Generations of your leaders have never experienced a recession in their professional lives. Are you ready?

When will the recession begin? How bad will it be? The answers to these three questions are anyone’s guess.
What we do know is that a recession is coming – the current geopolitical conditions foretell the future: rapid inflation, spiking interest rates, political unrest, and resulting supply chain issues, as well as the ongoing challenge of a highly contagious virus that will most likely never go away.
The writing is on the wall. At some point, the economic cycle will turn, and the economy will begin to decline or continue to stall.
Recessions happen all the time, it's a normal part of the economic cycle. However, what’s particularly interesting about this environment is that it will likely be the first recession that members of Gen-Z and most Millennials have ever experienced – that is, aside from the initial shock of Covid-19 pandemic. Any Covid-induced economic shrinkage was more of a disruption than a true recession. This type of downturn can be described as “V-shaped,” or characterized by a short duration and swift recovery (for example, Western economies’ post-pandemic growth, driven by lower interest rates, constrained supply, and government stimulus).
Under the current economic conditions, the recession ahead is classic both in the sense that companies are cutting costs and delaying investment in anticipation, and that its causes can be attributed to external factors. Younger leaders are facing a new, but not entirely unfamiliar, challenge.
Over the past few years, Millennial and Gen-Z leaders have risen through the ranks, taking on significant leadership roles across all industries. During the pandemic, these leaders leveraged their tech savviness to weather the challenges of working from home and the shift to a hybrid-virtual environment. Now, new generations of managers and leaders will experience this set of recessionary economic conditions for the first time, and it’s impossible to predict what will happen.
What we do know is that a recession can change many things, from the obvious to the less obvious. Let’s start with the obvious. Companies will quickly look for ways to conserve cash and protect margins, which often means slowing spending, layoffs, and restructuring to cut costs. Tech companies that boomed during the pandemic have started to reduce spending and announcing hiring freezes, signaling for companies in other industries to do the same. Jobs will be at risk. If you cannot prove a good ROI, your project is at risk. There are no longer unlimited resources to try out new ideas, and emphasis shifts from growth to profitability at all costs. An increase in uncertainty will make companies more conservative and tentative. All these are well-known dynamics.
Less obvious is the impact of increased uncertainty on people. Coupled with rising fear in general, volatility is the name of the game. Your investments just lost a lot of value. High inflation means that your purchasing power, and the new house that you stretched for, are declining in value. You’re worrying about your job, or are not getting the bonus you banked on.
The combination of fear and an increase in messy information escalates your “cognitive load,” or the need to tap into your cortex. Responses triggered by fear force you to call on more ancient and less intelligent parts of your brain, effectively reducing your IQ and decreasing the thoughtfulness of your decision making. The solution? While your brain is triggered to respond with its most animalistic “fight or flight” parts, you need to be smarter about navigating your new work and home life.
What are the implications of this on organizations? For one, fear responses may decrease teamwork and collaboration while increasing peoples’ self-interest (aka – the burning need to keep their job). At a time when teamwork and tapping into everyone’s intelligence is more important than ever, external stresses will likely drive your team to be less than their best.
Given this understanding, as a leader, what are you doing to build resilience in your teams? How will you help them tackle this uncertainty and thrive? Resilience can be built on both an individual and team level through intentional coaching and practice. Cultivating these behaviors not only builds a better workplace culture — it also gives your people the tools to bounce back.
You may also need to develop a recession playbook that helps you map out how you’ll support your people while also driving the business forward. It’s no easy feat, but remains critical as you move forward during this challenging period.
One practice we know helps build team and organizational resilience is something we call Future Storming. Future Storming is the process of preparing your business leaders from the “future-back” rather than “today-forward.” This means anticipating trends that have yet to occur and envisioning how they might intersect in surprising ways. This exercise, which can be practiced by leaders at all levels, helps them build the capacity to navigate uncertainty, strengthen collaboration with diverse stakeholders, and bolster your business’ capability to manage risk and uncertainty.
