Leadership Lessons from Tesco's Response to Covid-19 Crisis

This presentation explores the leadership lessons that can be learned from Tesco's response to the Covid-19 crisis. It discusses the complexity faced by Tesco, their responses to the crisis, and the valuable lessons that can be applied in leadership. The presentation emphasizes the importance of a committed workforce, a customer-centric approach, and making decisions based on the situation.

AUTHENTIC
LEADERSHIP

TABLE OF CONTENTS
INTRODUCTION
Complexity of Tesco
Responses of Tesco
Leadership lessons that can be learnt from study
CONCLUSION
REFERENCES

INTRODUCTION
Leadership can be defined as act and process of leading, influencing and
guiding thoughts and actions of followers and in business organisation
leadership is about guiding and influencing thoughts and actions of
employees. As this involves influencing thoughts and actions of others
leaders require to possess several skills and knowledge and this skills and
knowledge get tested in difficult times. Covid-19 is an example of such
situation in which leadership got tested. This study is aimed to answer
‘what are the leadership lessons that we learn from current Covid-19
crisis?’ Tesco will be contextualised for this study and also an organisation
that effectively responded to Covid-19 crisis.

CONT..
Tesco is a British multinational organisation that was founded in 1919
and is headquartered at Welwyn Garden city, England. Tesco operates
6800 locations in around 10 countries. Presently John Allan is
chairperson of Tesco and Ken Murph is CEO and Ken Murphy CEO-
designate. Covid-19 created several complexities for Tesco and this study
aims at discussing lessons that can be learned from Tesco leadership.

COMPLEXITY OF TESCO
Covid-19 situation created significant complexity for Tesco and this complexity was a
result of crisis that was caused because of global pandemic. Some of the factors that
created complexity or affected regular organisational practices during the time of crisis
include-
Managing demand fluctuations- This is one of the most important issues creating
complexity in organisational performance. This means that during Covid-19 crisis demand
was highly fluctuating and in such situation it became very difficult to manage demand.
This means that in some of the areas demand was increasing whereas in some of areas
demand was decreasing. In addition to this demand of food items and groceries was
increasing and for other products it was decreasing. This created significant complexity for
Tesco during Covid-19 crisis.

CONT..
 Protecting People- This is one of the factors which is very unusual that during Covidd-19
crisis it became prime responsibility of Tesco to protect people those who are at stores for
shopping. This means that fear of spreading disease was everywhere and it became very
important for organisation to ensure that they are taking all the necessary steps to prevent
spread of disease. In addition to stores for open for a limited period of time in a day people
gathering was also high and it became very difficult to ensure adequate distance between
people and their safety.
 Challenges of supply- crisis of covid-19 also affected supply for retailers and Tesco also get
affected by this. Because of lockdownand disruption caused by pandemic supply was
significantly affected and this supply was more challenging for food items in retail store.
Panic buying of consumers resulted in stock outs and in this long term supply was a bigger
challenge then short term supply. It became very difficult to maintain a flow of supply when it
involved it more geographical areas and subsectors. This is because during some of the areas
were completely closed and maintaining a supply chain in such situation was a big challenge.

CONT..
Staying connected when customers are not shopping- covid-19 crisis brought new challenges for
Tesco but it does not reduced or eliminated challenges that organisation are facing on regular basis.
This is a challenge that is concerned with connecting with customers. It is easy for organisations to
stay connected with customers when they are regularly shopping but in a situation when customers
are not shopping it became very difficult for Tesco to remain connected with its customers. This is
very important to ensure that customers remain loyal once the crisis is over and crisis does not have
long term impact on Tesco.
Enhancing quality of digital performance- Digital mediums became important than ever during
covid-19 crisis. The reason is that even those people who like to go out and shop in stores were
unable to do so and they could only be served digitally by Tesco. This increased digital engagement
of customers of Tesco and required company to ensure high quality of digital performance. This
means that more customers were prioritizing online shopping and in this situation having effective
data strategy was also important for Tesco.

CONT..
Closing of physical stores- This is another issue caused by covid-19 crisis and cause of
crisis several physical stores have been closed and Tesco has also faced this issue. This is
because in many of the places stores were closed because of Government orders and in
some of the areas stores were closed as a measure to avoid unnecessary social contact.
Dealing with reduced to moral of employees during covid-19- Covid-19 crisis was
highly stressful situation and during this situation it became very important to ensure
high morale of the employees of Tesco. This is a great challenge for leaders to maintain
high morale of employees during a crisis because crisis situation like covid-19 bring
stress and anxiety for everyone and also affect employees. This is because employees
were working in a situation that was very risky and fear of disease was always there and
in such situation it became stressful for employees.

