Effective Leadership Today and into the Future
The global economic crisis might have had its roots in the US or Europe but the effects have traversed borders and Australia was also hard hit. While so much has been said and done concerning the crisis, including who was responsible and what measures ought to be put in place to prevent similar crises from occurring, the greatest lessons ought to be what leaders in different industries have learnt from it (Clawson, 2009). This is especially because this is not the time for leaders to blame others but to learn from the mistakes of the past.
Given that the global financial crisis has managed to unnerve many leaders and portray the available systems of policy making as not so relevant after all, leaders – who are charged with the responsibility of ensuring that there are appropriate measures in place to address various emerging issues – ought to rise to the occasion and ensure key economic sectors in the country are led in the right direction. With management generally being at point of shifting from an industrial to an information age, leaders ought to stand up and show leadership especially during this shift (Clawson, 2009).
The tourism industry in Australia is one industry that has been faced with leadership challenges. These challenges, although having been there from the past, have been exacerbated by the global financial crisis; and this apparent shift from an industrial age to an information age has made matters no better for the industry. This paper seeks to review how the global financial crisis has affected the paradigm shift from an industrial age to an information age; and what this crisis means for organizations and leaders now and in the near future).
It also seeks to identify the leadership challenges that are being faced by the tourism industry in Australia, and make recommendations on how these challenges can be addressed effectively. The Global Economic Crisis the Paradigm Shift In the modern world we live in, it is very easy to prove that information is what shapes what a leader is and can be. It is no longer about following old and tried methods that worked well in the last century when every leader knew that industrial development was the main force that was ever going to determine the way businesses would go (Bisignano, 2000).
Today, access to not only information but the right kind of information for leaders is what makes things to move forward. Part of this information, perhaps the most important, is that concerning the risks that organizations and so leaders are exposed to. Every leader runs the risk of causing many losses to an industry or an organization if one does not have access to the right information to deal with emerging crises and issues that are not predictable – such as the global financial crisis. The global financial crisis has affected the shift from an industrial age to an information age in many ways.
One of them is that there has been a rapid change in the view of leadership as a whole (Clawson, 2009). No longer are aspects like context, style, and personality so much applicable in the current world. If they were, then the financial crisis would not have occurred as its causes have been attributed to poor leadership – or at least to leadership flaws that in one way or another made the leaders to fail to respond to an urgent problem or to ignore the problem thinking that it was not going to be so affective of the organizations where it began.
And it began when investment banks failed to adhere to strict lending policies and instead relaxed their rules, ending up authorizing many subprime mortgages (Forbes, 2009). On the other side, the organizations and/or bodies charged with the role of supervising the financial sector also were too drawn into following traditional ways of doing things that they were only able to come to their senses when there was reported massive defaulting on the mortgages, sending a shiver down the entire financial sector.
The result was the massive collapse of these financial institutions. The crisis made the leaders to fail to see what needed to be done. They were blinded by ignorance and a feeling of having achieved after a long time of stability in the world economy (Clawson, 2009). The crisis has accelerated the shift from a leadership that waits to act on an issue long after a crisis has already happened to a leadership that is more inclined towards trying to ascertain the possible causes of disaster and acting early enough.
It has led to a case where a lot of focus is being placed on how to prevent organizational challenges and shortcomings as opposed to seeking to manage the effects when they are already there (Kouzes, 2006). More leaders have had their eyes opened to the unlimited possibilities that are made available to them through the information technology age so that they can use this information to address the emerging challenges before they are able to become huge and unmanageable problems. All these changes have come about because of the global finical crisis which has made leaders to review their leadership strategies (Clawson, 2009).