How to ingrain a new habitÂ
In part one of this two-part series, we advised on sparking new habits. Here, in part two, we offer a checklist to help ingrain them. ...
by Shlomo Ben-Hur Published 20 May 2021 in Brain Circuits • 2 min read
In the wake of the havoc wreaked by the pandemic, some companies have thrived, while others have struggled to stay afloat or had to close their doors completely.
We have studied thousands of companies through several crises starting with the Great Depression. What we discovered is that companies that flourished through rough times all had one thing in common: their leaders’ actions.
Three key business behaviors defined success for companies that excelled in spite of crises. These companies all embraced a combination of efficiency, evolution and empowerment.
Efficiency is where most companies go immediately, looking for cost-cutting measures and cash flow. It is important to be smart about the process and focus not just on slashing costs, but evaluating how to make your company fitter. For example, during the last recession, Office Depot and Staples both cut costs by 10%. Office Depot cut costs evenly across the board, but Staples cut strategically, in low-performing sectors while still investing in other areas. Staples ended up significantly outperforming its competitors.
Evolution refers to how one develops their business for future growth. The top 10% of companies that performed well during crises invested in things like research and development, and marketing. This is also a time to look at technologies that can move your company forward. Recessions drive new technology, because adapting new solutions can often cost less during a recession and businesses can take advantage of production downtime to upgrade systems.
Empowerment is the behavior where most companies often have trouble. In a crisis, many leaders immediately feel they should turn to command-and-control behaviors, when the exact opposite is actually true. The highest value in terms of sensitivity to customers comes from local teams, so it is important to decentralize and let ideas flow from the bottom to the top. This only works if people down the chain feel empowered, so it is important to focus on the psychology of your teams.
To create an atmosphere where your people and teams exhibit the three behaviors, you need to look at what I call the leadership operating system (OS). You can find out what constitutes a leadership OS and what you need to do to cultivate it in part two of this series.
This is the first part of a two-part series. Part two is available here.Â
Professor of Leadership and Organizational Behavior
Professor Shlomo Ben-Hur works on the psychological and cultural aspects of leadership, and the strategic and operational elements of talent management and corporate learning. He is the Director of IMD’s Changing Employee Behavior program and IMD’s Organizational Learning in Action, and author of the books Talent Intelligence, The Business of Corporate Learning, Changing Employee Behavior: a Practical Guide for Managers and Leadership OS.
23 April 2024 • by Francesca Giulia Mereu in Brain Circuits
In part one of this two-part series, we advised on sparking new habits. Here, in part two, we offer a checklist to help ingrain them. ...
22 April 2024 • by Francesca Giulia Mereu in Brain Circuits
Building new habits can help you optimize your energy output. Check out these four steps to get started on creating new, sustainable habits with positive results. ...
19 April 2024 • by Arnaud Chevallier, Frédéric Dalsace, Jean-Louis Barsoux in Brain Circuits
Over time, successful leaders develop a mix of questions that help them make decisions. Find out what your own question mix is and what you might do to update it. ...
19 April 2024 • by Arnaud Chevallier, Frédéric Dalsace, Jean-Louis Barsoux in Brain Circuits
When facing uncertainty, effective leaders ask smart questions. But what does this mean? Through extensive research and collaboration with executives, we’ve identified five types of questions for better straategic decision-making. ...
Explore first person business intelligence from top minds curated for a global executive audience