Greenspan or Gaddafi? Leadership styles for volatile times

Major changes can often come unexpectedly. But you can become a more effective leader by accepting diversity and volatility – not suppressing them in the short term only to create a volcanic eruption later.

What did you learn from the 'unexpected' GFC? Or, what should you learn from the equally 'unexpected' northern African Spring?

Nassim Taleb (the "Black Swan” guy) and Mark Blyth have answered with clarity and insight: "What the world has been witnessing in Tunisia, Egypt and Libya is … what happens when highly constrained systems explode. Seeking to restrict variability seems to be good policy.”

But as Alan Greenspan (and the rest of us) found out: "Suppression of volatility in the name of stability … makes complex systems … extremely fragile.” They are prone to explode unexpectedly.

So, here are seven things you can do to avoid civil unrest in your organisation – and being unceremoniously thrown out of office.

1. Understand and engage your people as individuals

Listening and observing – in each case seeing the whole person; choosing language that's meaningful for them and sharing yourself as an individual as well as their boss; also, being aware of how they each feel and operate.

2. Show self-awareness and appropriateness in your actions and responses

To avoid offending or intimidating people; actively seek input on how you impact others – through both direct feedback and via third parties.

3. Champion diversity, tolerance and synergy

By widening the membership profile of your team, seeking and supporting new ideas, accepting differences of approach and method – and welcoming dissent and finding what can be improved.

4. Recognise limits and breakage points

Not overloading your people or systems; ensuring depth within your team and its resources and, testing continually for points of strain or bottlenecking – and taking necessary action.

5. Drive communication of vision and key messages

Ensuring people know what the journey is about, also what's in it for them (as well as what's expected); all the while, seeking and being open to new information – and new alternatives that can add greater value.

6. Drive strategic rethink

So that your operations are continually responding to current and future realities and demands – whether commercial or social; not mired in the past, out of touch or behind the curve.

7. Show self-leadership and adaptability

Set the pace by walking the talk, remaining accessible and one of the team, recognising areas in which you should upskill or improve – or even, in some case, move on and make room for others.

In conclusion, let's return to Taleb and Blyth: "The Romans were wise enough to know only a free man under Roman law could be trusted to engage in a contract; by extension, only a free people can be trusted to abide by a treaty.”

But "With freedom comes unpredictable fluctuations. This is one of life's packages: no freedom without noise – and no stability without volatility.”

Would your people recognise this wisdom in your leadership? Would they see you more as a Greenspan or as a Gaddafi – seeking to suppress every disturbance to the status quo?

Dr Timothy Pascoe, AM, is the founder of business strategy, leadership and governance consultancy, Vector Leadership. He is a former executive chairman of the Australia Council, was federal director of the Liberal Party from 1974-75 and worked for management consultancy firm, McKinsey & Co, Inc. He has a PhD from Cambridge University and MBA from Harvard.

Original article found here.