Patterns we are seeing across our clients

Every day our company is delivering Strategic Planning, Strategy Execution and Executive Leadership coaching services to regular clients from medium to large businesses across New Zealand, Australia and the United States.

In most client sessions, whether it be a board of directors, senior executive team or one on one coaching the following questions tend to be asked “What are you seeing with the other companies you work with?” or “how are others dealing with this situation?”.

These are the patterns we are seeing currently (March 2022);

• The COVID Omicron outbreak in NZ is starting to disrupt company operations and we look to Australia and the USA to see how this plays out. In Australia, the wave has been through 3-4 months ago and companies are normalising.

• Many Boards are struggling to keep ahead of the management team: This usually means they are too operational and not lifting the horizon strategically. In fact, we are seeing many boards being restructured. Currently, we are supporting eight client companies to do this. In some cases directors are stepping down, in one situation the whole board has been dismissed so a more strategic board can be appointed. Boards need professional development, succession planning and should be constantly looking well ahead of the management team where they can add value.

• Everyone needed the break at Christmas – many literally downed tools, took three weeks off and totally disconnected - the reflection was just how exhausted they were after 2021.
  Two months back into 2022 – many are already feeling exhausted again. This is year 3 of the pandemic and along with a number of other impacting changes, there is now a realisation this is going to be many years of change and disruption. Our coaching sessions tend to be around how to lead in constant change and how to stay recharged and focussed as an executive leader. Though there is much more awareness that their people need respite - they can’t simply continue to operate to 100% capacity without breaking down or needing time out.

• Many business models quite simply are broken: the just in time supply chain has totally failed, requiring a renewed understanding of stockholdings and the cash required to achieve this, flat people structures mean there is little redundancy around key leaders and functional areas of expertise and this really is impacting resilience. Partnership models and constitutions were already challenged and now require new thinking and change.

• The talent war has really got underway. This was already a tight situation in the USA but for NZ & Australia, we are seeing new levels. With borders shut or restricted, the steady stream of qualified immigrants has dried up, the local labour market is full and most industries are having to pay higher salaries to get the skills and experience they need. In many cases, they simply can't find the skills they need. Those companies that lack a strong employment or leadership brand are finding it really challenging. Flowing on from this there is now a heavy investment needed in leadership development & training to close skill gaps and retain people. This is not a quick fix and certainly in the cases where it has been a lower priority for many years. Graduates and junior staff are getting opportunities in management roles that they would previously never have been considered for.

• More people than ever are actively seeking executive leadership coaching. In one six week period late last year, 18 individuals alone entered our programme. For the first time, a number of individuals are funding it themselves whereas in the past this was normally a company investment. Reasons for the growth in this area include support around the isolation of senior leadership, providing peer groups to share ideas, individuals who want to take it to the next level and others fearful they might not perform in this new environment. A considerable number seek support to manage their bosses who they perceive are not performing, struggling in their role or not capable of leading them well.

• Frustration and fear are common companions. People are concerned for their families around covid infection, others are concerned about the unknown - what will happen economically, geopolitically. Many are concerned about climate change and the future of our environment, the rising cost of compliance, the higher costs of doing business when long term planning is ineffective. Most are frustrated at the government for the lack of medium & long term planning and communication around a variety of issues.

• The war in Ukraine is adding to a sense of unease. How will this play out? What will it mean for family or friends? What will China do? How does this continue to impact our economy?

  It is a time to be tight with your team, to ensure you are celebrating the wins and to reassure everyone that things may be challenging but the team will get through. I have been reminding CEO's to look after themselves, to take mini breaks, to ensure their exec team is doing so as well. It is also a time to walk the floor, get out amongst your staff and provide reassurance and an empathetic presence.

  These are the bigger patterns we are seeing and supporting good companies to address. One thing is for certain 2022 is going to be another year of change requiring agility and resilience.

  As a professional leader there has never been a more exciting time to be leading in business.

This article was contributed by Kendall Langston, Partner & Strategic Advisor