Marginal losses: The cumulative effect of COVID-19 and cultural practices to combat them

The principle of incremental marginal gains, so powerfully implemented by David Brailsford and his cycling teams, has been a mantra for a number of businesses and leaders. Essentially this describes those 1% improvements which energise people and organisations and add up to a competitive advantage. In contrast, I want to introduce the opposite version: “marginal losses”. Since lockdown it feels as though those managers retained by their employers to navigate the pandemic have been coping with incremental losses. These marginal losses aren’t about dips in performance rather additional, often hidden, pressures which consume energy and increase the challenge. Whilst those in leadership positions are well practised in overcoming organisational challenges, i.e. a resilient bunch, the cumulative, multiple and often hidden impact I believe has and will take its toll.

Personal Resilience Curve:

Consider the Personal Resilience curve (above) showing performance against pressure. Most managers will recognise the ongoing struggle to stay in zone 2 and avoid slipping into zone 3. The sheer volume of work, urgent projects, competing priorities, lack of resources, personal challenges and under-performing individuals are just some of things that increase the pressure. These challenges are still here, but now there are additional COVID-19 marginal losses. Close attention to cultural best practice can help to reduce the pressure from marginal losses.

Before exploring it in some detail, clearly I want to acknowledge many of these losses have impacted the whole of society, I am not suggesting that these ‘marginal losses’ compare to those challenges faced by frontline workers nor that many individuals in life have to overcome big hurdles. However, I think it is important to acknowledge and shine a light on the series of additional questions this group of people have been asked to respond to. Whilst individually the questions may not feel big or significant, the cumulative effect is daunting. To return to the analogy of Brailsford’s model, marginal gains win gold medals. Conversely, marginal losses can result in no medals at all.

So, what marginal losses are we talking about? I know I will have missed and underplayed some but here are 10 to get us started:

1.Wholesale strategic and operational change

All managers are used to having to adopt new strategies and processes. Managers are well versed to changing market conditions, resulting in adjustments to the forecast and budgets. However, now it’s the breadth and depth of the changes, and the sheer scale of strategic and operational change which grabs attention. Those who have been part of a merger will relate to wholesale change. However, in that instance you might have some prior notice and are then able to establish a M&A and transformation team to manage the change. The current shift to leading remotely, elevation of the unique element of health and safety concerns, decisions on who goes on furlough, then restarting the business at a pace which drives performance but is attuned to people’s genuine fears, all make complex challenges to be faced with fewer resources.

2.Navigating a coherent response to COVID-19

Prior to COVID-19 it was not easy watching many organisations grapple with impending BREXIT and most organisations were honest enough to say the uncertainty was tough to deal with and they were largely adopting a “wait and see” position. Well, BREXIT has been on the horizon for years and is still proving challenging to navigate. Even those established professionals working in the Travel and Tourism and Airline sectors, who are accustomed to leading through turbulence and tragedy e.g. ash clouds, SARS, and 9-11, would probably been taken aback by the sheer extent of the impact of COVID-19 and are still coming to terms with the enormity of what has happened in terms of lives lost and the far-reaching impact of the economic decline which COVID-19 has ignited.

3.Mental adjustment of moving from being secure to insecure

Most employees have had to adjust to a shift in the psychological contract over the last 20 years, but whilst we all have come to terms with the reality that a job for life has vanished, we are still used to a measure of stability. Whilst the job retention scheme has provided short-term financial stability, what was a relatively stable industrial and business environment is being shaken to the core. As if the last few months haven’t been uncertain enough, we are now seeing iconic and established businesses initiating redundancies and a 20% drop in the UK economy last month, and economists are overwhelmingly predicting various states of economic doom.

4.The normal rules have changed and the next ones aren’t known

For the last few years we have delivered training modules on leading in a Volatile, Uncertain, Complex and Ambiguous (VUCA) World, and honestly it’s been hard to deliver and bring to life. I don’t think I’m alone in believing some people have viewed VUCA as more of a concept than what happens in their reality. The uncertainty of Brexit started to bring the concept to life and now it has arrived with a vengeance! People understandably want clarity, but in the current uncertainty – and with the value of honesty and integrity paramount – we have to say “I don’t know”. 

