Leading in Turbulent Times
Wielding the Double-Edged Sword: The Management of Paradox

Bob Rosen
Health Companies International

The world changed on September 11, 2001 — for individuals, organizations, and nations. We were painfully reminded of the uncertainty in our lives and of the fact that our borderless, multicultural world has positive and negative consequences. Now we find ourselves asking, "What kind of people do we want to be? What kind of businesses do we want to build? What kind of world do we want to live in?"

Fortunately, as we rebuild our lives and organizations, life has a mysterious way of renewing itself. This time, though, something has changed fundamentally inside us. We have realized that we must learn to live and lead in turbulent time.

Let's face it. The 21st-century world is presenting us with complex challenges for people and organizations. Business drivers — the knowledge explosion, the technology revolution, the pace of change, and globalization — once thought to be the fuel for unlimited growth, wealth, and success actually are more complicated than originally thought. We are discovering that these drivers are actually double-edged swords, sources of opportunity and causes of deep uncertainty. They are presenting very real paradoxes for how we live our lives and lead our organizations. We now understand that each business driver has positive and negative elements and results. Our challenge as leaders is to learn how to turn these paradoxes into real opportunities.

First, the knowledge explosion informs and overloads us. Our challenge is to make sense of all of this information in the world, to fuel our organizations with fresh ideas, and to turn that knowledge into wisdom and innovation — before it overwhelms us.

Second, the technology revolution connects and isolates us. Here, the challenge is to use technology to gain access to the world's knowledge and to foster speed and connectedness in a virtual world. Otherwise, the technology will separate and sequester us.

Third, the pace of change excites and stresses us. Our challenge is to navigate this chaotic world with a sense of adventure, reinventing ourselves along the way, while managing the stresses and strains of more competition and change.

Fourth, the multicultural world engages and alienates us. Our challenge is to learn how to survive and thrive within a diverse global population, to appreciate and leverage those differences, and to learn the relationship skills required to live successfully in a cross-cultural stir fry.

Globalization has blurred boundaries, which both enriches and confuses us. Here, the challenge is to recognize the increasingly ambiguous borders that exist between men and women, work and family, people and technology, and our global and local lives. We also must allow these blurred boundaries to broaden and deepen our perspective on life and business.

In China, there is a symbol for the word "change." It means both crisis and opportunity. This says a lot about what to expect in our future. Increasingly, success will depend on our ability to manage these paradoxes and lead in uncertain times. Will we create crises or opportunities from the change around us? And how will we lead people through all the chaos and turbulence?

We have known for a long time that leadership emerges when the character of a person interacts with the circumstances of the time. Great leaders make use of the cards they are dealt, and their leadership emerges out of the circumstances they are handed. Crises can enhance or destroy one's career. Take for example, George Washington's Revolutionary War, Abraham Lincoln's Civil War, or Winston Churchill's World War II. Look at Rudy Guliani's leadership in New York City after the World Trade Center attacks; Jim Burke, the now-retired chairman of Johnson & Johnson, who led the recall of tainted Tylenol bottles during his company's crisis; or Steve Case, chairman of AOL Time Warner, who mobilized his company during a tenuous moment in the early life of AOL when its national network suddenly collapsed. In each situation, the leader stepped up to the plate and led his country or company through the turbulences of his time.

As a psychologist and businessman, I have spent the last 20 years advising and studying executives, working inside their heads and hearts as well as in the offices of some of our largest corporations. I have worked in all three sectors of the economy — business, government, and nonprofit, including many associations — and have interviewed more than 250 CEOs around the world. I am convinced more than ever that leadership is the key to business success. An organization's leadership capability is its greatest potential asset and liability.

But leading in turbulent times is different. It is more complex, more personal, and more demanding. And leadership during these times is more critical than ever. In my work and travels, I've observed the following 10 qualities of the mind that enable effective leaders to navigate uncertainty:

1. Bring your full self to the challenge.

Leading in turbulent times presents a special opportunity to grow as a leader. All pain is growth, and how we handle the difficult times tells a lot about us. Leadership challenges naturally bring out the best and worst in all of us. Don't hide from the experience; bring your full self to the table. One CEO once told me, "Have the courage to reinvent your leadership every day." Develop a capacity for living in the moment. Let yourself experience the full emotional range — the excitement and exhilaration as well as the distress, frustration, and fear.

2. Let your values be your guide.

In a world of uncertainty, sometimes the only thing certain is ourselves — the core values and principles that define who we are and how we want to act in the world. Your honesty, integrity, courage, resilience, and commitment to excellence are critical values that can guide you through uncertain times. When times get tough, and the world gets confusing, relying on these steadfast principles can go a long way toward preventing stupid mistakes. They also help you get a good night's sleep.