For example, you can run Future Storming exercises where your team thinks holistically across business silos about where the industry, customer trends, technology, and competition will be three, five, or ten years in the future. As your team evaluates the intersection of these trends, they build the capacity to mitigate risk and uncover insights that provide opportunities for innovation. The focus on opportunities is essential, as recessions can be rocket fuel for disruptive ideas and startups. Furthermore, customer buying criteria changes during recessions, and can upend traditional relationships.
A good example of this disruption is Airbnb, which was born during the 2009 subprime mortgage crisis. In a time when many were strapped for cash, but had a few extra rooms to spare, it offered people the opportunity to gain an extra source of income by renting out their extra rooms or vacation homes. By injecting a new supply of affordable short-term rentals into the market, Airbnb disrupted the hotel industry and drove down hotel costs. The hospitality industry was already primed for disruption; the recession was just the multiplier.
In the next recession, which new, disruptive companies will thrive, and why?
Lastly, how can you empower the new generation of leaders to drive the cost and cash flow initiatives needed in your organization? Your team needs to be capable of contributing to improved cash flow ahead of time or just in time. This requires strong business and financial acumen to understand how their decisions will need to change in tighter times to free up cash and realize better margins or returns, while simultaneously continue innovating and testing out new ideas to drive the business forward.
Are your young leaders ready and capable of doing this? Have you developed them to be effective in such a scenario? Up until now, Gen-Z and Millennial leaders have focused almost exclusively on growth. Moving forward, they need to focus on margin, cost, asset utilization, and cash flow. While in growth mode, investment dollars for innovation were plentiful, but now disciplined innovation is the name of the game. These leaders need to be prepared to fail fast and cheap, and move with agility towards the better innovations and investments.
In good times, leaders may not be aware of how the decisions they make every day at work impact margins, but in a recession, leaders need to be hyperaware of how they spend time and resources. Furthermore, funding is easy to come by in the name of growth, but in a recession? Not anymore.
Learned future preparation, resilience, and the financial proficiency and confidence to drive cashflow are critical for success in this new environment. By providing tools, expectations, and discipline now, you can inspire your young leaders to take control of the future. Instead of acting rashly when the increase in uncertainty tricks brains into inaction, acting ahead empowers your leaders to drive the improvements required to be successful.
It’s time to get ready. It’s time to prepare your leaders to flourish in tough times. Prepare your team to storm the future by building the resilience and confidence necessary to make good business decisions when they are in the eye of the storm, all in the name of managing through this recession. Better yet, give them the skills to innovate new products, services, and business models to propel your organization forward, and do it all while using the smart part of your brains.
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Most CEOs are revising downward their forecasts for business, though they remain reluctant for the moment to declare a recession is at hand. Within the current administration, and in congress, there is broad disagreement about what to do to head it off. This uncertainty is wreaking havoc on business planning. Chief Executive reported in June that 300 CEOs downgraded business forecasts for the next 12 months to 5.6 out of 10. CEOs are telling their people to prepare recession plans.
At the start of the 2020 pandemic, we also lacked foresight to imagine the dramatic swings in the fortunes of companies. There were big winners like technology, retail, financial services, and home entertainment; there were big losers like travel and tourism, hospitality, and energy. The massive shifts in the global business landscape rendered strategic plans out of date and useless.
So, what now? How do we navigate the next big, bad thing?
In 20 years of advising CEOs and senior executives on strategy execution, we’ve learned that during crisis, some teams rise to the occasion, while others are less resilient and more susceptible to doubt, which prompts reaction in the moment and can foster a chaotic sense of doom. While there are winners and losers in industry sectors, it is also true that some defy the odds, look around corners, seize opportunities, and keep steady hands at the wheel.
What kind of leaders weather tough times?
Through a review of our data on leaders and teams, we’ve discovered that inevitably there are qualities of both that drive growth and innovation, even in the most challenging times. These qualities are not always intuitive. In fact, in shorter supply your team is stretched thin, exhausted, and too busy to stop the whack-a-mole game to think clearly and provide direction to others. What do these leaders and their teams do right?
They tap into the stabilizing power of composure and restraint
Leaders who demonstrate a high level of composure and restraint in challenging times create an environment where it is safe to make mistakes, and to tell others when things are not working. Leaders are then able to foster discussion in a calm environment and resolve small issues before they become bigger ones. These leaders get a read on the fast-changing environment and quickly problem-solve with colleagues.
