive vice president of Nelson Cohen Global Consulting, providing thought leadership and strategic guidance to global companies. He has worked in more than 40 countries with organizations including Booz Allen Hamilton, Satyam, Seer Technologies, National Australia Bank, Larson & Toubro, Farmers Insurance Group, Banco Banesto, and the World Economic Forum. He is the only chief learning officer to have led two companies to the ASTD BEST Award’s number one ranking—Booz Allen Hamilton and Satyam Computer Services (the only company outside the United States to achieve this). He is the author of Leadership Without Borders (John Wiley & Sons, 2007), which received international accolades.
Adapted from book Riding the Tiger: Learning Strategies for Leaders in Turbulent Times, published by ASTD Press, 2010.