CONT..
Remote working- Remote working is concerned with employees working on different places
rather than working together in one office. During covid-19 crisis finance team of Tesco was
working remotely and this was also an issue because when workers are working remotely it
creates complications in communication and coordination in organisation.
Operational changes- Another issue the disco faced during covid-19 crisis was that big level
of operational changes were required to implement frequently and in less time. This was a big
challenge for organisation and leadership to prepare everything according to requirement of
situation. This included changes in working hours, changes in normal retail practices of Tesco
and support and role of store workers was also changed.
Discussion suggests that Tesco was greatly affected by covid-19 crisis and there were several
issues that contributed and increasing complexity of Tesco. Issues suggested that mainly
situations required effective decision-making and action-taking abilities and this was only
possible by having strong leadership for organisation.

RESPONSES OF TESCO
In order to deal with complexities and critical situation and reduce its impact
on organisation specifically in long term it is very important to respond it
adequately. Tesco was one of the organisations that took right actions to deal
with covid-19 situation. Responses of Tesco are as follows-
Preparedness of Tesco- It is very important that organisations are prepared
in advance in order to deal with future challenges but situation of covid-19
was something that could have been predicted in advanced. In such situation
Tesco was prepared and did not required to change or pivot anything. During
covid-19 Tesco accelerated actions that it was planning to do before covid-19
started and this helped Tesco in effectively dealing with covid-19 crisis.

CONT..
In order to deal with covid-19 situation and help in steer strategy of organisation some of the priorities of Tesco
are as follows-
Safety for all- During covid-19 safety was one of the most important priorities and in its approach to respond
to crisis Tesco ensured that it keeps safety at first priority. Safety for all approach included safety for customers
as well as safety for employees in Tesco. In order to ensure safety for all Tesco worked on maintaining
adequate distance between customers. In addition to this adequate practices were taken to ensure safety inside
stories of Tesco by regularly disinfecting. In addition to this other measures for safety from covid-19 was also
considered so that employees working within Tesco as well as those who are coming to shop at Tesco are safe.
Having strong focus on safety create confidence in customers that they can safely go and shop at Tesco without
significant fear of speeding disease while they go out on shopping. This way Tesco maintained safety as well
as trust of customers on Tesco. In order to ensure safety Tesco had a system that monitored flow of customers
in this store and in this Vin number of customers exceeds the maximum allowed then red light will show.
When it becomes safe for customers to enter store it will show green light. Along with this in order to highlight
safety measures in stores of Tesco, company also filmed an advertisement.

CONT..
Food for all- In covid-19 crisis food became one of the top requirements for everyone and this is why Tesco
focused on providing food to everyone in its respond to covid-19 crisis. Food also became a product that people
were panic buying and this is why it became difficult for Tesco as well to ensure adequate stock for food products
but it focused on its approach of food for all. Panic buying refers to purchase being made by customers more than
they require because due to covid-19 it became difficult for them to shop again frequently. This way Tesco
responded to crisis of covid-19 and ensured it can cope up with challenges created by crisis. Food for all was an
very important element to ensure that customers have trust in Tesco and its services that they will get required food
products at Tesco. This is because at many places food items were out of stock and became a reason for stress for
public in general. Ensuring food for all Tesco also introduced some new practices in which they provided a service
in which one customer could buy for other customers who were in Quarantine or not able to go out and buy
required products. In its respond to covid-19 crisis by food for all the insured having good stock levels and also
increased customers to shop as they normally would shop so that everyone can get products as per their
requirement. In order to support vulnerable customers they asked customers to shop safely in store rather than
online so that online slots for vulnerable customers can remain free. In this respond Tesco give priority access to its
stores to help NHS emergency service and care workers so that they can shop whenever they have time.

CONT..
Support colleagues- This was another important approach adopted by Tesco in order to deal with
crisis of covid-19. Employees play most important role in performance and successful achievement
of organisational objectives and this is why it is very important that during difficult times they are
also gives required support. Tesco ensured that in times of difficulty its employees and colleagues do
not get neglected and their interest is also is safe from the side of Tesco. This involved supporting
employees and knowing what they think about Tesco. In order to know their views and opinion Tesco
worked on its feedback system and where it used to collect feedbacks on weekly basis it started
taking feedback on daily basis. This helped Tesco in developing a central perspective for dealing with
crisis situation. In order to support collector of Tesco be created 16000 new permanent rose and also
hide 50,000 temporary when there was high demand from customers. In order to support colleagues
Tesco also ensure that colleagues who become infected from covid-19 and needed self isolation word
paid from first day of absence. For supporting colleagues of Tesco they created to mental wellbeing
tools and to around 30,000 employees these tools were availed free for a year.

CONT..
Supporting community- This is another form in which Tesco responded
to covid-19 crisis and extended its support to communities. In order to
help communities they have provided £13 million package of community
support and in addition to this also provided £15 million of food to
FareShare and the Trussell Trust in addition to their usual 3 million pound
monthly meal donation. They are also retail partner for SalutetheNHS.org
charity that provided 1 million meal to Frontline NHS workers.
This means that Tesco took several responses and ensure its priorities to
respond to covid-19 crisis in best possible manner. Tesco ensure that it is
able to provide seamless experience to its customers during the purchase
in time of covid-19. However it required the Tesco to take some measures
that was different but preparedness of Tesco helped in dealing with the
challenge effectively.