They dial up their antennae of awareness and concern
Awareness and concern are two additional qualities that go hand-in-hand in times of change and uncertainty. As people struggle to navigate the pressures and volatility, it’s more important than ever to know what your team is thinking and feeling, and to be aware of the pulse of the organization. If a downturn is ahead, you may be glad that not every position post-Pandemic is filled. However, the reality for most companies is that their best talent is most at risk and likely to leave. Staying aware helps you shore up your best defense against threats to growth.
They ramp up their curiosity and interactivity
These are two leadership qualities that work together beautifully when you need to solve problems. During challenging times, many leaders turn inward to try to shoulder the burden of solving problems with a ready-fire-aim approach. They hear about an issue and move immediately into action. They may ask for input, but not in group settings. Thus, they put spokes in wheels and their best people are talking only to them; not to one another.
It may feel counterintuitive, but when you can be intentionally curious and convene smart people, you learn that they can solve the problem better and faster than you can. Because they’ve authored the solution, they claim ownership of it and put all their energy behind it. As you move through uncertainty, they begin to feel more confident of their own agency in managing turbulence. As Ken Blanchard once said, “All of us are smarter than any of us.”
They focus on unleashing the capabilities of their interdependent, interconnected teams
Virtual and hybrid work have already laid bare the hidden, destructive issues that can derail relationships and teams. Teams that had less face time and more conflict found the challenge of misunderstanding and unresolved conflict even greater. It isn’t only each team but your network of teams, and how they operate together, that makes your organization resilient.
The performance of teams is vastly more important to the future of work than individual performance. Teams are really the new heroes of organizations. When you see unresolved conflict between teams, you can diagnose, with absolute certainty, the role that the friction is playing in creating drag. As you try to pivot in a recession, it’s time to prioritize how teams in your organization are actively engaging with one another, aligning on the goals, and working with enterprise focus.
Our research on teams has found that in challenging times, trust, support, candor, and curiosity lay the foundation of team culture. Make it a priority to bring people together and resolve trust issues by encouraging candor and looking for solutions. Do this by first being curious yourself, and then encouraging others on your team to seek to understand. Take the time now to ensure that your teams are performing at their best, and you’ll reap the rewards today and well beyond any recession or downturn.
What now?
I remember a CEO that I know telling the story of the commitment he made to retain all of his employees during a downturn, even though he predicted a 20% revenue loss in the first year. That decision, while risky, turned out to be fortuitous, as the economy pivoted and demand soared long before expected. Competitors who had let go of employees struggled, while this company recovered quickly and remains above capacity today.
The decision he made was informed by the values and qualities of leadership that defined this company’s culture. The CEO led by example, demonstrating composure and restraint that others modeled. They spent time talking with their employees about the decisions that they were making and why. They demonstrated concern for their well-being when demand picked up and they were under pressure to deliver.
Take a lesson from this CEO and what we’ve learned about leadership and teams. Keep these three approaches in mind as you move forward:
- Stay focused on what works – good leadership will get you through.
- Double down on your people and your teams – listen, learn, respond, and invest to make sure they have the knowledge, support, and tools to do their best.
- Bring your leaders and teams together to navigate the uncertainty together – forget being a hero and instead draw in your organization to collaborate, cooperate, and invent the future – you will all be stronger as a result.
As the next months unfold, we can all prepare to be better leaders by reflecting on what we already know about leading in uncertain times. Think about what worked and didn’t work over the last two years. Ask yourself: what is the lesson and how can we apply it now?

During turmoil, the business community tends to focus on continuity — emphasizing efficiency in turn. Both are critical. If you were to take any lessons away from the financial crisis of 2008, however, it might be wiser to think about how resiliency is key to long-term success.
Even in the depths of that recession, resilient companies showed a 25-point higher EBITDA than “nonresilient” counterparts and enjoyed markedly better recovery. A large part of this was due to business preparedness, as “resilients” took measures to reduce nonperforming assets, strengthen balance sheets, cut costs and prioritize customer-focused investments.
