As with any endeavor, there is always an element of uncertainty in business, meaning that without taking a risk, a firm can never achieve its competitive edge. Therefore, a successful business owner must be able to accept and adapt to new situations flexibly (Thoha & Avandana, 2020, p.812). Some risks are worth taking, but the best leaders know when to pursue a specific innovative process. Therefore, leaders can focus on innovation and business survival during unprecedented times by establishing a risk management plan, maintaining transparency with stakeholders, practicing value-based decision-making, leveraging leadership core values, and decentralizing power and optimization.
Leaders who achieve success when times are tough are strategic planners who understand the different dynamics of the business world. According to Forbes Coaches Council (2020 para. 5), A risk management plan is a crucial project analysis technique that enables leaders to determine possible consequences and mitigate their adverse effects in a business project. The reason is that every new project brings new opportunities and potential risks, meaning that managers must implement a mitigation strategy to ensure a project does not bring in losses. Sundai Pichai was instrumental in procuring risk management strategies, which saw the company reject acquiring or procuring specific projects since they were high risks. For instance, Pichai cut down vanity projects such as the Betswas project since it was not a game changer in the betting world. Many people commended Google’s leader for practical risk analysis skills, which greatly saved the company.
Another strategy used by leaders to sustain innovation and business during a crisis is transparency. Inaccurate information can foster anxiety and panic, so managers must remain honest with employees (Dragin-Jensen et al., 2022, para. 6). Transparency is a vital communication skill for a leader since it reduces speculation about a leader’s next moves and the motivations behind each decision. Incorrect information can erode the organizational culture, which is the core of business success. One of Pichai’s commendable attributes includes integrity, whereby he remained honest about the company’s financial situation. He rejected the Sportify and Betsway projects, citing financial struggles in the company (Ivey Business School Foundation, 2022, p. 4). Most managers shy away from sharing their organization’s financial statements, but not leaders like Pichai since he understands that transparency helps teams understand the situation affecting the company.
Managers who yearn to sustain their operational balance during adversity must practice value-based decision-making. Effective decision-making is the choice that benefits the organization as a whole without affecting either party involved. Pichai’s decision to allow employees to work from home during the COVID-19 pandemic enabled the company to maintain operations and innovation during that crisis to sustain productivity and profitability (Ivey Business School Foundation, 2022, p. 5). Value-based decision-making fosters innovation and fortifies leadership while helping all parties maintain organizational fairness by focusing on what is most important to an organization and its stakeholders. Human-centered decision-making fosters team spirit because it makes everyone on the team feel that their opinions matter and that their well-being is being considered, which helps reduce rebellion and promote creativity.
Additionally, leveraging leadership core values is an integral concept, which means leading as an example to the followers. Maintaining viable ethics of leadership is necessary when leading through uncertainty. A leader’s principles or ethos provide a firm foundation for effective leadership, especially in the face of instability and crises that can arise in both personal and professional settings (Dragin-Jensen et al., 2022, para. 8). This ethos gives clarity that helps drive decision-making, communication, and judgment in leadership roles (Forbes Coaches Council (2020 para. 7). Additionally, it assists the leader in bringing a constant determination to problems, which is something that instincts alone cannot accomplish. Pichai has demonstrated effective leadership and communication skills, such as problem-solving and avoiding confrontations (Ivey Business School Foundation, 2022, para. 12). Avoiding conflicts helps create seamless relationships, and this helps focus on critical organizational processes.
The world is always evolving, and no one person or group of people possesses all of the solutions. Therefore, it is necessary to engage in conversation, put ideas to the test, and grow one’s knowledge. A leader who is fixated on having all the answers is unable to quickly adapt to changing circumstances and effectively guide a group through ambiguity (Forbes Coaches Council (2020 para. 9). Businesses that are able to respond quickly and effectively to shifting market conditions are most likely to endure and even thrive during a crisis, Pichai made the decision to decentralize his authority when Google’s quarterly financial audit revealed the company had begun incurring losses. He also granted directors the authority to make choices by establishing a decision-making body. New personnel bring new ideas that can be implemented to improve products and services and get a greater advantage over other businesses in the industry.
Another potential intervention for firms that want to keep their operations going while a crisis is going on is to optimize their business. The practice of optimizing a company strategy or procedure involves making deliberate and methodical adjustments with the goal of maximizing output while reducing costs. This shift can be brought about through maximizing the use of resources, cutting expenses, investing in labor-saving technologies, and focusing on customer happiness to increase sales. These kinds of tactics make it possible for leaders to concentrate on developing inventive solutions to satisfy the requirements to maintain a healthy competitive balance. Therefore, in order for enterprises to remain relevant in the face of extraordinary market shifts, they need to learn how to maximize the effectiveness of their business strategy. These techniques are essential to achieving commercial success and maintaining a culture of continual innovation, which in turn increases both productivity and profitability.
Reference List
Dragin-Jensen, C., Kwiatkowski, G., Lien, V.H., Ossowska, L., Janiszewska, D., Kloskowski, D. and Strzelecka, M., 2022. Event innovation in times of uncertainty. International Journal of Event and Festival Management. Web.
Forbes Coaches Council. (2020). ‘14 Top Tips For Dealing With Business Uncertainty’ Web.
Ivey Business School Foundation. (2022). Google’s Chief Executive: In Need of a Change Leadership Style? (W25879).pp. 1-12. Ivey.
Thoha, N. and Avandana, I.M.N.W., 2020. Project Managers’ Leadership Styles and Their Effects on Project Management Performance. Pertanika Journal of Social Sciences & Humanities, 28(2), pp. 805-816. Web.