5.The uncharted health fears

Even for those managers who are well versed in having a primary focus on the health and safety of their employees and customers, new questions are being asked. Managers have become adept at understanding safety threats and trends, adopting physical and behavioural safety training to minimise risk and keep people safe. The scientists, and those politicians with access to scientific advice who you would assume also have access to the same data, are ‘learning as they go’, as are managers for example tasked with making their shops safe. I can’t remember seeing an article on how the ventilation systems work on their A320’s prior to the last 2 weeks.

6.Switching off

Being able to switch off, relax and think about something other than work helps fuel our resilience and helps keep us in that stretch zone. I know people tell us that life in many ways is simpler, but I am convinced switching off is much harder. The home dynamic has changed: some people have been in lockdown alone, others have a greater presence at home. The choice of leisure options is reduced: no restaurants and bars, no social interaction, no live sport. Speaking as someone who has been self-employed for 20 years it has always been challenging to switch off at home, so a short break here and there was a way to recharge the batteries. Also, social media means that we are continually reminded of the world-wide death toll of COVID-19, 40,000+ deaths in the UK, the regional and local tragedies which we are living with, and this makes it harder to switch off.

7.Isolation

Whilst technology enables us to collaborate, stay connected and, for many businesses, continue to operate, it feels like it doesn’t quite meet our human needs to connect at a more personal level. Whether it be the informal conversation at the ‘kettle’ which allows you to tune into how people are really feeling, or the quiet moment at the start or end of the day to share your frustrations, these important social outlets are hard to replace. Consequentially we become slower to pick up the mood or challenges, or frustrations build up in our minds and either we don’t share them or share them once we have formed our view.

8.The routine of routine

Most professionals like different experiences and can find routine a little tedious. Whilst we complain about the travel, meetings to attend at Head Office and mandatory training, and most of us would like to reduce it, to lose these overnight and go to days filled with hours on Zoom or Microsoft Teams tests even the most resilient of us. The last few months for many have created a more singular and potentially more narrow focus: dealing with Lockdown and Remobilisation have by necessity been all consuming. The opportunities to look ahead, engage with colleagues outside of your department and business unit have taken a back seat, and what I call the ‘change the business’ activities have been placed to one side.

9.Managing the blend of work/home

Technically many should be time rich having got back the time we usually spend commuting. However, for those not accustomed from working from home getting use to the 4 second commute from the office in the bedroom to the lounge takes some getting used to. The 10 second transformation from manager to school teacher is another. Also, your customers and manager know you must be at home anyway and, let’s be honest, it’s tempting to dip into work as our alternative options are more limited. Even those used to working from home aren’t used to doing it in these circumstances.

10.Managing the different intensity

Professionals in business are used to the long hours and sacrifices which come with responsibility. Perhaps it’s a combination of the losses above, but it feels as though the last few months have delivered a different intensity. One possible cause might be the shift in how we have to manage our focus, energy and time. The internal rules or ways of managing ourselves which most of us follow in the office either work less effectively or have been thrown out of the window because they aren’t practical. We are all aware of the downside and cognitive overload caused by rushing from one meeting to the next and now we are doing the same without the usual break to walk/travel in between.

When talking to those who have helped embed the marginal gains performance philosophy within UK Sport, they acknowledge how culture has been a primary driver of their success. Over time they have increasingly grasped how individual well-being is not only the right and responsible thing to do, it is imperative for athletes and the sport to meet its goals. Whilst, clearly individuals have a responsibility to manage their personal resilience (and I will focus on this in the next article), for the purpose of this paper let’s focus on the role the organisational culture can play in supporting their people’s well-being and handling these marginal losses. What are some of the cultural best practices organisations are adopting?

1.Well-being Management!

