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March 24, 2012

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Smart leaders can manage the unexpected

DISNEY is set to unveil its fourth cruise ship at the end of this month: the Disney Fantasy. It comes at an uncertain time for the cruise industry. Little did Disney executives know at the time when they began implementing the operation that many consumers would become skeptical about a sea-worthy vacation in the wake of the Costa Concordia capsizing in Italy earlier this year. Later the Costa Allega was stricken and adrift in the Indian Ocean. Recent reports that 22 Carnival Cruise Lines passengers were robbed while on an excursion to the Mexican resort city of Puerto Vallarta contributed to further skepticism.

How could Disney have prepared for such unforeseen events?

The reality is that life - and business - is full of unexpected twists and turns. Sometimes the unexpected is a challenge; other times it is an opportunity.

The trick for all enlightened leaders is to know the difference. This happens through mastery in the following five areas of improvisational leadership: suspending judgment, managing attitude, reacting and adapting, taking risks, and learning and practicing.

Tip 1. Suspending judgment

From afar, Disney seems to have exercised suspension of judgment by first acknowledging what happened with the Costa Concordia and then objectively looking at the situation and relating it to their strategy.

Rather than focusing on promoting the cruising aspect of their new line, Disney instead emphasized their brand value of family entertainment.

Great improvisational leaders keep their minds open to possibilities, the thoughtful perspective of others, and inspiration!

Tip 2. Managing attitude

According to those who worked directly with him, Walt Disney hated the word "no!" His perspective was "tell me how we are going to make this idea work," an attitude that is still evident at Disney today.

Tip 3. Reacting and adapting

Disney's reaction to the Costa Concordia and messaging around its new cruise line was subtle.

The company was in essence "thinking slow and moving fast."

The ability to react and adapt requires you to be present, in the moment, and not over-think.

Tip 4. Taking risk

Disney knew its decision to move forward was not without risk or uncertainty.

Improvisational leaders need to take chances and seize unexpected opportunities when they arise.

Tip 5. Learning and practicing

Disney has created a culture of nimbleness, allowing them to learn how to adapt and then practice mastering the art of managing the unexpected.

Many people believe the ability to suspend judgment, display a positive attitude, react and adapt, and take risks are light switches that they can flip at a moment's notice. For the majority, this is 100 percent incorrect.

Improvisational leaders know it takes time and practice to learn how to use this skill set and succeed.

Whether it is Disney today, or your organization tomorrow, we need to improvise and embrace the unexpected. In it lie the opportunities to outpace your competition.

(Robert Kulhan is an adjunct professor of Business Administration at Duke University's Fuqua School of Business and the codirector of its Managing the Unexpected executive education program. )


 

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