Are CEOs And Leaders Swimming Naked Right Now?

Warren Buffett famously once said, “Only when the tide goes out do you discover who has been swimming naked.” Many interpret the remark as a comment on how downturns expose the excessive risks some companies take when times are good. 

The brilliant investor may not have had a pandemic in mind when he first made the statement, but it is easy to see how this notion applies to organizations and leaders. After all, challenges have a unique way of shining a light on the cracks in the system, and for every inspiring story about how COVID-19 is bringing out the best in people, we also know of companies and leaders who were struggling long before the pandemic. The difference is that now, the tide has gone out, and subpar performance, poor leadership or a lack of alignment are exposed, visible, and exacerbated by the stress and uncertainty caused by the pandemic. For example:

• Consider the company that had a major security breach. For days, they told clients not to worry: “We’ve got it under control, we’ll be fully operational by the end of the week, we’re taking measures to address this.”  When clients pressed the company for details, the firm provided few and stuck to their script, putting their clients in a tough predicament. Said one IT executive, “It was like speaking to a group of lawyers. You simply could not get a straight answer from them.” In fact, the company had a habit of glossing over the details, but now, with urgent deadlines and an entirely remote workforce to support, the IT leader had neither time nor patience to chase down answers. Not surprisingly, he’s refused to sign any additional contracts with the company for the foreseeable future. 
• The CEO of a large retailer was something of an enigma to his workforce, despite two years in the role. In fact, he had attended only one global town hall meeting at the company since joining and relied primarily on corporate communications and a couple of his key leaders to speak internally on his behalf. Spending most of his time with clients and external audiences, the CEO had not visited a single company site outside of headquarters when COVID-19 hit. At the board’s insistence, the CEO began delivering weekly video blogs and leading virtual town hall meetings, underscoring the need for employees to remain hopeful and stay focused, but the messages weren’t having an impact. As one employee reported: “It’s hard to trust the CEO when we’ve never even met the guy.” 

If you’re noticing examples in your own company where the tide has gone out, consider the following:

Most problems don’t get better over time.   Let’s face it: If a company has struggled with execution or has a team of leaders who don’t communicate well with each other, the issue isn’t COVID, but something deeper that has only worsened in the current environment.  With so much companies are grappling with right now, it’s easy to say, “We’ll address this later,” but most problems don’t get better by waiting and may be preventing your own organization from being all it can be right now.

Maybe the timing is perfect. Consider some of the powerful examples we’re seeing right now, like the life sciences leader whose team was able to provide a client with something in five days that would have normally taken months to produce.  Or the CFO who shared how his normally difficult interactions with his CEO have been some of the smoothest he’s ever experienced. For some, there’s never been a better time to finally address a long-standing issue, remove a barrier, or improve performance.

It is never too late. It may not be easy to gain the trust of a workforce, or win back confidence from clients, but it is never too late to try.  If the tide has gone out, don’t underestimate the impact of simply owning up to the current situation, being honest about what is, and putting in the personal time to address whatever may have transpired in the past in order to have a shot of moving past it.     

With COVID, even strong companies and leaders may see examples inside their own four walls where the tide has gone out and they’re caught without a bathing suit.  The good news is that these moments provide some of the best opportunities for leaders, teams, and companies to tackle long-standing issues and address challenges, so that when the tide does come back in, they’re in the best position possible to ride the waves.