CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013

2013 MANAGER’S CONFERENCE
“Result-based Leadership for
Sustainability during Turbulent Times”

Tuesday, 12th November 2013 at 11.40 am
Saujana Ballroom
Ground Floor, The Saujana Hotel Kuala Lumpur

Key Note Speaker:
Prof Sattar Bawany
CEO & Master Executive Coach
Centre for Executive Education (CEE Global)
Managing Director, EDA Asia Pacific

© 2013 Centre for Executive Education Pte Ltd
www.cee-global.co

THE NEW BUSINESS REALITIES
Business leaders face huge challenges during turbulent times including period of prolonged
economic recession. Qualities such as courage, self-confidence and the ability to make tough
commercial decisions under pressure all come to the fore. Less widely appreciated and understood
is the crucial psychological and emotional role that leaders must play during periods of acute
uncertainty if they are to optimize the long-term performance of their business.
Leaders must understand the dynamics that lie "below the surface" of their organisations and
skilfully address the unspoken needs of their staff. This takes maturity and skill but will maximize the
chances of weathering the economic storm and emerging strengthened when times improve. Those
businesses that do not achieve this will find their commercial problems compounded by destructive
internal dynamics and underperformance.
While leaders may have had setbacks during their career, most will not have experienced a global
downturn. They face a steep learning curve if they are to succeed in the new business environment.
Managers who harness this unprecedented opportunity for growth, development, and collaboration,
and build bridges between different generations of employees as well as leveraging on the
repertoire of the various effective leadership styles, will thrive in particular in today’s turbulent
economic landscape. Many managers mistakenly assume that leadership style is a function of
personality rather than strategic choice. Instead of choosing the one style that suits their
temperament, they should ask which style best addresses the demands of a particular situation.
Daniel Goleman brought the notion of "Emotional Intelligence” (EI) and “Emotional Quotient” (EQ)
to prominence as an alternative to more traditional measures of IQ with his 1995 mega-best-seller
Emotional Intelligence. According to Goleman, "A leader's singular job is to get results”. But even
with all the leadership training programs and "expert" advice available, effective leadership still
eludes many people and organisations. One reason, says Goleman, is that such experts offer advice
based on inference, experience, and instinct, not on quantitative data.
Research has shown that the most successful leaders have strengths in the following emotional
intelligence competencies: self-awareness, self-regulation, motivation, empathy, and social skill.
There are six basic styles of leadership; each makes use of the key components of emotional
intelligence in different combinations. The best leaders don’t know just one style of leadership—
they’re skilled at several, and have the flexibility to switch between styles as the circumstances
dictate.
Each style has a distinct effect on the working atmosphere of a company, division, or team, and, in
turn, on its financial performance. The styles, by name and brief description alone, will resonate with
anyone who leads, is led, or, as is the case with most of us, does both. Commanding leaders demand
immediate compliance. Visionary leaders mobilize people toward a vision. Participative leaders
create emotional bonds and harmony. Democratic leaders build consensus through participation.
Pacesetting leaders expect excellence and self-direction. And coaching leaders develop people for
the future.
Managers often fail to appreciate how profoundly the organizational climate can influence financial
results. It can account for nearly a third of financial performance. Organizational climate, in turn, is
influenced by leadership style—by the way that managers motivate direct reports, gather and use

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information, make decisions, manage change initiatives, and handle crises. There are six basic
leadership styles. Each derives from different emotional intelligence competencies, works best in
particular situations, and affects the organizational climate in different ways.
The Leader need to enhance their understanding of generational characteristics and the impact of
their own management practices on each of these groups. They need to leverage on the strengths of
each generation. Taking full advantage of the multi-generational workforce will enable employers to
effectively attract and retain employees, build teams, deal with change, and increase employee
engagement (Bawany, 2013)1.
Emotional intelligence can be defined as the ability to assess or capacity to perceive and manage the
emotions of one’s self and others around you. The diversity of a multi-generational workforce
demands that leaders adapt their communication style and methods for their message to be
understood. The ability to empathize, put yourself in someone else’s situation allows leaders to
tailor compelling messages that resonate with each unique generational perspective to inspire
action.
Hour to hour, day to day, week to week, executives must play their leadership styles like a pro—
using the right one at just the right time and in the right measure. The payoff is in the results.
Figure 1 – Results-Based Leadership Framework