LEADERSHIP LESSONS THAT
CAN BE LEARNT FROM STUDY
Study about Tesco and its responses to covid-19 crisis recommend that there are several leadership
lessons that can be learnt from Tesco’s leadership.
Having committed workforce through effective leadership- Leadership of an organisation plays
a crucial role in commitment of workforce. Work force in Tesco is highly committed and its
commitment was visible through its performance during covid-19 crisis. Tesco asked his office
employees to help in retail operations and they readily supported Tesco and performed in its retail
operations. This is one of the very important lessons that can be learnt from Tesco that how to create
a committed and engaged workforce. In order to build and create a committed workforce leaders
and Tesco provides best possible support to employees so that they can perform effectively. Due to
covid-19 crisis Tesco required to make changes in operational activities and several other changes
were made on place. For successful implementation of change frequently and in less time it is very
important that employees and members of organisation are cooperative. This cooperative work
force can only be created through effective and supportive leadership.

CONT..
Customer centered- Regardless of the situation it is very important that organisations
are customer centred and they consider changing requirement of customers. This is
something that leaders can only understand that what requirements of customer on a
particular time are. Leaders in Tesco considered that safety and food are two most
important consideration for everyone and this is why they focus on safety for everyone
and food for everyone. It was thinking of leadership that in a crisis time nothing but food
is most important requirement and they worked on maintaining adequate stock of food
products. During the time of crisis Tesco did not only focused on those customers who
are buying from it and also considered those who will be buying from it. This means that
leaders considered complexity of situation and rather than solely focusing on it sales
focused on the requirement of customers and asked customers not to do panic buying.

CONT..
Making decisions based on situation- This is also one of the important leadership
lessons that can be learnt from leadership of Tesco. During covid-19 crisis Tesco
changed several rules and operational activities and during the time Tesco provided
priority to medical and frontline workers considering their situation during
pandemic. This means that when there were big lines outside Tesco stores company
created a rule that Frontline and medical workers can buy on priority basis and will
be allowed to go first and make purchase. It is very important that leaders consider
situations and communities rather than solely focusing on its sales and profit. Tesco
also considered situation of vulnerable customers and created rules to help and
support vulnerable customer. This means that during covid-19 crisis special time
slot was availed to vulnerable customers in which they could buy easily.

CONT..
Supporting Community- This is a very important leadership
lessons that can be learnt from Tesco leadership. Tesco
actively supported community and participated in different
programs for Welfare of community and different social
groups. Their participation for community well-being was
visible in different forms that include providing monetary
support and providing other types of support as per capability
of organisation. As Tesco is operating in Retail Industry and
could provide meal they helped community in that way.

THEORY OF LEADERSHIP
APPLICATION FOR THE STUDY
Crisis leadership is something that is more than just leading in organisation during a crisis. In
situation of crisis leader is the first person that employees in an organisation look at to find a
solution for the problem that has been developed. in such situation only Limited people can take
right decision and resolve problems or lead organisation during such time. Crisis situation is
something that leaders require additional skills and knowledge rather than just having leadership
qualities and knowledge. Tesco was also working during a crisis and leadership in Tesco handle
the situation very effectively. Some of the skills that crisis leadership require are as follows-
Strategic mindset and orientation to detail to understand problem- This is one of the very
important give that crisis leadership require that leaders are able to understand problem
effectively by focusing on details of the problem and having a strategic mindset. Leaders in Tesco
also used strategic mindset and focused on details of that they could effectively understand
problem and find right solution for crisis situation.

CONT..
 Collaboration and decisiveness- collaboration and decision is another
important skill that is required for crisis leadership. It is very important for
leaders that they are able to make fast and effective decisions in less time. In
Tesco also leaders ensured collaboration of employees and took fast decision
in order to provide effective services and ensure that crisis situation do not
negatively affect Tesco and its performance.
 Building trust by remaining calm- This is an important skills that crisis
leaders required to have. Crisis leadership is something that is required to be
carried out in a situation creating significant chaos and this is why remaining
calm for a leader becomes very important to create trust among others.

CONCLUSION
On the basis of above discussion it can be concluded that leadership of Tesco
during covid-19 crisis was very effective. Leaders during complexities in ensured
that they are still able to provide services to their customers without
compromising on its quality. Study outlines different issues that created
complexity for Tesco during covid-19 crisis and what are the actions that Tesco
took to deal with the crisis situation. On the basis of that some of the leadership
lessons were discussed in study that can be learnt from leadership of Tesco during
covid-19 crisis. These lessons include their approach of operating and this
approach not only maintained their operations during crisis but is also likely to
create a long term positive impact on performance and factors of Tesco. Their
actions helped in building goodwill for organization.

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