Good morning readers,
Last week, we have experience with British Exit or called by Brexit. It similar situation with Greek Exit or Grexit. It’s an issue since year 2015 after PM David Cameron promises to conduct referendum in 23 June 2016, with result 51% decided to exit EU (European Union). There are some reasons why peoples stay or exit EU. The process will takes 2 years.
Exit: in year 1975, the referendum result was stay at EU. After the decision, some groups of people feel that EU only controlling daily life to the country. These concern mostly come from middle-old generation that have an experiences before.
Stay: concept of free movement brings a huge potential impact, especially to young peoples. They can work to other EU countries and so the same. Most immigrant work for middle-low position in the country since the original peoples only want to work for middle-up position. E.g. 800 thousand Poland peoples, work in the country.
Impact to other EU country, USA, and APAC countries: For other EU countries, yes, it will have significant impact and could trigger another exit plan. E.g. Netherlands, France, or Italy. For USA and APAC countries, some leader in that countries says that it will not have a significant impact. As an opposite, the investment in capital market, and exchange rate of pound sterling and euro, drop more than 3% in same day of announcement. It drop more than 2 trillion, bigger than Lehman Brother in year 2008. Italy and Spain drop more than 12%, and Japan more than 7%. Most peoples want to convert their investment into save objects, like gold and more safe countries. Some companies have a plan to move a head office outside the country.
What kind of lesson learn from Brexit?
- Listening. The voice of peoples sometimes more emotional compare with logic thinking. Like a said above, peoples who choose to exit, wants a freedom, more patriotism, and hoping a new era. True leader need to identify the potential risk and manage it before it blow-up.
- Visionary leadership. Last week, there are so many expert do their professional work to get people choose exit or stay, like Cameron and Osborne, but they forget a critical think….human emotion. Visionary leader, would have a clear vision and ask people to come with them rather than asking to a specific direction alone. In Indonesia, we have example of 2 visionary leaders – Mr Joko Widodo (the President) and Mr Basuki Tjahaja Purnama (Governor of Jakarta). They are the rising star and some peoples will follow them back with a heart. Peoples see them as a hope of new Indonesia and Jakarta.
As a leader, we need to identify and manage a change, especially with global change. Yes, it might not have a direct and significant impact, but at least need to identify the indirect impact. How to manage this situation?
- Focus on peoples and culture. Peoples are the heart of your business, and running the new strategy, process, and systems. Start with visionary leadership, get stakeholders involve in, point out agent of change, and engage with heart to every layer.
- Create an ownership, conduct socialization (training, coaching, and mentoring), and communication to execute new strategy. Peoples need a clear direction to where heading to and it will direct to resistance process.
- Prepare for the worst. No mater how great your strategy, need to prepare for the worst situation, especially if the situation happen more than a year. It similar with global condition of lower oil price. Most business have an impact and create a stream line of business to stay alive.
If you are working on something exciting that you really care about, you don’t have to be pushed. The vision pulls you.