However, building a successful company involves more than business-oriented resilience (think cutting costs or shifting processes). It also involves organizational resilience: the strength of your people and how they’ll manage and lead moving forward.
4 Tactics for building organizational resilience
Covid-19 reinvigorated the need for both business and organizational resilience. Those at the helm of a business need to not only find ways to lead through uncertainty and anticipate change, but also foster companywide resilience. If you’re looking to do so, focus on these areas:
1. Leadership
Crises often hit companies in many areas at once, whether that’s with teams, communication, or operations. Without the right mindset, leaders struggle to find true north to help everyone see past the present moment. Immersing leaders into similar experiences (through simulations and scenario-planning) can help provide insights into how to ameliorate crises, set clear objectives, and take action holistically — which research suggests has become increasingly important for leaders. Besides this, leadership groups can also encourage an open exchange of ideas and establish new networks.
2. Individuals
Even with Covid-19 out of the equation, there’s no shortage of stressors in employees’ lives. Three-quarters of people admit to experiencing job burnout, with 40% connecting it to Covid-19. Similarly, more than one-third of workers have clocked longer hours recently. To support overall organizational resiliency, companies must start from the ground level by ensuring their employees are fit to work.
With this in mind, offer opportunities to connect with professional coaches. Provide access to platforms or apps (such as TaskHuman) that allow for diverse personalized support. You could also introduce mindfulness training and equip managers with the skills to help them better engage in personal conversations.
3. Teams
Shifting from a hierarchical to a flat structure has been beneficial in many organizations. Zappos adopted a holacracy back in 2014, for instance, and its team members decided to manage themselves as internal “small businesses.” You don’t need to reorganize as radically as Zappos, but it helps to rethink the corporate structure to encourage teamwork. Additionally, invest in collaborative tools like Slack or Yammer, and encourage employees to reach out to colleagues they normally wouldn’t to bring more knowledge into the mix.
4. Talent
Covid-19 brought talent management and business continuity into sharper focus as employees “left the building” — many for good. One CEO at a leading Chinese insurance company utilized a Business Continuity Planning Software and took steps to address job dissatisfaction by investing in employee training and development, reasoning that continued learning will boost growth once the pandemic subsides. This is a solid starting point, but take things a step further and make cultural changes that generate, engage, and empower talent. Focus on solidifying talent in employees in their day-to-day lives — not just through periodic training.
Organizational resilience is a critical component to ensuring success through crisis, and it can only be accomplished by focusing on your most important asset: people. Invest in the right tools, provide the necessary support, and make talent development a priority. Your operations are only as resilient as your leadership.
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Leading with Purpose, Part 1
Most CEOs I speak with are not 100% at peace with their company’s purpose. As the market, their people and their business evolve, so will their purpose. As some of the best companies of past and present show us, there is strength, and even magic, in a great company purpose. What is also clear, however, is that this magic does not come from just having a “purpose” or “vision,” but rather from how well a company is executing against their purpose.
When Southwest Airlines (which has been profitable for 45 consecutive years, and on FORTUNE’s list of World’s Most Admired Companies for 24 straight years) was first starting out, their mission was to make flying affordable.1 They rallied their people on the idea that a grandmother should be able to affordably buy a ticket, at the drop of a hat, to get on a flight to see her new grandchild. This simple mission led to the “Southwest Effect,” which transformed the airline industry, and continued to be a lens with which the Southwest leadership team made key decisions.
Today, Southwest’s vision has evolved: “To become the world’s most loved, most flown, and most profitable airline.” And they are executing on this vision. They continue to drive superior shareholder returns against all industries on the S&P 500 (as they have for the past 44 years), and in 2018 were named the top low-cost airline in JD Powers customer survey reports for the second year in a row.
As the Southwest example highlights, great company purpose combined with a leadership team who will build the work-flows, culture, processes and metrics to live up to it can be an enormous employee motivator. But we have also experienced, both at BTS and with our global clients, that a good company vision and purpose on their own are not sufficient – employees need them to be even more personal to them as an individual. I remember a lunch I had twelve years ago with a 24-year old new hire who was my direct report. After some small talk he looked at me and said, “Why are you here? Why have you spent seven years with the same company?”
