The Coronavirus pandemic has taken the world by surprise in a progressive manner, as governments realized little by little the growing real threat it represents. All the media, including social media, are firing on all cylinders with bad news every day. The result is that people are afraid, stressed and worried not only about now but what the future may hold.
Governments, wanting to avert mass contaminations, are dictating hard measures while weighing in with the economic consequences. They want to significantly reduce economic activity, but also preserve economic activity to avoid a depression, in addition to managing the transition from where we are to where we need to be. It’s a tough balancing act.
Here in Canada our Prime Minister, provincial Premiers, and their teams in Health, Finance, Treasury, Border Security, and other areas are working strenuously to analyze, advise, counsel, recommend, warn, forecast, and then execute.
Businesses, large and small, are confronting new challenges and there is no manual to consult. Obviously, there is a clear need to put the safety of employees and customers first, but with disappearing demand and no revenues for many of those businesses, how do you maintain your payroll, pay your obligations, and still keep the doors open?
Having led and advised numerous business turnarounds, I can appreciate the magnitude of the current challenge, and while the size of my turnarounds was infinitely smaller than what government is tackling today, there are similarities.
In managing a business turn-around you must quickly identify and separate the symptoms from the root causes. This is to avoid implementing symptomatic solutions that fail to correct the real condition. You must also get the priorities right since timing is crucial and resources are limited.
I will never forget what I learned from a friend who is a doctor in a hospital emergency ward. He said: “They come in after an accident in terrible life-threatening conditions. I don’t worry about the broken bones, the cuts, and the missing this or that. I focus on keeping them alive. Once stability is achieved, I attend to other matters.” In other words, he had to be decisive and insightful. His counsel influenced immensely my approach with business turnarounds.
Priority one for governments today is to focus on stopping the local transmission of the disease. Priority two is the recovery from the virus. That means stabilize and then fix, just as my friend prescribed.
Resources must be directed quickly and in a disciplined manner, and this is where strong leadership comes in. No hesitation. Decisiveness is key. Leaders must be convincing and real. No reading from tightly edited scripts, and no procrastination. Successful leaders who changed the course of history were not wobbly or shaky. Check how Winston Churchill mobilized his country to defend from an invasion by Nazi Germany and then lead the Allies to victory. Mahatma Gandhi successfully led India to independence from British rule. Warren Buffett, Chairman and CEO of Berkshire Hathaway, earned the title of ‘Oracle of Omaha’; at age 89 he heads a corporation with 390,000 employees.
The need for strong leadership is the key ingredient when facing a public enemy like the CORONA Virus. Here in Canada, Quebec Premier François Legault and Ontario Premier Doug Ford are two government leaders who are earning plaudits for how they have handled the pandemic. Both have shown transparency, responsiveness, and engagement, but what about the others?
We are seeing timid assistance packages that require constant revisions and explanations. We send medical supplies to China and then import those same supplies as we discover we do not have enough. We organize Cabinet meetings to study the difference between “legal obligation,” “government advice,” and what “mandatory” really means.
Today our country is crying for strong leadership at all levels of government and in business. It’s the only way to win over unprecedented challenges.