How a Creative Approach to Leadership Can Save a Struggling Business
- Bindu Tambraparni
- Jan 20, 2024
- 4 min read
For leaders of struggling businesses, this means taking a creative approach to leadership that can spark innovation, drive growth, and breathe new life into the organization. A creative approach to leadership involves embracing new ideas, taking calculated risks, and encouraging experimentation, all while keeping the customer at the forefront.
Leadership is critical to the success or failure of any business. Running a business can be challenging, and there may come a time when it starts to struggle. Sales are down, employees are disengaged, or the competition is outpacing you. Whatever the reason, it can be challenging to turn things around. One solution is to take a creative approach to leadership. You can save a struggling business by thinking outside the box and embracing new ideas.
Many examples of leaders have taken a creative approach to saving a struggling business.
One notable example of a leader taking a creative approach to saving a struggling business is Mary Barra, CEO of General Motors (GM). When Barra took over as CEO in 2014, GM was still recovering from the aftermath of the financial crisis and was facing a major public relations crisis due to a recall of millions of cars with faulty ignition switches that had caused accidents and deaths.
Barra took a creative approach to address these challenges. She initiated a massive overhaul of the company's culture and operations, focusing on transparency, accountability, and innovation. She also restructured the company's management team, simplifying decision-making processes and empowering employees at all levels to contribute to the company's success.
Barra took a unique approach to address the recall crisis, establishing a compensation fund for victims and their families and publicly apologizing for the company's mistakes. She also implemented a new system for monitoring and addressing safety concerns, improving the company's reputation and restoring consumer trust.
Under Barra's leadership, GM has become a leader in electric and autonomous vehicle technology, investing heavily in these areas to remain competitive in a rapidly changing industry. The company has also improved its financial performance, with record profits and strong sales in key markets.
Barra's creative approach to leadership at GM has been widely praised. It has helped transform the company's culture and performance, demonstrating the power of innovative thinking and bold action to turn around a struggling business.
Here are some ways that creative thinking can help turn things around:
Foster a Collaborative Environment: This is the foundation for a creative approach to leadership fostering a collaborative environment. Collaboration is a powerful way to build relationships and establish a strong support network. By collaborating with others, whether that means other team members, business partners, or even competitors, a creative leader can gain new insights, generate new ideas, and find new opportunities. Leaders should encourage employees to work together and share ideas. It helps to break down silos within the company and foster a more innovative and creative culture.
Build a Strong Team: Assemble a strong team of talented individuals who are passionate about the company's mission and share a commitment to its success. A struggling business can overcome challenges and achieve its goals by building a strong team culture and fostering collaboration.
Prioritize Customer Needs: Putting the customer's needs first is essential to save a struggling business. It may mean changing the company's products or services to meet better customer needs or improving customer service. Leaders should listen to customer feedback and use it to inform decisions.
Encourage Innovation: When a business struggles, falling back on traditional solutions is tempting. However, encourage the team to think outside the box and generate new ideas. To foster a culture of innovation, a leader must encourage the team to think creatively and explore new ideas i.e. to create an environment conducive to experimentation. Employees need to feel comfortable sharing their thoughts and taking risks. By encouraging creativity and empowering employees to take risks, a struggling business can find new ways to improve operations, streamline processes, and differentiate itself from competitors.
Rebrand: Take a novel approach to branding and marketing, repositioning the company in the marketplace to better appeal to customers. It might involve a new logo, slogan, advertising campaign, or a complete rebranding effort to reflect the company's values and mission better.
Champion New Opportunities: Identify and champion new opportunities for growth and expansion that may not have been obvious before. By identifying these opportunities and taking bold steps to pursue them, a struggling business can find new sources of revenue and become more competitive in the marketplace.
Take Risks: When a business is struggling, it can be easy to become risk-averse. But taking calculated risks can be necessary to drive growth and turn things around. Leaders should be willing to take risks and try new things, even if they don't always work out. It's important to learn from failures and pivot if needed.
Embrace Change: A creative approach to leadership also means embracing change. Sometimes, this may mean making difficult decisions, such as restructuring the business or changing the company's core values. It's important to be open to change and to communicate these changes clearly with employees.
A creative approach to leadership is a powerful tool for revitalizing a struggling business. While breaking out of old habits and trying new things can be difficult, a bold and innovative approach can be the key to a successful turnaround. A creative leader can transform the organization with the right mindset and approach, driving growth and success.
References:
Agote, L., Aramburu, N., & Lines, R. (2016). Authentic leadership perception, trust in the leader, and followers’ emotions in organizational change processes. The Journal of Applied Behavioral Science,52(1), 35–63
Amabile, T. M., & Khaire, M. (2008). Creativity and the role of the leader. Harvard Business Review
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