I’ve been thinking a lot recently about what it takes for organizations to survive — and even thrive — during challenging times.
There is little doubt that the past two years have tested the mettle of even the most battle-tested CEO. Those that have survived have been successful because either they were proactive and adjusted before the floor fell out on them or they reacted quickly and stopped the bleeding before it became fatal.
The moves CEOs have made have been many: They’ve reduced expenses, employed creativity, diversified products and services, and focused on their customers. They have gone back to the basics, inspired their employees to dig a little deeper, and they have led their teams to go above and beyond by providing value to suppliers and clients.
Late last year, I sat next to Sunoco Chairman and CEO Lynn Elsenhans at an event hosted by Ernst & Young LLP. As we spoke, the conversation turned to how Elsenhans was handling the recession while at the helm of a multi-billion-dollar energy company.
Without hesitation, Elsenhans laid out her strategy: Do those actions that ensure the company stays strong and robust, but give employees hope and an idea of where the business is going.
So what did that mean for Sunoco?
“We had to get clear about a competitive cost structure so we could position ourselves well,” Elsenhans explained. “We invested more in our people for leadership development and addressed gaps in our leadership pipeline. We also invested in our brand to position us for the future in our industry, and then looked for ways to turn weaknesses into opportunities. It was a chance to look back and decide what’s really important.”
Earlier this year, I led a panel discussion on how executives were effectively employing technology to adapt to the economic storm. Among the panelists was Mario Shahidian, chief information officer of health care product manufacturer STERIS Corp.
Shahidian discussed how one of his greatest challenges was getting STERIS’ CEO to recognize how information technology was not a cost center but rather a profit center for the company. By adapting a new mindset, Shahidian explained how STERIS refocused its efforts to tap into its IT operations to change the very way the multibillion-dollar company did business, especially during tough times.
These types of transformations are at the very essence of what it takes to lead a company during trying times. By looking differently at how things have been done in the past and not accepting that as the status quo, CEOs and business owners can change the very course of their organizations.