I’ll never forget that lunch. It was the first time I had been asked the question, and it was the beginning of a new decade where our employees were much louder and more active about wanting to reflect and spend time on our mission and purpose, linking it to their personal values and the impact they strived to have in the world. Luke, that 24-year old new hire, has made me and our company better as a result of his question.
In the last decade, there has been a growing emphasis in the business world on finding a deeper motivation to unlock greater meaning at work. For some this may sound ‘fluffy,’ or as one executive we spoke to commented, “Is this just the next version of the pursuit of vision and values? It sounds great on paper but too often makes little real difference as it tends to stay on the wall, rather than live in your heart.”
Yet your people spend the majority of their life at work and with colleagues. At its best, a sense of purpose is a way of bringing meaning to their work and understanding the contributions they are making to the company, as well as greater society. It makes sense, then, that employees who are clear on their personal and professional purpose end their work day invigorated and proud of what they’re doing instead of exhausted by mindless work that is bereft of real meaning.
According to a recent PWC study, 79% of business leaders believe that purpose is central to business success – but only 34% use their organization’s purpose as a guidepost for their leadership team’s decision-making. Signs that your workplace may be lacking organizational purpose are distracted employees and a lack of comradery. These are significant factors – so why don’t more organizations devote time to developing clear purpose and values? Well, developing organizational purpose is no easy task, and much of it starts with your own personal purpose. If you’re unsure of what exactly your own personal purpose is, have no fear – in the next two installments of this blog series, we will offer simple steps to help you uncover your personal and organizational purposes and get closer to leading through the lens of purpose.

Throughout her more than 15-year career at BTS, Jessica has pioneered turning strategy into action through the use of customized experiences & simulations for leading Fortune 500 clients and many large and start-up software companies in Silicon Valley. Jessica leads BTS USA with P&L responsibility for offices in San Francisco, Philadelphia, New York, Chicago, Phoenix, and Austin.
Although one of the most-discussed topics in business today, meaningful diversity seems to be elusive for most companies. We sat down for a casual and candid conversation with Jessica and uncovered some surprising insights about our clients’ challenges in creating a more diverse and inclusive workplace, and what companies can do about it.
We are lucky to have snagged a few moments of Jessica’s time — squeezed between a flight to New York for a client meeting and her morning school drop-off duties — to hear her perspective.
JENNY JONSSON: We have a lot to cover today, so if it’s ok with you, we’re going to jump right in! First, we would love to hear a little about your journey to becoming a Global Partner (GP) – and of course, it’s hard to conduct research for a paper on diversity and ignore that there’s a gender imbalance at our GP level.
JESSICA SKON: Well first of all, while I may be the only female Global Partner, I don’t want to lose sight of the fact that we do have a lot of women leaders at BTS: 35% of our Heads of Office are women. With that said, what I can say about my experience is that it has been fair. I don’t think I would still be here if I didn’t feel the expectations and the performance processes over the last 17 years were fair, and I have never felt like gender has been a factor in performance conversations. When I reflect on that after talking to other female leaders, that’s a pretty big deal.
MJ DOCTORS: Why do you think your experience has been so different from what many other working women encounter?
JS: Before my first Global Partner meeting, where we were looking at candidates for Principal and above, I was told, “This is always the best meeting of the year.” I wondered how it could be so drastically different than any other meeting, but they were right — it is an entirely data-driven, unemotional, and fair process.
It was a simple process and there were no biases. There are three parts to how we evaluate partners up for promotion:
- The background information on each candidate includes all of the specific promotion criteria and supporting data.
- The leader recommending the promotion gives a 5-minute summary emphasizing their view of the candidate’s weaknesses and areas for growth in the coming years.
- A fellow partner who has done due diligence against the facts acts as the “inquisitor” and shares findings.
This approach ensures it isn’t just a pitchfest. And this process is also something that has trickled down to other areas of the business, reducing a lot of the biases in our hiring and promoting.
JJ: Have you been approached by clients asking for guidance on a similar data-driven approach?