Organisational Results

•
•
•

Profitability
ROI
Cost Optimisation

Customer Engagement

•
•

Customer Satisfaction/Loyalty
Service Value/ Relationship

Employee Engagement

•
•

Employee Satisfaction/Loyalty
Employee Turnover Rate

Organisational Climate

•
•
•

Company Culture, Policies
Rewards and Flexibility
Employee Value Proposition

Leadership Effectiveness

•
•
•
•

EQ/EI Competencies
Leadership Styles
Ontological Humility
Level 5/Servant Leadership

1

Sattar Bawany (2013), “Making Results-based Leadership Work in Singapore” Singapore Business Review, 12 February
2013, http://sbr.com.sg/hr-education/commentary/making-results-based-leadership-work-in-singapore

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WHAT HAPPENS TO ORGANISATIONS DURING TURBULENT TIMES?
The suddenness and severity of the current economic downturn has inevitably generated a shared
sense of shock and foreboding. The media's relentless reporting of the latest bad news fuels this
mood. The loss of household names like Woolworths and Wedgewood only adds to of a sense of
insecurity and lack of confidence in the future. In 2008, a leading psychologist linked the endless
flow of economic bad news to a widespread sense of helplessness, also blaming the recession for an
increased risk of injury and stroke (Devlin, 2008).
Within organisations, negative feelings are compounded as colleagues interact. Research and
experience demonstrate that feelings and states of mind are highly contagious. Daniel Goleman,
who developed the concept of emotional intelligence, recounts experiments showing just how
quickly a strongly-expressed emotional state is transferred from one person to another (Goleman et
al., 2001).
In the workplace, all employees can be influenced by a prevailing mood of anxiety, which gradually
dominates the organisational "system". Negative thoughts and feelings predominate while more
positive views become subtly excluded or difficult to express. This creates an intangible but powerful
emotional backdrop that can be termed "systemic anxiety".
This negative dynamic is exacerbated by pressure on staff to work longer and harder. Many
organisations control costs by cutting resources and jobs but aim to maintain output. Extra demands
are placed on the remaining employees who generally feel unable to refuse. Frequently they are also
expected to demonstrate new levels of flexibility, covering the work of former colleagues or
adapting to new working methods. This fuels longer working hours and associated problems.
During a recession, workers are also likely to undergo repeated experiences of loss. This is an
inevitable consequence of the cutbacks, project cancellations, job freezes, redundancies and
retrenchment businesses engage in to survive. In his book Managing Transitions, Bridges emphasizes
that change - even when desired - always involves a loss (Bridges, 2003). This is more significant
when change is unwelcome and imposed from outside. Feelings of sadness, anger and guilt prevail.

ORGANISATIONAL CONSEQUENCES OF THE 'TOXIC COCKTAIL'
Combined, the powerful dynamics described above form a "toxic cocktail" that threatens morale and
performance. It generates damaging behavioural and attitudinal changes within organisations.
Among other things, this leads to more:








Short-term thinking
Presenteeism
Absenteeism through sickness, stress and depression
Addictive behaviours
Rumours
Politics
Defection of valuable employees

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There is likely to be a decrease in the following:








Morale
Motivation
Clarity around task priorities
Work-Life Balance
Productivity
Innovation and risk-taking
Long-term and reflective thinking

THE PSYCHOLOGICAL ROLE OF LEADERS DURING TURBULENT TIMES
This toxic cocktail means that in times of great uncertainty it is not enough for leaders to address
strategic and operational tasks. They must also address the emotional needs of their workforce if
they are to improve morale and productivity. There are four key behaviours that leaders must
master in order to provide the workforce with the best possible sense of psychological
"containment". This set of behaviours takes considerable insight, resourcefulness and maturity on
the leaders' part but the stakes are high. If achieved, they will:




Reduce anxiety, fear and anger
Build trust, loyalty and commitment
Generate resilience and optimism

