A leader’s guide to strategic courage

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Share this email Share this email on LinkedIn   Share this email on Twitter   Share this email on Facebook   ESSENTIALS FOR LEADERS AND THOSE THEY LEAD   Edited by Rama Ramaswami   Senior Editor, New York It's probably a given that leaders need to be courageous, but that can take many forms—and these days, courage is more likely to be effective if it is flexible, nuanced, and contextual. Just as leadership styles vary, ways of expressing courage can vary, from restrained determination to outspoken self-confidence. Courage in leadership has never been more essential than now, when our uniquely challenging times demand bold and confident responses. But whether your style is swashbuckling warrior or quiet crusader, it is critical to deploy your courage in strategic ways to advance your organization's objectives and your own personal growth. Here are some tactics to think about. AN IDEA Play both defense and offense It takes versatility to play multiple positions in a game—and the same is true in business. In this article on leading with courage amid volatility, McKinsey global managing partner Bob Sternfels, along with coauthors and senior partners Michael Birshan and Ishaan Seth, note that "the best leaders and companies are ambidextrous: prudent about managing the downside while aggressively pursuing the upside." Adopting a defense-only posture tends to result in median company performance, whereas an offense-only stance may yield a mix of occasional wins and some major failures. Leaders who are courageous enough to pursue both strategies at the same time also hone three types of competitive edge—deep insights, decisive commitment, and speedy execution—that help them take advantage of volatility and use it as a catalyst to act on new opportunities. A BIG NUMBER 6 The economic downturn in early 2020 took place at six times the speed of the one in 2008–09, but leaders whose companies recovered the fastest focused on three outstanding attributes of resilience: margin improvement, revenue growth, and optionality (the ability to consider more optional investment opportunities). Rather than spiking in any one area, the top performers emerging from the previous downturn made improvements in all three areas. In today's changeable economic conditions, leaders can counter uncertainty with farsightedness, taking thoughtful actions to balance growth, margins, and optionality. A QUOTE "When making a high-stakes decision, it's important to focus attention on the issue at hand. That means focusing on strategic, rather than tactical, decisions." That's McKinsey experts Andrea Alexander, Aaron De Smet, and Leigh Weiss on acting decisively in uncertain times. Courageous leaders make bold moves—and bold moves are required when making strategic decisions, which come with a high degree of uncertainty. There's no playbook for making such decisions, especially when under pressure or in a crisis, but adhering to these five principles can steer you in the right direction. Some techniques may seem counterintuitive, such as pausing rather than acting immediately, but adopting them "can help avoid knee-jerk reactions that lead to poor outcomes," say the authors. A SPOTLIGHT INTERVIEW Vulnerability in a leader wouldn't traditionally be considered courageous, but it is part of the authenticity and humility that are at the core of emerging styles of leadership. In this conversation, McKinsey senior partner Ramesh Srinivasan and MindForward Alliance CEO Poppy Jaman discuss the importance of openly addressing mental-health challenges in the workplace. "Until we get leaders to say, 'I had a breakdown and I'm still successful,' we are not going to change corporate culture," says Jaman. She cautions against creating a culture of "toxic perfectionism" that stigmatizes mental-health problems and stifles risk-taking and innovation. Leaders should recognize their own "stress signatures"—responses to stress such as sleeplessness or loss of appetite—and develop a range of interventions to disrupt downward cycles. Also helpful are "micro-practices" (new or different routine behaviors) that improve one's mental well-being, Srinivasan says. CALL ME CREATIVE If you always wanted to be a 'chief heart officer' when you grew up, now's your chance. The ongoing upheavals in the workplace have given rise to a slew of unique roles and job titles, such as "head of remote," "head of dynamic work," or "vice president of flexible work." Primarily aimed at boosting morale, these jobs involve a gamut of tasks—anything from sharing hot-sauce recipes with employees to planning events with astronauts. Not sold on your new title? Don't be too quick to write it off. Research shows that rebranding job titles can improve employee engagement and boost recruitment. Lead courageously. Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here. This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Leading Off newsletter. 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