Actions that businesses take during a crisis can typically be grouped into three phases: respond, recover and grow. But while recovery and growth may seem superficially easier compared to navigating a firm through the turmoil of COVID-19 during the ‘response’ phase, they can often prove to be the most difficult steps.
During a crisis, the sense of purpose is unequivocal: act now and fast to protect the business. However, as the sense of emergency wanes, leaders may have to face difficult questions – and not a little introspection. What kind of leadership style is appropriate now? Have we got what it takes to keep leading? And, crucially, what kind of leadership models will inspire younger treasury professionals?
There are no straightforward answers and no single solution for all circumstances. But if we cast an eye over the recent experiences of this year’s Future Leaders in Treasury (FLiT) group members, we can see that four key trends are shaping what these individuals have witnessed as smart leadership in action:
Recovery presents new challenges for leaders and teams – one of which is to decide on what kind of organisation they want to be going forward. It is critical that we are not complacent and revert back to old habits. Fully embracing the ‘new normal’ and adopting the positives of the crisis long term will be vital.
More efficient meetings and communications, agile decision-making, added flexibility from work-from-home arrangements and authentic team interactions are just a few potential gains. Inspirational leaders must also ask the difficult questions head-on: what did we learn from the crisis? What if this happens again? How would we do things better?
FLiT member Alex Grant of Logicor notes that, amid the pandemic’s heightened risk environment, the evolution of his firm’s IT systems “has never stood still”. Indeed, he was particularly impressed by how his senior managers enhanced that infrastructure as a means of tackling risk proactively, while constantly communicating process changes to staff. Agility was clearly a prime leadership objective.
The crisis has reinstated the importance of individuals. Successful leaders will need to reassess levels of investment in human capital – for example, through training and education. And in the post-crisis era, openness, trust, empathy, accessibility and the ability to communicate will be essential.
Leading by example will also be critical, with leaders personally demonstrating their grasp of work-life balance and promoting flexible working arrangements to prevent burnout. Certain leaders also advocate for a ‘speak-up’ culture that fosters a truly collaborative
environment, where all views are taken into consideration.
FLiT member Mohamed Abbas of Wise Plc reported that, in the thick of the pandemic, his firm promoted psychological safety “so that people could openly discuss ideas, questions and concerns without fear of repercussions”. That policy, he says, made a deep impression on him: “This was a paradigm shift for me in terms of changing my perception of the definition of leadership towards a more comprehensive one – and one beyond controls and profitability.”
The Boston Consulting Group suggests the need for ‘bionic’ companies where leaders will design new business models that strike the correct balance between novel technological advances – such as artificial intelligence, cognitive science, behavioural psychology and human capital. This should allow companies to achieve a greater sense of purpose, focusing on meaningful, longer-term objectives.
FLiT member Sacha Guillemin – a treasury consultant at PwC Canada – notes that his firm has addressed pandemic-related cognitive and human capital challenges by “leading with calm and care”. Senior leaders, he explains, “have implemented many solutions to care for employees’ wellbeing”, such as increased benefits, mental health awareness and additional support to adapt schedules and furnish home offices. At the same time, he says, “the pandemic has helped us to accelerate digitisation of our processes”.
As a result of the pandemic, many firms have brought forward their environmental, social and governance (ESG) agendas. Given that ESG is particularly close to millennials’ hearts, leaders should take that demographic’s views into account as early as possible to get a head start on emerging trends. Inspirational leaders should fully engage with the young, recognise their value and coach them into becoming the leaders of the future.
Our FLiT members indicate that their firms are making strong progress on ESG. Varun Srinivasan of Australia’s Endeavour Drinks Group notes that his firm “is acutely aware of the social issues that stem from the business and is committed to engage with community leaders to manage this issue”. Grant says that Logicor released its first green finance update in March and recently welcomed Dr Eva Gkenakou to the fold as the company’s first-ever director of sustainability. Meanwhile, Guillemin reports that PwC has set a 2030 deadline to decarbonise the business, and has appointed net zero leaders in every member firm to oversee implementation at local level.
Emilie Helps chairs the Association of Corporate Treasurers’ FLiT group and is deputy treasurer at Eversholt UK Rails Group
This article is based on a comment piece taken from Issue 3, 2021 of The Treasurer magazine. For more great insights, log in to view the full issue or sign up for eAffiliate membership