Thought Leaders
Not a Moment to Lose: Today's Economy Requires Nimble Thinking, Shared Leadership, and Resilience
While corporate leaders today may face grilling on Capitol Hill and second-guessing in the media, few leadership decisions have undergone closer scrutiny than those made at Gettysburg during the Civil War. What happened during battle there in July 1863 holds invaluable lessons for business leaders under fire today.
"When uncertainty is very high, decisions become so much more consequential," says Wharton professor Mike Useem. "With ambiguous data and fast-moving conditions, the force of history can go either way." During The Leadership Journey, academic co-directors Useem and Greg Shea take executives out to walk the Gettysburg battlefield and explore critical turning points — decisions by leaders such as Union General George Meade and Confederate General Robert E. Lee — and their impact on the outcome.
If we look at decisions about rescuing or not rescuing Bear Stearns or determining the future of the Detroit automakers, a few days make a difference whether decisions will save or not save the company.
–Michael Useem, The William and Jacalyn Egan Professor; Professor of Management; Director, Center for Leadership and Change Management; Academic Co-Director, The Leadership Journey
"This immersion brings out the big issues about good and timely decisions under stress," says Useem, who has taken MBA students to Quantico, Antarctica, the Himalayas, and other challenging environments to discuss leadership and decision making. "Commanding officers made decisions at Gettysburg, literally under fire, under enormous time pressure when their own careers and lives were at risk in doing so. This is not unlike what so many people in financial services and other industries are facing today. Certainly their careers — and even their industries — are at risk."
Timely Decisions
In fast-moving environments, every second counts. "If we look at decisions about rescuing or not rescuing Bear Stearns or determining the future of the Detroit automakers, a few days make a difference whether decisions will save or not save the company," Useem says. One of the key lessons from Gettysburg is that in the press of battle, decisions need to be both good and timely. "There are twin pitfalls — shooting from the hip and analysis paralysis," Useem says.
At Gettysburg, for example, a quick decision by Union Brigadier General Strong Vincent secured Little Round Top after Confederates left the position. Vincent, marching into Gettysburg on July 2, made the decision to take the position without consulting his superiors. It proved a key strategic point on the battlefield and a decisive shift in the balance of power.
"Vincent moved his brigade up to Little Round Top a few minutes before 4 p.m. on July 2nd," Useem says. "Another 15 minutes, and Confederate troops would have been over the top. Timeliness in moving the brigade up Little Round Top proved extremely fateful."
Understanding the Strategic Context
Vincent made his decision without orders or even consulting his commanders. This raises a second important issue for leaders in do-or-die situations, Useem says. Subordinates need to have the power to make quick decisions on their own. They also need to understand the strategic context so that the calls they make are good ones. To provide this context, top leaders need to thoroughly understand the strengths and weaknesses of their reports.
"You want people who have a long leash to make decisions, but you also want them to know within what frameworks to make their decisions," Useem says. "At the top of the list, you need to develop people around you and below you who can make a whole range of good, timely, and strategic decisions for you."
To give reports this kind of freedom, top leaders have to make sure these decision makers understand the broader battlefield. "Put decisions in a strategic context," Useem says. "What are the moving parts on the battlefield? Vincent understood the strategic context. Otherwise it made no sense to go forward with his decision and put his career at risk. He could have been court-martialled. He had no orders to do this. He was willing to take that risk because he could see it strategically."
In large organizations with fast-changing markets, leaders have no choice but to entrust others with decisions. "To get the job done, John Mack at Morgan Stanley or Vikram Pandit at Citi have to depend on hundreds of decisions by subordinates," Useem says. "Hopefully, they have the right people in place and they all understand the thrust of what the CEO wants to do with the company."
Managing Transitions Quickly
In turbulent environments, change is constant. Successful leaders need to manage transitions and reorganizations quickly and effectively. Leaders need skill in bringing in new managers, reorganizing, and stepping in to handle new roles. Both Meade and Lee were going through significant transitions in their staffs at Gettysburg. After the death of Stonewall Jackson, Lee reorganized his senior leadership team. Two of his three senior leaders were relatively new to him at the start of Gettysburg.
Meade, on the other hand, had just been given command of the entire Union army a few days before the Gettysburg battle, after a series of failed generals came and went. "A big part of the outcome of Gettysburg was the ability of the senior team to handle transitions," says Shea, adjunct professor of management. "Much of what happens or doesn't happen is based on how they handled these transitions." Meade had to build relationships on the fly, as he moved from being a peer to boss.
Including subordinates in decision making can help to ensure that everyone understands the broader context and is committed to the course of action. Meade made a point of including his direct reports in critical decisions. On July 2, the fateful day before the last battle, Meade brought his entire Union leadership team together at a small house for a council of war. He asked every person, starting with the most junior person and working in reverse order of rank, to give an opinion about whether to retreat or stay and fight. They decided to stay and fight, and this decision led to the Union's decisive victory in the battle, which was a turning point in the Civil War.
Although the record is less clear about Lee's decision making, it does not appear that he had such an inclusive process. As Lee later summarized the battle — for three days victory "trembled in the balance." In his assessment of his defeat, they could have won the battle if they had been able to deliver "one determined and united blow." Lee was never able to draw his organization together to strike that blow.
Today, many managers find themselves in organizations undergoing rapid transitions. One lesson from Meade's action is the importance of taking the time to build the team — even in the press of battle. "If you have a new team, you need to spend extra time with them," Shea says. "Don't assume coordination will happen. You need to build a set of relationships and understand the potential impact of lack of teamwork."
Cultivating Resilience
On battlefields or in a tough economy, leaders and organizations need resilience. Resilient leaders and organizations find positive opportunities in challenges. They sustain their creativity in the face of challenges and are able to adapt flexibly to change.
"Whether you lead a company facing downsizing, are in the midst of a merger or acquisition, have a new CEO or C-suite, or need to energize your key players while cutting other staff, you need resilience," says Joe Ryan, academic director of Leading a Resilient Organization: Achieving Results During Challenging Times, which will run for the first time in November 2009. "In this four-day program, we offer leaders a set of tools for building their own resilience and increasing the 'resilience DNA' of their teams and organizations."
The program provides a living laboratory for developing the resilience that leaders need in one of the most challenging business environments in recent history. Participants will learn how companies maintain productivity and profitability despite dwindling resources. "Organizations and their leaders face unprecedented challenges today, and the difference between those who falter and those who successfully navigate the turmoil will be resilience," Ryan says.
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