Behaviour 1: Prompt and considered action
When an organisation enters turbulent times, the first behaviour its leaders must demonstrate is a
prompt and energetic response to the difficulties facing it. The workforce needs to know that its
leaders recognize the seriousness of the situation and are addressing it. However, the leaders'
actions must not be the result of impulse or panic. Leaders should immediately announce that they
are making the problems their absolute priority while explaining that they need time to finalize the
best course of action.
While a proactive response reassures the workforce, a lack of swift and visible action from the top
increases anxiety, anger and blame. Leaders who demonstrate this first behaviour will understand
this and have the courage and confidence to take responsibility. Failure to act may reflect a
paralysing level of anxiety in the leaders themselves. Equally, it may arise from a misguided belief
that responding with alacrity to a crisis will create more problems than refusing to engage. This
latter policy, often favoured by political leaders, is almost always disastrous.
Behaviour 2: Honest and consistent communication
Though reassured by seeing their leaders "in action," employees will inevitably be preoccupied with
what the downturn means for them. In the absence of reliable information, rumours and speculation
flourish. To reduce these and build trust, leaders should provide honest and timely information
(within appropriate constraints) about the challenges facing their business and the measures that
may need to be taken as a result.
Being rigorously honest takes considerable maturity on the leader's part, particularly if they are
people-focused and find conflict difficult. Many choose to delay or dilute bad news in order to "avoid

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worrying and demotivating" the workforce. This view often reflects (and rationalizes) the leader's
own discomfort, anxiety or guilt at being the bearer of negative messages. However, employees read
the economic signs and will almost invariably expect some bad news. During a downturn, managers
are continually asked about possible redundancies even when there is no intention of cutting jobs.
People suffer most from uncertainty and would prefer to know the worst than to imagine it.
Leaders of course cannot always be completely open, for example when information is share-price
sensitive. Often they will not know the answers to questions such as “are these job cuts the last?" It
is best to explain honestly what they do not know or cannot share. This builds trust and reassures
the workforce that they will be told as soon as possible. An example of good practice is the CEO who
provides a regular weekly update to staff, even when the update consists of stating that there is no
new information this week. Simply receiving this message tells the workforce that their leader
understands their need for information and will provide it when he or she can.
Methods of communication can range from one-to-one conversations, small team meetings, "townhalls" and carefully planned road shows for large groups of staff to intranets and house magazines.
There is considerable value in adopting multiple methods as long as the message is consistent.
Leaders frequently express surprise that the same questions are asked repeatedly, even when
answers have been provided. This is because anxiety significantly reduces the capacity to listen and
absorb information. Leaders must prepare themselves to remain calm, resist becoming irritated and
patiently repeat their message.
Behaviour 3: Emotional connection
A speedy response and honest communication are not enough to maximize "containment". Leaders
must also maintain an emotional connection with their workforce. They must:




Acknowledge the painful impact of bad news on their workforce and resist moving on too
quickly to something more positive out of discomfort, guilt or insensitivity.
Find an authentic way of disclosing some of their own sadness, concern or disappointment
so employees know they genuinely care.
Let staff vent their feelings, listen and empathize - even though they cannot make the bad
news go away.

An example of excellent practice was the manager of a manufacturing company tasked with telling
his staff that popular and longstanding colleagues were being made redundant. He announced this
at an off-site meeting the following day, cancelling the entire morning's agenda in order to allow
staff to absorb this news, discuss it in small groups, express their feelings and ask questions. He also
shared his own sadness that these redundancies were necessary (though without blaming head
office or disassociating himself from the decision).
He offered particularly affected individuals one-to-one meetings, listening to and acknowledging
their feelings. This leader's respect for his staff's need to process bad news, express their emotions
and feel heard was deeply appreciated. His actions generated great loyalty and people were able to
recover more quickly as a result.
The range of meetings and media mentioned above, through which leaders communicate to their
workforce, should also be made available for staff to express their thoughts and feelings in response.
This presents a major challenge to leaders who have to show great restraint and self-management in

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order to listen to their employees' expressions of distress and anger without becoming defensive,
irritable, impatient or overwhelmed. For many, this critical aspect of staying emotionally connected
with their people is also the most difficult as they must absorb a great deal of negative emotion
without necessarily being able to make things better. However, it is also the most important as the
"simple" process of listening and empathizing is tremendously powerful and will in due course
create real appreciation and loyalty.
Behaviour 4: Inspiration
The most impressive leaders go one step further. While remaining realistic about tough conditions,
they find a way to motivate and inspire their followers to perform. To achieve this, they must draw
on deep reservoirs of leadership energy, fuelled by a powerful combination of self-confidence,
personal humility, passion and belief in the future.
This fourth behaviour must be founded upon the three previous leadership behaviours action,
honesty and empathy. It is only when a leader has demonstrated these that their "call to arms" will
be experienced as truly authentic and compelling.
A female CEO in the banking sector recently delivered just such a message to her top 100 executives.
It was honest and bracing in its acknowledgement of the tough economic times to come and she
made clear how much she was expecting from her top team. She also shared, with real passion, her
belief that the organisation she led had the capability and will - through relentlessly focusing on the
needs of its customers - to weather this challenging period with results and reputation intact and to
emerge as "one of the winners". The palpable buzz and enthusiasm that infused the room
illuminated what can happen when a leader gets this fourth behaviour right.

