Instill confidence. Set a plan. Remain flexible. Openly communicate with employees. Stick to your roots. Have fun.
Those were some of strategies for how executives should manage in tough times gleaned from a session Wednesday at the NRF convention entitled "Inspirational Leadership: What Differentiates Great Companies and Why."
"None of us have really been through anything as severe as we're facing today and it requires all of us to pull up every leadership trait that we have to show our team," said Burt Tansky, president and CEO of The Neiman Marcus Group. "There's no question that we have to hone in on the issues. We have to remain positive. We have to stay focused and keep the team focused on the issues at hand. We have to continue our own personal demeanor. We have to stay calm, don't panic, and we have to show that we can find a way through this patch that we're gong through."
Companies also need to be especially agile to be able to make quick decisions. Finally, he stressed that brands shouldn't deviate from their core positioning. Said Mr. Tansky, "That's paramount. You cannot change who you are and these events are not a signal to change."
Roger
Farah, president and COO of Polo Ralph
Lauren Corp., said forward planning was essential. In particular, he
said Polo is exploring "proactively what can we do to advance the
business to not only to do the best we can do in this environment but
see how can we come out the back end a better company."
While some new skill-sets
might be required in a new climate, Mr. Farah also stressed the importance
of "over-communication" to existing staff, particularly explaining
any shifts in focus and setting timetables to reach those new targets.
Companies should also be ready to make adjustments.
"I don't think it fundamentally changes your strategy," said Mr. Farah of any adjustments. "It just reorients what's on top and what's in second place and if you communicate that clearly throughout the organization - whether it's to the board, senior management or the mail room - you can move an organization to take action based on the environment we're in."
Kip Tindell, chairman and CEO, The Container Store, also stressed the importance of maintaining a positive attitude, including incorporating some fun in the workplace to make sure "employees enjoy coming to work." He likewise stressed the urgency of good communications.
"To have people approaching the challenge of this economy together and knowing that they know everything the board room knows is magical at times like this," said Mr. Tindell. "[Our company] is just fortunate to be minus that sort of paranoia that goes with employees who don't feel they know what's going on."
While it's critical to be flexible in strategy, Mr. Tindell also said it's important that companies don't forget their roots.
"Many retailers are focusing more on price perception but that shouldn't come at the expense of quality, service and selection," said Mr. Tindell. "Quality, service and selection are not terribly profitable today, but they will be again."
Discussion Question: What leadership skills are required in tough times? Do you agree with the assessments of the retail execs around leadership at the session?