Making Sense of Difficult times

The day the world changed forever
Sept 8,2001: MindTree Consulting presented business plan to Board forecasting 100% growth YOY
Sept 11, 2001: WTC is hit by terrorists
Events next 48 hours:
Locate 2 employees
Call all hands meeting
Decision to contribute 1 days wage to an identified disaster victim


Next Steps
Company takes 10% salary cut – Directors take 10% cut on 1999 base
Decision taken to renegotiate every contract
Leadership huddles on bottom 5%
Indian managers decide not to let go, take additional cut
In US 5 non-performing high cost resources let go
Business unusual – plan is no longer valid. Focus on cost and hold on to revenue
Top Management starts over activating the communication engine
Middle Management fades
Continuous exposure to difficult news
Information dissemination replaces dialogue
Facts versus hope – what do people need?
The fallibility of Institutions & Leadership
The Government fails to protect – WTC to Anthrax
The economy crawls
There are lay-offs and closures – Scient, Viant, Cambridge Technology Partners…….
The Stock Market caves in – people lose nest egg. Heroes turn out to be involved in insider trading
Stock options look wimpy
The Priest becomes a pedophile
Big business becomes big hoax – Accenture, Enron, Qwest….
Leaders like Jack Welch – between company paid toilet paper to septuagenarian flings
What we learnt…..


Tough decisions, however appropriate, leave residual toxicity
People develop the survivor syndrome – information discounting becomes a form of survival
"Sense Making" emerges as a key leadership priority
Residual Toxicity
Many management decisions are like antibiotics. More quick acting they are, more is the residual toxicity
Every decision must be weighed for downstream implications and detoxification must accompany the decision
Decisional rules must be explained before publishing decisions
Recipient of radio activity must be clothed against radiation. A manager asked to take a tough call, must be told to temper toughness and not to conclude, it is the way to go
Leaders must look for toxicity residues. Silence and compliance do not mean absence of toxicity
Certain traces will only heal with time. Some problems can not be solved, they can only be survived
The Survivor Syndrome
Most people are Path dependent – when paths blur, there is emotional insecurity
When people see the fallibility of institutions and leaders, they can conclude that no one really can help
When I need help, only a stronger and more capable being can help me. When everyone looks vulnerable, I am really all by myself
When people around us lose, there is an invisible mourning within us
People mentally shrink and start discounting the environment as a form of defense
We run the danger of emerging as less than human beings when all becomes well

Sense Making

In externally and internally difficult times, "sense making" becomes a major leadership priority
Sense making is about system thinking. It is the ability to rise above a causal interpretation of events – you relate to larger body of knowledge and look at continuities
It involves wisdom, detachment and dialogue – it is about understanding emotional issues and not just rational linkages
Leaders must help others to do their own sense making
Apparent and the obvious cease to be appropriate
Leaders must suspend instant gratification and not try to influence every outcome

Values, humility & high availability

Values are the polar symmetry of an organization. Value centric organizations will be able to better navigate difficult times
Leaders must have humility and the sense of continuity of a farmer to be able to cross the chasm
Leaders must be available and engaged – Mayor Guiliani was available and engaged
We must know that only if we sweat in peace, we do not bleed in war