Some of the UK’s Elite Sports Teams have recognised the importance of supporting their athletes in this way, albeit it might have happened earlier. It is evident to me that companies are committed to supporting their people, but sometimes it feels a more collective rather than a personalised support. If companies can invest significant resources in performance management and apply it at an individual level what would prevent an individual approach to well-being management?

2. Senior leaders role-modelling openness and vulnerability

The super human leadership model ensures the ‘strain’ of being in zone 3 gets buried and ensures difficulties fester. Sharing the impact of these marginal losses makes it ok to have bad days, can reduce anxiety and starts a different conversation. 

3.Delivering feedback, specifically confidence building feedback

At a time when potentially the organisation’s performance and KPI’s are going backwards and individuals are experiencing these marginal losses, confidence is more fragile and the power of positive feedback has never been so great. We can all relate to a time in our life when perhaps things feel tough and that genuine positive feedback, somebody else showing they believe in you, just gives you that lift. For me no feedback is worse than constructive feedback particular when operating in the ‘fog’. Satnavs are so addictive because they not only show us the root to the destination, they also re-route us to avoid any disruption. With an unclear destination, the disruption ahead and slightly less confidence, people need greater reassurance that their effort is making a positive difference.

4.Demonstrating consistent leadership

Most organisations have had to operate in crisis leadership mode since lockdown. Understandably one voice and a common set of directions have been applied. This proved psychologically comforting as individuals knew who to listen to, what they could expect and why that style of leadership was being deployed. As we transition from lockdown, to remobilisation and business as usual, the best organisations and leaders will recognise the value of modifying their style, will considerately signpost the change to people so people are confident they know how they will be engaged with.

5.A clearly defined suite of organisational values

Senior Leaders recognise that they can’t define the next ‘normal’ but what they can deliver is certainty about how things will operate and how people will be engaged with.

6.Engaging people in goal setting

Unequivocally, research tells us that in sport and business working towards stretching goals drives greater motivation and innovation rather than just asking someone to be their best. The caveat is the goals have to be accepted and viewed as difficult but achievable. With a ‘foggy’ environment and heightened complexity, there are genuine reasons to provide goal clarity. Whilst not underestimating the challenge of goal setting with such turbulence, the best organisations engage their people in the goal setting process (even though it’s time-consuming), create a clear line of site between the organisation’s priorities and individuals’ goals, and have the agility to adapt them. 

7.The language of leadership

Balance scorecards, ROCE and Cost of Sales is common place language in the Boardroom, but for most employees’ job satisfaction, employment and financial security and being treated with respect is what we talk about at home. At this time the best companies deliver messages which matter to their people in a way which not only makes sense to them but which they can share with their friends and family who may also be concerned about security.

8. Keep the additional demands to a minimum

We can probably all relate to a time in our lives when our children, partner or friend has asked us for a small amount of help. Mum/Dad where’s the bike pump? Unfortunately, the timing is bad as you are overwhelmed or distracted with a host of responsibilities and you give a disproportionate response to what was a simple and reasonable request. The organisations who are most successful will recognise their people have a lot on their plate, limit the additional demands on people and select their change programmes with increased care.

9.Invest in our people’s personal resilience capabilities

As we have said managers and professionals are a resilient bunch, however to succeed in an increasingly uncertain environment and handle these marginal losses may require an updated toolkit of knowledge, skills and attitudes. By investing in our people’s resilience, we increase their probability of success and we demonstrate that we care.

10.Keep it simple

More organisations decline due to indigestion than to not having enough good ideas. Whilst you don’t want to pour water on this energy, becoming overwhelmed with change and experimenting with new practices and processes at a time when individuals are feeling the strain and overwhelmed will probably lead to false starts and innovations not being applied. In fact it might be that the best companies are fully committing to the 1% marginal gains, which are achievable, which creates positive energy and display how small changes can make a big difference.

If you are interested in any points raised in this article or want to chat things through don’t hesitate to drop me an email.

mike@pilkingtonleadership.co.uk 

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