JP: Absolutely, clients realize they need to make this shift. I think it’s going to happen really quickly: we already have one client whose CEO has asked us to rebuild their entire performance system so that it’s more data-driven, more accurate, and more fair. In many companies, the way things are now, it’s often gray and you can’t help but rely on relationships and favoritism to guide promotion decisions.
MD: As part of our research, Jenny and I took a look at how BTS USA is performing on diversity metrics. While most publications and companies measure diversity by simply looking at gender and race (such as Fortune’s 50 Most Diverse Companies), we believe diversity is much more than that. Our definition encompasses gender and race, but also age, socioeconomics, gender identity, sexual orientation, education, life experiences, disability status, and personality traits — and the list could go on. However, as we currently only have results across race and gender, that’s what we’ll share here. How do you feel when you look at these charts?
JS: You’re bringing me back to 5 years ago when we had the same color chart for gender as we do now for ethnicity — which was horrifying. I think we all knew it was a problem but we weren’t mature enough in our thinking to solve it. Once we all woke up and clearly defined that we had a gender parity problem across the company, we were persistent and fixed it, and now I am proud of our gender pie chart. That is something I love about BTS: if we can clearly articulate a problem, we tend to be able to solve it. That’s actually the key for leaders across most industries: the art is being able to clearly define the problem.
But I think that we’re at ground zero again for the next phase. I would love for us to apply the same rigor we used to address gender disparities to other forms of diversity so that in 3 or 4 years we have a better mix, and why wouldn’t we?
JJ: Can you outline specifically how we made progress on our lack of gender diversity?
JS: We took a few major steps:
- Our Heads of Office decided it was a top priority. Without top leadership’s buy-in, you can’t really make progress.
- Then we identified the key pain point: for us, it was the entry to the funnel. Then we brainstormed the best ways to attract more female candidates.
- This led to some “ahas” about the root cause of that pain point. Many people think that consulting is inflexible and it’s difficult for employees with children to succeed. But there’s nothing further from the truth at BTS. Our Global CEO is quite progressive and incredibly flexible and open-minded when it comes to letting employees do what they need for their lives.
- So then our leaders got on the megaphone: our (now retired) US CEO began flying to each of our offices to talk about it, and I got on the phone with candidates to tell them my story of being a young working mother. A lot changed once we started to focus on it.
- In reviewing our hiring interview process, we also realized we could be more clear in our criteria, with observable behaviors and a more robust scoring rubric. This change eliminated any unconscious bias and we found that woman were scoring as high as our male candidates. When we looked in the past, they were (on average) scoring lower.
MD: Besides clearly defining the problem, what other factors pushed forward this change?
JS: Clients started noticing and asking for more women consultants, so it became an easy sell to our leadership. Our demographics should match – or even be ahead of – our clients’ demographics. We shouldn’t have to be scrambling every time a client says, “Um… there’s a lot of men here.” Sure, some traditional clients may not have said anything, so for some folks internally it was more difficult to understand the impetus behind the huge investment we were making in changing our recruitment process. But we also had enough examples of women starting at BTS who didn’t have many female role models. And we realized, we have to change this or some of our best people are going to leave.
JJ: So what about our clients? You have spent significant time over the past 20 years with CEOs and senior leaders of some of the world’s top companies. What aspects of diversity are they discussing the most?
JS: In the last couple of months, I have heard many top executives discussing how to change the paradigm of their leaders to promote and move people around who don’t necessarily fit the makeup of the candidates from the past. So for example, one client said that they have been really good at keeping people for life, but realize that they might not be able to maintain that with millennials, unless they can keep having great careers for them.
Also, companies still tend to focus on “the résumé”: did the applicant go to an Ivy League school, did she have a fancy job, how long did he work in this department, etc. All of this has been the formula for success over the last 50 years. But if we don’t crack that mindset, there will be amazing people who don’t get put in the right positions, because unconsciously our leaders are not seeing them or they are not open-minded enough to realize that this candidate might be better suited than that more traditional-looking candidate.
MD: What is some advice you would give clients to change that mindset?
JS: You and all your leaders have to first recognize your beliefs and own them before any mindset change can happen. That may be kind of obvious, but getting yourself and your senior leaders to fully own their beliefs is hard. You have to be both very self-aware and constantly striving to improve. It’s a battle every single day.
