Webinar on-Leadership Crisis
June 16, 2020
Resurgent India Knowledge Series Presents
Webinar on-“Leadership Crisis”
Moderated by- Mr. Jyoti Prakash Gadia, MD- Resurgent India Limited
Speaker- Mr. Pawan Singh, MD & CEO- PTC India Financial Services Ltd
General Overview of Leadership under Crisis
- Standard and Poor have analyzed high resilient sectors whose demand will not be affected by this crisis based on the existing leverage, cash flow, regulatory support, and strong balance sheet. They are pharmaceuticals, fertilizers, oil refineries, power, gas distribution, essential nature of products, telecom and FMCG.
- However, there are about 50% of sectors that have been categorized as medium-resilient sectors. These include automobile manufacturers, power generators, roads & construction. They will feel a high disruption because of lockdown.
- Around 5-6% is the least resilient sectors, which normally have weak balance sheets in addition to being discretionary in nature. These are sectors like airlines, gems & jewelry, auto-dealers, real estate. They will be strongly affected.
- Hence the impact of the crisis will be felt differently by different sectors in India.
- Great economic statesmanship will be required by the government to protect the economic well being of the country.
- The finance managers of the country are already walking on a tightrope as our sovereign credit rating is just a notch-up of investment grade. We may see a flight of capital if there is any downgrade. The borrowing cost for the country in the international capital markets will also increase.
- The financial planning of the funds will have to be engineered in such a way that financial outlay is low and impact is high.
- At this time, leadership has to be displayed not just by one company or a group of companies in a sector, but it has to come from the financial regulators of the country.
- The noble intent of the policies that are drawn by the regulators, has to be executed in a similar manner. And that’s where leadership has to be strongly displayed.
- The policies will have to be such which protects the medium-resilient and moderately vulnerable companies and sectors to avoid downsizing of the economy.
- This pandemic is a human crisis and not only an economic crisis. It is advocating a message of interdependence and how optimally can we use our resources to get maximum value.
- Anything that supports health, quality of life, the environment is going to be the future of business. Businesses lacking social purpose will face challenges. This is the time for businesses to reinvent and rethink their business models as well as their leadership style.
- The spirit of cooperation and collaboration is going to be the managerial style. The traditional style of pyramid structure will become redundant in the future. Organizations will have to be more tolerant and be interdependent. Post COVID-19, leadership will be more inclusive & it will be more responsive towards weaker and vulnerable sections.
- The organizations that will innovate their management style and originate new techniques of leadership are going to do well in upcoming times.
- Organizations' management structure is based on their business model. But most important and common characteristics are the following- organizations with quick response, innovative style of thinking, speedy decision making, allows its people to organically develop a sense of care and responsibility. Employees should be seen as participants rather than employees to increase synergy benefits.
- Bad times call for changes in the ecosystem and deep analysis of structural problems that might be hidden away. Such times can be utilized to strategize for better results and outcomes.
- Two actions are valuable at uncertain times- keep an eye on the externalities and create internal capabilities to quickly adapt to a constantly changing environment.
- The lending focus will be slightly shifted to companies with low leverage, stable cash flows, strong regulatory support. Apart from that non-quantitative areas like corporate governance and ethical behavior of a company makes up a good borrower that now most smart lenders will be looking out for.
►Watch the webinar here: https://www.youtube.com/watch?v=yZb4m2bKS7E&t=532s