A serious concussion four years ago made me more susceptible to future head injuries. Sure enough, a simple bump this winter left me in a months-long funk.
My neurologist explained that my nervous system was stuck in an endless cycle of stimulus, unable to move out of fight-or-flight and into the mode of calm, strategic thinking required for recovery.
Learning how to consciously switch between these two states, known as the sympathetic and parasympathetic nervous systems, was key to my recuperation —and an unexpected masterclass in adaptive organizational leadership.
In today’s turbulence, many CEOs are experiencing a version of this neurological trap. Bombarded by geopolitical shocks, disruption from artificial intelligence, and demographic upheaval, many leaders and their teams are stuck in crisis mode. Because they are constantly addressing short-term emergencies, they don’t always have time to access the rest-and-digest mode required for imperatives like long-term workforce development.
This insight from my concussion is changing not only how I help manage my global consulting firm’s think tank, the Oliver Wyman Forum, but also how I help advise Oliver Wyman’s corporate clients on creating and implementing workforce strategies.
Of course CEOs must address current emergencies—but they can simultaneously build for the future. At the macro/strategic level, they can create cultures of connection and embrace the principles of emotional intelligence. At the micro/tactical level, they can commit to developing tomorrow’s leaders via initiatives like reverse mentoring and shadow boards.
The key: making time for these efforts even when crises crop up.
Prisoners of the moment
If some CEOs’ innate leadership reflexes are failing, it’s because they aren’t designed for an era of permacrisis. Today’s economic unknowns are near historic levels: Uncertainty right now is comparable to the early days of the COVID-19 pandemic, according to the Federal Reserve. As a result, 43% of CEOs say they are focusing on projects with a time horizon of less than a year, according to a recent survey of CEOs of New York Stock Exchange-listed companies by the Oliver Wyman Forum and the NYSE.
Fixating on the short-term can erode confidence among employees. Globally, only 9% of nonmanagerial white-collar employees say they are extremely confident in the ability of their senior leaders to drive growth, and only 19% of employees say they can build a meaningful career at their current company, our surveys show.
A deep pool of academic research shows that companies that retain young talent and prioritize development outperform others over the long term in terms of innovation, profitability, and productivity. Likewise, our surveys show that when employees understand the “why” and see consistent leadership behavior, they’re 163% more likely to envision themselves staying at their companies.
So how can CEOs master their personal dimmer switch between crisis mode and company building?
Create cultures of connection—and double down on EQ
Sure, the troops can rally in the short term. But a constant state of permacrisis and dissatisfaction doesn’t maximize human potential over the long haul.
Our surveys show that only one in five employees are satisfied with their company’s leadership, and less than a quarter feel leadership understands the challenges lower-level employees face. If left to fester, such feelings can lead to attrition. Half of employees we surveyed said they have quit a job to get away from a manager, and only 47% say their current manager understands their skills, interests, and gaps. People don’t quit companies; they quit the experience of being undervalued and misunderstood.
Ironically, personal connection is especially critical in the age of artificial intelligence. Companies might want to go all in on technology, but Generation Z, the cohort of people born between 1997 and 2012, demands emotional intelligence as well. Our surveys show that Gen Zers rank EQ as the second most important leadership trait (54%), after strong communication skills (60%).
Microsoft is an example of a culture marked by emotional intelligence, connection, and sense of purpose. Chief Executive Satya Nadella models qualities essential in today’s workforce, such as learning fast, collaborating, and doubling down with confidence. He has also pushed for greater empathy and more active listening, encouraging employees to work together, learn from one another as well as from customers, and embrace different perspectives. The result: better morale, increased innovation, and a growth mindset—traits that pay dividends over the long term.
Build tomorrow’s leaders today
One way to show workers they are valued is via targeted leadership development. Some companies have cracked this code by implementing effective mentoring programs for employees of all levels.
Others include reverse mentoring, in which younger employees teach experienced leaders. One technology company, for example, has a suite of mentoring programs including one in which younger employees teach managers about digital technology and cultural trends. These programs shortened the time between promotions by 25% and lowered turnover to 0.7%, compared with 2.2% for non-mentored employees.
Leaders also can build tomorrow’s leaders by creating “shadow boards,” in which young employees advise senior leaders, offering fresh perspectives and customer insights. Shadow boards serve as alerting mechanisms for cultural shifts and opportunities that traditional leadership hierarchies might miss—and make their contributors feel heard.
Always be toggling
It’s human instinct to barrel ahead, especially during a crisis. But just as I have adjusted my screen time and learned other techniques to recover from my concussion, leaders today need to learn how to toggle between sympathetic urgency and parasympathetic strategy.
The key isn’t to choose between crisis response and strategic thinking—it’s mastering the ability to consciously shift between them, to heal and grow, to go slow and fast, all at once.
