Confronting reality: one CEO's playbook: leaders cannot just deal with the challenges and conflicts inside their own four walls. They must be ready to respond to potentially disruptive external events in a positive, creative and forceful way.

• Author: Luke, John
• Position: LEADERSHIP

THERE ISA COMPELLING NEED for true leadership in the world today, both in the public and private sectors. The world we're living in is one rife with conflict and challenge. Whether addressing everyday matters such as change management in an organization, disruptions within a market, or structural issues of the sort we see in the macro-environment, leaders will always be required to deal with conflict. And, without good leadership, that conflict will inhibit progress. This is true across both the public and private sectors.

At MeadWestvaco (MWV) we have worked diligently to transform our company to compete, and win, in the face of industry, market and broader macro challenges (see box on page 25). The story is still a work in progress. We have a ways to go until we fully achieve our vision and deliver the kind of financial returns we expect. But we've been successful so far, and we know we're on the right track.

A few fundamentals

Along the way, I learned a great deal--through my experiences leading at MWV, serving on boards, and from observing others. I've learned that there are a few 'leadership fundamentals' that are critical to advancing progress and change. They are:

* Have a vision; know where you want to go.

* Assemble a strong, capable team.

* Develop sound strategies and plans.

* Prepare for elements of internal conflict that result from change, either from those favoring a different course of action or outright resistance altogether.

* Engage and bring others along.

* Execute your plans with determination.

* Anticipate change and challenge, and confront those realities

To this last point, I have also learned that leaders cannot just deal with the challenges and conflicts inside their own four walls. They need to be ready to respond to potentially disruptive external events. As we have continued to reshape and redirect MWV, we have encountered a series of external developments that have represented a fairly steady backdrop of challenge and conflict.

The most important lesson

The impact of technology on our business is one example. We had a media and music packaging business that was fundamentally altered, like so many industries, by the invention of the iPod. I can sum up the effect on our business by asking you this question: When was the last time you purchased a CD?

Looking more broadly, there have been unusual external events that have had an impact on all of us, such as 9/11 and the credit and financial crisis of 2008-09, which has had a similarly numbing effect on economic activity that lingers even today. Presently, we are confronting very real financial...