The economic crisis of the past few years inflicted significant damage on businesses across industries. However, these crises also offered valuable lessons for reviving business strategies and adopting new technologies. Over time, organisations found ways to recover, and in the process, management structures and business processes underwent major transformations. Managers had to reinvent themselves to navigate the widespread disruption caused by the COVID-19 pandemic. With increasing volatility and uncertainty, one of the key responsibilities of managers today is the ability to lead effectively during turbulent times.
A veteran of Indian management, who has led several iconic brands and is a prolific writer and speaker on management, R. Gopalakrishnan, Corporate Advisor at The Mindworks and author, shared valuable insights on the topic “Lessons from Managing Turbulent Times” during AIMA’s premiere session of Management Café.
From a manager’s perspective, managing during the COVID-19 pandemic became extremely challenging. Leaders had to coordinate with government authorities for day-to-day operations, while making critical decisions based on incomplete information. The biggest challenge was determining the right approach to adapt and manage effectively in such uncertain circumstances.
Taking a light-hearted approach to the subject, R. Gopalakrishnan remarked that managing during turbulent times is often considered a banal and overused topic. However, referring to the pandemic and the technological disruptions it accelerated, he emphasized that “we need a different kind of leader.” Traditionally, organisations valued leaders with high IQ (Intelligence Quotient) and high EQ (Emotional Quotient). Today, however, leaders must also possess a high AQ—Adaptability Quotient.
The three ways to assess Adaptability Quotient (AQ) are:
• Ask a “What if?” question (for example: What if there were an earthquake tomorrow, or your factory caught fire?). Rather than focusing on the correctness of the answer, assess the person's adaptability and thinking process.
• Ask what they have unlearned over the past year.
• Ask whether they tend to explore or exploit while working. Organisations need people who are willing to explore.
According to R. Gopalakrishnan, individuals who can handle “what if” situations, unlearn outdated practices, and balance exploration with exploitation are true AQ leaders, and these are the leaders organisations will increasingly need in the future. He added that unpredictability is the root cause of turbulence, and the way leaders respond to uncertainty ultimately determines their effectiveness.
Predictable problems generally share three common characteristics:
• Leaders know the problem exists, recognise that it is not easily solvable, and understand that it is worsening over time.
• Leaders know the solution is expensive to implement.
• Leaders are aware of the problem but face resistance from those who will be affected by the solution.
Because of these reasons, organisations often ignore predictable problems until they become unpredictable crises.
So how should leaders deal with turbulence? R. Gopalakrishnan explained that while many believe turbulence is unique to the present era, history shows that every generation has experienced rapid and unsettling change. India’s Partition, for example, created uncertainty on a scale far greater than the COVID-19 pandemic. Businesses had no revenue, records were lost, and people did not even know where they were headed. Compared with those circumstances, he suggested, the pandemic was relatively manageable. Turbulence has always been a constant companion of humanity. The real challenge is that leaders often procrastinate instead of preparing with contingency plans.
The COVID-19 pandemic also taught organisations two important lessons: protect and leverage. Individuals protected themselves through masks and vaccinations, while companies leveraged new strategies, technologies, and business models. Explaining why he preferred the word “immunisation” over “protection,” he compared organisations to the human body. Some illnesses are visible and can be treated easily, while others remain hidden and require deeper attention. In organisations, the true vaccine against turbulence is People Power. Companies that invest in, nurture, and empower their people are the ones most likely to survive and thrive.
R. Gopalakrishnan concluded his session by saying, “Leaders should learn to listen, show empathy, and not hide their vulnerability.”
Watch the full session – https://www.youtube.com/watch?v=UOuC9_2w11I