THE ROLE OF HR IN TURBULENT TIMES
Few leaders find that these four behaviours come naturally. For most, they must be learned and
practiced. This can be particularly challenging during tough times, as leaders themselves are not
immune to the toxic cocktail of negative organisational dynamics and many feel anxious, burdened
and exposed. HR partners who enjoy their leaders' trust can play a central role here.
HR should remember that leaders risk reverting to earlier, less skilful versions of themselves under
pressure. The task-focused leader who has learnt the importance of maintaining good relationships
may revert to "tell" mode under pressure and become impervious to the feelings of others. The
people-focused leader who has learnt to confront difficult interpersonal situations may revert to
avoiding tough conversations. Some may find their working hours spiralling out of control in the
maelstrom of task demands and be unable to switch off. This in turn erodes their capacity to
mobilize the emotional intelligence necessary to deliver the leadership that turbulent times demand
(Loehr and Schwarz, 2001).

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Specific ways in which HR professionals can help include:






Presenting leaders with an analysis of the psychological, emotional and behavioural impact
of the downturn on their organisation.
Emphasizing the leaders' role in helping staff feel contained in the midst of the toxic cocktail
of negative dynamics.
Identifying, coaching and supporting those leaders best able to demonstrate the four key
behaviours.
Identifying those who are struggling and, where possible, coaching them to gain insight and
behave more effectively, and
Providing an emotional outlet for leaders to offload their own negative emotions, whether
distress, anxiety, anger or guilt.

One organisation has addressed these needs by having a dedicated, senior HR professional
supporting and coaching the board around these issues. This was achieved through other, less
strategically-critical HR projects being put on hold. Another executive team has asked a trusted
coach for specific, focused consultancy in this area. Both approaches appear to be paying dividends
in terms of leadership performance and the morale and productivity of the workforce.
Looking after the needs of HR
HR professionals usually have to juggle powerful competing demands on their time and attention
and this is even truer in turbulent times. As well as supporting leadership behaviour, they have a
central role in planning and implementing cutbacks, redundancies or closures with all the emotional
strain and sheer hard work this involves. If the organisation cracks down on poor performance, HR is
expected to help with the difficult conversations as well as dealing with the human aftermath. The
HR team members are expected to be emotional "sponges" on the one hand and policy and
procedure experts on the other, providing everything from a shoulder to cry on to legal advice.
If HR professionals are to remain effective in the face of these demands, they must attend to their
own needs. While colleagues use them to unload concerns and frustrations, the impact on HR
partners themselves can easily go unnoticed. However seasoned and competent, they too are
subject to the toxic cocktail. They must find ways to resource themselves and each other so that
they can recover quickly from the negative experiences that tough times inevitably bring. This will
enable them to model the balanced, insightful and containing leadership in their own sphere that
the leaders of their business need to demonstrate in theirs.
Looking to the future
Together, the leadership behaviours described will provide a sense of psychological safety and
emotional containment in organisations undergoing great uncertainty, instability and often painful
change. Leaders cannot avoid or prevent painful events affecting their people. However, with the
support of HR, they can take charge of threatening situations with alacrity and resolve. They can deal
honestly with their people, convey genuine empathy and create a powerful sense of hope in the
future. Leaders who achieve this will help staff deal more effectively with difficult experiences and
inspire tremendous loyalty and trust. They will also succeed in focusing the energy of the workforce
on the job in hand, helping their organisations to emerge successfully from recession when the
conditions for economic growth return.

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REFERENCES
1.

Bawany, S. (2013), “Making Results-based Leadership Work in Singapore” Singapore
Business Review, 12 February 2013, http://sbr.com.sg/hr-education/commentary/makingresults-based-leadership-work-in-singapore

2.

Bawany, S. (2010), ‘Leadership That Gets Results’, Human Capital, Vol. 10, Issue 4. E-copy
of the Chapter is available as a download from: http://www.ipma.com.sg/publications.php

3.