So when an executive comes to me and says, “This is weighing on my mind at the company-wide level,” I don’t say, “Well there’s a diversity training that we can do.” I do say, “You’re talking about changing deeply rooted mindsets: this requires getting leaders to articulate, own, and put those issues on the table, and commit to changing their beliefs moving forward.”
This is crucial to making sure you have the right people in the right jobs and you’re retaining the people that you want, which ultimately enables you to make the company successful. That is an immense amount of work, including interventions, working sessions, and sometimes coaching. It’s sometimes getting the most skeptical leaders to become the owners of this and driving these change management efforts. It’s deeper than just a training class.
JJ: If it’s not just a training class, what do you see as the platform?
JS: Any time you’re trying to drive large scale transformation, it’s a good idea to run experiments. And once they get some momentum and prove to be successful, you should shine a really big light on them to get broad adoption and then begin the comprehensive change management process.
So even though it’s out of our core services, I try to give clients ideas on small stuff they can do that is totally different than anything they have done before, to shake up people’s way of thinking about how they recruit, hire, train, promote, and think about people. I think a strong example of an initiative a company has experimented with is a leading software company and their strategic partnerships with nonprofits who help them access more and different talent pools.
So – once those initiatives have gained that momentum, it would be fun for us to do some consulting with their executives first around owning the beliefs, the history (it’s important to honor the history and not just break it), what worked in the past, what beliefs do you now hold as a result, and what are you going to do moving forward. All of this can be built around an experience that shifts people’s mindsets. It’s not so much diversity training… it’s a mindset shift process that starts at top leadership.
MD: Are there any companies that are beginning to successfully make this mindset shift and use more data-driven approaches to evaluation?
JS: Not really… that’s what’s tough about this. It’s bizarrely new. The more BTS is asked to provide broader talent services, the more surprised I am. We’re basically back in the Stone Age. It’s not pretty.
But we’re starting to work on something internally to track an individual’s acquisition of skills in a moment-based approach. At the beginning of a project the individual comes up with specific skills that she wants to work on. Then, during critical milestones and at the completion of the project, the rest of the team gives feedback on those specific areas. That’s real curation of a skillset, where the individual can own her career progress, people can validate it, and the company can say, “oh, she’s telling us she’s ready for a promotion, look, she’s actually done all of these things and demonstrated she can be successful.”
JJ: So really it’s democratizing the job application and promotion process.
JS: Yes! That’s exactly why many of our clients have turned to selection and assessment solutions. Assessments enable our clients to reduce unconscious bias in the hiring and promotion processes and ensure that a candidate has the actual skills necessary for the role, as opposed to a particular degree from a particular university, which is, at best, only a moderate proxy for job fit. Through these solutions, our clients effectively expand their talent pool and improve the likelihood that the candidates they hire have both skill and culture fit, which can lead to increased cognitive diversity – that is, team members who have different backgrounds and thus approach problems in different ways – improved retention, and reduced recruiting costs.
MD: We are seeing some progress from expanded talent pools, but the critical question is, once a female or a non-white employee has joined a company, why aren’t they moving up as fast as white men?
JS: I think maybe it goes back to the issue that I heard from one of our clients: there’s a history of certain roles looking and acting a certain way. It’s hard to overcome the unconscious bias of hiring and promoting people who fit that perception.
It could also be that people aren’t putting their hat in the ring for those promotions. Women and people from certain cultures aren’t oriented toward self-promotion and won’t put their hat in the ring if they are only 10% confident they’ll be successful. So in that case, you really have to focus on the current leaders: it’s so important that they understand this dynamic. Even at BTS, there are so many outstanding individuals who don’t self-promote, and you have to be the megaphone for them.
JJ: When running our leadership development simulation experiences, BTS has always encouraged participants to form the most diverse teams possible (gender, culture, geography, role, tenure, etc.). What’s the origin behind why we ask our clients to create diverse simulation teams?
JS: Initially, this was primarily because our clients value enabling leaders to create networks across the company, more so than because of any inherent desire for cognitive diversity. Clients often come to us when they need a push toward a “one company” mindset, so simulation teams are built to bring people out of their silos and align around a single company goal.
