By David Parks

In times of crisis, leadership skills are shaped, honed and built in a way that no leadership development program can replicate. Brutal as it is, character is carved and leaders emerge in times of adversity. Step back for a moment and reflect on where we are and how we got there through a leadership lens. Leadership, or rather the lack of it during the good times, is in large part what created these bad times. Conversely, it is what we as leaders do during the course of these bad times that will create the good times again.

What does the current crisis mean for leadership development? Conventional wisdom dictates that when times are tough, training and leadership development are the first to go. Here are seven points to consider and potentially reframe how you see leadership development during this challenging time:

1. Some Programs Deserve To Be Axed
Before the tech bubble burst in the downturn of 2001, there were a lot of soft leadership development initiatives that should never have seen the light of day. The burning platform of a recession raised the performance bar; only programs that drove the business goals and delivered real leverage and results survived. This may be a great time to clean up programs that deserve to be dropped.

2. Opportunity Is Now Here
“There is a general rule in business life: market share is won or lost during transitions. The analyst community will surely be lauding major cutbacks in spending and headcounts. CEO’s must shore up their courage to buck the conventional wisdom of Wall Street and invest through the downturn. After all, by now we should recognize that Wall Street is hardly a fountain of wisdom!”

This Newsweek (Survival 2009) quote from Craig Barrett, recently retired CEO of Intel, captures some enlightened thinking on how these times of transition present an opportunity in the midst of fear. The advice offered here to CEO’s is equally as relevant to CLO’s.

Another tech titan that capitalized on this same opportunity during the last downturn was Cisco Systems. Cisco focused their leadership development on sales teams because that is where the leverage was. They strategically stole market share while their competitors pulled back.

3. Innovation In The Face Of Adversity
Leadership research reveals that leaders love a challenge. Innovation research tells us that some of the best innovations occur when resources are scarce. This is almost a perfect storm for leadership development. To say “we are not doing anything” is really a cop out. With creative thinking, a host of low or no-cost options emerge. For example, if there is a travel freeze, then tap into YouTube or the multitude of free webinars on leadership. If the lion’s share of your budget is venue expenses, then revert back to on-site training; if your four-day development session can be done in three, then shorten it; if you can partner with other companies and share workshops and costs, then do it!

4. Connect And Communicate
The stresses and pressures of a recession pull people apart at a time when they need to come together. Starbucks, in spite of closing stores and layoffs held their leadership retreat in New Orleans last October. Ten thousand managers came together to focus on re-igniting their engagement and connection to customers, as well as supporting the New Orleans community in post Katrina relief efforts. Employees need more connection and communication, not less in times like these. Every meeting should incorporate some development component and look at ways of increasing contact versus decreasing.

5. Focus On Real And Current Business Challenges
All the most respected best practice reviews on leadership development (think Bersin, CLC, Hewitt ) advocate that leadership development initiatives should incorporate real and current business challenges. What we are facing today may be the biggest leadership challenge ever created – it is real, it is brutal and for many, the survival of jobs and organizations are at risk. Aside from the typical tools of leadership development such as models, methodologies and 360’s, the most important thing must be to focus on real and current business challenges.

6. More Output From Less Resource
Following layoffs, those that continue on the job need to deliver more with less. Empty desks of laid off co-workers have a depressing influence on those who remain. They’re also a reminder that you could be next.

Lynda Gratton, Management Professor at London Business School, says “Survivor syndrome is one of the main problems during recessions. Organizations focus on the ones that are losing their jobs, and they tend to forget about the ones that have survived the job cuts.”

Layoffs often result in leaders becoming remote, distant and avoiding the pain of interaction. Leadership development activity forces interaction and reminds leaders that the quality and frequency of how they interact with their direct reports is vital. More than ever, employees need inspiration, encouragement and support from their leaders.

7. Corporate Glue And Continued Learning
Leadership development can provide the ‘corporate glue’ that bonds the organization together during the tough times. Knowledge walks out the door when there is down-sizing. Continued learning and development for those still there is central to the retention of corporate memory. Where the natural forces of recession pull things apart, leaders are the bonding agents that hold things together.

A parting metaphor reflecting the challenge of leading through the current economic crisis is to envision yourself as the driver of a high performance rally car. Car and driver endure the toughest conditions and terrain while handling the uncertainty of twisting, turning, bumpy roads. Sound navigation / strategic direction ensure that they are headed in the right direction. Good shock absorbers allow them to ride the ravages of the road, and a robust gearbox enables them to shift up and down in order to steal advantage wherever they can.

There is one tactic in rally driving where mastery means the difference between winning and losing. This tactic is left foot braking.  With a gnarly corner approaching, the driver keeps their right foot on the accelerator while simultaneously braking with their left as they enter the turn. This enables just the right decrease in speed while at the same time keeping the engine revs high enough allowing them to power out of the curve.

Putting full brakes on leadership development is not a winning strategy for the downturn. Left foot braking may be the formula to keep things moving at optimal speed and allow you to power out of this recession.

David Parks is VP of Business Development at Bluepoint Leadership Development. He can be reached at davidparks@bluepointleadership.com or (415) 383-7500