Bridges, W. (2003), Managing Transitions: Making the Most of Change, 2nd ed., Basic
Books, New York, NY.

4.

Cavallo, K. & Brienza, D. (2002). Emotional competence and leadership excellence at
Johnson & Johnson: The emotional intelligence and leadership study. Paper downloaded on
May 2, 2002, from http://www.eiconsortium.org/

5.

Devlin, K. (2008), "Economic climate can increase the risk of a stroke", quoting views of Dr
A. Sigman, associate fellow of the British Psychological Society, Daily Telegraph, 26
November.

6.

Goleman, D. (1988) ‘What Makes a Leader’. Harvard Business Review. November–
December.

7.

Goleman, D. (2000) ‘Leadership That Gets Results’ Harvard Business Review. March–April.

8.

Goleman, D., Boyatzis, R. and McKee, A. (2001), "Primal leadership: the hidden driver of
great performance", Harvard Business Review. December.

9.

Goleman, D. (1998) ‘Working with Emotional Intelligence’, Bantam Books, New York.

10.

Loehr, J. and Schwarz, T. (2001), "The making of a corporate athlete", Harvard Business
Review. January

11.

Sandler, C. (2009), “The psychological role of the leader in turbulent times”, Strategic HR
Review, May

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APPENDIX – SPEAKER’S PROFILE – PROF SATTAR BAWANY
Professor Sattar Bawany is the Senior Advisor to Eduquest International
Institute and Chief Executive Officer of the Centre for Executive
Education (CEE). He is also the Managing Director as well as Master
Executive Coach & Facilitator with EDA Asia Pacific. EDA is a global leader
in executive development including executive coaching solutions to
Fortune 500 organisations. Prof Bawany is also concurrently the Strategic
Advisor & Member of International Professional Managers Association
(IPMA) Board of Trustees and Governing Council.
Prof Bawany is also the immediate past Co-Chair of the Human Capital
Committee of the American Chamber of Commerce in Singapore
(AmCham Singapore). He is also a member of Frontier Strategy Group’s Expert Advisory Network
(EAN) for Human Capital and Talent Management issues in Asia Pacific advising CEOs and CHROs of
global and regional organisations.
Prof Bawany has assumed various senior management roles including Managing Director/Country
Head and Talent Development/Coaching Practice Leader for DBM Asia Pacific as well as Business
Leader, Organisational Effectiveness/Leadership Development Consultant and Executive Coach with
Mercer HR Consulting, The Hay Group, The Forum Corporation and Mercuri International.
Prof Bawany is an astute advisor to executives who need to know how they are perceived and want
to focus on what is most important in their professional and personal lives. He has coached a range
of leaders, from CEOs, to senior vice presidents, and high potential managers. Prof Bawany’s passion
for people and culture is about creating an environment where employees are valued and
emotionally engaged in the business. He has successfully worked with extensive number of public
and private organisations regionally and internationally specialising in people and culture through
transformational change, starting with the ‘end’ in mind! He is an experienced facilitator and has
spent many years developing leadership capability through the delivery of structured talent
management, leadership development programs including executive coaching.
He is a Graduate of Corporate Coach U and a Licensed Coaching Clinic Facilitator. He is certified in
the administration and application of various psychometric instruments including the Extended
DISC®, Myers-Briggs Type Indicator™ (MBTI), Bar-On EQ 360™ and EQ-i™. He is also certified in the
administration and application of the MRG’s suite of instruments including “Leadership Effectiveness
Analysis™” (LEA 360 Assessment tool) and “Strategic Leadership Development”. He is also accredited
in the administration and application of the Benchmarks® and Skillscope® Profiling Instruments.
He holds an Executive MBA and a Bachelor in Business Administration (Marketing). He is currently
pursuing his PhD in Business Administration and his Doctoral Research is on ‘The Impact of Executive
Coaching on the Personal & Professional Development of Leaders”.
Prof Bawany is a Fellow of International Professional Managers Association (IPMA) and The
Chartered Institute of Marketing (CIM). He is a Professional Member of the Society of Human
Resource Management (SHRM) and the Chartered Institute of Personnel and Development (CIPD).
He is also a Practicing Member of the International Coaching Federation (ICF) and International
Association of Coaching (IAC).

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CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013

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CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013