Forget business workshops and case studies – recessions provide real-time opportunities for executive learning as old myths are brought into question and management innovations emerge. Historically a downturn has been a time when business models, organisational structures, labour markets and employee contracts come under immense strain. Accepted wisdoms are challenged and this break in thinking can result in the adoption of new practices and the adoption of new habits and skills. There are two points of tension emerging in this recession that may allow for innovation in management practices.

Wider distribution of leadership This recession has brought into stark perspective the role of the leader. Up to this point, the dominant norm has been the ‘command and control’ leadership style. In this model, the organisation is viewed as a hierarchy in which decisions are escalated to the top, where a CEO makes the decisions. But many people are now questioning the wisdom of placing so much power in the hands of so few. At the same time, insights from research in decision sciences and technological advances have shown that often the best decisions are made by an ‘intelligent crowd’, rather than one all-powerful individual.

Senior leadership cadres have traditionally been essentially homogeneous – middle-aged men with similar backgrounds. Research on innovative teams has shown that such groups are likely to be less competent in decision-making than diverse teams. With the dominant model under question, this is a good time to bring diversity back on to the agenda.

Creating flexible virtual teams Past recessions have often served to accelerate the adoption of management practices and processes that already had some popularity pre-recession. The same is true of virtual working. Assembling teams to work on projects and task forces has become more viable in the past decade, often hastened by the pressures of globalisation. Yet while virtual working is emerging as a trend, there is still an assumption that face-to-face working trumps virtual working. As a result, every Sunday night thousands of executives board aircraft and trains to get to Monday morning meetings. With many companies freezing travel budgets, this is likely to change and many executives will have to do more work virtually.

At the same time, the entry and exit roads of the world’s big cities are clogged from early dawn with commuters hurrying to and from work. This movement of people has been based on two assumptions: that people need to meet every day to get their work done; and that when at home, they are likely to slack and need the discipline of an office to ensure they perform.

Both assumptions are wrong. First, people do not need to meet every day to get their work done. Our research has shown that virtual teams – where members rarely meet – can be highly productive. What is important in these teams is that they are all inspired by a meaningful task, fascinating question or compelling vision. The second assumption – that people need the discipline of an office to ensure they perform – is also a myth. Much research has shown that when people have the opportunity to work on engaging, well-planned tasks at home they are significantly more productive and committed than those who toil through the commuter traffic every day.

Discussion questions

1. With reference to Lewin’s model of change management, as shown in Figure 19.4, suggest the steps that would need to be taken by an organisation to introduce the two innovatory management practices advocated by Gratton.

2. Crainer suggests that managers are themselves often the source of resistance to change. Using the information in the chapter about resistance to change as the basis for your analysis, explain why managers might resist such changes.

3. What steps would you take to overcome these types of resistance?