Brexit – Lessons for Management

Some 26 years ago a bunch of forward-looking countries in Europe came together to form the European Union. It was a remarkable feat as countries that have been at war for centuries had finally managed to agree on a common agenda to build an economic and political powerhouse. The EU allowed free movement of goods and people across borders giving the group advantage of a single country to the member states.

Then back on the historic day of June 23rd, 2016, Britain voted to leave the union. The very reasons that were to be the strengths for creating a single market became the reason for its divide. The Yes vote for Brexit came as a surprise to many around the world, bringing attention to a messy divorce.

As the Brexit process has unfolded over the past couple of years, it has been nothing less than a spectacle. For a student of management, there are quite a few proper lessons to be drawn on what Brexit teaches us.

Decision Making

The first big lesson is at the start. Leaders and managers are put in positions of power to make crucial decisions that define well being and growth. Choices, that have the potential to throw us off the cliff should be an informed one, not left for the masses. Decisions are not meant to appease everyone but should be made by looking at the greater good based on facts and emotions.

Looking at the right data

Measuring the correct data for the right output is vital. Exaggeration and incorrect data can only lead to the unintended wrong conclusion. As we have seen several of these during the Brexit campaign.

‘Once we have settled our accounts, we will take back control of roughly ￡350m per week’ – Boris Johnson 

Needless to say, this information has been fact checked and proven to be grossly out of scope. But it did play a significant role in swaying the public perception. Data is everywhere, and there is a lot of it.  It is the responsibility of the managers to measure the right data to get the business in the right growth trajectory. Measurement is the lens through which performance is viewed and management systems operate. If the lens is out of focus, it can take a company out of business.

Managing accountability

Rights and obligations go hand in hand. What we saw as the main reasons for Britain wanting to leave the EU were the obligations seen to be infringing into its nationalism. 

For a manager, we know that the list of rights is much shorter than the obligations. However, these obligations need to be met by the manager well. If we begin to falter or deviate from the commitments, we end up with a broken, uncoordinated team with depleted performance.

Team Work

Managing any team well is hard. Then when it comes to managing a team of countries it’s even harder. Once we are able to build the trust within the team it functions well and gets work done.  What a member would lack in one area can be compensated by the strengths of another. EU’s economy as a single entity is almost 22% of the global economy with a GDP or nearly $18.8 trillion.  In a team the communication is enhanced, ideas flow more freely and workload can be shared. 

Change Management

Brexit negotiations give us some lessons on change management. Though much has to have gone right for the talk about having progressed, media only brings out the failures in glaring texts, so that is more visible. Failing to plan is planning to fail. Change is a must for any business. Status quo is rarely a good option, as being stagnant is never the correct choice. That being said, lack of planning on how the exit from EU will work has led to Britain asking for two extensions already, with us now looking at a Halloween Brexit in 2019. Which again looks like a soft deadline.

.. and it goes on

Brexit keeps unfolding in front of our eyes every day and will be buzzing in the news at least well over the next six months. It’s worth keeping an eye on it to see if it will help or harm businesses and global trade relations. Brexit has sacrificed one Prime Minister already and the second one appears to be on the verge of it. Though a lot of good is promised, much is yet to reveal itself, all still seeming to reside inside the promised land. We learn from the mistakes and move on.