But, nowadays, people recognize that cognitive diversity is a good thing. That being said, at BTS, we are very protective of our culture and team environment, and sometimes we’re guilty of mistaking like-minded people as a proxy for “I think I’ll get along with you”. So you have to have two heads when hiring: we want someone different who will shake us up, but we also want to be at peace and have fun and a strong culture fit.
MD: If you could leave one piece of advice for leaders hoping to create a more diverse and inclusive workplace, what would it be?
JS: In alignment with Liz Wiseman‘s book, “Rookie Smarts,” I’m trying to get leaders to crave being rookies again. If you’re going to learn as fast as the pace of change, and be able to transform yourself, you have to be a bit of an adrenaline junkie with a “rookie mindset”. I want people to realize that it’s not scary to do something different and new – it’s exciting. And, if you put yourself in an uncomfortable role, you get humbled, become curious, and seek advice from the best around you. As a result, you will most likely do the best work of your life.
There is a correlation between the “rookie mindset” and shifting beliefs in support of a more diverse team: we need leaders who crave differences. That has to be the overarching mindset when you’re recruiting and looking to add members to your team. If you crave differences in skills and personal history and combine that with culture-fit, then innovative ideas, high performance, and fun should follow. Others will notice the benefits of the diverse team and follow, assuming the appropriate recruitment and performance systems are in place. That’s how you start to shift mindsets at the top and eventually throughout the company.
About the Authors
Diversity has been a passion area for both MJ Doctors and Jenny Jonsson, both of whom have spent significant time – prior to and while at BTS – working to improve economic opportunities for women, immigrants, and individuals of varying socioeconomic backgrounds.

Leading with Purpose, Part 2
As we discussed in the first post of this blog series, purpose is an essential ingredient for business success and employee engagement today. Yet purpose is a nebulous concept, and often difficult to pinpoint. I know this firsthand. Around twelve years ago, a consultant in his early 20s joined the BTS San Francisco office where I was working, and I took him out to lunch. Within ten minutes of sitting down to lunch, he asked me, “So what’s your purpose? Why have you been at the firm for so long?” I’ll never forget it. I’d been at the company over six years, and that was the first time somebody asked me that. I felt it was a fair question, and yet I didn’t have an eloquent answer at the ready.
Coming up with a response, I started to talk about some of my guiding principles, things like learning and having fun, how I’m proud of the impact our work has on clients, and how I love building a team of leaders (or a business) that grows every year. The question from this new hire, though, who was probably ten years younger than me, put me on the spot and made me feel a bit inadequate as a leader. At first I did not have a crisp, compelling answer.
Since then I’ve been in many dinners with other executives from Fortune 500 companies to tech startups, who more and more frequently are being expected to lead their organizations with a clear purpose… and at the same time understand that each employee’s purpose and what motivates them is going to be slightly different than theirs, the firm’s and their peers’, and that’s okay. Once a leader or a firm has clarity of purpose it can be a beautiful energy and driving force, and should be the first lens with which leaders run their business.
So, how does one find a sense of purpose?
In truth, many people assume that only those who follow a vocation like medicine, teaching or work in the charitable sectors can have a true sense of purpose at work. Our experience, as well as much current research and writing, would suggest otherwise.
One simple way of looking at this is captured elegantly by the Japanese concept of Ikigai, or ‘The reason for being.’ The idea of Ikigai is that one’s sense of purpose lies at the intersection of the answer to four questions:
- What do I love?
- What am I good at?
- What can I get paid for?
- What does the world need?

Image from Forbes.com
Take these four questions and look at the organization you are already a part of. Use them to see if you are in touching distance of doing more purposeful work, whether it be at the core of what you do or as a part of work that sits slightly outside the current definition of your job. Whilst we may not get the ultimate answer to the purpose question from our current work, once we have identified our own Ikigai we can go in search of the more meaningful elements of our jobs and start shaping the agenda at work in a new way. In the next installment in this blog series, we will discuss how to use your personal purpose to shape your organizational purpose and lead with meaning.

