Part seven of Simon Freakley's Leadership on a tightrope series

In the final article in this Leadership on a tightrope series, I wanted to begin thanking those of you who have reached out me on the back of these notes. I am pleased that they have struck a chord and delighted by the discussions they have generated. Please keep the feedback coming!

I have saved the topic of leadership for last, as it is probably the most critical. We live in an uncertain and turbulent world. The rules are changing fast. The job of CEO has never been more challenging.

Advice abounds on the need to be your own disruptor, but so do the obstacles to successfully doing so. In my experience, cultural and human factors, particularly a lack of focus and urgency, are usually the toughest to overcome.

At AlixPartners, we have worked on some of the world's most high-profile and challenging turnaround and restructuring situations. Through these experiences, we have forged a deep understanding of what it takes to fundamentally reorient a company's performance. In a rapidly-shifting and disrupted world, many of the things that we do to rescue a distressed business are just as applicable to turning 'good' performance into 'great' performance. As it turns out, many of the same lessons apply.

I refer to these guiding principles as a "turnaround mindset." To me, this means, first, maintaining a focus on the things that matter. Make evidence-based decisions. Do not allow yourself to become distracted by the nice-to-haves. As Fred Smith of FedEx once said: "The main thing is to keep the main thing the main thing."

A "turnaround mindset" also means focusing on execution. Maintain pace over perfection. Earlier this year, I spoke with Delta Air Lines CEO Ed Bastian, who said: "Decision-making is a learned skill. One thing you learn is that you move quickly. You don't sit and belabor a decision." At the same time, he added, a good decision-maker is ready to admit error and correct course—something that is easier if you are making a series of quick, small decisions than if you wait until you think you are certain. And of course, Ed led Delta through the depths of uncertainty in the pandemic to now becoming the most admired and profitable airline in the United States.

Finally, a "turnaround mindset" means communicating clearly, regularly, and consistently. CEOs must be their own Chief Communications Officer.

One of the best examples of CEO communication recently was by Lyft CEO David Risher. In responding to a typo in the earnings release which massively overstated reported margin improvement, he didn't say "no comment." Risher gave on-the-record interviews to any journalist that would listen – and the coverage focused on the strong performance not the error. Going on national TV, owning up to the mistake, defending his employees and their performance, Risher showed that was not afraid to take on difficult questions, and he used the opportunity to sell the vison for his company.

Leadership, by definition, requires followership. There is great power in people walking in step. (That is why armies break step when crossing a bridge.)

Transforming the performance of a healthy company is not that different from turning around distressed ones. One thing is different, though. Sometimes healthy companies do not recognize the need for change. But when you are not in crisis is exactly the time to take the initiative, transform your business, and seize the opportunities presented by a world of disruption.

If you take away nothing else from this series of articles, I urge you take this: Prioritize pace over perfection. Do it nearly right but do it now!

Thanks again for following the series.

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