Leadership in times of crisis: an interview with Leif Johansson, Chairman AstraZeneca
Leadership in times of crisis: an interview with Leif Johansson, Chairman AstraZeneca
We are grateful and proud that so many in our network are reaching out and sharing their experiences in these unprecedented times. It helps to share different perspectives on what it means to do business as usual, in unusual times. We interviewed Leif Johansson, Chairman of AstraZeneca, and well-known Swedish business executive, in May and here we share his thoughts on the role of a successful non-executive and leadership in times of crisis.
Below are highlights from our interview. The full interview is available via link below (in Swedish language).
What qualities supported you to have leadership responsibilities from an early stage of your career?
I have always enjoyed new responsibilities and challenges. I have taken opportunities as they arise, even if they meant relocation to a different country or office. I’m pretty quick to learn and more importantly I enjoy it. This has been key to getting to grips with a business, its people and the building blocks for its future strategy swiftly.
How do you lead global organisations characterised by a multitude of cultures, backgrounds and remote teams?
Focusing on what the people in the organisation have in common is a good starting point. Whether it’s launching a medicine in 55 countries simultaneously or rolling out a new diesel engine in 18 different car models at the same time – there should be an emphasis on the common goals to be achieved and how their success will be measured.
Also, a focus on what we have in common as individuals and avoid boxing groups of people together, where one individual becomes a representative of an entire group. We are not French or Japanese, but rather co-workers that need to achieve good things together.
Leif Johansson spent over ten years within Electrolux and became Group CEO in 1994. He was appointed President and CEO of the Volvo group in 1997. In 2011 he became the Chairman of Ericsson, a position he held for many years. Today he is still active in several board engagements, among others Chairman of AstraZeneca Plc and Ecolean headquartered in Helsingborg. In 2013 he became “Officer of the Legion of Honour”.
What is the role of corporate culture and can it be changed and improved?
A successful culture allows an organisation to be the best it can be with all stakeholders feeling committed and understanding what they are trying to achieve. Culture is something we are, but we also have corporate strategy and the two must align. If your organisation’s culture isn’t aligned with the strategy you have two choices. One is to change strategy which generally isn’t done, and number two is to change the culture. To change a culture, you need to be very clear about what you want it to achieve and articulate the strategy so that it aligns with your desired culture. Finally, whilst a culture needs to support strategic goals, leaders and co-workers alike need to understand that they all have a part to play, it is not something imposed on them to be passively accepted.
What are your observations about working through the pandemic and how do you think we are coping with this crisis?
Generally, I would say our ability to adapt is very good, both as companies and individuals, even if we are missing the social context and the smell of coffee around the office. I think many feel that remote working is helping them be more efficient and I will definitely rethink the importance of business travel across the world for meetings that could run as well online. I think we will come to realize what a big leap we have made in technological advances that support remote working. That said, we need to cherish and enhance the social interactions that naturally occur in a workplace, such as being spontaneously creative in a non-structured way. This will become even more important to complement how we will be forced to work in a very structured and more disciplined digital world.
Do you think as a result of this pandemic that we will now be able to make real headway in environmental and sustainability issues?
I really think so, yes. But I think it is very difficult to achieve a sustainable future without first creating welfare resources that support us in crafting this more sustainable world. This crisis has taught us plenty and shown us the direction we should be aiming for. I would be surprised if we did not see more political initiatives and regulation as a result.
What have you learnt from earlier times of crisis?
The oil crisis, the financial crisis and now this pandemic, all were unpredictable and took us by surprise. As a business leader, you have to quickly switch your business to a new reality. Successful organisations have the ability to quickly reposition and adapt. Despite swinging changes, it is very important to hold on to strategy, structure, discipline and culture. To this end, I would say I’ve learned to somewhat just “get with the program” and deal with what’s on the table here and now.
Do you have any advice regarding how to balance the short versus the long-term?
It is important to have a long-term strategy and know what needs to be accomplished in a timeframe of around five or six years. In some cases, such as pharmaceutical industry it’s necessary to talk in terms of ten years. It’s a matter of holding on and staying true to the path set out, whilst adjusting along the way to ongoing changes. A continuous balancing act, more often a weekly occurrence rather than a quarterly exercise: measuring what one wants to do as opposed to what one must do.
You have now moved into a full-time non-executive career. What would you say are the biggest differences in leadership compared to your previous executive roles?
As CEO you are in charge seven days a week and responsible for everything that goes on, setting a structure, discipline and helping to get the best from the people in your organisation. As Chairman I lead the non-exec board work in relation to strategy, governance and talent management. It is not our role to carry out the operative work but rather follow-up issues, be aware of various aspects of the business and answer the questions the board is responsible for.
As Chairman I am tasked with leading a diverse group of individuals and making sure we reach unanimous decisions. A diverse board is often a better board but with many perspectives comes many different opinions on the best course of action. It is important to have everyone committed and involved and not only opining on their own area of expertise. This is engagement in a wider sense, using each member’s unique perspective across the strategy to really leverage the potential of diversity. This takes considerable leadership ability and time and effort to achieve an effective boardroom. It is often best to deal with diverse opinions on complex issues at board level rather than during the execution phase and I believe it provides for better quality decision-making.
Where do you find the inspiration and the information you rely on to make informed decisions?
Throughout my career, I have always strived to take part in and contribute to networks of various kinds that stimulate me. This has been a good way for me to keep up-to-date with what is going on around me and gives me the impetus to interact with people that don’t necessarily have the same professional responsibility or industry perspectives. I actively commit to interactions not necessarily in my comfort zone and I believe it makes me a better business leader.
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