3. Live in a "world of not knowing."

One of the hardest things leaders can do is to acknowledge, privately or publicly, that their world is confusing, and they have no idea what's going on. But living in a "world of not knowing" is common in turbulent times. Develop the capacity to learn in real time. Be gentle with yourself; learn to tolerate the ambiguity of life; and befriend your anxiety about not knowing. Be clear about what you know and don't know. Stay open to new experiences and new ways of seeing the world. And learn to master "confident humility," the state of being self-confident, yet humble enough to listen and learn from your surroundings.

4. Clarify what you can and cannot control.

In America, we pride ourselves on taking control of our lives. We are take-charge people, the world's great problem solvers, and we are passionate about creating results. We build new things and tear them down faster than anyone. The rise and fall of Enron is the perfect American example. But in the current milieu, it's unclear what factors we can and cannot control. Knowing when to take initiative versus when to let life take its natural course is the ultimate leadership gift. Some of us are more patient than others, others more confident (or overconfident) in their ability to control their environment. But one thing is certain: Life sometimes just happens for reasons that are out of our control, and we have no way to understand or predict the outcome.

5. Live in the past, present, and future.

When faced with uncertainty, it's important to keep perspective — to know where you come from, what your current situation is, and where you are going. I have found that cultivating "realistic optimism" goes a long way. This involves keeping one foot in the present and one foot in the future, bridging hope and reality. We must be honest and forthright about our current situation while being painfully truthful about what's working and not working. But we must always stay optimistic, imaginative, and passionate about a better future. Dreams can go a long way during tough times. And don't forget the lessons from the past. They are some of our greatest teachers.

6. Befriend the chaos of life.

Leaders today cannot elude the chaos of life, especially now. Arrows come from all directions; people react in various ways; and life is simply unpredictable. Chaos is healthy. It's about creativity and opportunity, about life reordering itself. Face the chaos head on. Learn to live in a discontinuous world. Embrace the risk and loneliness of the leader's chaotic journey — the creative odyssey of challenge, excitement, and your own development through time.

7. Manage your bright and shadow sides.

Our strengths and virtues sit side by side with our shadows and shortcomings. The bright part is the best within us. It's what gives us life. It's about dreaming what's possible and appreciating the best of people and the world. Our shadows are more mysterious and deep-seated. Fueled by fear, insecurity, envy, and jealousy, they blind our vision and cast darkness on others. The shadowed mind is arrogant, prejudiced, and self-righteous. It dismisses, disrespects, and destroys the goodwill in others. Expect to see both sides of your personality. Face up to your leadership shortcomings. Quiet your sleeping giants and be aware of how stress brings forth your shadows. Don't be afraid to get feedback from a friend or your spouse or partner. Such trusted input may prevent you from making stupid mistakes.

8. Understand the diversity of people.

People come in all shapes and sizes. Recognize these differences as you lead people through chaotic periods. Everyone experiences fear, sadness, anger, guilt, confusion, and commitment through his or her own lens to the world — yet everyone wants to avoid pain, find security, and retain his or her self-esteem. Some of us choose to hide; others plow right through to action. Others still will simply never stop talking about it. Listen deeply to where people are, and use your own personal experience to stay one step ahead of them.

9. Embrace the paradox of leadership.

Turbulent times are by definition full of conflicts and contradictions. Sometimes multiple forces are at play, and leadership requires a multi-faceted response. Leaders often find themselves in a paradox — the concept of two seemingly disparate ideas that, when put together, make sense rather than oppose one another. Consider this list of leadership paradoxes when you face uncertainty:

• Realistic optimism
• Reflective decisiveness
• Authentic flexibility
• Confident humility
• Pragmatic trust
• Urgent listening
• Tough empathy
• Flexible firmness
• Participative boldness
• Strategic experimentation
• Constructive impatience

10. Envision a culture that embraces principles and performance.

Imagine your organization prepared to navigate through turbulence. Envision your role as the leader. Focus on the higher purpose of the organization; teach people how the business really works; stand up and be visible; and lead by example. Monitor the emotional climate and show people how to thrive in the discomfort zone; find and celebrate the change-leaders inside your association or nonprofit; intelligently re-invent the organization; and lead brutally honest management teams. Your vision of what success looks like will go a long way toward executing it. This is a difficult emotional time for people and organizations. We are grieving the loss of our American ideals — our freedoms, sense of safety, and open society — and we are living in a state of anxiety about the future. Perhaps when the dust settles, we will find that September 11 is really an unwelcome teachable moment in our lives. Maybe there are profound lessons from the experience in how to lead in turbulent times that will force all of us to rethink the way we view ourselves, each other, and the world. One thing is certain: Americans are strong, courageous, and resilient people. We have a deep history of confronting our challenges with the resolve needed to rebound. We are some of the world's greatest problem solvers. Learning to lead in turbulent times may be our next adventure.

AUTHOR LINK Psychologist and well-known author Bob Rosen is CEO of Healthy Companies International, a research, consulting, and education company that advises executives of businesses, governments, nonprofits, and associations around the world. He can be reached at (703) 351-9901.

Copyright 2005 Healthy Companies International. All rights reserved.
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