Dr Charans Insights and How Present-Day Executive Leadership Should Plan - Essay Example

In some cases, an economic crisis can create opportunities for business and it can bring about disaster to the other organizations depending on the approach taken by the leaders.
According to Dr Charan, of paramount importance during an economic crisis is the need to constantly monitor and manage cash because organisations are often faced with liquidity problems during such periods. It is also important for the leaders to get full details of their operations so as to be better positioned to defend their core business in the event of an economic crisis striking. Short-term strategies are advocated so as to be able to deal with the situation. Essentially, there are six leadership traits for hard time which include the following
• Honesty and credibility- these are virtues in operating a business during an economic crisis period.
• The ability to inspire- inspiration among members of the organisation is encouraging.
• Real-time connection with reality- there is a need to know the facts obtained on the ground every time.
• Realism tempered with optimism- leaders should always think positively
• Managing with intensity- leaders must be accommodative to other employees’ views.
• Boldness in building for the future – need to take appropriate action to address future needs.
In most cases, revenues for businesses are generated through sales hence the need for the salespeople to be as realistic as much as possible. They should scan the current environment and see if they can get an opportunity through evaluating the customers’ potential to buy.
Role o Chief Financial Officers
These communicate the financial position of the business both internally and externally. Their main role is to communicate clearly and honestly so as to keep the investors and lenders abreast about the situation obtained on the ground. Another role is to allocate resources according to the current state of economic affairs. There is a need to identify the projects that matter as well as set new priorities.
What then must CEOs do?
To those CEOs who presided over thriving organisations, there is a tendency to believe that they know everything. This over-optimism is at times dangerous since they can engage in other risky activities such as debt which can sink the organisation into oblivion.
 Against this background, CEOs should remember that they are leaders and should inspire their workers even during trying times. They should remind the workers that there is light at the end of the tunnel hence should not despair.
 There is a need to establish respectful relationships with the stakeholders in order to contribute to the firm’s credibility. Information about the situation obtained on the ground is very important and it should always be truthful.
Capable leaders will often have a vision and emerge stronger from a financial crisis.