Corporate Mauritius is going through a rough patch at the moment. The struggling EPZA sector, the various corporate scandals, the arrest of prominent leaders ? it is as if the gods out there have conspired to ensure that leadership on this island undergoes one of the most trying and turbulent times in its history. Yet, in spite of this evidence, I believe that it would be a mistake to argue that our corporations are run by dishonest or incompetent people who should resign, be fired or never have been appointed to begin with. I believe instead that the overwhelming majority of our corporate leaders are men and women of integrity who are competent and highly committed to the long-term success of the companies that they lead. I believe that what is now needed on this island is a new frame of mind ? a turnaround one, focused on restoring public or investor confidence in our organisations and our leadership ability.

• Not new Restoring public confidence in our leadership ability may be a new phenomenon in Mauritius. Overseas however, it?s been there for a while. For example, in the late 1990s, the British Broadcasting Corporation was a seriously demoralized organisation that was losing audience share and was being outpaced by commercial competitors. Cynicism and scepticism was the order of the day with many employees going regularly to the press to air their grievances. A culture of blame reigned supreme. Similarly, some three years ago, the Gillette Company was going through tough times with declining profit margins, loss of market share and demoralized staff. Initiatives in the various areas were being squashed through a lack of communication and co-ordination and the decisions made often led to duplication and waste.
• Two main strategies In both these companies, according to analysts attuned to their realities, an organisational pathology was spreading, characterized by a culture of secrecy, blame, avoidance, isolation, passivity and above all, feelings of helplessness. It was clear to many that both these organisations were entering a death spiral that would ultimately lead to their destruction. How did they escape from this death knell? According to Professor Kanter of the Harvard Business School, two main strategies were used. Firstly, the leadership of these organisations realized that they had to do everything to spark collaboration amongst all parties ? top management, staff, union members and so on. This collaboration was essential if a commitment to a new course of action was to result. At the BBC, Greg Dyke thus launched a major initiative called ?One BBC: Making It Happen.? He insisted that his executive committee meetings devote much of their time to themes that cut across the fragmented organisation and brought about both unity and commitment. It worked ? today the BBC is a powerful organisation that has no difficulty in standing up against the highest in the land, as evidenced for example, in their recent clash with Tony Blair over the Iraq war. Secondly, the leadership of these organisations invested heavily in the empowerment strategy known as ?action learning?. Realizing that they were facing complex issues, they established a series of working committees or action learning teams, focused on specific imperatives such as designing a new growth strategy or creating trust across boundaries. Here again, it worked ? productivity improved, customer satisfaction ratings went up and morale was given a significant boost.
• An overarching task I believe that the corporate upheavals we are currently witnessing in Mauritius are nothing more than a new phase in the process of change that surrounds us now that we are part of a globalized world. Like any change process, this new phase does and will continue to take some adjusting to. Restoring confidence is an overarching task that all leaders on this island share ? not only those affected by the recent corporate scandals. It can be done through collaboration ? replacing feelings of helplessness with opportunities for initiative, denial with openness and dialogue, blame with respect, isolation with collaboration and helplessness with opportunities for initiative. There is no other option.

Prof Eric Charoux Feedback: [email protected]