Managing in Trying Times – Zen and the Art of Leadership

This morning the markets opened down 7% and trading was halted for 15 minutes to allow cooler heads to prevail.  At this moment, the Dow is down 20% from its recent high.  At the same time, global crude prices are down 48% from their highs last May as a skirmish between Saudi Arabia and Russia broke out into an all-out price war this weekend for market share.  As fears of a global Coronavirus outbreak grow, the oil price war has provided more fuel to what could become an economic meltdown.  With 10-year treasury yields in recession territory, there is plenty to fear, if your let it make you afraid.  Human instinct is to flee to safety, and those who are inexperienced or stressed tend to do that in uncertain times.  This fear leads to panic selling and pulling back, which drives poor decision making.  Perception of risk magnifies, and appetite for risk declines.  These are natural responses to stress.

In these stressful times, leaders need to be more deliberate, keeping long term goals in focus.  One advantage those of us who have longstanding experience is that the more cycles you have ridden out, the more opportunities you have had to learn about your market.  In my industry, energy, we have volatility cycles about every 5 or 6 years.  Every cycle is different, of course, considering the macro-economic conditions within which they occur, but they have similar fundamental characteristics.  If you remain mindful of these characteristics, you can lead your organization through the downturn and accelerate your way out of the trough by careful implementation of a thoughtful strategy.  

This practice of mindfulness is the essence of Zen.  Shunryu Suzuki was a Zen master who led the way in bringing Zen from Japan to the US in the 1950s.  In his book about Zen fundamentals, Zen Mind, Beginner’s Mind: Informal Talks on Zen Meditation and Practice, he wrote,

“The true purpose [of Zen] is to see things as they are, to observe things as they are, and to let everything go as it goes... Zen practice is to open up our small mind.”  

Opening up our “small mind” requires being mindful of everything around you – that is, aware of, but not being swept up in those things.  Mindful management of a crisis accomplishes several mindsets – First, you are more calm, more aware; that makes you a better decision maker.  Second, your organization will be more calm, and more aware.  A key lesson of managing is understanding that an organization mirrors its leader – when you are mindful and calm, your mindset positively affects the organism that actually is the people under your care.

Mindfulness allows you and your organization to be aware of all that is around you, both positive and negative.  This state of being will keep you centered on your true challenges and sharpen your vision to help avoid obstacles and take advantage of opportunities; and, your organization will see your state of being and stay with you as you navigate through to the next step to accelerated growth.  Like other practices, mindfulness is a skill that is developed over time.  A good way to start is to spend a few minutes per day sitting quietly, focusing on your breathing, and just letting everything in your mind settle.  Be aware of the sounds around you, the things in the room, the feel of just sitting.  With time, you will find your breathing becomes more focused and your awareness sharpens.  The more you practice, the better you become in reaching that state of awareness.  

Mindfulness will make you a better decision maker and a better leader.